IP Group adds £10m to buyback after focusing on profitable exits

(Sharecast News) - Intellectual property company IP Group reported a wider annual loss and lower net asset value as it focused on generating cash from profitable investment exits and said it would use the money to extend its share buyback by £10m. IP, which invests in science and innovation startups, posted pre-tax loss of £206.7m in fiscal 2024, compared to loss of £176.3m a year earlier. Net asset value per share fell to 97.7p from 114.8p.

Total portfolio value fell to £837.4m from £1.164bn while gross cash and deposits increased to £285.6m from £227m. In the year to date IP said it had delivered a further £25m in realisations and increasing lifted the buyback programme to a total of up to £80m.

Chief executive Greg Smith said the group outperformed "a relative lack of liquidity across the venture capital market, despite our negative NAV per share performance".

"These exits included our largest ever cash realisation with the sale of Featurespace to Visa, alongside a number of other holdings, at or above carrying values. The £183m of cash proceeds strengthened our liquidity position and enabled us to significantly increase our share buyback programme while continuing to invest for growth," he said.

"While the current macro environment remains challenging, the group is appropriately sized, well financed and continues to believe it is well positioned for an improved appetite for high growth investments while remaining focused on delivering returns for shareholders."

Reporting by Frank Prenesti for Sharecast.com