REG - IP Group PLC - Half-yearly results 2025
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RNS Number : 6023Z IP Group PLC 17 September 2025
FOR RELEASE ON 17 September 2025
("IP Group" or "the Group" or "the Company")
Half-yearly results 2025
IP Group plc (LSE: IPO), which invests in breakthrough science and innovation
companies with the potential to create a better future for all, today
announces its financial results for the six months ended 30 June 2025
("HY25").
Highlights
Encouraging portfolio developments
- Hinge Health floated on NYSE at $32 per share with shares
trading up by 63% post IPO to $52 per share at 30 June, valuing balance of
holding at £39.1m
- Oxford Nanopore beat guidance with £105.6m revenues in H1 and
lower EBITDA losses
- £372m of total capital raised by portfolio (HY24: £380m; FY24:
£784m)
- Invested £36m across 21 companies, reflecting maintained
capital discipline
- Accelercomm completed $15m funding round; Lumai $10m funding
round
- Tado secured €30m funding from Panasonic; Vytal secured
€14.2m funding; Mixergy secured £12m funding
- Pipeline of significant milestones through to the end of 2027
Remain confident of our target to deliver over £250m of exits between 2025
and 2027; NAV per share stabilised and improved in H2
- Total cash proceeds from exits of £30.3m, exceeding HY24
proceeds by 9x
- NAV/share of 96.2p with closing NAV of £883.1m; public company
gains at Oxford Nanopore (+£6.9m) and Hinge Health (+£7.6m) and the positive
impact of share buyback programme offset by the impact of funding delays and
pricing pressure for Oxa (-£28.7m) and Artios (-£10.6m), with FX translation
losses (-£14.2m)
- NAV per share of approximately 100p at 12 September 2025((i))
Continued focus on funds under management
- Raised further £24m of third-party funds (Parkwalk) -
third-party AUM £663m (HY24: £637m, FY24: £678m)
- Parkwalk and Northern Gritstone launched Northern Universities
Venture Fund
- Group well placed to benefit from the reforms underway as major
pension providers respond to the Mansion House Accord
Maintained financial strength and discipline; accelerated buyback programme
while still investing for growth
- Strong balance sheet and liquidity with gross cash of £237.3m,
up 47% from HY24
- Completed £25m of share buyback programme in H1 with further
£20m extension launched; 6% of share capital retired in the period and 14%
retired to date
- Net overheads run rate in line with year-end guidance, a 12%
reduction for the period
Post period-end update
- Fair value increase in the Group's holdings in listed companies
of £32m since 30 June, including ONT increasing by £23m
- Istesso reports ground-breaking data demonstrating tissue repair
following P2b data readout in H1
Summary financials
HY to 30 June 2025 (unaudited) HY to 30 June 2024 FY 2024
(unaudited) (audited)
Net Asset Value (NAV) £883.1m £1,072.2m £952.5m
NAV per share 96.2pps 104.7pps 97.7pps
% change in NAV per share -1.5% -8.8% -14.9%
Loss for the period/year (£43.0m) (£109.9m) (£207.0m)
Total portfolio ((ii)) £799.9m £1,111.0m £837.4m
Gross cash and deposits ((ii)) £237.3m £161.3m £285.6m
Cash proceeds((ii)) £30.3m £3.4m £183.4m
Portfolio investment ((ii)) £35.7m £49.1m £63.0m
(i) NAV per share estimate based on movements in the quoted
portfolio from 1 July 2025 - 12 September 2025, the impact of the share
buyback during this period and estimated net overheads
(ii) Note 11 details the Alternative Performance Measures ("APM")
Greg Smith, Chief Executive of IP Group, said: "The Group made strong progress
in the first half of the year, delivering over £30m in cash proceeds, a near
ninefold increase year-on-year. The successful IPO of Hinge Health on the NYSE
was a standout milestone, and together with gains in Oxford Nanopore,
underscores the resilience and quality of our portfolio. With NAV per share
now at 100p as of 12 September, a strong pipeline of new and maturing
companies and improving market sentiment, the Group remains confident of
delivering more than £250m of exits from private company holdings by the end
of 2027. As one of the world's most experienced university IP investors, IP
Group is uniquely positioned to capitalise on fiscal reform and rising demand
for high-growth innovation while remaining firmly focused on delivering
long-term value for our shareholders."
Webinar
IP Group will host a webinar for analysts and investors today, 17 September,
at 10:00am. For more details or to register as a participant please visit
https://www.investormeetcompany.com/ip-group-plc/register-investor
(https://www.investormeetcompany.com/ip-group-plc/register-investor) .
For more information, please contact:
IP Group plc www.ipgroupplc.com
Greg Smith, Chief Executive Officer +44 (0) 20 7444 0050
David Baynes, Chief Financial and Operating Officer
Liz Vaughan-Adams, Communications +44 (0) 20 7444 0062/+44 (0) 7967 312125
Portland
Pauline Guénot +44 73 7906 8832
Further information on IP Group is available on our website:
www.ipgroupplc.com
This half-yearly report may contain forward-looking statements. These
statements reflect the Board's current view, are subject to a number of
material risks and uncertainties and could change in the future. Factors that
could cause or contribute to such changes include, but are not limited to, the
general economic climate and market conditions, as well as specific factors
relating to the financial or commercial prospects or performance of individual
portfolio companies within the Group's portfolio of investments. Throughout
this Half-Yearly Report, the Group's holdings in portfolio companies reflect
the undiluted beneficial equity interest excluding debt, unless otherwise
explicitly stated.
CEO's Interim Management Report
Summary
In the six months to 30 June 2025, the Group continued to focus on generating
profitable cash realisations delivering total cash proceeds of £30.3m, an
increase of 791% from the same period a year before. We remain confident of
our target to deliver over £250m of exits between 2025 and 2027.
As a result of both this performance and continued discipline on overheads, IP
Group maintained a strong liquidity position. Gross cash and deposits totalled
£237.3m at 30 June 2025, up 47% from £161.3m a year before. This enabled the
Group to announce two extensions to its buyback programme in the first half of
the year and also reinvest for growth in the portfolio. Following the measures
taken to reduce operating costs in 2025, our net overheads in the period were
down 12% year on year, in line with net overheads guidance issued within our
2024 results. Further information is set out in the Financial Review.
During the first half of the year, we saw evidence of improved market
sentiment, with our quoted portfolio up, recording a gain of £12m, following
a protracted period of weakness in public markets from 2022. We have seen this
positive momentum carried through into the second half of the year, with our
quoted portfolio up a further £32m as at 12 September 2025. The availability
of capital remains a challenge, particularly for those companies in the
scale-up phase of their journey, which resulted in write-downs for Oxa
(£28.7m) and Artios (£10.6m) in the period. This, combined with the negative
impact of FX translation on our portfolio of £14.2m, resulted in a £43.0m
loss in the period.
IP Group, together with Parkwalk, is the UK's leading science and technology
investor, having formed more than 500 science-based businesses. Combining
university relationships with deep sector experience and networks provides
highly differentiated deal flow while our unparalleled insight into
commercialising early-stage technology makes us a trusted partner for
pre-seed, seed and scale up investing. By starting and growing businesses
driving improved health outcomes, the energy transition and the digital
transformation, the Group aims to have a significant impact on some of
society's biggest needs and deliver compelling financial returns for our
shareholders.
With further evidence of improving sentiment in public markets combined with a
number of encouraging portfolio developments in the period, the Directors
remain confident that IP Group's portfolio can deliver strong returns for all
stakeholders.
Delivery against strategic priorities
The Group continues to prioritise delivering cash exits, accessing further
capital for the portfolio and its managed funds and accelerating its share
buyback programme. In the six months to 30 June, I am pleased to report that
our NAV per share stabilised at 96.2 pence per share compared with 97.7 pence
per share at the year end. Valuation reductions for portfolio companies Oxa
and Artios and the impact of FX translation movements were offset by public
company share price gains at Oxford Nanopore Technologies plc and Hinge
Health, Inc and the positive impact of the Group's share buyback programme.
The Group's Net Asset Value was £883.1m at 30 June 2025. The performance of
the Group's business units is summarised below with further detail in the
Managing Partner's Portfolio Review.
All £m unless stated Invested Cash proceeds Net portfolio gain/(loss) Fair value at 30 June 2025 Simple return on capital (%)
Healthier future: Life Sciences (ex ONT) 9.6 24.4 (6.2) 327.3 (2%)
Healthier future: ONT 0.0 1.7 6.9 111.8 6%
Tech-enriched future: Deeptech 16.5 0.8 (30.2) 118.0 (23%)
Regenerative future: Cleantech (Kiko Ventures) 8.1 2.9 (5.1) 173.1 (3%)
Platform investments 1.5 0.5 (8.9) 69.7 (12%)
Total Portfolio 35.7 30.3 (43.5) 799.9 (5%)
Over 55% of our portfolio value is concentrated in 10 companies, and 83% in 40
companies, across the Group's three main thematic areas. In the first half of
the year, IP Group invested in 21 opportunities comprising £10m in life
sciences, £17m in deeptech and £8m in cleantech with 88% of that capital
invested into the existing portfolio and 12% invested into new opportunities.
Our portfolio continues to be well-funded with approximately 2/3 by value of
the portfolio currently funded into 2027 or beyond. In the first half of 2025,
our portfolio companies successfully raised a total of £372m of which IP
Group contributed £35.7m. Notable transactions included the IPO of Hinge
Health on the New York Stock Exchange in May, which was priced at the top end
of the pricing range and which continues to trade at a significant premium to
its IPO price. In addition, there were a number of fund raisings across the
portfolio including for Accelercomm, Lumai, Tado, Vytal and Mixergy.
Since 30 June, our two largest holdings, Oxford Nanopore Technologies plc and
Istesso Ltd, both issued positive updates. Shares in Oxford Nanopore rose
after it issued a trading update indicating H1 revenue would be 25% ahead of
H1 2024. Its first half results, reported on 02 September, noted a 25.6%
increase in revenues to £105.6m and lower than expected adjusted EBITDA
losses with improving cashflow. Istesso, meanwhile, published ground-breaking
data in the peer reviewed monthly, The Journal of Pharmacology and
Experimental Therapeutics (JPET), demonstrating its new class of
investigational medicines elicit tissue repair in fibrotic, autoinflammatory
and autoimmune conditions - the first oral agents to demonstrate such
activity. These developments are covered in more detail in the Managing
Partner's Portfolio Review.
Cash exits
Following a strong period in 2024 for cash realisations, which included our
largest ever exit in the sale of Featurespace Ltd to Visa, the Group continued
this momentum in the first half of 2025, generating £30.3m of cash proceeds.
More than two thirds of that amount came from the sale of stakes in four
portfolio companies in our life sciences portfolio - Intelligent Ultrasound,
Centessa, Abliva and Hinge Health. It is particularly encouraging to note that
Hinge Health, which floated on the New York Stock Exchange at a price of $32 a
share, traded up to a 63% premium to close the period at $52 per share. This
values the balance of our holding in Hinge Health at £39.1m.
Continued focus on funds under management
The Group continued to focus on increasing its funds under management and
raised an additional £24m of third-party funds in the period. The Group now
manages or advises £644m (HY24: £637m, FY24: £678m), of which £461m is
managed by Parkwalk, the Group's specialist Enterprise Investment Scheme (EIS)
fund management subsidiary, including funds managed in conjunction with the
universities of Oxford, Cambridge, Bristol, and Imperial College London.
