REG - IP Group PLC - Half Yearly Report <Origin Href="QuoteRef">IPO.L</Origin> - Part 2
05/08/2015 07:01
- Part 2: For the preceding part double click ID:nRSE1138Va
- - - -
Profit and total comprehensive income for the year 64.8 0.4 1.2 66.4
STATEMENT OF FINANCIAL POSITION
Assets 767.2 9.8 4.1 781.1
Liabilities (9.2) - (0.1) (9.3)
Net assets 758.0 9.8 4.0 771.8
Other segment items
Capital expenditure - - - -
Depreciation - - - -
Depreciation
-
-
-
-
STATEMENT OF COMPREHENSIVE INCOME
Portfolio return and revenue
Change in fair value of equity and debt investments 17.8 - - 17.8
Profit on disposal of equity investments 1.3 - - 1.3
Change in fair value of limited and limited liability partnership investments 0.2 - - 0.2
Other portfolio income - - - -
Licensing income - - - -
Revenue from advisory services and other income 0.4 0.1 - 0.5
Revenue from fund management services - 0.7 - 0.7
Change in fair value of Oxford Equity Rights asset (0.9) - - (0.9)
Amortisation of intangible assets (1.5) - - (1.5)
Administrative expenses (4.8) (0.5) (0.4) (5.7)
Operating profit/(loss) 12.5 0.3 (0.4) 12.4
Finance income - interest receivable 0.2 - - 0.2
Profit/(loss) before taxation 12.7 0.3 (0.4) 12.6
Taxation - - - -
Profit/(loss) and total comprehensive income for the year 12.7 0.3 (0.4) 12.6
STATEMENT OF FINANCIAL POSITION
Assets 525.2 6.7 0.4 532.3
Liabilities (3.6) - (0.1) (3.7)
Net assets 521.6 6.7 0.3 528.6
Other segment items
Capital expenditure - - - -
Depreciation - - - -
Depreciation
-
-
-
-
STATEMENT OF COMPREHENSIVE INCOME
Portfolio return and revenue
Change in fair value of equity and debt investments 20.7 - - 20.7
Gain on disposal of equity investments 1.6 - - 1.6
Change in fair value of limited and limited liability partnership interests 0.5 - - 0.5
Other portfolio income 0.2 - - 0.2
Licensing income - - 3.0 3.0
Revenue from services and other income 0.8 0.3 - 1.1
Revenue from fund management services - 1.3 - 1.3
Change in fair value of Oxford Equity Rights asset (1.8) - - (1.8)
Amortisation of intangible assets (4.9) - - (4.9)
Administrative expenses (9.5) (1.4) (1.9) (12.8)
Operating profit 7.6 0.2 1.1 8.9
Finance income - interest receivable 0.6 - - 0.6
Profit before taxation 8.2 0.2 1.1 9.5
Taxation - - - -
Profit and total comprehensive income for the year 8.2 0.2 1.1 9.5
STATEMENT OF FINANCIAL POSITION
Assets 520.6 9.4 3.1 533.1
Liabilities (5.8) (0.1) (1.0) (6.9)
Net assets 514.8 9.3 2.1 526.2
Other segment items
Capital expenditure (0.1) - - (0.1)
Depreciation (0.1) - - (0.1)
Depreciation
(0.1)
-
-
(0.1)
2. Earnings per share
Earnings for the purposes of basic and dilutive earnings per share 66.7 12.6 9.1
Earnings for the purposes of basic and dilutive earnings per share
66.7
12.6
9.1
Weighted average number of ordinary shares forthe purposes of basic earnings per share 516,340,803 445,126,771 462,466,944
Effect of dilutive potential ordinary shares:Long-Term Incentive Plan 1,188,606 2,070,860 2,523,968
Weighted average number of ordinary shares forthe purposes of diluted earnings per share 517,529,409 447,197,631 464,990,912
Weighted average number of ordinary shares forthe purposes of diluted earnings
per share
517,529,409
447,197,631
464,990,912
The Group has two classes of potentially dilutive ordinary shares. There are
the contingently issuable shares arising under the Group's LTIP and the Former
Fusion IP LTIP, and the options issued as part of the Group's Share-Save
Scheme and Deferred Bonus Share Plan (for annual bonuses deferred under the
terms of the Group's annual incentive scheme). Based upon information
available at the end of the reporting period, an element of the performance
criteria for vesting of awards under the LTIP has been satisfied.
