IP Group posts narrower first-half loss

(Sharecast News) - IP Group reported a narrower first-half loss on Tuesday as it hailed progress across its portfolio, including a landmark US flotation, while reiterating its confidence in delivering over £250m of exits by 2027. The FTSE 250 deeptech investor posted a net loss of £43m for the six months ended 30 June, down from £109.9m a year earlier, as net asset value per share edged 1.5% lower to 96.2p.

NAV stood at £883.1m, down from £1.07bn at the same point in 2024, though the group said that had since recovered to around 100p per share as of 12 September on the back of gains in its listed holdings.

Portfolio company Hinge Health floated on the New York Stock Exchange at $32 a share and ended the period at $52, valuing IP Group's remaining stake at £39.1m, while Oxford Nanopore beat guidance with £105.6m of first-half revenue and lower losses.

The group also highlighted a series of funding rounds across its holdings, including $15m at Accelercomm, $10m at Lumai, €30m at Tado, €14.2m at Vytal and £12m at Mixergy, with total portfolio fundraising reaching £372m in the half.

Cash proceeds from exits rose ninefold year-on-year to £30.3m, supported by a £25m share buyback completed during the period, with a further £20m extension launched.

IP Group invested £36m across 21 companies and ended the half with gross cash of £237.3m, up from £161.3m a year earlier.

It said fair value gains in its quoted holdings had added £32m since 30 June, including a £23m increase in Oxford Nanopore.

"The group made strong progress in the first half of the year, delivering over £30m in cash proceeds, a near ninefold increase year-on-year," said chief executive Greg Smith.

"The successful IPO of Hinge Health on the NYSE was a standout milestone, and together with gains in Oxford Nanopore, underscores the resilience and quality of our portfolio.

"With NAV per share now at 100p as of 12 September, a strong pipeline of new and maturing companies and improving market sentiment, the group remains confident of delivering more than £250m of exits from private company holdings by the end of 2027.

"As one of the world's most experienced university IP investors, IP Group is uniquely positioned to capitalise on fiscal reform and rising demand for high-growth innovation while remaining firmly focused on delivering long-term value for our shareholders."

At 0824 BST, shares in IP Group were up 0.54% at 55.8p.

Reporting by Josh White for Sharecast.com.