In June, Parkwalk announced the launch of the Northern Universities Venture
Fund, a new EIS fund in collaboration with Northern Gritstone, offering access
to world-class university spin-outs and deep science startups from the
Northern Arc Universities of Leeds, Liverpool, Manchester and Sheffield.
Parkwalk invested £12.3m in the first half of the year (HY24: £17.5m, FY24:
£47.2m) in the university spin-out sector across 19 companies of which
thirteen were new companies to the Parkwalk portfolio.
The majority of our remaining funds are managed by our Australian team,
primarily through the IP Group Hostplus Innovation Fund which manages A$435m
and has invested in several of the Group's portfolio companies including
Oxford Nanopore, Genomics, First Light Fusion, Oxa and Hysata, providing
additive growth capital for companies as they scale up. TelstraSuper is also
investing alongside IP Group through a co-investment mandate.
IP Group continues to focus on increasing funds under management, remains well
placed to benefit from the Mansion House reforms which are aimed at unlocking
a wave of long-term institutional capital into the sectors where IP Group
operates and invests, and believes there is scope to further increase private
capital under management in the near future.
Accelerated buyback programme
Delivering returns for shareholders, including focusing on narrowing the
discount to our NAV per share, remains a key focus. While it is pleasing to
note the discount has narrowed in the period, the Directors believe the
current price continues to significantly undervalue the potential within the
Group's portfolio.
As previously announced with our 2024 results in March, the Group is
allocating 50% of its 2025 exits to the ongoing share buyback programme. In
the first half, the Group bought back 56,867,936 shares for £25.6m and has
purchased a further 19m shares for £11m since 30 June, leaving £9m of the
£20m buyback extension announced in June for the ongoing purchase of shares.
Under the Group's capital allocation policy, a proportion of cash proceeds is
reinvested and a proportion is used to deliver a cash return to shareholders.
The Directors regularly consider the mechanism to be used for such cash
returns and have determined that this will typically be in the form of share
buybacks while the share price discount to NAV exceeds 20%. The discount at 30
June 2025 was 46%.
Since the introduction of this approach in 2021, the Group has delivered more
than £140m of cash returns to our shareholders via dividends and share
buybacks, retiring 6% of the share capital in the period and 14% to date.
Outlook
IP Group's portfolio made good progress in the first half of the year, buoyed
by continued M&A activity and the IPO of Hinge Health, both providing
further evidence of an improvement in sentiment for the private technology
sector. Having delivered more than £30m of cash proceeds in the year to date,
we remain confident of our target to deliver over £250m of exits between 2025
and 2027.
As one of the largest and most experienced investors in university IP in the
world, IP Group's unparalleled insight into commercialising early-stage
technology makes us a trusted partner for pre-seed, seed and scale up
investing. The Group therefore remains well positioned to benefit from
government support for a number of fiscal and regulatory reforms which support
this environment.
IP Group is well financed, with a strong liquidity position, and the Directors
continue to believe the Group will benefit from improved appetite for high
growth investments while remaining focused on delivering returns for
shareholders.
MANAGING PARTNER'S PORTFOLIO REVIEW
IP Group invests in innovative breakthrough technologies that address the
profound societal and economic shifts shaping our future. As previously
reported, the Group's balance sheet investment activities were consolidated
under a single investment team towards the end of 2024, with four investment
partners and myself overseeing our continued focus on backing innovations that
address the world's most compelling opportunities and pressing challenges in
the areas of a healthier future (life sciences), a tech-enriched future
(deeptech), and a regenerative future (cleantech). In addition, a small number
of investments are categorised as platform investments, which are funds or
portfolio companies that invest in other opportunities.
As at 30 June 2025 As at 31 December 2024
Sector £m % £m %
Healthier future: Life sciences (ex-ONT) 327.3 41% 348.5 41%
Healthier future: Life sciences (ONT) 111.8 14% 106.6 13%
Tech-enriched future: Deeptech 118.0 15% 131.9(1) 16%
Regenerative future: Cleantech (Kiko Ventures) 173.1 21% 173.4(1) 21%
Platform investments 69.7 9% 77.0 9%
Total portfolio 799.9 100% 837.4 100%
(1) Oxa Autonomy Limited has been moved from Cleantech to Deeptech,
comparative figures have been updated on a consistent basis
Performance of key holdings
The following table outlines the performance of the Top 10 constituents of our
portfolio:
Company Name Group Stake at 30 June 2025 Net investment/ (divestment) Net Unrealised + Realised Fair value movement Fair value at 30 June 2025
Sector
% £m £m £m
Oxford Nanopore Technologies plc Life sciences 8.5% (1.7) 6.9 111.8
Istesso Limited Life sciences 56.5%(1) - - 91.9
Hysata Pty Ltd Cleantech 37.0% - - 73.3
Hinge Health, Inc. Life sciences 1.2% (1.8) 7.6 39.1
First Light Fusion Limited Cleantech 27.5% 5.0 - 30.0
Pulmocide Limited Life sciences 12.0% 2.3 4.1 28.1
Mission Therapeutics Limited Life sciences 21.0% - - 22.5
Nexeon Limited Cleantech 4.3% (2.9) 3.6 20.1
Oxford Science Enterprises plc Platform investment 1.5% - - 16.4
Microbiotica Limited Life sciences 17.2% 1.9 (4.2) 13.9
Other portfolio 2.6 (47.3) 352.8
FX translation(2) - (14.2) -
Total Portfolio 5.4 (43.5) 799.9
(1) Represents the Group's undiluted beneficial economic equity interest
(excluding debt), including only the Group's portion of IPVF II. Voting
interest is below 50%.
(2) FX translation losses arising from the retranslation of the group's
non-GBP denominated investments, which are predominantly USD and
EUR-denominated investments.
Our portfolio company Oxford Nanopore released annual results for the year
ended 31 December 2024, which were in line with the company's guidance. The
company highlighted revenue growth of 23% and reported full-year revenues of
£183 million. Their medium-term guidance was reaffirmed and adjusted EBITDA
breakeven is projected to occur in 2027. The Oxford Nanopore share price
increased by 7% in the period and the share price was £1.641p at 12
September, an increase of 20% from 30 June. Oxford Nanopore recently reported
revenue for the six months to 30 June 2025 of £105.6m, up 28% on a constant
currency basis or 25.6% on a reported basis with losses narrowing to £71.8m
from a loss of £74.7m.
We were delighted to see the successful listing of digital health company
Hinge Health on the NASDAQ in May. IP Group, which was one of the founding
investors in Hinge Health, realised an initial £1.8m of proceeds through the
partial sale of its holding in the company. Following the initial sale, IP
Group's remaining shareholding was valued at £39.1m at 30 June 2025. Having
invested under £1.0m in total and having realised $15.0m in the 2021 funding
round, this represents a multiple of over 50 times the original investment.
Istesso, the adaptive tissue-repair company, reported the results from its
Phase 2b study of leramistat in rheumatoid arthritis (RA) in early 2025. The
results reinforced leramistat's novel mechanism of action and its
effectiveness in bone protection in people living with RA. Significant
improvements were seen in the key secondary endpoint of bone erosions as well
as improvements in disability and fatigue in patients treated with leramistat,
despite it not meeting the primary endpoint of improvement in ACR20 versus
placebo. These trial results were received prior to publication of the Group's
2024 annual report and accounts, and the resulting £31.9m fair value
reduction was included within the Group's 2024 results.
Post period end, the company published ground-breaking data showing that
leramistat can elicit tissue repair in models of autoimmune and fibrotic
disease, and reports that this offers the potential to directly prevent or
even potentially reverse progressive tissue decline in multiple chronic
diseases such as RA or Idiopathic Pulmonary Fibrosis, or in degenerative
conditions such as muscle or bone loss (sarcopenia and osteoporosis). Istesso
is planning additional Phase 2 studies to evaluate leramistat's potential to
elicit musculoskeletal repair.
Hysata continues to make good progress in scaling up its leading hydrogen
electrolyser technology. The company signed a deal in February with leading
energy company ACWA Power to unlock green hydrogen in the Kingdom of Saudi
Arabia and the Gulf. The agreement will see Hysata deliver commercial scale
demonstrations of its high-efficiency capillary-fed electrolysis technology
(using only 41.5 kWh of electricity to produce one kilogram of hydrogen) in
Saudi Arabia.
We remain excited for the potential of Pulmocide, which remains on course to
complete its Phase 3 trial of opelconazole for invasive pulmonary
aspergillosis during 2026. The company also published a clinical case study in
May showing that good clinical outcomes were observed in a patient with
uncontrolled allergic bronchopulmonary aspergillosis when treated with
opelconazole. This suggests a potential role for opelconazole in the
management of different types of Aspergillus lung infection and could broaden
its clinical application beyond the invasive form of pulmonary aspergillosis
that is the focus of the ongoing Phase 3. Following an external valuation
exercise, we have reflected a £4.1m fair value increase in our investment in
the period, reflecting the company's positive progress.
In March, First Light Fusion set a new record for the highest pressure ever
observed on Sandia National Laboratories' Z Machine, achieving 3.67 TPa, a
breakthrough that validates the company's technology and opens up new research
opportunities in fusion, defence, and space. Following its pivot to become an
IP-rich technology provider, we extended a convertible loan to First Light
during the period to extend the cash runway whilst the company sought
third-party capital. The company has seen promising interest from a number of
potential investors and is making progress in securing additional funding in
the second half of 2025/early 2026.
Other Notable Portfolio Developments
In the Life Science domain, we continue to support our portfolio of
high-potential therapeutics assets as they mature through clinical trial
phases. Artios reported encouraging data from its ongoing Phase 1/2a trial of
its lead drug candidate, ART0380, in an oral presentation at the American
Association for Cancer Research (AACR) Annual Meeting 2025. ART0380 was found
to reduce tumour size in several different cancers, including a notable effect
in a genetic subset of cancer ("ATM-negative") where 50% of patients were
shown to respond. Despite the positive progress, the Group reduced the
valuation of Artios by £10.6m, reflecting the current challenging oncology
biotech market.
STORM Therapeutics, a pioneer in the field of RNA epigenetics, dosed the first
patient in a new clinical collaboration evaluating STC-15 in combination with
LOQTORZI®, which marks a significant step forward in the development of
RNA-modifying enzyme inhibitors for oncology. The first part of this
collaboration (Phase 1b) is estimated to complete in early 2026.
Enterprise Therapeutics and Iksuda are both expected to report key clinical
data in the next 6-12 months, which are likely to result in valuation updates.
University of Oxford spin-outs Oxehealth and Genomics continue to see strong
commercial traction and growing revenues. We are pleased to report the
successful IPO and rapid clinical progress at Metsera Inc., which is
developing anti-obesity programmes sourced from our portfolio company Zihipp,
which it acquired in 2023. We retain exposure to future investment returns
through a combination of technical and commercial milestone payments, as well
as downstream royalties linked to product sales.
