IP Group

LN: IPO

Market Cap£611m

Last Close 59.1p

IP Group helps to create, build and support IP-based companies internationally focused on companies that meaningfully contribute to sustainable (renewable), healthier (life sciences) and tech-enriched (deep tech) futures. The group has an international footprint, with investment platforms in the UK, Australia, New Zealand, the US and China.

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Investment summary

IP Group is well-financed and trading at a discount of c 50% to its H122 NAV/share (137p), which we believe represents a compelling opportunity for long-term and impact investors. If management can deliver on targeted average gross returns of 20% for FY22–26 through a renewed focus on its priority companies, we believe IP Group’s discount to NAV would narrow, further lifting average annual NAV/share over this timeframe. IP Group provides liquid exposure to a growing portfolio of high-growth science-based start-ups from its international ecosystem. The company invests primarily in life sciences, deep tech and renewables, and is increasingly focused on companies that will have an impact, to deliver a sustainable, healthier and tech-enriched future. After a 15+ year gestation period, its model appears to have started to mature in FY19, with returns and realisations accelerating (FY19–21 NAV/share growth of 24%).

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 234.2 191.9 189.0 17.6 3.4 3.3
2021A 508.9 460.2 457.2 41.9 1.4 1.4
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Content on IP Group
IP Group – International investor in impactful innovation
TMT | research Initiation | 12 September 2022
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IP Group – Public market falls largely priced in
TMT | research QuickView | 4 August 2022
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IP Group – Impact + innovation at a compelling discount
TMT | research QuickView | 16 June 2022
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (14.2) (21.7) (56.8)
Relative* (8.4) (17.3) (54.4)
52-week high/low 140.0p/58.5p
*% relative to local index
Key management
Sir Douglas Flint Chairman
Greg Smith CEO
David Baynes CFO