REG - IP Group PLC - Final Results <Origin Href="QuoteRef">IPO.L</Origin> - Part 6
01/03/2016 07:12
- Part 6: For the preceding part double click ID:nRSA5517Qe
70.0 70.0
Cash and cash equivalents - - 108.8 108.8
Total - 558.0 182.0 740.0
At 31 December 2014
Equity rights 1.3 - - 1.3
Equity investments - 345.9 - 345.9
Debt investments - 4.0 - 4.0
Other financial assets - - - -
Contingent value rights - 1.4 - 1.4
Limited and limited liability partnership interests - 4.6 - 4.6
Trade and other receivables - - 4.8 4.8
Deposits - - 30.0 30.0
Cash and cash equivalents - - 67.3 67.3
Total 1.3 355.9 102.1 459.3
All financial liabilities are categorised as other financial liabilities and recognised at amortised cost.
The Group does not consider that any change in fair value of financial assets in the year is attributable to credit risk
(2014: £nil).
All net fair value gains in the year are attributable to financial assets designated at fair value through profit or loss
on initial recognition (2014: all net fair value gains attributable to financial assets designated at fair value through
profit or loss on initial recognition).
All interest income is attributable to financial assets not classified as fair value through profit and loss.
14. Investment Portfolio
Level 1 Level 2 Level 3
Group Equity investments in quoted Equity investments in unquoted Unquoted debt investments Equity investments in unquoted Total£m
spin-out companies£m spin-out companies£m in spin-out companies£m spin-out companies£m
At 1 January 2015 138.2 193.2 4.0 14.5 349.9
Investments during the year 26.2 82.3 7.1 0.3 115.9
Transaction-based reclassifications during the year 2.3 (1.4) (0.9) - -
Other transfers between hierarchy levels during the year 24.6 (50.9) 0.1 26.2 -
Disposals - - (0.3) (0.5) (0.8)
Fees settled via equity - 0.7 - - 0.7
Change in fair value in the year(i) 10.0 84.7 (0.9) (7.3) 86.5
At 31 December 2015 201.3 308.6 9.1 33.2 552.2
At 1 January 2014 135.1 131.0 2.8 17.0 285.9
Investments during the year 11.4 32.8 2.6 - 46.8
Acquired with Fusion - 11.1 2.4 11.4 24.9
Fusion reclassified as subsidiary (20.5) - - - (20.5)
Transaction-based reclassifications during the year - 3.1 (3.1) - -
Other transfers between hierarchy levels during the year 20.4 (12.3) - (8.1) -
Disposals (5.7) (2.2) - - (7.9)
Change in fair value in the year (2.5) 29.7 (0.7) (5.8) 20.7
At 31 December 2014 138.2 193.2 4.0 14.5 349.9
(i) The change in fair value in the year includes a gain of £0.1m in exchange differences on translating foreign
operations, which is entirely attributable to Level 2 equity.
Fair values of unquoted spin-out companies classified as Level 3 in the fair value hierarchy have been determined, in part
or in full, by valuation techniques that are not supported by observable market prices or rates. Investments in 21
companies have been classified as Level 3 and the individual valuations for each of these have been arrived at using a
variety of valuation techniques and assumptions.
Where fair values are based upon the most recent market transaction, but that transaction occurred more that twelve months
prior to the balance sheet date, the investments are classified as Level 3 in the fair value hierarchy. The fair values of
investments categorised as Level 3 are analysed on a monthly basis to determine business factors which may make the most
recent investment rate no longer a representation of fair value.
There are no identified unobservable inputs to which the Level 3 fair values would be materially sensitive. This is
represented by the fact that if the fair value of all Level 3 investments were to decrease by 10%, the net assets figure
would decrease by £3.3m, with a corresponding increase if the unobservable inputs were to increase by 10%.
For assets and liabilities that are recognised at fair value on a recurring basis, the Group determines whether transfers
have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period. Transfers between tiers are then
made as if the transfer took place on the first day of the period in question, except in the cases of transfers between
tiers based on an initial public offering ("IPO") of an investment wherein the changes in value prior to the IPO are
calculated and reported in tier 2, and those changes post are attributed to tier 1.