In our Digital Transformation stream, we have a cohort of companies
well-placed to serve the software, processing hardware and communications
infrastructure demands and opportunities that are arising from the Artificial
Intelligence (AI) revolution. Monolith, our AI-driven engineering software
company, secured high-profile partnerships with PREMA Racing and Cadillac
Hertz Team JOTA in the motorsport sector, both of which demonstrate the
versatility and impact of Monolith's platform in high-performance engineering.
We expect Monolith to raise new equity funding in the second half of 2025.
Likewise, our breakthrough next generation memory technology company,
Intrinsic, which has the potential to serve a huge global market opportunity,
is expected to raise new equity funding in H2 based on encouraging technical
progress with their chips that can read data 10x to 100x faster and write it
1000x faster than existing solutions.
Oxa continues to demonstrate strategic relevance and technological leadership
within the UK's National Industrial Strategy, reinforcing its position as a
key player in the autonomous mobility sector. During H1 2025, the company
announced collaborations with Bradshaw EV, Applied EV, and NVIDIA,
strengthening its commercial and technical ecosystem. However, due to delays
in anticipated fundraising, IP Group has taken the decision to reduce Oxa's
valuation by £28.7m (approximately 2/3), reflecting funding round delays
while maintaining confidence in the company's long-term opportunity.
Finally in the domain of reducing humanity's future reliance on fossil fuels,
our cleantech investment platform Kiko Ventures is backing breakthrough
technologies driving the transition to a sustainable, low-carbon economy,
focused on green hydrogen, energy storage, carbon capture and utilisation,
resource efficiency, and decarbonisation technologies across energy,
transportation, and industry. University of Oxford spin-out OXCCU continues to
make strong technical progress towards producing sustainable fuels and
chemicals by converting carbon dioxide and hydrogen into high-value products
and we expect to bring positive news of a new equity investment for that
company shortly. Mixergy, which develops smart hot water tanks, announced a
successful £12m funding round in March, led by Barclays Climate Ventures. The
company was also recently awarded the King's Award for Enterprise. Bramble
Energy achieved a power density of 8.76 kW/L in its fuel cell systems, a
significant technical achievement that enhances the commercial potential of
its printed circuit board fuel cell technology, however delays in funding the
company resulted in a valuation reduction of £5.2m in the period.
Platform Investments
IP Group's Platform Investments portfolio comprises holdings in funds and
companies that operate in a similar way to IP Group, including our interest in
our US platform, North America University Innovation L.P., Oxford Science
Enterprises Limited, the UCL Technology Fund and Cambridge Innovation Capital
Limited, and in all of which IP Group was a founding investor. This portfolio
was valued at £69.7m at 30 June 2025 (FY24: 77.0m, HY24 £89.7m).
In 2025, the US platform's LPs agreed a restructuring of the platform which
greatly reduced the costs of operation. As part of this restructuring, the LPs
committed to provide funding to cover the fund's operating costs for a fixed
five-year period while the GP seeks to generate the maximum returns from the
portfolio, the fund was redomiciled to the US and its administration was
transitioned to Anzu Partners, a highly regarded investor and fund manager. At
the same time $11.7m in SAFE notes which the Group had provided to fund the
platform in 2022-24 were converted into regular units within the fund. The
restructuring, including the termination of all legacy governance rights, was
formalised in May 2025 and the fund was renamed North America University
Innovation L.P. (formerly IPG Cayman L.P.).
Number of investments by sector
As at 30 June 2025 As at 31 December 2024
Sector Number % Number %
Healthier future: Life sciences (ex-ONT) 28 34% 29 36%
Healthier future: Life sciences (ONT) 1 1% 1 1%
Tech-enriched future: Deeptech 30 36% 27 33%
Regenerative future: Cleantech (Kiko Ventures) 19 23% 20 24%
Platform investments 5 6% 5 6%
Total number of portfolio investments(1) 83 100% 82 100%
(1) Excludes de minimis holdings, which have a small value to the Group and
are not actively managed to the same extent as core holdings, and are
accordingly not included in the stated number of companies.
Portfolio funding position
The following table lists information on the expected cash-out dates (the date
by which portfolio companies are projected to need to have raised further
funding) of portfolio companies in which IP Group's investment holding value
is greater than £4m. The values in the below table show the IP Group
portfolio value which falls within each of the cash-out periods.
30 June 2025
Cash out date(1) £m %
2025 H2 54.6 8%
2026 190.0 29%
2027 & later 193.0 30%
Funded to breakeven 216.1 33%
Total companies > £4m value 653.7 100%
Companies < £4m value 76.5
Interest in Limited Partnerships and Platforms 69.7
Total portfolio 799.9
(1) Cash out dates based on portfolio company forecast as at publication date
of half-yearly report.
FINANCIAL REVIEW
· Loss for the period of £(43.0m) (HY24: Loss of £(109.9m), FY24:
Loss of £(207.0m))
· Net assets were £883.1m (HY24: £1,072.2m, FY24: £952.5m)
· Net assets per share were 96.2p (HY24: 104.7p, FY24: 97.7p)
· Net overheads were £(7.4)m, a reduction of £1.3m from the
previous half-year period (HY24: £(8.7)m, FY24: £(19.8)m)
Consolidated statement of comprehensive income
A summary analysis of the Group's performance is provided below:
Six months Six months ended Year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Net portfolio loss(1) (43.5) (103.0) (195.0)
Net overheads(2) (7.4) (8.7) (19.8)
Non-portfolio foreign exchange gains and losses 1.0 0.1 2.7
Restructuring costs - - (2.7)
Administrative expenses - share-based payments charge (1.2) (0.8) (1.9)
Carried interest plan provision credit/(charge) 5.8 (0.1) 7.9
Net finance income 2.4 1.4 2.1
Taxation (0.1) 1.2 (0.3)
Loss after tax for the period (43.0) (109.9) (207.0)
Other comprehensive income (1.0) (0.9) (3.0)
Total comprehensive loss for the period/year (44.0) (110.8) (210.0)
Exclude:
Share-based payment charge 1.2 0.8 1.9
Return on NAV(1) (42.8) (110.0) (208.1)
(1) Defined in note 11 Alternative Performance Measures.
(2) See net overheads table below and definition in note 11 Alternative
Performance Measures.
Net portfolio losses consist primarily of realised and unrealised fair value
gains and losses from the Group's equity and debt holdings in spin-out
businesses, which are analysed in detail in the portfolio analysis above.
Fair value movements
A summary of the unrealised and realised fair value gains and losses is as
follows:
Six months Six months ended Year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Quoted equity & debt investments 12.0 (95.2) (52.0)
Private equity & debt investments (36.6) (6.2) (123.5)
Investments in Limited Partnerships (4.7) (1.9) (13.1)
FX translation (14.2) 0.3 (6.4)
Net portfolio loss (43.5) (103.0) (195.0)
A summary of the largest positive and negative net portfolio fair value
movements is as follows:
Gains £m Losses £m
Hinge Health, Inc. 7.6 Oxa Autonomy Limited (28.7)
Oxford Nanopore Technologies plc 6.9 Artios Pharma Limited (10.6)
Pulmocide Limited 4.1 North America University Innovation L.P.(1) (6.7)
Nexeon Limited 3.6 Bramble Energy Limited (5.2)
Kira Biotech Pty Limited 2.9 Microbiotica Limited (4.2)
Other Quoted 0.8 Other Quoted (3.2)
Other Private 13.0 Other Private (9.6)
FX translation 0.4 FX translation (14.6)
Total 39.3 Total (82.8)
(1) Formerly IPG Cayman L.P.
Net overheads
Six months Six months ended Year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Other income 3.6 3.8 5.5
Administrative expenses - all other expenses (10.1) (11.7) (22.5)
Administrative expenses - annual incentive scheme (charge) (0.9) (0.8) (2.2)
Net overheads (7.4) (8.7) (19.2)
Net overheads
Other income comprises fund management fees on our third party managed funds
and licensing and patent income. In the current period other income totalled
£3.6m (HY24: £3.8m, FY24: £5.5m) and was essentially unchanged from first
half of the previous year. We are seeing encouraging developments within our
IP licensing portfolio, which includes several therapeutic programmes that are
in active development most notably at Metsera Inc, a US-listed biotech which
is developing anti-obesity treatments. We anticipate in future years that a
combination of technical and commercial milestones and royalty payments may
result in a significant growth in license income to the Group as this
portfolio matures.
Other central administrative expenses, excluding performance-based staff
incentives, share-based payments charges and the impact of FX translation
movements, have reduced by 14% from the prior period at £10.1m (HY24:
£11.7m, FY24: £22.5m) reflecting the impact of the restructuring carried out
in the second half of 2024 which we anticipate will reduce the Group's net
overheads by £5m from the 2023 run rate.
The charge of £0.9m in respect of the Group's Annual Incentive Scheme
reflects a provisional assessment of performance against 2025 AIS targets
which include Group, Team, and Individual performance elements (HY24: charge
£0.8m, FY24: charge £2.2m).
Other income statement items
The share-based payments charge of £1.2m (HY24: £0.8m, FY24: £1.9m)
reflects the accounting charge for the Group's Restricted Share Plan,
Long-Term Incentive Plan and Deferred Bonus Share Plan. This non-cash charge
reflects the fair value of services received from employees, measured by
reference to the fair value of the share-based payments at the date of award,
but has no net impact on the Group's total equity or net assets.
Carried interest plan charge
The carried interest plan credit of £5.8m (HY24: £0.1m charge, FY24: £7.9m
credit) relates to the recalculation of liabilities under the Group's carry
schemes, reflecting the unrealised portfolio losses in the period. The
liabilities are calculated based upon any excess of current fair value above
cost and hurdle rate of return within each scheme or vintage. Any payments
will only be made following the full achievement of cost and hurdle via cash
proceeds and are only paid on the event of a cash realisation.
Consolidated statement of financial position
A summary analysis of the Group's assets and liabilities is provided below:
Six months Six months ended Year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Portfolio total 799.9 1,111.0 837.4
Other non-current assets 8.3 6.4 20.4
Other net current assets/(liabilities) 9.8 (8.0) (4.7)
Cash and deposits 237.3 161.3 285.6
Borrowings (126.0) (132.1) (129.1)
Other non-current liabilities (46.2) (66.4) (57.1)
Total Equity or Net Assets Value ("NAV") 883.1 1,072.2 952.5
NAV per share 96.2p 104.7p 97.7p
The composition of, and movements in, the Group's portfolio are described in
the portfolio review above.
Portfolio valuations
In terms of the funding round dynamics in the period, the proportion of down
rounds (i.e. rounds raised at a lower valuation than the previous financing
round) within the period was unchanged from the previous year at 38%. For all
five down rounds, impairments had been recognised already in the Group's 2024
full year results in anticipation of the funding round outcomes. There was,
however, evidence that the funding market for private companies remains
challenging, resulting in the Group recognising funding-related valuation
reductions in Oxa (£28.7m), Artios (£10.6m) and Bramble (£5.2m).
The first half of 2025 saw a consistent level of capital raised by the
portfolio compared to the same period in 2024, with £372m raised (HY24:
£380m, FY24: £784m), of which the majority (91%) was raised as equity with
only 9% raised as debt. Of this amount £199m related to the Hinge Health IPO.
In line with long term trends, IP Group contributed around 10% of the total
capital raised by our portfolio in the period.
