With listed companies making up a sizeable chunk of IP Group' s (IPO) holdings, it is unsurprising the fair value of its portfolio declined during the first half of the year. A fall in the share price of Aim-listed Avacta (AVCT), hVivo (HVO) and Xeros (XSG) shaved a net £24.5m off the fair value of the investment group's portfolio over the period, finishing at £526m. This compares with a £73.7m gain the previous year.
The group, which invests in early-stage technology ventures, slowed its rate of investment slightly, ploughing £13m into 29 portfolio companies. This took its portfolio to 83 companies as well as strategic stakes in a further three multi-sector platform businesses. Management sold its stake in Tracsis (TRCS), which generated £13.1m of the £14.5m group cash proceeds from divestments.
Portfolio highlights during the period included the technology division's largest holding, Actual Experience, signing a five-year framework agreement with Vodafone (VOD). IP also developed its partnerships in the US, signing agreements with the University of Washington and Johns Hopkins University, which gives it an opportunity to commercialise the universities' intellectual property.
IP GROUP (IPO) | ||||
---|---|---|---|---|
ORD PRICE: | 169.5p | MARKET VALUE: | £958m | |
TOUCH: | 169.5-169.9p | 12-MONTH HIGH: | 264p | LOW: 118p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 132p | NET CASH: | £175m |
Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2015 | 78.9 | 66.4 | 12.9 | nil |
2016 | -24.1 | -33.9 | -5.9 | nil |
% change | - | - | - | - |
Ex-div: na Payment: na |