If the assumptions used in the valuation techniques for the Group's holding in each company are varied by using a range of
possible alternatives, there is no material difference to the carrying value of the respective spin-out company. The effect
on the consolidated statement of comprehensive income for the period is also not expected to be material.
Transfers between Level 2 and Level 1 occur when a previously unquoted investment undertakes an initial public offering,
resulting in its equity becoming quoted on an active market. In the current period, transfers of this nature amounted to
£35.0m.
Transfers between Level 1 and Level 2 would occur when a quoted investment's market becomes inactive, or the portfolio
company elects to delist. There has been one such instance in the current period which amounted to £0.1m.
Transfers between Level 3 and Level 2 occur when an investment which previously had a most recent investment of over twelve
months ago undertakes an investment, resulting in an observable market rate. In the current period, transfers of this
nature amounted to £2.1m.
Transfers between Level 2 and Level 3 occur when an investment's recent investment becomes more than twelve months old,
with the price being deemed unobservable. In the current period, transfers of this nature amounted to £28.4m.
Fair value changes in Level 3 investments have been a loss of £7.3m in the period, recognised as change in fair value of
equity and debt investments in the condensed consolidated statement of comprehensive income.
Change in fair value in the year
2015£m 2014£m
Fair value gains 115.4 63.2
Fair value losses (29.0) (42.5)
86.4 20.7
The Company's interests in subsidiary undertakings are listed in note 2 to the Company's financial statements.
15. Trade and Other Receivables
2015£m 2014£m
Trade debtors 3.0 4.6
Prepayments 0.2 0.2
Other receivables - -
3.2 4.8
The Directors consider the carrying amount of trade and other receivables to approximate their fair value. All receivables
are interest free, repayable on demand and unsecured.
16. Contingent Value Rights
As a result of the disposal of Proximagen Group plc in August 2012, the Group received contingent consideration, in the
form of contingent value rights ("CVRs"), based upon future net revenues of two associated drug programmes. In line with
the Group's policies, these have been recognised as financial assets at fair value through profit and loss, and have been
fair valued at £1.4m (2014: £1.4m). The Group considers this asset to be Level 3 in the fair value hierarchy throughout the
current and previous financial years. If the assumptions used in the valuation techniques are varied by using a range of
possible alternatives, there is no material difference to the statement of financial position nor the consolidated
statement of comprehensive income.
17. Trade and Other Payables
Current liabilities 2015£m 2014£m
Trade payables 0.7 1.3
Social security expenses 0.2 0.2
Other accruals and deferred income 3.0 0.6
3.9 2.1
18. Borrowings
Non-current liabilities 2015£m 2014£m
Loans drawn down from the Limited Partners of consolidated funds 7.1 4.5
EIB debt facility 14.9 -
Contingent loans from university partners - 0.3
22.0 4.8
Loans drawn down from the Limited Partners of consolidated funds
The loans from Limited Partners of consolidated funds are interest free and repayable only upon the applicable funds
generating sufficient returns to repay the Limited Partners. Management anticipates that the funds will generate the
required returns and consequently recognises the full associated liabilities.
EIB debt facility
On 8 July 2015 the Group secured a £30m, 8-year debt facility from the European Investment Bank. The facility is to be
disbursed in two tranches, with the first tranche of £15m being drawn down during the period (£14.9m net of expenses). The
Group will use the proceeds to continue to fund UK university spin-out companies as they develop and mature.
A non-utilisation fee of 0.15% is charged over the undrawn element of the facility. In 2015, due to the timings of the
arrangement of the facility, the non-utilisation fee charged was £nil.
The first tranche of £15.0m was drawn down on 16 December 2015. There was £0.1m of initial transaction costs incurred in
the arrangement of the facility. This balance was set against the loan amount and is to be subsequently amortised over the
term of the loan. The associated charge to the statement of comprehensive income for 2015 was £nil. The capital is
repayable in ten equal payments over a five year period with the first payment due on 7 January 2019.