In the period we commissioned third party valuation reports for two companies,
namely Pulmocide and Microbiotica within our therapeutics portfolio (HY24: 3
companies, FY24: 6 companies).
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
No. % No. % No. %
Up round 7 54% 4 50% 10 52%
Flat round 1 8% 1 12% 3 16%
Down round 5 38% 3 38% 6 32%
Total 13 100% 8 100% 19 100%
The table below summarises the valuation basis for the Group's portfolio.
Further details on the Group's valuation policy and approach can be found in
notes 3 and 4.
Six months Six months ended Year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Quoted 159.3 100.5 133.1
Funding transaction (<12 months) 169.5 177.8 217.8
Funding transaction (>12 months) 148.2 222.3 54.9
Other: Future market/commercial events 71.5 39.4 60.7
Other: Adjusted financing price based on past performance - upwards 30.3 36.0 35.9
Other: Adjusted financing price based on past performance - downwards 60.2 163.4 152.7
Other: Discounted Cash Flow (''DCF'') 96.9 140.5 97.2
Other: Revenue Multiple 12.9 125.1 13.1
Fair value of investments 748.8 1,005.0 765.4
Statements from LP 51.1 67.7 58.1
Assets held for sale(1) - 38.3 13.9
Total Portfolio 799.9 1,111.0 837.4
(1) Assets held for sale are valued at the agreed sale price unless quoted,
and hence are excluded from the valuation basis analysis
Other assets and liabilities
The majority of other long-term assets relate to amounts receivable on sale of
equity and debt investments, representing deferred and contingent
consideration amounts to be received in more than one year.
Other long-term liabilities relate to carried interest and revenue share
payables, and loans from LPs of consolidated funds. The Group consolidates the
assets and liabilities of a fund in which it has a significant economic
interest, IP Venture Fund II LP. Loans from third parties of consolidated
funds represent third-party loans into this partnership. These loans are
repayable only upon these funds generating sufficient realisations to repay
the Limited Partners.
Borrowings
The majority of the Group's outstanding debt relates to a £120m private
placement issued in 2022 and 2023. This loan has a fixed interest rate of
5.25% and is due to be repaid with three equal maturities in December in 2027,
2028 and 2029. The Group also has a £6.3m fixed-interest loan with the
European Investment Bank (HY24: £12.4m, FY24: £9.4m), which has two
remaining two equal repayments in July 2025 and January 2026.
Under the covenant terms of the £120m private placement, the Group is
required to maintain a minimum cash balance of £25m at any time, equity must
be at least £500m and gross debt less restricted cash must not exceed 25% of
total equity as at the Group's 30 June and 31 December reporting dates.
The private placement also includes 'Cash Trap' provisions which stipulate
that the Group is required to maintain cash and cash equivalents of no less
than £50m at any time, equity must be at least £750m, and gross debt less
restricted cash must not exceed 20% of total equity as at the Group's 30 June
and 31 December reporting dates. In the event of the Cash Trap being
triggered, the Group is not permitted to pay or declare a dividend or purchase
any of its shares. In addition, investments are restricted to £2.5m per
calendar quarter other than those legally committed to. The Group is also
required to place the net proceeds of all cash proceeds (over a threshold of
£1m) into a blocked bank account. Entering a Cash Trap does not constitute a
default.
All covenants have been met throughout the period. For further details of the
Group's loans including covenant details see note 7 of this document and Note
19 of the Group's 2024 Annual Report and Accounts.
Cash and deposits
At 30 June 2025, the Group's cash and deposits totalled £237.3m, a decrease
of £48.3m from a total of £285.6m at 31 December 2024, predominantly due to
outflows of investing activities of £35.7m, a £14.1m net cash outflow from
operations, £25.6m spent on the share buy-back scheme and a £3.1m cash
outflow from the repayment of debt, net of an inflow of cash proceeds from
sale of equity and debt investments of £19.8m a £10m inflow from sale of
assets held for sale and distributions from limited partnerships of £0.5m.
Investments and realisations
The Group invested a total of £35.7m across 22 portfolio companies during the
period (HY24: £49.1m, 23, FY24: £63.0m; 38) and realised cash proceeds of
£30.3m (HY24: £3.4m, FY24: £183.4m).
Largest investments and realisations by portfolio company for the period:
Investments £m Cash Realisations £m
First Light Fusion Limited 5.0 Intelligent Ultrasound Group plc 8.8
Fortify Solutions Cambridge Limited 3.7 Centessa Pharmaceuticals plc 7.2
Accelercomm Limited 3.0 Abliva AB 5.1
Intrinsic Semiconductor Technologies Limited 2.5 Nexeon Limited 2.9
Ultraleap Holdings Limited 2.5 Hinge Health, Inc. 1.8
Other 19.0 Other 4.5
Total 35.7 Total 30.3
Deferred consideration estimated at £18.8m was outstanding at 30 June 2025
(HY24: £5.8m, FY24: £20.1m), relating to the Group's realisation of
Featurespace (£11.1m, exited in 2024), Enterprise Therapeutics (£3.9m,
exited in 2020), Oxular Limited (£1.7m, exited in 2024), Zihipp Limited
(£1.8m, exited in 2023) and Kynos Therapeutics Limited (£0.5m exited in
2024).
Dividend and share buyback
The Board remains committed to making regular cash returns to shareholders
from realisations and these regular cash returns will normally be made in the
form of share buybacks when the share price discount to NAV exceeds 20%.
Throughout 2025, we intend to allocate 50% of proceeds from realisations
towards the share buyback programme.
Accordingly, the share buyback programme which we commenced in 2024 has
continued to operate throughout the period, with 57m shares representing 6% of
the Group's opening share capital being purchased in the period, at a cost of
£25.6m (including stamp duty). This reflected the completion of a £25m
buyback extension announced in early January 2025, which was extended by a
further £20m on 26 June 2025 and which is still ongoing at the publication
date of these results.
Taxation
The Group typically holds at least a 10% equity holding in its portfolio
companies, and as a result the majority of the portfolio will qualify for the
Substantial Shareholdings Exemption ("SSE") on disposal. On these companies,
capital gains are exempt from UK Corporation Tax and as a result no deferred
tax is recognised on capital gains at the balance sheet date for
SSE-qualifying companies.
Capital gains from companies not qualifying for SSE will be at least partially
offset by a deduction for the Group's current year net overheads and further
reduced by using brought forward tax losses relating largely to the Group's
historic net overheads (albeit the use of these losses is restricted to 50%
above a £5m threshold). As a result, the tax rate payable on any non-SSE
disposals will be significantly less than the headline UK corporation tax rate
of 25%. Deferred tax is calculated on non-SSE disposals and recognised through
the income statement, in the current period the income statement charge was
£0.1m and the cumulative balance sheet liability was £4.6m.
The Group complies with relevant global initiatives including the US Foreign
Account Tax Compliance Act ("FATCA") and the OECD Common Reporting Standard.
Alternative Performance Measures ("APMs")
The Group discloses alternative performance measures, such as NAV per share
and Return on NAV, in this Half-Yearly Report. The Directors believe that
these APMs assist in providing additional useful information on the underlying
trends, performance, and position of the Group. Further information on APMs
utilised by the Group is set out in note 11.
Principal risks and uncertainties
A detailed explanation of the principal risks and uncertainties faced by the
Group, and the steps taken to manage them, is set out in the Strategic Report
section of the Group's 2024 Annual Report and Accounts. The principal risks
and uncertainties are summarised as follows:
· it may be difficult for the Group to maintain the required level of
capital to continue to operate at optimum levels of investment, activity and
overheads,
· it may be difficult for the Group's portfolio companies to attract
sufficient capital,
· the returns and cash proceeds from the Group's early-stage companies
may be insufficient,
· the Group may lose key personnel or fail to attract and integrate new
personnel,
· macroeconomic conditions may negatively impact the Group's ability to
achieve its strategic objectives,
· there may be changes to, impacts from, or failure to comply with,
legislation, government policy and regulation,
· the Group and its portfolio companies may be subjected to phishing
and ransomware attacks, data leakage and hacking,
· the Group may be negatively impacted by operational issues both from
a UK central and international operations perspective.
The Group reviewed its operational, strategic and principal risk registers in
the period and has concluded that it is not aware of any significant changes
in the nature of the principal risks that would result in a change to the
Group's principal risks as set out above in the forthcoming six months.
Consolidated statement of comprehensive income
For the six months ended 30 June 2025
Note Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Portfolio return and revenue
Change in fair value of equity and debt investments 3 (35.1) (99.9) (246.1)
Gain/(loss) on disposal of equity and debt investments 5 (0.5) (1.5) 63.7
Change in fair value of limited and limited liability partnership interests 4 (7.9) (1.6) (12.6)
Revenue from services and other income 3.6 3.8 5.5
(39.9) (99.2) (189.5)
Administrative expenses
Carried interest plan credit/(charge) 9 5.8 (0.1) 7.9
Share-based payment charge (1.2) (0.8) (1.9)
Other administrative expenses (10.0) (12.4) (25.3)
(5.4) (13.3) (19.3)
Operating loss (45.3) (112.5) (208.8)
Finance income 5.6 4.8 8.8
Finance costs (3.2) (3.4) (6.7)
Loss before taxation (42.9) (111.1) (206.7)
Taxation (0.1) 1.2 (0.3)
Loss after taxation for the period (43.0) (109.9) (207.0)
Other comprehensive income
Exchange differences on translating foreign operations (1.0) (0.9) (3.0)
Total comprehensive loss for the period (44.0) (110.8) (210.0)
Attributable to:
Equity holders of the parent (44.2) (105.6) (205.6)
Non-controlling interest 0.2 (5.2) (4.4)
(44.0) (110.8) (210.0)
Loss per share
Basic (p) 2 (4.55) (10.24) (19.97)
Diluted (p) 2 (4.55) (10.24) (19.97)
The accompanying notes form an integral part of the financial statements.
