IP Group (IPO) investor relations material

Executive summary

• Achieved 13% year-over-year NAV per share growth, reaching 110p (GBP 1.10), driven by significant value realization from a new Pfizer obesity royalty interest and robust cash exits totaling GBP 68 million.

• Generated GBP 68 million in cash exits, enabling reinvestment in high-conviction portfolio companies and a GBP 45 million share buyback, retiring nearly 10% of shares at a 50% discount to NAV.

• Portfolio companies raised over GBP 900 million in third-party capital, up 17% year-over-year, with strong syndicate participation from global investors.

• Maintained a strong balance sheet with gross cash of GBP 211 million at year-end, supporting future investments and buybacks.

• Continued to build a repeatable track record of value creation through exits and maturing portfolio companies, with a focus on deep tech, clean tech, and life sciences.

Financial highlights

• NAV per share increased 13% to 110p (GBP 1.10), up from 97.7p (GBP 0.977) last year and 15% higher than at half-year.

• Overall profit of GBP 67 million for the year.

• Net overheads reduced by 20% year-over-year to GBP 15.9 million, representing 1.6% of NAV and 15.9% of income.

• Portfolio value rose from GBP 850 million to over GBP 900 million, with GBP 71 million invested and GBP 68 million realized in exits.

• GBP 128 million fair value recognized for the Pfizer obesity royalty interest, based on risk-adjusted DCF modeling.

Outlook and guidance

• Priorities for FY26 include continued NAV per share growth, disciplined capital deployment, and maintaining balance sheet flexibility.

• Expectation to launch a new buyback program with GBP 30 million available from recent exits.

• Targeting EBITDA break-even by FY27.

• FY25 priorities include achieving positive NAV per share, delivering over GBP 250 million in cash exits from the private portfolio by 2027, and returning 50% of FY25 cash exits to shareholders.

• First investments from the Aberdeen partnership anticipated, with further private capital partnerships targeted.