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FOR
RELEASE ON
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19 December
2024
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IP Group
plc - £119m of initial cash proceeds following completion of sale
of portfolio company Featurespace to Visa
- Further £25m to be applied to share buyback
programme
IP Group plc (LSE: IPO) ("IP Group"
or "the Group"), which invests in breakthrough science and
innovation companies with the potential to create a better future
for all, is pleased to confirm that it will receive £119m of
initial cash proceeds following the completion of the sale of
portfolio company Featurespace Ltd to Visa.
The Group was the first
institutional investor in Featurespace in 2012 and has invested a
total of £22.9m over seven financing rounds. This transaction,
which follows the sale of Garrison this year, further validates IP
Group's model and our expertise in identifying and supporting
science and technology businesses to successful exits.
IP Group anticipates ending the year
having generated £179m of cash proceeds from exits following a
strong performance on realisations, more than four times the £38.6m
received in 2023.
The Group is now allocating
£25m of the £119m
proceeds from the Featurespace sale to the current share buyback
programme. Together with the up to £15m anticipated to be received
from the secondary sale announced on 09 December, this will
increase the buyback programme to a total of up to £70m.
Since this programme was announced in December
2023, the Group has bought back 65m shares, approximately 6% of the
opening shares in issue, for a total of £28.9m.
Greg Smith, Chief Executive of IP Group,
said: "Congratulations to the Featurespace team.
As our biggest exit to date, we're delighted with this outcome
which represents an excellent financial return for
IP Group. As the
most experienced and active UK based, early-stage science
investor, IP Group's sustainable model has developed and supported some of the most exciting businesses
in deeptech, life sciences and cleantech. We are pleased to be able to return an additional
£25m of cash to
shareholders through our share buyback
programme."
As at 13 December 2024, IP Group had
gross cash and deposits of £173.4m, long term debt of £129m, and
holdings in listed companies of £159m. The Group anticipates gross
cash and deposits of £279m after the receipt of the Featurespace
funds which is expected before the year-end. Together, these
represent approximately 62% of the Group's current market
capitalisation yet account for only 29% of the Company's
last-published NAV.
IP Group announced on 26 September
2024, that it expected to receive £134m total cash for
its holding in Featurespace, of which £119m would be received
on completion and £15m subject to deferral. At that
time, the Directors anticipated that the transaction
would result in an increase from the
Group's FY23 net asset value of
approximately £51m1 (a 70% increase), of which
£37m1 was recognised in our HY24
results.
[1] Net of carried interest and deal
costs
For more information, please
contact:
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IP Group
plc
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www.ipgroupplc.com
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Liz Vaughan-Adams, Communications
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+44 (0) 20 7444 0062/+44 (0) 7967
312125
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|
Portland
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Alex Donaldson
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+44 (0) 7516 729702
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Notes for editors
About IP Group
IP Group accelerates the impact of science for a better
future. As the most active UK based,
early stage science investor, we develop and support some
of the world's
most exciting businesses
in deeptech, life sciences and cleantech (led by Kiko Ventures).
Including through Parkwalk, the UK's largest
growth EIS fund manager, we back world-changing innovation emerging
from leading universities and research institutions. Our specialist investment team
combines sector expertise with an international approach. Together
we have a strong track record of success, having backed
high-profile companies including Oxford Nanopore Technologies plc,
First Light Fusion, Hysata, and Oxa. IP Group is listed on the Main
Market of the London Stock Exchange under the code
IPO. For more information, please
visit our website at www.ipgroupplc.com.
ENDS
