IP Group (LSE: IPO)

Last close As at 22/05/2024

GBP0.52

−0.20 (−0.38%)

Market capitalisation

GBP534m

IP Group helps to create, build and support IP-based companies internationally. It focuses on companies that meaningfully contribute to regenerative (renewable), healthier (life sciences) and tech-enriched (deep tech) futures.

Management indicated a further softening of valuations of early-stage companies in Q423. PitchBook highlights that 2023 was the worst year in terms of European venture capital exit value since 2013 at €11.8bn (€40.4bn in 2022). We note, however, some initial signs of revival in the IPO markets, as well as in private M&A markets. The long-term outlook for the industry is supported by an emphasis on tech innovation from investors and governments alike, as illustrated in the UK by the Science and Technology Framework, the R&D tax regime and the Mansion House reforms.

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Equity Analyst

Milosz Papst

Milosz Papst

Director, Financials

Dan Ridsdale

Head of Technology

Key Management

  • David Baynes

    CFO

  • Greg Smith

    CEO

  • Sir Douglas Flint

    Chairman

Balance Sheet

Forecast net debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 9.1 5.7 (9.8)
Relative 4.3 (2.8) (16.2)
52 week high/low 61.4p/43.5p

Financials

IP Group posted an FY23 NAV total return of minus 13%, primarily driven by £116m of markdowns of holdings that faced funding delays, as well as by down rounds (£27m), market-based adjustments (£22m), company-specific factors (£11m) and negative fx effects (£8m). These were partly offset by £55m from up rounds, most notably for Hysata. Management indicated that many of IP Group’s leading portfolio companies continued to make strong progress and it expects some major inflection points in 2024. IP Group’s balance sheet remains robust with gross cash and deposits of £226.9m at end-2023 (vs £241.5m at end-June 2023).

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A (302.0) (340.8) (340.6) (32.6) N/A N/A
2023A (154.6) (177.3) (173.7) (16.6) N/A N/A
2024E N/A N/A N/A N/A N/A N/A
2025E N/A N/A N/A N/A N/A N/A

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