The drawn down element of the facility bears interest at a fixed rate of 1.98% with an additional variable spread equal to
the six month GBP Libor rate as at the first date of each six month interest period. The first £15.0m tranche was disbursed
on 17 December 2015 and the total floating interest rate (including the fixed element) for the remainder of 2015 was 2.48%.
The interest charged on the first tranche in 2015 amounted to nil.
The Group must ensure that the ratio between the value of the portfolio along with the value of the Group's cash net of any
outstanding liabilities, and the outstanding debt facility does not fall below 6:1. The Group must maintain that the amount
of unencumbered funds freely available to the Group is not less than £15.0m. The Group is also required to maintain a
separate bank account which must at any date maintain a minimum balance equal to that of all payments due to the EIB in the
forthcoming six months.
19. Share Capital
2015 2014
Issued and fully paid: Number £m Number £m
Ordinary Shares of 2p each
At 1 January 479,524,397 9.6 375,258,859 7.5
Issued under share placings 83,388,888 1.7 60,606,060 1.2
Issued under Fusion IP plc acquisition - - 39,150,484 0.8
Issued under employee share plans 1,734,883 - 4,508,994 0.1
At 31 December 564,648,168 11.3 479,524,397 9.6
The Company has one class of ordinary shares with a par value of 2p ("Ordinary Shares") which carry equal voting rights,
equal rights to income and distributions of assets on liquidation, or otherwise, and no right to fixed income.
In March 2015, the Group issued 56,888,888 new Ordinary Shares as part of a fundraising which raised £128.0m (before
expenses) at a price of £2.25 per share. Later in March 2015, the Group issued 1,552,144 new Ordinary Shares in order to
settle the 2012 LTIP scheme for which the vesting conditions were fully achieved and consequently the resulting shares
became issuable to the Group's employees. In May 2015, the Group issued 26,500,000 new Ordinary Shares as part of a
fundraising which raised £55.1m (before expenses) at a price of £2.08 per share. Later in May 2015, the Group issued
153,940 new Ordinary Shares in order to settle the exercise of certain options that had been issued under the Group's
Deferred Bonus Share Plan ("DBSP", see Note 21). Finally, in November 2015, the Group issued 28,799 new Ordinary Shares in
order to settle the exercise of certain DBSP options and former Fusion IP unapproved options.
20. Operating Lease Arrangements
2015£m 2014£m
Payments under operating leases recognised in the statement of comprehensive income for the year 0.4 0.4
At the reporting date, the Group had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2015£m 2014£m
Within one year 0.3 0.3
In the second to fifth years inclusive 0.1 0.3
0.4 0.6
Operating lease payments represent rentals and other charges payable by the Group for its office properties. Leases are
negotiated for an average term of five years and rentals are fixed for an average of one year.
21. Share-Based Payments
In 2015, the Group continued to incentivise employees through its LTIP and AIS. Both are described in more detail in the
Directors' Remuneration Report within the Group's 2015 Annual Report and Accounts.
Deferred Bonus Share Plan ("DBSP")
Awards made to employees under the Group's AIS above a certain threshold include 50% deferred into IP Group equity through
the grant of nil-cost options under the Group's DBSP. The number of nil-cost options granted under the Group's DBSP is
determined by the share price at vesting date. The DBSP options are subject to further time-based vesting over two years
(typically 50% after year one and 50% after year two).
An analysis of movements in the DBSP options outstanding is as follows:
2015 2014
At 1 January 362,608 -
Awarded as a result of deferral of previous year's AIS award during the year - 362,608
Exercised during the year (174,739) -
Lapsed during the year - -
At 31 December 187,869 362,608
As the 2015 AIS financial performance targets were met and as the number of DBSP options to be granted in order to defer
such elements of the AIS payments as are required under our remuneration policy are based on a percentage of employees'
salary, the share-based payments line includes the associated share based payments expense incurred in 2015.
