IP Group - Edison Group

Overview
Price performance
Financials
Research
Thematics

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.

Latest Insights

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TMT |
Outlook

16.04.24

IP Group — Several potential portfolio catalysts on the horizon

TMT |
edison tv

08.04.24

IP Group – executive interview

TMT |
edison tv

07.03.24

IP Group showcase

TMT |
Flash note

31.01.24

IP Group — NAV expected to decline further in H223

Sectors

Investment Companies TMT

Equity Analyst

Milosz Papst

Director, Financials

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	1.6	(14.3)	(18.2)
Relative	(0.1)	(18.5)	(18.1)
52 week high/low	61.4p/43.5p

Financials

IP Group’s NAV declined by 13% in total return (TR) terms in FY23, affected by continued soft valuations across venture capital (VC) markets, as well as funding delays at some of its holdings. That said, management indicated that many of IP Group’s portfolio companies continued to make strong progress. Its maturing portfolio offers a number of potential NAV triggers and is now available at a wide 59% discount to NAV. We note that, as at end-2023, only 14% of IP Group’s portfolio was valued based on funding rounds completed more than 12 months ago and 46% of its private portfolio was valued by a third-party specialist. IP Group’s holding-level liquidity was solid, with gross cash of £227m (or 19% of NAV) and 87% of its portfolio holdings (by value) had a cash runway to 2025 or beyond.

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

Research

edison tv

TMT

17.03.23

IP Group – executive interview

Flash note

TMT

08.03.23

IP Group — Focus on high-conviction plays to drive returns

TMT

Update

IP Group — Priority companies making progress in 2022

edison tv

22.12.22

IP Group – executive interview

Initiation

TMT

12.09.22

IP Group — International investor in impactful innovation

QuickView

TMT

04.08.22

IP Group — Public market falls largely priced in

QuickView

TMT

16.06.22

IP Group — Impact + innovation at a compelling discount

edison tv

TMT

13.06.22

IP Group – executive interview

thematic

TMT

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

thematic

Investment Companies

13.02.23

European equities

thematic

Investment Companies

08.02.23

Listed Private Equity

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Investment Companies

27.01.23

Vietnamese equities: Due a comeback?

thematic

Investment Companies

30.11.22

Investment companies: Latin America is worthy of consideration

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

Investment Companies

10.05.22

The case for US capital markets

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

Investment Companies

07.12.20

Value Investing: Living with the reality, waiting for the inevitable

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

Investment Companies

07.08.19

Post Woodford- A spotlight on smaller company liquidity

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

Investment Companies

05.06.19

How to buy and sell investment trusts

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

Investment Companies

26.03.19

Types of investment trusts

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

Investment Companies

24.05.12

Investment Trusts Quarterly: Biotechnology & healthcare trusts

thematic

Investment Companies

13.01.12

Investment Trusts Quarterly: Growth and income

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back