The commercialisation firm will pay its maiden dividend after achieving net portfolio gains of 22% and a 140% increase in cash realisations.
UK-based commercialisation firm IP Group published its annual financial results for the year ended December 31, 2020 yesterday, showing it swung to an annual profit.
The fair value of IP Group’s portfolio now stands at more than £1.16bn ($1.62bn), up from $1.4bn in 2019, with net portfolio gains of more than £231m ($322m), an increase of 22% year-on-year. Cash realisations surged 140% year-on-year to £191m ($266m).
The firm has made a profit of more than £185m ($257m), up from a $105m loss in 2019 and a $375m loss in 2018. It will pay its maiden dividend, recommending £0.01 ($0.01) per share, including scrip alternative.
IP Group increased investments in its portfolio companies slightly to £67.5m ($94m), from £67.5m in 2019. Overall, its portfolio companies attracted £1.1bn ($1.53bn at current exchange rates), nearly triple the £430m secured in 2019.
The firm has helped create three unicorns to date: Oxford Nanopore, Hinge Health and publicly listed Ceres Power, though IP Group sold its stake in the latter for a sevenfold return last year.
Alan Aubrey, chief executive of IP Group,said: “IP Group made excellent progress in 2020, achieving both record returns and cash realisations totalling £191m. This financial strength, combined with the prospects in our maturing portfolio, gives us the confidence to recommend a maiden dividend of 1 pence per share.
“We have great pride in the contribution of many of our companies to the response to covid-19. The pandemic has focused attention on the importance of innovation of science, accelerating key thematic trends in health, digitisation, and the transition to net zero. We remain confident that IP Group is well positioned to benefit from both the increased focus and these thematic trends.
“This year, as IP Group celebrates 20 years of generating innovation, we are excited about the prospects for the portfolio as well as the impact the group can have from the renewed focus on innovation and sustainability.
“The current year has started strongly, with much activity in the portfolio including significant fundraisings, and we remain excited by the prospects for 2021.”