Long-Term Incentive Plan ("LTIP")
Awards under the LTIP take the form of conditional awards of ordinary shares of 2p each in the Group which vest over the
prescribed performance period to the extent that performance conditions have been met. The Remuneration Committee imposes
objective conditions on the vesting of awards and these take into consideration the guidance of the Group's institutional
investors from time to time. Further information on the Group's LTIP will be set out in the Directors' Remuneration Report
within the Group's Annual Report and Accounts.
The 2015 LTIP awards were made on 21 May 2015. The awards will ordinarily vest on 31 March 2018, to the extent that the
performance conditions have been met. The awards are based on the performance of the Group's Hard NAV and Total Shareholder
Return ("TSR"). Both performance measures are combined into a matrix format to most appropriately measure performance
relative to the business, as shown in the Directors' Remuneration Report within the Group's 2015 Annual Report and
Accounts. The total award is subject to an underpin based on the relative performance of the Group's TSR to that of the
FTSE250 index, which can reduce the awards by up to 50%. The 2015 LTIP matrix is designed such that up to 100% of the award
(prior to the application of the underpin) will vest in full in the event of both Hard NAV increasing by 15% per year on a
cumulative basis, from 1 January 2015 to 31 December 2017, and TSR increasing by 15% per year on a cumulative basis from
the date of award to 31 March 2018, using an industry-standard average price period at the beginning and end of the
performance period. Further, the matrix is designed such that 30% of the award shall vest (again prior to the application
of the underpin) if the cumulative increase is 8% per annum for both measures over their respective performance periods
("threshold performance"). A straight-line sliding scale is applied for performance between the distinct points on the
matrix of vesting targets.
The 2013 and 2014 LTIP awards were both made in 2014. The awards will respectively ordinarily vest on 31 March 2016 and 31
March 2017, to the extent that the performance conditions have been met. The awards are based on the performance of the
Group's Hard NAV and Total Shareholder Return ("TSR"). Both performance measures are combined into a matrix format to most
appropriately measure performance relative to the business, as shown in the Directors' Remuneration Report within the
Group's 2015 Annual Report and Accounts. The total award is subject to an underpin based on the relative performance of the
Group's TSR to that of the FTSE250 index, which can reduce the awards by up to 50%. The 2014 LTIP matrix is designed such
that up to 100% of the award (prior to the application of the underpin) will vest in full in the event of both Hard NAV
increasing by 15% per year on a cumulative basis, from 1 January 2014 to 31 December 2016 (2013 LTIP: 1 January 2013 to 31
December 2015), and TSR increasing by 15% per year on a cumulative basis from the date of award to 31 March 2017 (2013
LTIP: to 31 March 2016), using an industry-standard average price period at the beginning and end of the performance
period. Further, the matrix is designed such that 30% of the award shall vest (again prior to the application of the
underpin) if the cumulative increase is 8% per annum for both measures over their respective performance periods
("threshold performance"). A straight-line sliding scale is applied for performance between the distinct points on the
matrix of vesting targets.
The 2012 LTIP awards vested on 31 March 2015 and thereafter shares in IP Group were issued via the Group's employee benefit
trust to the relevant members of the Group's staff accordingly. The table below sets out the performance measures relating
to the 2012 LTIP awards and the actual performance achieved.
Performance condition Target performance Actual performance
Hard NAV(at 31 Dec 2014) 8%: £365.5m15%: £421.9m £451.3m(18.4% p.a. growth)
Annual TSR1(share price) 8%: 164.1p15%: 196.0p 235.6p(22.7% p.a. growth
Comparative TSR1 FTSE Small cap+71% IP Group+78%
1Hard NAV target increased by Committee to reflect £21.7m Fusion IP net assets acquired in 2014 and £97.4m net proceeds of
the Group's placing in 2014.
2 Group TSR performance based on three-month average prior to date of award and prior to 31 March 2015
As the performance measures were achieved in full and the underpin was exceeded, 100% of the 2012 LTIP awards vested on 31
March 2015.