3. Equity rights and related acquisition costs
Equity rights represent consideration paid to the University of Oxford between
December 2000 and June 2001.
In return for the non-refundable, non-interest bearing advance totalling
£20.1m, the Group has the right to receive from the University the following
over its 15-year term:
¾ 50% of the University's equity shares in any spin-out company that is
formed based on intellectual property created by academics that are considered
to be part of the Department of Chemistry (i.e. equity instruments in unlisted
companies); and
¾ 50% of the University's share of any cash payments received by the
University from parties who have licensed intellectual property created by
academics that are considered to be part of the Department of Chemistry.
The contract expires on 23 November 2015.
The Directors make use of a valuation model to seek to determine the fair
value of the asset. However, there is a range of reasonably possible values
for each key variable within the model and this in turn results in a wide
range of reasonably possible alternative fair values for the asset. None of
these estimates of fair value are considered more appropriate or relevant than
any other. In order to calculate a more accurate valuation figure, given the
multitude of possible scenarios generated when altering the discounted cash
flows ("DCF") variables, a probability weighting expected return method is
utilised. Having applied probabilities to the various possible scenarios, the
method returned an estimated asset value of £0.6mat 30 June 2015. Additional
details can be located in the Group's Annual Report and Accounts for the year
ended
31 December 2014.
Cost
At 1 January 2014, 30 June 2014, 31 December 2014 and 1 January 2015 19.9 0.5 20.4
Aggregate amortisation and change in fair value of contract costs
At 1 January 2014 (17.0) (0.3) (17.3)
Change in fair value during the period (0.9) - (0.9)
At 30 June 2014 (17.9) (0.3) (18.2)
Change in fair value during the period (0.9) - (0.9)
At 31 December 2014 (18.8) (0.3) (19.1)
Change in fair value during the period (0.7) - (0.7)
At 30 June 2015 (19.5) (0.3) (19.8)
Net book value
At 31 December 2013 2.9 0.2 3.1
At 30 June 2014 (Unaudited) 2.0 0.2 2.2
At 31 December 2014 1.1 0.2 1.3
At 30 June 2015 (Unaudited) 0.4 0.2 0.6
At 30 June 2015 (Unaudited)
0.4
0.2
0.6
4. Investment portfolio
The accounting policies in regards to valuations in these half-yearly results
are the same as those applied by the Group in its audited consolidated
financial statements for the year ended 31 December 2014 and which will form
the basis of the 2015 Annual Report and Accounts. Investments are designated
as fair value through profit or loss and are initially recognised at fair
value and any gains or losses arising from subsequent changes in fair value
are presented in profit or loss in the statement of comprehensive income in
the period in which they arise.
The Group classifies financial assets using a fair value hierarchy that
reflects the significance of the inputs used in making the related fair value
measurements. The level in the fair value hierarchy within which a financial
asset is classified is determined on the basis of the lowest level input that
is significant to that asset's fair value measurement. The fair value
hierarchy has the following levels:
Level 1 - Quoted prices in active markets.
Level 2 - Inputs other than quoted prices that are observable, such as prices from market transactions. These are mainly based on prices determined from recent investments in the last twelve months.
Level 3 - One or more inputs that are not based on observable market data.