Consolidated statement of financial position
As at 30 June 2025
Note Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
ASSETS
Non-current assets
Goodwill 0.4 0.4 0.4
Property, plant and equipment 0.6 1.1 0.8
Joint venture investment 0.5 0.6 0.6
Equity investments 3 686.8 947.2 713.8
Debt investments 3 62.0 57.8 51.6
Limited and limited liability partnership interests 4 51.1 67.7 58.1
Receivable on sale of debt and equity investments 6 6.8 4.3 18.5
Total non-current assets 808.2 1,079.1 843.8
Current assets
Assets held for sale 3 - 38.3 13.9
Trade and other receivables 8.2 6.7 6.3
Receivable on sale of debt and equity investments 6 12.0 1.5 1.6
Deposits 120.1 70.0 170.0
Cash and cash equivalents 117.2 91.3 115.6
Total current assets 257.5 207.8 307.4
Total assets 1,065.7 1,286.9 1,151.2
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Called up share capital 8 18.4 21.3 19.5
Share premium account 102.5 102.5 102.5
Capital redemption reserve 2.9 - 1.8
Retained earnings 772.6 962.7 842.2
Total equity attributable to equity holders 896.4 1,086.5 966.0
Non-controlling interest (13.3) (14.3) (13.5)
Total equity 883.1 1,072.2 952.5
Current liabilities
Trade and other payables 10.4 16.2 12.5
Borrowings 7 6.3 6.2 6.3
Total current liabilities 16.7 22.4 18.8
Non-current liabilities
Borrowings 7 119.7 125.9 122.8
Carried interest plan liability 9 18.5 36.6 27.3
Deferred tax liability 4.6 3.5 4.5
Loans from limited partners of consolidated funds 18.3 19.9 19.9
Revenue share liability 4.8 6.4 5.4
Total non-current liabilities 165.9 192.3 179.9
Total liabilities 182.6 214.7 198.7
Total equity and liabilities 1,065.7 1,286.9 1,151.2
Registered number: 4204490
The accompanying notes form an integral part of the financial statements. The
financial statements were approved by the Board of Directors and authorised
for issue on 16 September 2025 and were signed on its behalf by:
Greg Smith
Chief Executive Officer
David Baynes
Chief Financial & Operating Officer
Consolidated statement of cash flows
For the six months ended 30 June 2025
Note Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Operating activities
Loss before taxation for the period (42.9) (111.1) (206.7)
Adjusted for:
Change in fair value of equity and debt investments 3 35.1 99.9 246.1
Loss on disposal of equity investments 5 0.5 1.5 (63.7)
Change in fair value of limited and limited liability partnership interests 4 7.9 1.6 12.6
Carry scheme (credit)/charge 9 (5.8) 0.1 (7.9)
Carried interest scheme payments 9 (2.8) (1.5) (2.5)
Share-based payment charge 1.2 0.8 1.9
Finance income (5.6) (4.8) (8.8)
Finance costs 3.2 3.4 6.7
Depreciation of right of use asset, property, plant and equipment 0.3 0.3 0.6
Corporate finance fees settled in the form of portfolio company equity (0.1) - -
Changes in working capital
Decrease/(increase) in trade and other receivables (2.1) (0.8) (0.7)
Decrease in trade and other payables (2.7) (1.1) (7.3)
Drawdowns/(distributions) from limited partners of consolidated funds (1.6) 0.1 0.1
Other operating cash flows
Cash paid to settle share-based payments liabilities (1.0) - -
Interest received 2.3 2.3 4.5
Net cash outflow from operating activities (14.1) (9.3) (25.1)
Investing activities
Purchase of equity and debt investments 3 (34.3) (48.7) (60.8)
Investment in limited and limited liability partnership funds 4 (1.4) (0.4) (2.2)
Proceeds from sale of equity and debt investments 5 19.8 2.6 182.2
Proceeds from sale of assets held for sale 10.0 - -
Distribution from limited partnership funds 4 0.5 0.8 1.2
Cash flow to deposits (80.0) (60.0) (230.0)
Cash flow from deposits 130.7 116.0 186.6
Interest received on deposits 2.7 4.3 5.9
Net cash inflow from investing activities 48.0 14.6 82.9
Financing activities
Repurchase of own shares 8 (25.6) (8.1) (29.6)
Lease principal payment (0.3) (0.3) (0.4)
Interest paid (3.3) (3.3) (6.8)
Repayment of EIB loan facility (3.1) (3.1) (6.1)
Net cash (outflow) from financing activities (32.3) (14.8) (42.9)
Net decrease in cash and cash equivalents 1.6 (9.5) 14.9
Cash and cash equivalents at the beginning of the period 115.6 100.9 100.9
Effect of foreign exchange rate changes - (0.1) (0.2)
Cash and cash equivalents at the end of period 117.2 91.3 115.6
5
0.5
1.5
(63.7)
Change in fair value of limited and limited liability partnership interests
4
7.9
1.6
12.6
Carry scheme (credit)/charge
9
(5.8)
0.1
(7.9)
Carried interest scheme payments
9
(2.8)
(1.5)
(2.5)
Share-based payment charge
1.2
0.8
1.9
Finance income
(5.6)
(4.8)
(8.8)
Finance costs
3.2
3.4
6.7
Depreciation of right of use asset, property, plant and equipment
0.3
0.3
0.6
Corporate finance fees settled in the form of portfolio company equity
(0.1)
-
-
Changes in working capital
Decrease/(increase) in trade and other receivables
(2.1)
(0.8)
(0.7)
Decrease in trade and other payables
(2.7)
(1.1)
(7.3)
Drawdowns/(distributions) from limited partners of consolidated funds
(1.6)
0.1
0.1
Other operating cash flows
Cash paid to settle share-based payments liabilities
(1.0)
-
-
Interest received
2.3
2.3
4.5
Net cash outflow from operating activities
(14.1)
(9.3)
(25.1)
Investing activities
Purchase of equity and debt investments
3
(34.3)
(48.7)
(60.8)
Investment in limited and limited liability partnership funds
4
(1.4)
(0.4)
(2.2)
Proceeds from sale of equity and debt investments
5
19.8
2.6
182.2
Proceeds from sale of assets held for sale
10.0
-
-
Distribution from limited partnership funds
4
0.5
0.8
1.2
Cash flow to deposits
(80.0)
(60.0)
(230.0)
Cash flow from deposits
130.7
116.0
186.6
Interest received on deposits
2.7
4.3
5.9
Net cash inflow from investing activities
48.0
14.6
82.9
Financing activities
Repurchase of own shares
8
(25.6)
(8.1)
(29.6)
Lease principal payment
(0.3)
(0.3)
(0.4)
Interest paid
(3.3)
(3.3)
(6.8)
Repayment of EIB loan facility
(3.1)
(3.1)
(6.1)
Net cash (outflow) from financing activities
(32.3)
(14.8)
(42.9)
Net decrease in cash and cash equivalents
1.6
(9.5)
14.9
Cash and cash equivalents at the beginning of the period
115.6
100.9
100.9
Effect of foreign exchange rate changes
-
(0.1)
(0.2)
Cash and cash equivalents at the end of period
117.2
91.3
115.6
The accompanying notes form an integral part of the financial statements.
Consolidated statement of changes in equity
For the six months ended 30 June 2025
Attributable to equity holders of the parent
Capital Non-controlling
Share Share redemption Retained interest Total
Capital premium reserve earnings Total £m equity
£m
£m £m £m £m £m
At 1 January 2024 (audited) 21.3 102.5 - 1,075.6 1,199.4 (9.1) 1,190.3
Loss for the period - - - (104.7) (104.7) (5.2) (109.9)
Currency translation - - - (0.9) (0.9) - (0.9)
Total comprehensive income for the period - - - (105.6) (105.6) (5.2) (110.8)
Purchase of treasury shares - - - (8.1) (8.1) - (8.1)
Equity-settled share-based payments - - - 0.8 0.8 - 0.8
Total contributions by and distributions to owners - - - (7.3) (7.3) - (7.3)
At 30 June 2024 (unaudited) 21.3 102.5 - 962.7 1,086.5 (14.3) 1,072.2
Loss for the period - - - (97.9) (97.9) 0.8 (97.1)
Currency translation - - - (2.2) (2.2) - (2.2)
Total comprehensive income for the period - - - (100.1) (100.1) 0.8 (99.3)
Purchase of treasury shares (1.8) - 1.8 (21.5) (21.5) - (21.5)
Equity-settled share-based payments - - - 1.1 1.1 - 1.1
Total contributions by and distributions to owners (1.8) - 1.8 (20.4) (20.4) - (20.4)
At 1 January 2025 (audited) 19.5 102.5 1.8 842.2 966.0 (13.5) 952.5
Loss for the period - - - (43.2) (43.2) 0.2 (43.0)
Currency translation - - - (1.0) (1.0) - (1.0)
Total comprehensive income for the period - - - (44.2) (44.2) 0.2 (44.0)
Purchase of own shares (1.1) - 1.1 (25.6) (25.6) - (25.6)
Cash paid to settle share-based payment liabilities - - - (1.0) (1.0) - (1.0)
Equity-settled share-based payments - - - 1.2 1.2 - 1.2
Total contributions by and distributions to owners (1.1) - 1.1 (25.4) (25.4) - (25.4)
At 30 June 2025 (unaudited) 18.4 102.5 2.9 772.6 896.4 (13.3) 883.1
The accompanying notes form an integral part of the financial statements
1. Operating segments
For the year ended 31 December 2024 and the periods ended 30 June 2025 and 30
June 2024, the Group's revenue and loss before taxation were derived largely
from its principal activities within the UK. For management reporting
purposes, the Group is currently organised into five operating segments:
i) Venture Capital investing within our 'Healthier future' thematic area
ii) Venture Capital investing within our 'Tech-enriched future' thematic
area
iii) Venture Capital investing within our 'Regenerative future' thematic area
iv) Venture Capital investing: Other, representing investments not included
within our three thematic areas above, including platform investments
v) the management of third-party funds and the provision of corporate
finance advice
Reporting line items within Venture Capital investing which are not allocated
by thematic sector are presented in the 'Venture Capital investing: other
segment. The element of our 'Healthier future' thematic area relating to
Oxford Nanopore Technologies plc is disclosed separately given its size.