The movement in the number of shares conditionally awarded under the LTIP is set out below:
2015 2014
At 1 January 3,650,493 6,163,436
Forfeited during the year (39,876) (144,129)
Vested during the year (1,552,144) (4,508,994)
Notionally awarded during the year 1,320,122 2,140,180
At 31 December 3,378,595 3,650,493
The fair value of LTIP shares notionally awarded during 2015 was calculated using Monte Carlo pricing models with the
following key assumptions:
2015 2014
Share price at date of award £2.188 £1.775
Exercise price £nil £nil
Fair value at grant date £0.78 £0.52
Expected volatility (median of historical 50-day moving average) 32% 32%
Expected life (years) 2.83 2.83
Expected dividend yield 0% 0%
Risk-free interest rate 1.0% 1.0%
Former Fusion IP LTIP
In 2014, three former employees of Fusion IP plc were each conditionally awarded 1,000,000 shares in Fusion IP plc under
the Fusion IP LTIP. As part of the arrangements for the acquisition of Fusion IP plc, the Fusion IP LTIP awards were
converted into awards over IP Group shares at the same conversion price per share as the scheme of arrangement was
undertaken (0.446 IP Group plc shares for every Fusion IP plc share). The awards will vest on 31 December 2017 provided
certain performance conditions are met which relate to, inter alia, the growth in value of Fusion IP plc's net asset value
("Fusion NAV") from the date of acquisition and the continued employment of the individual by the Group. In summary, if
Fusion NAV growth of 10% per annum is achieved then 30% of an award shall vest. Maximum vesting will occur if Fusion NAV
growth of 20% per annum is achieved with straight-line vesting between 30% and 100% if Fusion NAV growth of 10%-20% per
annum is achieved. No vesting shall occur if Fusion NAV growth of less than 10% is achieved.
The movement in the number of shares conditionally awarded under the Former Fusion IP LTIP is set out below:
2015 2014
At 1 January 1,338,000 -
Recognised as a result of the acquisition of Fusion IP plc - 1,338,000
At 31 December 1,338,000 1,338,000
Fair value charge
The fair value charge recognised in the statement of comprehensive income during the year in respect of all share-based
payments, including the DBSP, LTIP and Former Fusion IP LTIP, was £1.5m (2014: £0.9m).
22. Limited and Limited Liability Partnership Interests
£m
At 1 January 2014 4.8
Additions during the year 0.4
Realisations in the year (1.1)
Change in fair value during the year 0.5
At 1 January 2015 4.6
Additions during the year -
Realisations in the year (0.6)
Change in fair value during the year 0.4
At 31 December 2015 4.4
The Group considers interests in Limited and Limited Liability Partnerships to be Level 3 in the fair value hierarchy
throughout the current and previous financial years. If the assumptions used in the valuation techniques for the Group's
holding in each company are varied by using a range of possible alternatives, there is no material difference to the
carrying value of the respective spin-out company. The effect on the consolidated statement of comprehensive income for the
period is also not expected to be material.
23. Related Party Transactions
The Group has various related parties arising from its key management, subsidiaries, equity stakes in portfolio companies
and management of certain Limited Partnership funds.