At 1 January 2014 135.1 131.0 2.8 17.0 285.9
Investments during the period 5.5 8.9 0.5 - 14.9
Acquired with Fusion IP - 11.1 2.4 11.4 24.9
Fusion IP reclassified as subsidiary (20.5) - - - (20.5)
Transaction-based reclassifications during the period - 1.2 (1.2) - -
Other transfers between hierarchy levels during the period 9.2 (3.9) 0.2 (5.5) -
Disposals during the period (1.2) (2.2) - - (3.4)
Change in fair value of equity and debt investments in the period 18.8 1.5 (0.3) (2.2) 17.8
At 30 June 2014 (unaudited) 146.9 147.6 4.4 20.7 319.6
Investments during the period 5.9 23.9 2.1 - 31.9
Transaction-based reclassifications during the period - 1.9 (1.9) - -
Other transfers between hierarchy levels during the period 11.2 (8.4) (0.2) (2.6) -
Disposals during the period (4.5) - - - (4.5)
Change in fair value of equity and debt investments in the period (21.3) 28.2 (0.4) (3.6) 2.9
At 31 December 2014 138.2 193.2 4.0 14.5 349.9
Investments during the period 4.0 48.7 2.3 0.1 55.1
Transaction-based reclassifications during the period - 0.2 (0.2) - -
Other transfers between hierarchy levels during the period - (13.3) - 13.3 --
Disposals during the period - - (0.2) (0.3) (0.5)
Change in fair value of equity and debt investments in the period 27.2 50.9 (0.7) (3.7) 73.7
At 30 June 2015 (unaudited) 169.4 279.7 5.2 23.9 478.2
50.9
(0.7)
(3.7)
73.7
At 30 June 2015 (unaudited)
169.4
279.7
5.2
23.9
478.2
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 30 companies have been classified as Level 3 and the individual
valuations for each of these have been arrived at using the following
valuation method:
Where fair values are based upon the most recent market transaction, but that
transaction occurred more than 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 consider indicators which may make the most recent investment no
longer a representation of fair value. Due to the nature of the investments,
observable market inputs are not commonly available therefore consideration of
indicators of a change in fair value focus on the companies' performance and
achievement of technical and commercial milestones.
Where indicators of a change in fair value against the most recent market
transaction are identified, any adjustment to arrive at fair value is based on
objective data from the company and the experience and judgement of the
Group.
If the fair value of all Level 3 investments were to decrease by 10%, the net
assets figure would decrease by £2.4m, 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 re-assessing 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.
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 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 there were no transfers of this
nature.
Transfers between Level 1 and Level 2 would occur when a quoted investment's
market becomes inactive. There have been no such instances in the current
period.
Transfers between Level 3 and Level 2 occur when an investment, for which the
penultimate funding round occurred more than twelve months before the prior
period end, undertakes an investment round during the period that results in
an observable market price. In the current period, transfers of this nature
amounted to £0.9m.
Transfers between Level 2 and Level 3 occur when the balance sheet date
becomes more than twelve months after an investment's most recent funding
round, at which point the price is deemed to be unobservable. In the current
period transfers of this nature amounted to £14.2m.
The fair value changes in Level 3 investments have amounted to a loss of £3.7m
in the period, recognised as change in fair value of equity and debt
investments in the condensed consolidated statement of comprehensive income.
5. Share capital
Issued and fully paid:
564,619,369 ordinary shares of 2p each (HY14: 479,524,397; FY14: 479,524,397) 11.3 9.6 9.6
564,619,369 ordinary shares of 2p each (HY14: 479,524,397; FY14: 479,524,397)
11.3
9.6
9.6
In March 2015, the Group raised £128m (before expenses) through the issuance
of 56,888,888 shares at a price of £2.25 per share.
Additionally, in March 2015, the Company issued 1,552,144 new ordinary shares
in order to settle conditional awards made under the Group's LTIP in 2012 that
achieved their vesting conditions and consequently became issuable to the
Group's employees.
In May 2015, the Group raised £55m (before expenses) through the issuance of
26,500,000 shares at a price of £2.08 per share.
Additionally, in May 2015, the Company issued 153,940 new ordinary shares
following the exercise of nil-cost options awarded under the Company's
Deferred Bonus Share Plan by certain of the Company's Executive Directors and
other employees.
The Company has one class of ordinary shares, each with a par value of 2p and
carrying equal voting rights, equal rights to income and distributions of
assets on liquidation, or otherwise, and no right to fixed income.
