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(Sharecast News) - IP Group reported a portfolio fair value of ?1.05bn in its final results on Wednesday, down from ?1.13bn year-on-year.
The FTSE 250 intellectual property-based investor said it saw a 169% increase in cash realisations for the year ended 31 December to ?79.5m, which exceeded investments into the portfolio for the first time since 2007.
Investment into the portfolio totalled ?64.7m for the period, down from ?100.9m, while the net portfolio fair value reduction totalled ?43.9m, or around 4%, which was in line with the 4% reported in 2018.
IP Group said its hard net asset value totalled ?1.14bn, or 108p per share, down from ?1.22bn or 115p per share in 2018.
Its net assets stood at ?1.15bn at year-end, falling from ?1.22bn year-on-year, although the firm reportes "strong" liquidity, with gross cash and deposits at 31 December of ?194.9m, down from ?219m, and net cash of ?112.4m, falling from ?121.2m.
The company reported a negative return on its hard net asset value of ?73.7m, narrowing from the ?75.6m negative return it reported in 2018.
IP Group's loss for the year narrowed to ?78.9m, from ?293.8m, while its net overheads reduced by 13% to ?22.6m.
Parkwalk Advisors, the company's specialist EIS subsidiary, grew assets under management to ?300m from ?220m during the year.
IP Group reported further encouraging progress in the development of its businesses in the United States and Australia during the period, and noted the strengthening of its board through the appointment of two additional independent non-executive directors.
Looking at its portfolio, IP Group noted that Oxford Nanopore announced investment and secondary share sales totalling ?109.5m during 2019, having more than doubled its revenue and orders to $43.7m and $60.6m, respectively.
Istesso, meanwhile, announced a positive outcome from its phase 2a study of MBS2320 for rheumatoid arthritis, while "significant" commercial progress was cited at Ceres Power, including its first product launch with Japan's Miura and a further ?8m licence and joint development agreement with Korea's Doosan.
Total funds raised by portfolio companies were ?430m, down from ?717m in 2018, including financing rounds for Inivata at ?40m, Featurespace at ?25m, and Azuri Technologies at ?20m.
Since the year ended, IP Group noted that Ceres Power had announced Bosch was increasing its stake to 18% from 4% with a ?38m strategic investment, which included a ?22m partial realisation by IP Group.
Total further cash realisations from the portfolio were ?55.4m in 2020.
"In 2019 realisations from our portfolio hit a record ?79.5m and exceeded investment into the portfolio for the first time since 2007," said chief executive officer Alan Aubrey.
"This strong cash generation has continued into 2020, with realisations to date now totalling more than ?55m.
"Realisations from our maturing companies, the ongoing focusing and rationalisation of the portfolio as well as tight cost control has placed the group in a strong financial position and these remain three areas of focus for the group in 2020."
Aubrey noted that during 2019, the company's portfolio saw a net fair value reduction of ?43.9m or 4%, and, while he described that as "disappointing", he noted it reflected ongoing rationalisation in the portfolio and significant headwinds, particularly in the UK market.
"However, our three most valuable holdings, Oxford Nanopore, Istesso and Ceres Power, made excellent progress during the year with Oxford Nanopore and Ceres Power also announcing positive developments since the year-end.
"Consequently, we remain confident in the prospects of our portfolio, which we continue to believe includes world-changing businesses that will deliver impact and significant benefits for multiple stakeholders."
At 0919 GMT, shares in IP Group were up 0.51% at 58.8p.
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