a) Limited Partnerships
The Group manages a number of investment funds structured as Limited Partnerships. Group entities have a Limited
Partnership interest (see note 1) and act as the general partners of these Limited Partnerships. The Group therefore has
power to exert significant influence over these Limited Partnerships. The following amounts have been included in respect
of these Limited Partnerships:
Statement of comprehensive income 2015£m 2014£m
Revenue from services 1.3 1.3
Statement of financial position 2015£m 2014£m
Investment in limited partnerships 3.1 3.2
Amounts due from related parties - -
b) Key management transactions
Key management had investments in the following spin-out companies as at 31 December 2015:
Director Company name Number of shares held at 1 January 2015 Number of shares acquired/ (disposed of) in the period Number of shares held at 31 December 2015 %
Alan Aubrey Alesi Surgical Limited - 18 18 0.3%
Amaethon Limited - A Shares 104 - 104 3.1%
Amaethon Limited - B Shares 11,966 - 11,966 1.0%
Amaethon Limited - Ordinary Shares 21 - 21 0.3%
Avacta Group plc 20,276,113 - 20,276,113 0.3%
Boxarr Limited2 1,732 - 1,732 0.3%
Capsant Neurotechnologies Limited 11,631 - 11,631 0.8%
Cloud Sustainability Limited 19 7 26 0.7%
Cronin Group plc1 2,172,809 - 2,172,809 0.4%
Crysalin Limited 1,447 - 1,447 0.1%
Diurnal Group plc - 15,000 15,000 <0.1%
EmDot Limited 15 - 15 0.9%
Evocutis plc 767,310 - 767,310 0.1%
Getech Group plc 15,000 - 15,000 <0.1%
Green Chemicals plc 108,350 - 108,350 0.9%
hVIVO plc3 37,160 - 37,160 <0.1%
Ilika plc 69,290 - 69,290 0.1%
Karus Therapeutics Limited 223 - 223 <0.1%
Mirriad Advertising Limited - 33,333 33,333 <0.1%
Mode Diagnostics Limited - Ordinary Shares 3,226 - 3,226 0.4%
Mode Diagnostics Limited - A Shares 229 - 229 0.5%
Modern Biosciences plc 1,185,150 - 1,185,150 1.7%
Modern Water plc 519,269 - 519,269 0.7%
Oxford Nanopore Technologies Limited 115,666 (14,458) 101,208 0.4%
Oxtox Limited 25,363 - 25,363 0.1%
Revolymer plc 88,890 - 88,890 0.2%
Salunda Limited 53,639 - 53,639 <0.1%
Structure Vision Limited 212 - 212 1.0%
Surrey Nanosystems Limited 453 - 453 0.3%
Tissue Regenix Group plc 2,389,259 - 2,389,259 0.3%
Xeros Technology Group plc 40,166 - 40,166 <0.1%
Zeetta Networks Limited - 212 212 0.2%
Mike Townend Amaethon Limited - A Shares 104 - 104 3.1%
Amaethon Limited - B Shares 11,966 - 11,966 1.0%
Amaethon Limited - Ordinary Shares 21 - 21 0.3%
Avacta Group plc 931,367 - 931,367 <0.1%
Capsant Neurotechnologies Limited 11,282 - 11,282 0.8%
Cloud Sustainability Limited 18 7 25 0.6%
Cronin Group plc1 932,994 (50) 932,944 0.2%
Crysalin Limited 1,286 - 1,286 0.1%
Diurnal Group plc - 15,000 15,000 <0.1%
EmDot Limited 14 - 14 0.8%
Getech Group plc 20,000 - 20,000 <0.1%
Green Chemicals plc 113,222 - 113,222 0.9%
hVIVO plc3 37,160 - 37,160 <0.1%
Ilika plc 10,000 - 10,000 <0.1%
Mirriad Advertising Limited - 25,000 25,000 <0.1%
Mode Diagnostics Limited 1,756 - 1,756 0.1%
Modern Biosciences plc 1,185,150 - 1,185,150 1.7%
Modern Water plc 575,000 - 575,000 0.7%
Oxford Advanced Surfaces Limited 5,000 - 5,000 0.2%
Oxford Nanopore Technologies Limited 35,280 (4,313) 30,967 0.1%
Oxtox Limited 25,363 - 25,363 0.1%
Quantum Imaging Limited - 117 117 <0.1%
Revolymer plc 35,940 - 35,940 <0.1%
Structure Vision Limited 212 - 212 1.0%
Surrey Nanosystems Limited 404 - 404 0.2%
Tissue Regenix Group plc 1,950,862 - 1,950,862 0.3%
Ultrahaptics Limited - 35 35 <0.1%
Xeros Technology Group plc 35,499 - 35,499 <0.1%
Greg Smith Alesi Surgical Limited - 2 2 <0.1%
Avacta Group plc 390,400 - 390,400 <0.1%
Capsant Neurotechnologies Limited 896 - 896 <0.1%