6. Acquired intangible assets
Cost
At 1 January 2014 -
Additions through acquisition of subsidiary 21.4
At 30 June 2014,31 December 2014 and 30 June 2015 21.4
Accumulated amortisation
At 1 January 2014 -
Charge for the period (1.5)
At 30 June 2014 (1.5)
Charge for the period (3.4)
At 31 December 2014 (4.9)
Charge for the period (3.0)
At 30 June 2015 (7.9)
Net book value
At 31 December 2013 -
At 30 June 2014 19.9
At 31 December 2014 16.5
At 30 June 2015 13.5
At 30 June 2015
13.5
The intangible assets represent contractual arrangements and memorandums of
understanding with four UK universities acquired through acquisition of a
subsidiary. The contractual arrangements have fixed terms and, consequently,
the intangible assets have finite lives that align with the remaining terms
which, at the end of the period, range from 17 months to 38 months. The
individual contractual arrangements are amortised in a straight line over the
remainder of their terms with the expense being presented directly on the
primary statements.
7. Goodwill
At 1 January 2014 18.4
Recognised on acquisition of subsidiary 38.7
At 30 June 2014 57.1
At 1 January 2015 57.1
At 30 June 2015 57.1
At 30 June 2015
57.1
Goodwill represents the excess of the cost of an acquisition over the fair
value of the net identifiable assets of acquired subsidiaries at the date of
acquisition. Included in the balance sheet of the Group, at 30 June 2015, is
goodwill of £57.1m. This arose from the Group's acquisition of Top Technology
Ventures Limited in June 2004 (£2.1m), Techtran Group Limited in January 2005
(£16.3m) and the acquisition of Fusion IP plc in March 2014 (£38.7m). Goodwill
is allocated from the acquisition date to each of the Group's cash-generating
units ("CGUs") that are expected to benefit from the business combination.
Goodwill may be allocated to CGUs in both the acquired business and in the
existing business.
The Group conducts annual impairment tests on the carrying value of goodwill,
based on the recoverable amount of the CGUs to which the goodwill has been
allocated. The goodwill allocated to each CGU is summarised in the table
below. A number of both value-in-use and fair-value-less-costs-to-sale
calculations are used to assess the recoverable values of the CGUs, details of
which are specified in the audited consolidated financial statements for the
year ended 31 December 2014.
At 1 January 2014 16.3 2.1 18.4
At 30 June 2014 55.0 2.1 57.1
At 31 December 2014 55.0 2.1 57.1
At 30 June 2015 55.0 2.1 57.1
At 30 June 2015
55.0
2.1
57.1
During the period to 30 June 2015, no factors indicating potential impairment
of goodwill were noted and, as a result, no impairment review was deemed
necessary.
8. Related party transactions
a) Limited partnerships
The Group manages a number of investment funds structured as limited
partnerships. Group entities act as the general partners of these limited
partnerships and, while unable to exert significant influence over them, do
