REG - IP Group PLC - £119m initial cash after sale of Featurespace

IPAnnouncement

19/12/2024 13:15

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RNS Number : 8039Q  IP Group PLC  19 December 2024

 FOR RELEASE ON  19 December 2024

 

 

IP Group plc - £119m of initial cash proceeds following completion of sale of
portfolio company Featurespace to Visa

-     Further £25m to be applied to share buyback programme

 

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in
breakthrough science and innovation companies with the potential to create a
better future for all, is pleased to confirm that it will receive £119m of
initial cash proceeds following the completion of the sale of portfolio
company Featurespace Ltd to Visa.

The Group was the first institutional investor in Featurespace in 2012 and has
invested a total of £22.9m over seven financing rounds. This transaction,
which follows the sale of Garrison this year, further validates IP Group's
model and our expertise in identifying and supporting science and technology
businesses to successful exits.

IP Group anticipates ending the year having generated £179m of cash proceeds
from exits following a strong performance on realisations, more than four
times the £38.6m received in 2023.

The Group is now allocating £25m of the £119m proceeds from the Featurespace
sale to the current share buyback programme. Together with the up to £15m
anticipated to be received from the secondary sale announced on 09 December,
this will increase the buyback programme to a total of up to £70m. Since this
programme was announced in December 2023, the Group has bought back 65m
shares, approximately 6% of the opening shares in issue, for a total of
£28.9m.

Greg Smith, Chief Executive of IP Group, said: "Congratulations to the
Featurespace team. As our biggest exit to date, we're delighted with this
outcome which represents an excellent financial return for IP Group. As the
most experienced and active UK based, early-stage science investor, IP Group's
sustainable model has developed and supported some of the most exciting
businesses in deeptech, life sciences and cleantech. We are pleased to be able
to return an additional £25m of cash to shareholders through our share
buyback programme."

As at 13 December 2024, IP Group had gross cash and deposits of £173.4m, long
term debt of £129m, and holdings in listed companies of £159m. The Group
anticipates gross cash and deposits of £279m after the receipt of the
Featurespace funds which is expected before the year-end. Together, these
represent approximately 62% of the Group's current market capitalisation yet
account for only 29% of the Company's last-published NAV.

IP Group announced on 26 September 2024, that it expected to
receive £134m total cash for its holding in Featurespace, of which
£119m would be received on completion and £15m subject to deferral. At
that time, the Directors anticipated that the transaction would result in an
increase from the Group's FY23 net asset value of
approximately £51m(1) (a 70% increase), of which £37m(1) was recognised
in our HY24 results.

( 1 ) Net of carried interest and deal costs

 For more information, please contact:

 

 IP Group plc                       www.ipgroupplc.com
 Liz Vaughan-Adams, Communications  +44 (0) 20 7444 0062/+44 (0) 7967 312125
 Portland
 Alex Donaldson                     +44 (0) 7516 729702

 

Notes for editors

 

About IP Group

 

IP Group accelerates the impact of science for a better future. As the most
active UK based, early stage science investor, we develop and support some of
the world's most exciting businesses in deeptech, life sciences and cleantech
(led by Kiko Ventures). Including through Parkwalk, the UK's largest growth
EIS fund manager, we back world-changing innovation emerging from leading
universities and research institutions. Our specialist investment team
combines sector expertise with an international approach. Together we have a
strong track record of success, having backed high-profile companies including
Oxford Nanopore Technologies plc, First Light Fusion, Hysata, and Oxa. IP
Group is listed on the Main Market of the London Stock Exchange under the code
IPO. For more information, please visit our website at www.ipgroupplc.com
(http://www.ipgroupplc.com/) .

 

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