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For IP Group, a rocky first half for equity markets weighs on value

The investment group reported a decline in the fair value of its portfolio during the first half of the year
August 12, 2016

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.

IC TIP: Hold at 169.5p

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:169.5pMARKET VALUE:£958m
TOUCH:169.5-169.9p12-MONTH HIGH:264pLOW: 118p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE: 132pNET CASH:£175m

Half-year to 30 JuneTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201578.966.412.9nil
2016-24.1-33.9-5.9nil
% change----

Ex-div: na

Payment: na