perform the day-to-day operational tasks. The following amounts have been
included in respect of these limited partnerships:
Revenue from services 0.7 0.7 1.3
Revenue from services
0.7
0.7
1.3
Investment in limited partnerships 3.6 4.0 3.2
Investment in limited partnerships
3.6
4.0
3.2
b) Key management transactions
The following key management held shares in the following spin-out companies
as at 30 June 2015:
Director Company name Number of shares held at 1 January2015 Number of shares acquired/(disposed) in the period Number of shares held at 30 June2015 % of
issued capital
Alan Aubrey Alesi Surgical Limited1 - 18 18 0.2%
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 0.4%
Capsant Neurotechnologies Limited 11,631 - 11,631 0.8%
Chamelic Limited 26 - 26 0.4%
Cloud Sustainability Limited 19 7 26 0.5%
Crysalin Limited 1,447 - 1,447 0.1%
Diurnal Limited - 30 30 <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 0.8%
Ilika plc 69,290 - 69,290 0.1%
Karus Therapeutics Limited 223 - 223 <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 Advanced Surfaces Group plc 2,172,809 - 2,172,809 1.1%
Oxford Nanopore Technologies Limited 115,666 - 115,666 0.5%
Oxtox Limited 25,363 - 25,363 0.1%
Plexus Planning Limited 1,732 - 1,732 0.6%
hVIVO plc2 37,160 - 37,160 <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%
Sustainable Resource Solutions Limited3 30 - 30 1.3%
Tissue Regenix Group plc 2,389,259 - 2,389,259 0.3%
Tracsis plc 121,189 - 121,189 0.5%
Xeros Technology Group plc 40,166 - 40,166 <0.1%
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%
Chamelic Limited 23 - 23 0.4%
Cloud Sustainability Limited 18 7 25 0.5%
Crysalin Limited 1,286 - 1,286 0.1%
Diurnal Limited - 30 30 <0.1%
EmDot Limited 14 - 14 0.8%
Getech Group plc 20,000 - 20,000 <0.1%
Green Chemicals plc 113,222 - 113,222 0.8%
Ilika plc 10,000 - 10,000 <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 Group plc 932,994 - 932,994 0.5%
Oxford Advanced Surfaces Limited 5,000 - 5,000 0.2%
Oxford Nanopore Technologies Limited 35,280 111 35,391 0.2%
Oxtox Limited 25,363 - 25,363 0.1%
hVIVO plc2 37,160 - 37,160 <0.1%
Revolymer plc 35,940 - 35,940 <0.1%
Structure Vision Limited 212 - 212 1.0%
Surrey Nanosystems Limited 404 - 404 0.2%
Sustainable Resource Solutions Limited3 28 - 28 1.2%
Tissue Regenix Group plc 1,950,862 - 1,950,862 0.3%
Tracsis plc 25,430 - 25,430 <0.1%
Xeros Technology Group plc 35,499 - 35,499 3.1%
Greg Smith Alesi Surgical Limited1 - 2 2 <0.1%
Avacta Group plc 390,407 - 390,407 <0.1%
Capsant Neurotechnologies Limited 896 - 896 <0.1%
Chamelic Limited 3 - 3 <0.1%
Cloud Sustainability Limited 6 2 8 0.1%
Crysalin Limited 149 - 149 <0.1%
Diurnal Limited - 30 30 <0.1%
EmDot Limited 4 - 4 0.2%
Encos Limited 5,671 - 5,671 0.3%
Getech Group plc 8,000 - 8,000 <0.1%
Green Chemicals plc 4,830 - 4,830 <0.1%
Mode Diagnostics Limited - Ordinary shares 361 - 361 <0.1%
Mode Diagnostics Limited - A shares 28 500 528 <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%