Six months ended 30 June 2025 (unaudited)
STATEMENT OF COMPREHENSIVE INCOME Venture capital investing: Healthier future Of which Oxford Nanopore Venture capital investing: Tech enriched future Venture capital investing: Regenerative future Venture capital investing: Other Venture capital investing: Total Third party fund management Consolidated
£m £m £m £m £m £m £m £m
Portfolio return and revenue
Change in fair value of equity and debt investments 0.3 6.7 (30.3) (4.1) (1.0) (35.1) - (35.1)
(Loss)/gain on disposal of equity and debt investments 0.4 0.2 0.1 (1.0) - (0.5) - (0.5)
Change in fair value of limited and limited liability partnership interests (7.9) (7.9) - (7.9)
Revenue from services and other income 1.1 1.1 2.5 3.6
0.7 6.9 (30.2) (5.1) (7.8) (42.4) 2.5 (39.9)
Administrative expenses
Carried interest plan release/(charge) 5.8 5.8 - 5.8
Share-based payment charge (1.0) (1.0) (0.2) (1.2)
Other administrative expenses (6.0) (6.0) (4.0) (10.0)
(1.2) (1.2) (4.2) (5.4)
Operating loss 0.7 6.9 (30.2) (5.1) (9.0) (43.6) (1.7) (45.3)
Finance income 5.3 5.3 0.3 5.6
Finance costs (3.2) (3.2) - (3.2)
Loss before taxation 0.7 6.9 (30.2) (5.1) (6.9) (41.5) (1.4) (42.9)
Taxation (0.1) (0.1) - (0.1)
Loss for the period 0.7 6.9 (30.2) (5.1) (7.0) (41.6) (1.4) (43.0)
STATEMENT OF FINANCIAL POSITION
Assets 446.9 111.8 129.1 173.1 297.5 1,046.6 19.1 1,065.7
Liabilities (176.8) (176.8) (5.8) (182.6)
Net Assets 446.9 111.8 129.1 173.1 120.7 869.8 13.3 883.1
Other segment items:
Portfolio Investment (9.6) - (16.5) (8.1) (1.5) (35.7) - (35.7)
Cash Proceeds 26.1 1.7 0.8 2.9 0.5 30.3 - 30.3
Six months ended 30 June 2024 (unaudited)
STATEMENT OF COMPREHENSIVE INCOME Venture capital investing: Healthier future Of which Oxford Nanopore Venture capital investing: Tech enriched future Venture capital investing: Regenerative future Venture capital investing: Other Venture capital investing: Total Third party fund management Consolidated
£m £m £m £m £m £m £m £m
Portfolio return and revenue
Change in fair value of equity and debt investments (97.5) (94.9) 9.4 (12.7) 0.9 (99.9) - (99.9)
(Loss)/gain on disposal of equity and debt investments (1.6) - 0.1 - - (1.5) - (1.5)
Change in fair value of limited and limited liability partnership interests (1.6) (1.6) - (1.6)
Revenue from services and other income 2.1 2.1 1.7 3.8
(99.1) (94.9) 9.5 (12.7) 1.4 (100.9) 1.7 (99.2)
Administrative expenses
Carried interest plan charge (0.1) (0.1) - (0.1)
Share-based payment charge (0.7) (0.7) (0.1) (0.8)
Other administrative expenses (9.4) (9.4) (3.0) (12.4)
(10.2) (10.2) (3.1) (13.3)
Operating loss (99.1) (94.9) 9.5 (12.7) (8.8) (111.1) (1.4) (112.5)
Finance income 4.4 4.4 0.4 4.8
Finance costs (3.4) (3.4) - (3.4)
Loss before taxation (99.1) (94.9) 9.5 (12.7) (7.8) (110.1) (1.0) (111.1)
Taxation 1.2 1.2 - 1.2
Loss for the period (99.1) (94.9) 9.5 (12.7) (6.6) (108.9) (1.0) (109.9)
STATEMENT OF FINANCIAL POSITION
Assets 508.8 78.7 242.8 275.4 242.5 1,269.5 17.4 1,286.9
Liabilities (208.3) (208.3) (6.4) (214.7)
Net Assets 508.8 78.7 242.8 275.4 34.2 1,061.2 11.0 1,072.2
Other segment items:
Portfolio Investment (33.9) - (2.0) (12.8) (0.4) (49.1) - (49.1)
Cash Proceeds 2.5 - 0.1 - 0.8 3.4 - 3.4
Year ended 31 December 2024 (audited)
STATEMENT OF COMPREHENSIVE INCOME Venture capital investing: Healthier future Of which Oxford Nanopore Venture capital investing: Tech enriched future Venture capital investing: Regenerative future Venture capital investing: Other Venture capital investing: Total Third party fund management Consolidated
£m £m £m £m £m £m £m £m
Portfolio return and revenue
Change in fair value of equity and debt investments (126.0) (65.6) (45.6) (75.1) 0.6 (246.1) - (246.1)
(Loss)/gain on disposal of equity and debt investments 7.5 (0.7) 56.1 - 0.1 63.7 - 63.7
Change in fair value of limited and limited liability partnership interests (12.6) (12.6) - (12.6)
Revenue from services and other income 0.3 0.3 5.2 5.5
(118.5) (66.3) 10.5 (75.1) (11.6) (194.7) 5.2 (189.5)
Administrative expenses
Carried interest plan charge 7.9 7.9 - 7.9
Share-based payment charge (1.6) (1.6) (0.3) (1.9)
Other administrative expenses (19.8) (19.8) (5.5) (25.3)
(13.5) (13.5) (5.8) (19.3)
Operating loss (118.5) (66.3) 10.5 (75.1) (25.1) (208.2) (0.6) (208.8)
Finance income 8.1 8.1 0.7 8.8
Finance costs (6.7) (6.7) - (6.7)
Loss before taxation (118.5) (66.3) 10.5 (75.1) (23.7) (206.8) 0.1 (206.7)
Taxation (0.3) (0.3) - (0.3)
Loss for the period (118.5) (66.3) 10.5 (75.1) (24.0) (207.1) 0.1 (207.0)
STATEMENT OF FINANCIAL POSITION
Assets 463.1 106.6 101.1 215.9 352.0 1,132.1 19.1 1,151.2
Liabilities (191.8) (191.8) (6.9) (198.7)
Net Assets 463.1 106.6 101.1 215.9 160.2 940.3 12.2 952.5
Other segment items:
Portfolio Investment (36.3) (1.0) (8.5) (15.7) (2.5) (63.0) - (63.0)
Cash Proceeds 30.4 1.6 148.9 - 4.1 183.4 - 183.4
2. Earnings per share
Earnings Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Earnings for the purposes of basic and dilutive earnings per share (43.2) (105.6) (202.6)
Number of shares Unaudited Unaudited Audited
six months ended
six months
year ended
ended
30 June 2025
31 December 2024
30 June 2024
Number of shares
Number of
Number of
shares
shares
Weighted average number of ordinary shares for the purposes of basic 948,703,4700 1,031,449,8069 1,014,672,5868
earnings per share
Effect of dilutive potential ordinary shares:
Options or contingently issuable shares -- -- --
Weighted average number of ordinary shares for the purposes of diluted 948,703,4700 1,031,449,8069 1,014,672,5868
earnings per share
Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Basic (4.55) (10.24) (19.97)
Diluted (4.55) (10.24) (19.97)
No adjustment has been made to the basic loss per share in the period ended 30
June 2025, as the exercise of share options would have the effect of reducing
the loss per ordinary share, and therefore is not dilutive.
Potentially dilutive ordinary shares include contingently issuable shares
arising under the Group's LTIP arrangements, and options issued as part of the
Group's Sharesave schemes and Deferred Bonus Share Plan (for annual bonuses
deferred under the terms of the Group's Annual Incentive Scheme).
3. Portfolio: Equity and debt investments and Assets Held for Sale
Assets held for sale
At the reporting date there were no assets categorised as held for sale (HY24:
£38.9, FY24: £13.9m).
Equity and Debt investments within the Top 10 by holding value
The following table lists the 10 most valuable equity and debt portfolio
company investments, which represent 56% of the total portfolio value (HY24:
69%, FY24: 58%). Detail on the performance of these companies is included in
the portfolio reviews section of this results release.
The Group engages third-party valuation specialists to provide valuation
support where required; during the period we commissioned third-party
valuations on one out of the top 10 holdings (HY24: two, FY24: four).
Company name Primary valuation basis Fair value of Group holding at 30 June 2025
£m
Oxford Nanopore Technologies plc Quoted bid price 111.8
Istesso Limited DCF 91.9
Hysata Pty Ltd Funding transaction > 12 months, PWERM 73.3
Hinge Health, Inc. Quoted bid price 39.1
First Light Fusion Limited Funding transaction < 12 months 30.0
Pulmocide Limited * Adjusted funding - upwards 28.1
Mission Therapeutics Limited Funding transaction > 12 months, PWERM 22.5
Nexeon Limited Future event 20.1
Oxford Science Enterprises plc Funding transaction < 12 months 16.4
Microbiotica Limited Adjusted funding - downwards 13.9
Total 447.1
(* Third-party valuation specialists used for 30 June 2025 valuation. In these
instances, the valuation basis is management's assessment of the primary
valuation input used by the third-party valuation specialist.)
( )
Level 1 Level 3
Equity investments in quoted spin-out companies Unquoted equity investments in spin-out companies Debt investments in unquoted spin-out companies Total
£m
£m £m £m
At 1 January 2024 (audited) 203.8 807.7 83.7 1,095.2
Investments 0.6 31.1 17.0 48.7
Transaction-based reclassifications - 44.5 (44.5) -
Disposals (0.7) - - (0.7)
Reclassification to Assets Held for Sale (8.2) (30.1) - (38.3)
Change in fair value(1) (95.2) (6.7) 2.2 (99.7)
FX translation 0.2 0.2 (0.6) (0.2)
At 30 June 2024 (unaudited) 100.5 846.7 57.8 1,005.0
Investments 0.9 9.8 1.4 12.1
Transaction-based reclassifications 0.3 5.0 (5.3) -
Disposals (11.1) (116.6) (1.0) (128.7)
Reclassification to Assets Held for Sale 1.1 23.3 - 24.4
Other change in portfolio value - (1.1) (0.1) (1.2)
Change in fair value(1) 41.5 (180.7) (0.5) (139.7)
FX translation (0.1) (5.7) (0.7) (6.5)
At 1 January 2025 (audited) 133.1 580.7 51.6 765.4
Investments - 20.5 13.8 34.3
Transaction-based reclassifications - 3.9 (3.9) -
Other transfers between hierarchy levels 36.6 (36.6) - -
Disposals (19.0) - - (19.0)
Reclassification from Assets Held for Sale - 3.9 - 3.9
Fees settled via equity - 0.1 - 0.1
Change in revenue share - (0.8) - (0.8)
Change in fair value(1) 12.3 (37.3) 0.8 (24.2)
FX translation (3.7) (6.9) (0.3) (10.9)
At 30 June 2025 (unaudited) 159.3 527.5 62.0 748.8
(1) (Unquoted equity and debt investment are measured in accordance with IPEV
guidelines with reference to the most appropriate information available at the
time of measurement. Where relevant, several valuation approaches are used in
arriving at an estimate of fair value for an individual asset.)
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 levels 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 level 3, and those changes post are attributed to level 1.
Transfers between level 3 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 £36.6 in respect of Hinge Health (HY24: £nil, FY24:
£nil).
Transfers between level 3 debt and level 3 equity occur upon conversion of
convertible debt into equity. In the period to 30 June 2025, transfers of this
nature amounted to £3.9m (HY24: £44.5m, FY24: £49.8m).
Valuation inputs and sensitivities
Unobservable inputs are typically portfolio company-specific and, based on a
materiality assessment, are not considered significant either at an individual
company level or in aggregate where relevant for common factors such as
discount rates.
The sensitivity analysis table below has been prepared in recognition of the
fact that some of the valuation methodologies applied by the Group in valuing
the portfolio investments involve subjectivity in their significant
unobservable inputs. The table illustrates the sensitivity of the valuations
to these inputs. The inputs of investments valued using techniques which
involve significant subjectivity have been flexed, as below.
Valuation Technique Fair value of investments Variable inputs Variable input sensitivity Positive impact Negative impact Fair value of investments Fair value of investments
HY25 HY24 FY24
£m £m £m % of NAV £m % of NAV £m £m
Quoted 159.3 n/a n/a n/a n/a n/a n/a 100.5 133.1
Funding transaction 169.5 Inputs used in PWERM models to quantify the impact of funding transactions on +/-5% 8.5 1.0% (8.5) (1.0%) 177.8 217.8
<12 months subordinate securities including exit values and timelines.
Funding transaction 148.2 +/-5% 7.4 0.8% (7.4) (0.8%) 222.3 54.9
>12 months
Other: Future market/commercial events 71.5 • Estimated impact of future event +/-10% 7.2 0.8% (7.2) (0.8%) 39.4 60.7
• Execution risk discount applied to future event (where positive)
• Scenario probabilities
• Discount rates
• Extent to which future event is indicative of facts and circumstances in
existence at the balance sheet date
Other: Adjusted financing price based on past performance - Upwards* 30.3 • Company-specific milestone analysis resulting in a positive calibration +/-10% 3.0 0.3% (3.0) (0.3%) 36.0 35.9
adjustment versus the previous funding transaction price
Other: Adjusted financing price based on past performance - Downwards* 60.2 • Company-specific milestone analysis resulting in a positive calibration +/-10% 6.0 0.7% (6.0) (0.7%) 163.4 152.7
adjustment versus the previous funding transaction price
Other: Revenue multiple* 12.9 • Estimate of future recurring revenues +/-10% 1.3 0.1% (1.3) (0.1%) 125.1 13.1
• Selection of comparable companies
• Discount/premium to multiple
Other: DCF* 96.9 • Discount rate +/-20% 19.4 2.2% (19.4) (2.2%) 140.5 97.2
• Clinical trial and drug approval success rates
• Estimate of likelihood, value and structure of a potential
pharmaceutical partnership
• Estimate of addressable market
• Market share and royalty rates
• Probability estimation of liquidity event
• Estimate of forward exchange rates
Total 748.8 52.8 6.0% (52.8) (6.0%) 1,005.0 765.4
*Due to the large number of inputs used in the valuation of these assets,
unobservable inputs are below a size threshold that would warrant disclosure
under IFRS 13, paragraph 93(d). Due to the large number of inputs, any range
of reasonably possible alternative assumptions does not significantly impact
the fair value and hence no valuation sensitivity is required under IFRS 13
paragraph 93(h)(ii).
