IP Group PLC (LSE:IPO) swung to a loss in the first half of the year which resulted from a difficult market backdrop that led it to expect reduced realisations this year.
But the intellectual property investor said its balance sheet remains strong to support further investment and that is committed to further net asset value (NAV) growth.
"While the gGroup continues to plan for reduced realisations this year, given the current market backdrop which has resulted in a first half loss, we continue to believe that the prospects for our portfolio are compelling," said chief executive Greg Smith.
In results for the six months ended 30 June, the FTSE 250-listed group hailed “significant progress” in key companies, including multiple upgrades to revenue projections at Oxford Nanopore, for example, a world-first fusion result for First Light Fusion.
However, it reported a loss of £309mln, a big swing from a profit of £116mln a year ago, which was driven by a reversal of gains on Oxford Nanopore following stock market declines for it and other life science tools companies.
Gross cash and deposits stood at £235.7mln and management have arranged a private market debt issue "to provide additional funding flexibility in what may be difficult market conditions", said Smith.
At the half-year stage, the group’s net asset value stood at £1.41bn, or 136.7p per share, compared to a £1.43bn or 135.4p per share a year ago and £1.7bn and 167p at the end of December.
IP Group increased its interim dividend to 0.50p per share from 0.48pm, having completed a £35mln share buyback during the period.
Looking forward Smith pointed to a "deepening thematic focus" demonstrated by the launch of a dedicated cleantech platform, Kiko Ventures, and said the company also anticipated investee company Istesso’s Phase 2b study in rheumatoid arthritis for its lead drug MBS2320 will start "shortly".