Cloud Sustainability Limited 6 2 8 0.2%
Crysalin Limited 149 - 149 <0.1%
Diurnal Group plc - 15,000 15,000 <0.1%
EmDot Limited 4 - 4 0.2%
Encos Limited 5,671 - 5,671 0.4%
Getech Group plc 8,000 - 8,000 <0.1%
Green Chemicals plc 4,830 - 4,830 <0.1%
hVIVO plc3 61,340 - 61,340 <0.1%
Mirriad Advertising Limited - 16,667 16,667 <0.1%
Mode Diagnostics Limited - Ordinary Shares 361 - 361 <0.1%
Mode Diagnostics Limited - A Shares 28 - 28 <0.1%
Modern Biosciences plc 313,425 - 313,425 0.5%
Modern Water plc 7,250 - 7,250 <0.1%
Oxford Nanopore Technologies Limited 1,500 81 1,581 <0.1%
Revolymer plc 4,500 - 4,500 <0.1%
Summit Therapeutics plc 798 - 798 <0.1%
Surrey Nanosystems Limited 88 - 88 <0.1%
Tissue Regenix Group plc 175,358 (125,358) 50,000 <0.1%
Xeros Technology Group plc 5,499 (4,107) 1,392 <0.1%
David Baynes Alesi Surgical Limited - 4 4 <0.1%
Arkivum Limited - 377 377 <0.1%
Diurnal Group plc 59,000 14,000 73,000 0.1%
Mirriad Advertising Limited - 16,667 16,667 <0.1%
Quantum Imaging Limited - 46 46 <0.1%
Ultrahaptics Limited - 26 26 <0.1%
Zeetta Networks Limited - 212 212 0.2%
Angela Leach Alesi Surgical Limited - 2 2 <0.1%
Avacta Group plc 74,152 115,562 189,714 <0.1%
Boxarr Limited2 - 102 102 <0.1%
Capsant Neurotechnologies Limited 1,858 - 1,858 0.1%
Cloud Sustainability Limited1 6 4 10 0.3%
Cronin Group plc1 68,101 - 68,101 <0.1%
Diurnal Group plc - 11,500 11,500 <0.1%
Evocutis plc 7,990 - 7,990 <0.1%
First Light Fusion Limited - 17 17 <0.1%
Getech Group plc 2,083 - 2,083 <0.1%
hVIVO plc3 25,903 25,903 <0.1%
Mirriad Advertising Limited - 16,667 16,667 <0.1%
Mode Diagnostics Limited - Ordinary Shares 606 - 606 <0.1%
Mode Diagnostics Limited - A Shares 102 - 102 <0.1%
Modern Water plc 15,570 - 15,570 <0.1%
Modern Biosciences plc 322,923 - 322,923 0.5%
Oxford Nanopore Technologies Limited 1,516 205 1,721 <0.1%
Quantum Imaging Limited - 23 23 <0.1%
Revolymer plc 4,500 - 4,500 <0.1%
Structure Vision Limited 21 - 21 0.1%
Surrey Nanosystems Limited 90 - 90 <0.1%
Tissue Regenix Group plc 329,172 - 329,172 <0.1%
Ultrahaptics Limited - 5 5 <0.1%
Xeros Technology Group plc 5,666 - 5,666 <0.1%
1. Cronin Group plc was formerly known as Oxford Advanced Surfaces plc prior to its acquisition by the latter during the
year.
2. Boxarr Limited was formerly known as Plexus Planning Limited.
3. hVIVO plc was formerly known as Retroscreen Virology plc.
Compensation to key management comprises that paid to executive and non-executive directors of the Group. Full details of
directors' compensation will be disclosed in the Directors' Remuneration Report within the Group's 2015 Annual Report and
Accounts. These amounts are included within the employee costs set out in Note 8.
c) Portfolio companies
The Group earns fees from the provision of business support services and corporate finance advisory to portfolio companies
in which the Group has an equity stake. Through the lack of control over portfolio companies these fees are considered
arms-length transactions. The following amounts have been included in respect of these fees:
Statement of comprehensive income 2015£m 2014£m
Revenue from services 2.0 0.9
Statement of financial position 2015£m 2014£m
Trade receivables 1.5 0.6
d) Subsidiary companies
Subsidiary companies that are not 100% owned either directly or indirectly by the parent Company have intercompany balances
with other Group companies totalling as follows:
Statement of financial position 2015£m 2014£m
Intercompany balances with other Group companies 10.5 8.5
These intercompany balances represent funding loans provided by Group companies that are interest free, repayable on demand
and unsecured.