Within the 'Other: DCF' category above is Istesso Limited, in which we value
the equity of IP Group's holding at £55.0m as at 30 June 2025 (HY24: £90.6m,
FY24: £55.0m), and the debt at £36.9m as at 30 June 2025 (HY24: £37.0m,
FY24: £36.9m).
The valuation of the equity in this company is based on a DCF model which
assesses the value of the future cash flows arising from the continued
development of the company's lead asset Leramistat via an additional focussed
Phase 2b trial, followed by a pharmaceutical partnership, after which the drug
would be taken into a Phase 3 trial followed by regulatory approval. This DCF
model has been updated to reflect the outcome of Istesso's Phase 2b trial,
with the main impact being a delay in market launch of the drug by 3½ years.
The inputs in the DCF model include:
· the drug development timeline, based on the current development
pathway which would see the drug being approved in mid-2031 if successful
· probability of Ph2b and Ph3 clinical trial success, based on
comparable clinical trial success rates within autoimmune indications in Ph2
and Ph3 trials, with an estimate of the overall Ph2 rate split between Ph2a
(now complete) and Ph2b
· the selection of relevant comparable deal sizes, based on
comparable publicly announced deals within the autoimmune space
· the probability of securing a pharmaceutical partner post Ph2b
· Leramistat's sales profile based on a bottom-up model which
estimates the number of patients failing 1(st) line biological drug treatment,
with the assumption that Leramistat would address this available patient
population
· royalty rates receivable by Istesso of drug sales, based on
comparable publicly announced deals within the autoimmune space
· discount rate, based on the WACC of a large pharma partner which
would take on development of the drug for Phase 3 and onwards
· The remaining costs to develop Leramistat up until the point of
drug partnership
The valuation is sensitive to the inputs noted above. It is in the Group's
view that the valuation would be impacted by a combination of changes to these
inputs but to provide context to the sensitivity of each input to the
valuation as required IAS 1, the table below sets out the impact on valuation
of changing critical inputs in isolation.
Input Assumption used Sensitivity Impact on IPG equity holding £m Impact % of NAV(1)
Phase 2b success rate 63% +/- 10% £14m +/- 1.5%
Selected pharma partner deal size Bottom quartile Mean £57m +6.4%
Pharma partnership probability 90% +/- 10% £6m +/- 0.6%
Royalty rate 15% +/- 5% £11m +/- 1.2%
(1) Being impact on IPG equity holding as a proportion of the Group's Net
Asset Value
Under the DCF methodology, in the event that the drug fails to progress to the
market as a result of trial failures (at either Phase 2b or Phase 3), failure
to receive regulatory approval or failure to partner with a pharmaceutical
partner, the model assumes a zero value outcome.
The modelling approach focuses on a core drug development scenario as outlined
above, however other outcomes such as the requirement to conduct more than one
additional Phase 2b study are possible. In this outcome, the value of the
programme would be materially lower than the concluded fair value estimate.
A valuation range was not calculated in respect of the Group's debt investment
in Istesso Limited, which totals £36.9m (FY24: £27.0m). Convertible loans
are valued at face value, reflecting the fact that they have first call on the
assets of the company. If the convertible loans had been converted at the
valuation date, their value would have been £2.8m lower, and the value of the
Group's equity holding would have been £1.9m higher. In the event of a
negative outcome in terms of the drug development pathway, this would be
anticipated to have a material negative impact on the value of the Group's
debt investment.
Change in fair value and FX translation in the period Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Fair value gains 37.5 65.9 42.7
Fair value losses (72.6) (168.9) (288.8)
Total (35.1) (103.0) (246.1)
4. Portfolio: Limited and Limited Liability partnership interests
Fund interests are valued on a net asset basis, estimated based on the
managers' NAV statements. Manager's NAV statements apply valuation techniques
consistent with IFRS and are subject to annual audit. In all cases managers
NAV audits are carried out on calendar year end results and hence audited
results are not produced for 30 June NAV statements. However, a retrospective
review of audited accounts versus earlier unaudited results is carried out.
Managers' NAVs are usually published quarterly, two to three months after the
quarter end. The below table analyses the fund valuations with reference to
manager NAV dates used at the period end.
Limited & Limited Liability Partnerships Functional currency Status Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
North America University Innovation L.P.(1) USD Q2 NAV statement, adjusted downwards 29.1 45.6 37.7
UCL Technology Fund L.P. GBP Q2 NAV statement 18.8 19.3 18.0
Technikos LLP GBP May NAV statement, unadjusted 3.2 2.8 2.4
Total 51.1 67.7 58.1
(1) Formerly IPG Cayman L.P.
We reviewed the underlying valuation methodologies adopted by our Fund
managers for all Fund investments of material value. Following our review of
valuation methodologies, the Q2 North America University Innovation L.P. NAV
statement was adjusted downwards. Such adjustments were based on an assessment
of the valuations of specific equity and debt investments in portfolio
companies held within the fund in question. In making these assessments, the
Group has applied a valuation methodology consistent with that used in respect
of the Group's equity and debt investments.
£m
At 1 January 2024 (audited) 69.7
Investments 0.4
Distribution from Limited Partnership funds (0.8)
Change in fair value (1.6)
Currency revaluation -
At 30 June 2024 (unaudited) 67.7
Investments 1.8
Distribution from Limited Partnership funds (0.4)
Change in fair value (11.5)
Currency revaluation 0.5
At 1 January 2025 (audited) 58.1
Investments 1.4
Distribution from Limited Partnership funds (0.5)
Change in fair value (4.8)
Currency revaluation (3.1)
At 30 June 2025 (unaudited) 51.1
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.
The valuation of the Group's interests in limited and limited liability
partnerships is a significant accounting estimate, as management has applied
judgment in adjusting the NAV estimates provided by the fund manager. Such
adjustments were based on an assessment of the valuations of specific equity
and debt investments in portfolio companies held within the fund in question.
In making these assessments, the Group has applied a valuation methodology
consistent with that set out in Note 13 of the Group's 2024 Annual Report and
Accounts. Unobservable inputs are portfolio company-specific and, based on a
materiality assessment, are not considered individually significant either at
an individual company level or in aggregate where relevant for common factors
such as revenue multiples.
5. (Loss)/gain on disposal of equity investments
Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Proceeds from sale of debt and equity investments 19.8 2.6 182.2
Movement in amounts receivable on sale of debt and equity investments (1.3) (3.4) 10.9
Carrying value of investments disposed (19.0) (0.7) (129.4)
(Loss)/gain on disposal (0.5) (1.5) 63.7
(Loss)/gain on disposal of investments is calculated as disposal proceeds plus
the movement in deferred and contingent consideration receivable in respect of
the sale, less the carrying value of the investment at the point of disposal.
The subsequent receipt of deferred and contingent consideration amounts is
reflected in the above table as a positive amount of disposal proceeds and a
negative movement in amounts receivable on sale of debt and equity
investments, resulting in no overall movement in profit on disposal if the
full amount expected is received.
6. Receivable on sale of debt and equity investments
Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Deferred and contingent consideration (non-current) 6.8 4.3 18.5
Deferred and contingent consideration (current) 12.0 1.5 1.6
Total deferred and contingent consideration 18.8 5.8 20.1
The following table summarises the primary valuation basis used to value the
deferred consideration:
Investment Primary Valuation Basis Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Featurespace Discounted sale amount 11.1 - 11.1
Oxular Discounted sale amount 1.7 - 1.6
Kynos Discounted sale amount 0.5 - 0.5
Garrison Discounted sale amount - - 0.7
Enterprise Therapeutics Holdings Limited Probability-weighted DFC model reflecting potential milestone payments 3.9 3.9 4.4
Zihipp Limited Probability-weighted DFC model reflecting potential milestone payments 1.6 1.9 1.8
Total 18.8 5.8 20.1
7. Borrowings and Loans from Limited Partners of consolidated funds
Current liabilities Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Borrowings 6.3 6.2 6.3
Total 6.3 6.2 6.3
Current liabilities Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
Loans drawn down from the Limited Partners of consolidated funds 18.3 19.9 19.9
Borrowings 119.7 125.9 122.8
Total 138.0 145.8 142.7
Further details of the Group's debt arrangements are included in Note 19 of
the Group's 2024 Annual Report and Accounts.
8. Share capital
Unaudited Unaudited Audited
six months ended
six months ended
year ended
30 June 2025 30 June 2024 31 December 2024
Issued and fully paid: Number £m Number £m Number £m
Ordinary shares of 2p each
At 1 January 975,286,268 19.5 1,063,188,005 21.3 1,063,188,005 21.3
Shares purchased and cancelled (56,867,936) (1.1) - - (20,609,101) (0.4)
Cancellation of shares held in Treasury - - - - (67,292,636) (1.4)
Share capital at period end 918,418,332 18.4 1,063,188,005 21.3 975,286,268 19.5
Existing treasury shares at 1 January - - (26,493,520) (0.5) (26,493,520) (0.5)
Purchase of treasury shares - - (16,631,176) (0.3) (45,280,605) (0.9)
Cancellation of treasury shares - - - - 67,292,636 1.3
Shares transferred out of treasury for SAYE - - - - - -
Settlement of employee share-based payments - - 4,481,489 0.1 4,481,489 0.1
Outstanding at period end 918,418,332 18.4 1,024,544,798 20.6 975,286,268 19.5
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.
During the first six months of 2025, the Company purchased and cancelled
56,867,936 ordinary shares with an aggregate nominal value of £1.1m. At 30
June 2025 the company had nil treasury shares (HY24: 38,643,207 FY24: nil).
Retained profits have been reduced by £25.6m (FY24: £29.6m HY24: £8.1m)
being the net consideration paid for these shares, including the expenses
directly relating to the share purchase.
During 2024, the Company purchased 45,280,605 ordinary shares, with an
aggregate value of £0.9m which were initially held in treasury. These were
subsequently used to settle employee share based payments of 4,481,489 prior
to the remainder being cancelled in September 2024 along with a further
26,493,520 treasury shares held at the start of the year which were also
cancelled at the same time. A further 20,609,101 shares with an aggregate
value of £0.5m were purchased in the period September to December 2024 and
immediately cancelled. The nominal value of the cancelled treasury share has
been added to the capital redemption reserve.
