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IP Group - Management sees positive portfolio momentum

IP Group reported broadly stable private portfolio values in H124, assisted by the positive revaluation of Featurespace, an AI-powered fraud and financial crime detection business, which delivered strong top-line growth of 46.5% in 2023 to £50.4m. This helped offset a further carrying value reduction of First Light Fusion and a partial write-down of Ultraleap Holdings, a human-machine interface business. The de-rating of listed Oxford Nanopore (ONT) was therefore the major driver behind IP Group’s 9% NAV fall in total return (TR) terms in H124. Roughly half of ONT’s share price decline has reversed post reporting date, supported by its half-year trading update and the Novo Holdings investment. Across other life sciences holdings, there were four positive clinical trial results and only one failure. Importantly, IP Group has seen an uptick in exits in the year to date, with cash proceeds of £44.6m (c 4% of opening portfolio value, with £30m from the sale of Garrison Technology). This encouraged the company to increase the current buyback programme by £10m to £30m.