24. Capital Management
The Group's key objective when managing capital is to safeguard the Group's ability to continue as a going concern so that
it can continue to provide returns for shareholders and benefits for other stakeholders.
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure, and makes adjustments
to it, in light of changes in economic conditions and the risk characteristics of its underlying assets. In order to
maintain or adjust the capital structure, the Group may adjust the amount of issued new shares or dispose of interests in
more mature portfolio companies.
During 2015, the Group's strategy, which was unchanged from 2014, was to maintain healthy cash and short-term deposit
balances that enable it to provide capital to all portfolio companies, as determined by the Group's investment committee,
whilst having sufficient cash reserves to meet all working capital requirements in the foreseeable future.
The Group has some external debt with associated covenants which is described in note 18.
25. Capital Commitments
Commitments to university partnerships
A number of the Group's partnerships with research intensive universities in the UK include certain arrangements to provide
seed capital to spin-out companies arising from such universities. As at 31 December 2015, the balances were as follows:
Partnership Year of commencement of partnership Original commitment £m Invested to date £m Remaining commitment £m
University of Southampton(i) 2002 5.0 3.6 1.4
King's College London(ii) 2003 5.0 1.8 3.2
University of York - CNAP(iii) 2003 0.8 0.2 0.6
University of Leeds(iv) 2005 4.2 1.0 3.2
University of Bristol(v) 2005 5.0 1.1 3.9
University of Surrey(vi) 2006 5.0 0.5 4.5
University of York(iii) 2006 5.0 0.2 4.8
Queen Mary University of London(vii) 2006 5.0 0.7 4.3
University of Bath(viii) 2006 5.0 0.2 4.8
University of Glasgow(ix) 2006 5.0 1.6 3.4
University of Manchester(x) 2013 7.5 0.1 7.4
52.5 11.0 41.5
i. Under the terms of an agreement entered into in 2002 between the Group, the University of Southampton and certain of
the University of Southampton's subsidiaries, IP2IPO Limited agreed to make £5.0m available for the purposes of making
investments in University of Southampton spin-out companies.
ii. Under the terms of an agreement entered into during 2003 between the Group and King's College London ("KCL") and
King's College London Business Limited (formerly KCL Enterprises Limited), the Group agreed to make £5.0m available for the
purposes of making investments in spin-out companies. Under the terms of this agreement, KCL was previously able to require
the Company to make a further £5.0m available for investments in spin-out companies on the tenth anniversary of the
partnership. However, the 2003 agreement was terminated and replaced by a revised agreement between the same parties on 12
November 2010. Under the revised agreement, the Group agreed to target investing the remaining commitment of £3.2m over a
three-year period; KCL cannot, however, require the Group to make any additional funds available. Other changes effected by
the revised agreement included the removal of the Group's automatic entitlement to initial partner equity in every spin-out
company and/or a share of KCL's licensing fees from intellectual property commercialisation and to the termination rights
of the parties.
iii. In 2003, the Group entered into an agreement with the University of York. The agreement relates to a specialist
research centre within the University of York, the Centre for Novel Agricultural Products ("CNAP"). The Group has committed
to invest up to a total of £0.8m in spin-out companies based on CNAP's intellectual property. In 2006, the Group extended
its partnership with the University of York to
- More to follow, for following part double click ID:nRSA5517QgRecent news on IP
See all newsREG - IP Group PLC - Transaction in Own Shares
AnnouncementREG - IP Group PLC - Transaction in Own Shares
AnnouncementREG - IP Group PLC - Transaction in Own Shares
AnnouncementREG - IP Group PLC - Transaction in Own Shares
AnnouncementREG - IP Group PLC - Transaction in Own Shares
Announcement