(Alliance News) - IP Group PLC on Wednesday reported a drop in hard net asset value for 2019 due to a reduction in the fair value of its portfolio.
Also on Wednesday the London-based investor in technology companies announced that Non-Executive Director Jonathan Brooks has stepped down from his role with effect on Tuesday. Brooks has been in the role for nine years since 2011.
As at December 31, IP's hard net asset value per share 108 pence per share, down 6.1% from 115p on the same date a year before.
At the end of 2019, the group's fair value of its portfolio fell by 7.1% to GBP1.05 billion from GBP1.13 billion the prior year, reflecting a drop in value from the Life Sciences and Multi-Sector portions of the portfolio.
As at December 31, IP's portfolio comprises 57 "focus companies" - which represents 87% of its value - and 75 other companies. During the year, the group exited its interest in 8 companies, realising GBP79.5 million in cash proceeds, up from GBP29.5 million in 2018.
IP's portfolio loss for 2019 narrowed to GBP43.9 million from GBP48.4 million, with the major detractors being Autifony Therapeutics Ltd, PsiOxus Therapeutics Ltd and Topivert Ltd.
Positive contributors included Ceres Power Holdings PLC on new product launches and development contracts, while medical analysis firm Oxford Nanopore Technologies Ltd reported a robust 2018, leading to expansion in 2019.
"During 2019 the group's portfolio saw a net fair value reduction of GBP43.9 million or 4%, and, whilst disappointing, this reflects 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," said Chief Executive Alan Aubrey.
"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," Aubrey added.
Shares in IP Group were up 1.5% at 59.35 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Ip Group (IPO)
Ceres Power (CWR)