9. Long-term incentive carry scheme - Carried interest plan liability
The Group operates a number of Long Term Incentive Carry Schemes ("LTICS") for
eligible employees which may result in payments to scheme participants
relating to returns from investments. Under the Group's LTICS arrangements, a
profit-sharing mechanism exists whereby if a specific vintage delivers returns
in excess of the base cost of investments plus an agreed hurdle rate, scheme
participants receive a share of excess returns.
The calculation of the liability in respect of the Group's LTICS is derived
from the fair value estimates for the relevant portfolio investments and does
not involve significant additional judgement (although the fair value of the
portfolio itself is a significant accounting estimate). The actual amounts of
carried interest paid are determined by cash realisations of individual
vintages, and valuations may change significantly in the next financial year.
Charges/credits in respect of the liability are recognised in the consolidated
statement of comprehensive income.
Unaudited Unaudited Audited
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
At 1 January 27.3 38.0 38.0
Charge/(credit) for the period/year (5.8) 0.1 (7.9)
Payments made in the period/year (2.8) (1.5) (2.5)
Foreign exchange movements (0.2) - (0.3)
At period/year end 18.5 36.6 27.3
10. Related party transactions
All related party transactions that took place in the six months ending
30 June 2025 are consistent in nature with the disclosures in Note 23 on
pages 152 to 155 of the Group's Annual report and accounts 2024. There were no
related party transactions which took place in the period that materially
affected performance or the financial position of the Group.
11. Alternative performance measures ("APM")
IP Group management believes that the alternative performance measures
included in this document provide useful information to the readers of the
financial statements, providing a consistent assessment of the business'
performance between financial periods and providing detail concerning the
elements of performance which the managers of the Group are most directly able
to influence or are relevant for an assessment of the Group. They typically
reflect metrics used for decision-making within the business, and on which
operating targets are set and performance is monitored by the directors. These
measures are not defined by IFRS and therefore may not be directly comparable
with other companies' APMs. APMs should be considered in addition to, and are
not intended to be a substitute for, or superior to, IFRS measurements.
Calculation
APM Reference for Definition and purpose Unaudited Unaudited Audited
reconciliation
six months
six months ended
year ended
ended 30 June 2024 31 December 2024
30 June 2025 £m £m
£m
NAV per share Primary statements NAV per share is defined as Net Assets divided by the closing number of NAV £883.1m £1,072.2m £952.5m
outstanding shares.
The measure shows net assets managed on behalf of shareholders by the Group
per outstanding share.
NAV per share is a standard measure used within our peer group and can be
directly compared with the Group's share price.
Closing shares in issue 918,418,332 1,024,544,798 975,286,268
NAV per share 96.2p 104.7p 97.7p
Return on NAV Primary statements Return on NAV is defined as the total comprehensive income or loss for the Total comprehensive income (44.0) (110.8) (210.0)
period excluding charges which do not impact on net assets, specifically
share-based payment charges.
The measure shows a summary of the income statement gains and losses which
directly impact NAV.
Excluding:
Share-based 1.2 0.8 1.9
payment charge
Return on NAV (42.8) (110.0) (208.1)
Net portfolio gain/(loss) note 3,4,5 Net portfolio gains are defined as the movement in the value of holdings in Change in fair value (35.1) (99.9) (246.1)
the portfolio due as a result of realised and unrealised gains and losses.
of equity and debt investments
The measure shows a summary of the income statement gains and losses which are
directly attributable to the Total Portfolio (see definition below), which is
a headline measure for the Group's portfolio performance.
This is a key driver of the Return on NAV which is a performance metric for
directors' and employees' incentives.
(Loss)/Gain on disposal of equity investments (0.5) (1.5) 63.7
Change in fair value of LP interests (7.9) (1.6) (12.6)
Net portfolio (losses) (43.5) (103.0) (195.0)
Total portfolio Consolidated statement of financial position Total portfolio is defined as the total of equity investments, debt Equity investments 686.8 947.2 713.8
investments, investments in LPs and assets held for sale.
This measure represents the aggregate balance sheet amounts which the Group
considers to be its investment portfolio, and which is described in further
detail within the portfolio review section of the strategic report.
Debt investments 62.0 57.8 51.6
LP interests 51.1 67.7 58.1
Assets held for sale - 38.3 13.9
Total Portfolio 799.9 1,111.0 837.4
Portfolio investment Primary statements Portfolio investment is defined as the purchase of equity and debt investments Purchase of equity and debt investments (34.3) (48.7) (60.8)
plus investments into limited partnership interests.
This gives a combined measure of investment into the Group's portfolio
Investment in limited and limited liability partnerships (1.4) (0.4) (2.2)
Portfolio investment (35.7) (49.1) (63.0)
Cash proceeds Primary statements Cash proceeds is defined as the proceeds from the disposal of equity and debt Proceeds from the sale of equity investments 19.8 2.6 182.2
investments plus distributions received from limited partnership interests.
This gives a combined measure of cash received from the Group's portfolio.
Distributions from limited partnership funds 0.5 0.8 1.2
Proceeds from assets held for sale 10.0 - -
Cash proceeds 30.3 3.4 183.4
Net overheads Financial review Net overheads are defined as the Group's core overheads less operating income. Other income 3.6 3.8 5.5
The measure reflects the Group's controllable net operating "cash-equivalent"
central cost base.
Other administrative expenses (10.0) (12.4) (25.3)
Excluding:
Net overheads exclude items such as share-based payments and consolidated Non-portfolio foreign exchange movements (1.0) (0.1) (2.7)
portfolio company costs.
Restructuring costs - - 2.7
Net overheads (7.4) (8.7) (19.8)
Gross Cash and deposits Primary statements Cash and deposits is defined as cash and cash equivalents plus deposits. Cash and cash equivalents 117.2 91.3 115.6
The measures give a view of the Group's liquid resources on a short-term
timeframe. The Group's Treasury Policy has a maximum maturity limit of 13
months for deposits.
Deposit 120.1 70.0 170.0
Gross Cash and deposits 237.3 161.3 285.6
(Loss) excluding Oxford Nanopore Technologies plc (ONT) Primary statements Loss/profit excluding ONT is defined as the Group's (loss)/profit for the (Loss) for the period (43.0) (109.9) (207.0)
period (after tax) excluding the (loss)/profit on the investment held in
Oxford Nanopore publicly quoted shares both realised and unrealised.
Excluding:
(Gain)/loss in fair value of equity investment in ONT (6.9) 94.9 66.3
(Loss) excluding ONT (49.9) (15.0) (140.7)
Simple return on capital (%) Note 11 (Net Portfolio gain/loss, Total portfolio) Defined as net portfolio gains/losses divided by the opening total portfolio Net portfolio (losses) (43.5) (103.0) (195.0)
value.
This measure gives a view of the size of portfolio gains or losses relative to Opening total portfolio value 837.4 1,164.9 1,164.9
the opening portfolio value, giving useful additional context for the value of
gains or losses.
Simple return on capital (%) -5% -9% -17%
% Return on Net Asset Value (NAV) Note 11 (return on NAV) Defined as return on NAV divided by the opening Net Asset Value. Return on NAV (42.8) (110.0) (208.1)
Primary statements (Net Asset Value) This measure gives a view of the size of Return on NAV relative to the opening Opening Net Asset Value 952.5 1,190.3 1,190.3
Net Asset Value, giving useful additional context for the value of returns.
Return on NAV (%) -4% -9% -17%
12. Post balance sheet events
At 12 September 2015, unrealised fair value gains in respect of the Group's
quoted portfolio totalled £32m, including gains in respect of Oxford Nanopore
Technologies plc of £23m.
Statement of Directors' responsibilities
General information
The comparative financial information presented herein for the year ended 31
December 2024 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 2024 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
This condensed set of financial statements has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the UK.
The annual financial statements of the Group are prepared in accordance with
UK-adopted international accounting standards. As required by the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority, the
condensed set of financial statements has been prepared applying the
accounting policies and presentation that were applied in the preparation of
the Company's published consolidated financial statements for the year ended
31 December 2024.
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 relating to the valuation of unquoted equity and debt
investments and limited partnership interests were the same as those applied
to the audited consolidated financial statements for the year ended 31
December 2024.
The significant accounting judgments made in preparing these half-yearly
results relating to the application of IFRS 10 in respect of Istesso Limited
were the same as those applied to the audited consolidated financial
statements for the year ended 31 December 2024.
The accounting judgments made in preparing these half-yearly results relating
to the application of IFRS 10 in respect of North America University
Innovation L.P. (formerly IPG Cayman LP) were updated to reflect a restructure
of the fund which saw it being re-domiciled to the US and SAFE funding which
had been provided by IP Group and one other party being converted into regular
LP units in the fund. The key factors considered were:
· Loss of Board Representation: IP Group no longer holds board
seats on Longview Innovation Inc. or the General Partner, reducing its ability
to influence fund management decisions.
· SAFE Conversion Impact: IP Group's previously preferential SAFE
instruments were converted into regular LP units, eliminating its priority in
the distribution waterfall and aligning its returns with other LPs.
· Third-Party Involvement: Operational control has shifted to Anzu
Partners, a US-based VC firm, which now administers the fund.
· Fund Structure Changes: The fund transitioned from an open-ended
structure to a closed 5-year term, with multiple LPs contributing new funding,
reducing IP Group's role as sole funder.
· Contractual Restrictions: The new LPA explicitly prohibits any
LP, including IP Group, from participating in fund control or management,
reinforcing the conclusion that IP Group does not control the fund.
Despite IP Group holding a 68% economic interest and voting rights in the
restructured fund, it does not control the fund under IFRS 10 due to lack of
substantive decision-making rights and influence over the General Partner.
Were management to have concluded that the Group did control North America
University Innovation L.P., the impact would be an adjustment to increase
assets and liabilities by £13.7m, with no impact on the Group's net assets.
Going concern
The Directors are required to satisfy themselves that it is reasonable to
presume that the Group is a going concern. The Group had Cash and Deposits of
£237.3m as at 30 June 2025. In light of the Group's forecast net overhead
costs, debt repayment obligations and other committed spend, the Directors are
satisfied that in taking account of reasonably possible downsides, the Group
has adequate access to resources to enable it to meet its obligations and to
continue in operational existence for at least the next 12 months.
Statement of Directors' responsibilities
The Directors confirm to the best of their knowledge that: the half-yearly
results have been prepared in accordance with IAS 34 as adopted for use in the
UK; and 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).
By order of the Board
Sir Douglas Flint
Greg Smith
Chairman
Chief Executive Officer
16 September 2025
INDEPENDENT REVIEW REPORT TO IP GROUP PLC
Conclusion
We have been engaged by IP Group plc ("the Company") to review the condensed
set of financial statements in the half-yearly financial results for the six
months ended 30 June 2025 which comprises the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Financial Position,
Consolidated Statement of Cash Flows, Consolidated Statement of Changes in
Equity and the related explanatory notes.
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 results for the six months ended 30 June 2025 is not prepared, in
all material respects, in accordance with IAS 34 Interim Financial Reporting
as adopted for use in the UK and the Disclosure Guidance and Transparency
Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK
FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued 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. We read the other
information contained in the half-yearly financial report and consider whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) 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.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
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.
The annual financial statements of the Group are prepared in accordance with
UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS
34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
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. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
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 DTR of 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.
Jatin Patel
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
16 September 2025
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