IP Group (IPO) H2 2024 earnings summary

Executive summary

• Delivered record cash exits of £183.4m in 2024, significantly ahead of a weak VC market, with major exits including Featurespace's sale to Visa, Garrison, and Centessa.

• Accelerated share buyback programme, retiring over 10% of shares, with £30m completed and up to £80m committed, representing nearly 20% of market cap.

• NAV per share declined by 15% to 97.7p, mainly due to valuation reductions in Oxford Nanopore and market headwinds.

• Proactive cost reduction measures led to a 23% decrease in net overhead run rate by year-end.

• Portfolio companies raised £784m in 2024, with £63m invested across 38 companies.

Financial highlights

• Gross cash and deposits increased to £285.6m from £226.9m, up 25% year-over-year.

• NAV at year-end was £953m (97.7p per share), down from £1,190m (114.8p per share) in FY23.

• Over £183m in proceeds from exits, about three times the £63m invested during the year.

• Net overheads reduced by 23% to £19.8m.

• No dividends paid in 2024; focus shifted to share buybacks due to persistent share price discount to NAV.

Outlook and guidance

• Focus for 2025 is to return NAV per share to positive growth and deliver profitable cash exits.

• Targeting over £250m of exits from private holdings by end of 2027.

• 50% of 2025 realizations to be returned to shareholders via buybacks.

• Plans to access further private scale-up capital, especially from Australia, and grow the opportunity pipeline.

• Over 35 commercial and technical milestones expected in 2025, including clinical trials, product launches, and funding rounds.