hVIVO plc2 61,340 - 61,340 <0.1%
Revolymer plc 4,500 - 4,500 <0.1%
Summit Therapeutics plc 798 - 798 <0.1%
Surrey Nanosystems Limited 88 - 88 <0.1%
Sustainable Resource Solutions Limited3 9 - 9 0.4%
Tissue Regenix Group plc 175,358 - 175,358 <0.1%
Xeros Technology Group plc 5,499 - 5,499 <0.1%
David Baynes Alesi Surgical Limited1 - 4 4 <0.1%
Arkivum Limited - 377 377 <0.1%
Diurnal Limited 118 28 146 0.2%
Oxford Nanopore Technologies Limited - 144 144 <0.1%
Angela Leach Alesi Surgical Limited1 - 2 2 <0.1%
Avacta Group plc 74,152 - 74,152 <0.1%
Capsant Neurotechnologies Limited 1,858 - 1,858 0.1%
Chamelic Limited 3 - 3 <0.1%
Cloud Sustainability Limited 6 4 10 0.2%
Diurnal Limited - 23 23 <0.1%
Evocutis plc 7,990 - 7,990 <0.1%
Getech Group plc 2,083 - 2,083 <0.1%
Mode Diagnostics Limited - Ordinary Shares 606 - 606 <0.1%
Mode Diagnostics Limited - A Shares 102 149 251 <0.1%
Modern Water plc 29,800 - 29,800 <0.1%
Oxford Advanced Surfaces Group plc 68,101 - 68,101 <0.1%
Oxford Nanopore Technologies Limited 1,516 81 1,597 <0.1%
hVIVO plc2 25,903 - 25,903 <0.1%
Revolymer plc 4,500 - 4,500 <0.1%
Structure Vision Limited 21 - 21 0.1%
Surrey Nanosystems Limited 90 - 90 <0.1%
Sustainable Resource Solutions Limited3 9 - 9 0.4%
Tissue Regenix Group plc 329,172 - 329,172 <0.1%
Xeros Technology Group plc 5,666 - 5,666 <0.1%
1 Formerly known as Asalus Medical Instruments Limited.
2 Formerly known as Retroscreen Virology Group plc.
3 Company dissolved on 14 July 2015.
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. The following amounts have been included in respect of these
fees:
Revenue from services 0.5 0.5 0.9
Revenue from services
0.5
0.5
0.9
Trade receivables 1.3 0.4 0.6
Trade receivables
1.3
0.4
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:
Intercompany balances with other Group companies 8.4 8.4 8.5
Intercompany balances with other Group companies
8.4
8.4
8.5
These intercompany balances represent funding loans provided by Group
companies that are interest free, repayable on demand and unsecured.
General information
The comparative financial information presented herein for the year ended 31
December 2014 does not constitute full statutory accounts within the meaning
of the Companies Act 2006. The Group's Annual Report and Accounts for the year
ended 31 December 2014 have been delivered to the Registrar of Companies. The
Group's independent auditor's report on those accounts was unqualified, did
not include references to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act 2006.
Accounting policies
Basis of preparation
The financial information presented in these half-yearly results constitutes
the condensed consolidated financial statements of IP Group plc, a company
incorporated in Great Britain and registered in England and Wales, and its
subsidiaries (together, the "Group") for the six months ended 30 June 2015.
The condensed consolidated financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and should be read in
conjunction with the Annual Report and Accounts for the year ended 31 December
2014, which have been prepared in accordance with International Financial
Reporting Standards as adopted for use in the EU ("IFRS"). The financial
information in these half-yearly results, which were approved by the Board and
authorised for issue on 4 August 2015, is unaudited but has been subject to a
review by the Group's independent auditor.
Accounting estimates and judgements
The preparation of the half-yearly results requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses. Estimates and judgements are continually evaluated and are based
on historical experience and other factors, such as expectations of future
events, and are believed to be reasonable under the circumstances. Actual
results may differ from these estimates. In preparing these half-yearly
results, the significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those applied to the audited consolidated financial statements for the
year ended 31 December 2014.
Going concern
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis in preparing the condensed consolidated half year financial statements.
Accounting policies
The accounting policies applied by the Group in these half-yearly results are
the same as those applied by the Group in its audited consolidated financial
statements for the year ended 31 December 2014 and which will form the basis
of the 2015 Annual Report and Accounts. No new standards that have become
effective in the period have had a material effect on the Group's financial
statements.
Statement of Directors' responsibilities
The Directors confirm to the best of their knowledge that:
a. the half-yearly results have been prepared in accordance with IAS 34 as
adopted by the European Union; and
b. the interim management report includes a fair review of the information
required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8
R).
The Directors of IP Group plc and their functions are listed below.
By order of the Board
Mike Humphrey Alan Aubrey
Chairman Chief Executive Officer
4 August 2015
Independent review report
To IP Group plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2015 which comprises the condensed consolidated statement of
comprehensive income, condensed consolidated statement of financial position,
condensed consolidated statement of cash flows, condensed consolidated
statement of changes in equity and the related explanatory notes. We have read
the other information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority
("the UK FCA"). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in the accounting policies note, the annual financial statements
of the Group are prepared in accordance with IFRSs as adopted by the EU. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with IAS 34 Interim Financial Reporting
as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and consequently
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2015 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR
of the UK FCA.
Jonathan Mills
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
4 August 2015
Company information
Company registration number
4204490
Registered office
24 Cornhill
London
EC3V 3ND
Directors
Mike Humphrey
(Non-executive Chairman)
Alan John Aubrey
(Chief Executive Officer)
Michael Charles Nettleton Townend
(Chief Investment Officer)
Gregory Simon Smith
(Chief Financial Officer)
David Baynes
(Chief Operating Officer)
Douglas Brian Liversidge CBE
(Senior Independent Director)
Jonathan Brooks
(Non-executive Director)
Professor Lynn Faith Gladden CBE
(Non-executive Director)
Dr Elaine Sullivan
(Non-executive Director)
Company secretary
Angela Leach
This information is provided by RNS
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