IP Group profit leaps ahead in 2015

IP Group's portfolio expansion and equity raising were a winning strategy in 2015, according to the company's final results published on Tuesday morning.

The FTSE 250 intellectual property firm saw net assets, excluding intangibles, increase to £714.3m during the year, from £451.3m in 2014.

Its adjusted profit before tax was £82.4m - a significant jump from 2014's £16.2m - which excluded amortisation of intangible assets and reduction in fair value of Oxford Equity Rights of £7.3m, compared to £6.7m in 2014.

As at 31 December, IP Group had net cash and deposits of £178.8m, up from £97.3m in 2014. It also negotiated a new eight year, £30m debt facility with the European Investment Bank during the period.

"2015 saw the group's strongest financial performance since its formation. During the year, we completed a number of key corporate transactions and secured our financial position for growth with successful equity and debt raisings," said chief executive Alan Aubrey.

"These funds will be used to grow both our UK and US operations as we continue to internationalise the business," he added.

Aubrey said the year was an extremely productive one for IP Group's portfolio companies, which recorded achievements including the raising of approximately £300m of new capital.

He explained the group took a strategic stake in Oxford Sciences Innovation, providing access to a much wider range of scientific research from the University of Oxford and broadening its exposure to future Oxford spin-out companies.

"Major global economies continue to increase expenditure on research and development in the face of macroeconomic trends that continue to cast significant uncertainty over the pace of the global economic recovery," Aubrey said.

"IP Group remains well-positioned to respond to this environment with a healthy pipeline of opportunities across all of our sectors underpinned by a strong cash position. Against this backdrop, we remain cautiously optimistic about the prospects for the current year and beyond and believe we are well-positioned for future growth."

The company's board said highlghts during the year included the raising of £178.8m through the issue of new equity capital, and the acceleration of US activities with four new portfolio companies created, bringing the total portfolio to five.

IP Group also acquired a £40m strategic holding in Oxford Sciences Innovation, and its investment Modern Biosciences reached its first development-related milestones in its agreement with Janssen Biotech, triggering gross payments of £8m.