IP Group (LSE: IPO)

Currency in GBP

Last close As at 06/02/2023

GBP0.64

2.40 (3.90%)

Market capitalisation

GBP637m

IP Group helps to create, build and support IP-based companies internationally focused on companies that meaningfully contribute to regenerative (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 and the United States.

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, delivering a regenerative, healthier and tech-enriched future.

Sector

TMT

Equity Analyst

Milosz Papst

Milosz Papst

Director, Financials

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 14.6 (2.6) (35.3)
Relative 8.6 (11.5) (36.0)
52 week high/low 99.0p/52.9p

Financials

IP Group is well-financed and trading at a discount of around 50% to its H122 NAV/share (137p), which we believe represents a compelling opportunity for long-term and impact investors. After a 15+ year gestation period, its model appears to have started to mature since FY19, with returns and realisations accelerating (FY19–21 NAV/share growth of 24%). If management can deliver on targeted average gross returns of 20% for H122–27 through a renewed focus on its priority companies, we believe IP Group’s discount to NAV would narrow, further lifting the average annual return to over 30% over this timeframe for shareholders investing at today’s share price levels.

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 3.6 3.5
2021A 508.9 460.2 457.2 41.9 1.5 1.5
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

Thematics

Digital Marketing and Internet Media Technology Platform

TMT

MediaWatch – January 2023

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

TMT

Direct tech investors

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