IP Group HY25: cash realisations up, NAV steady, buybacks accelerated
IP Group’s half-year update shows a business getting back on the front foot. Cash exits stepped up, public holdings did their bit, and management doubled down on the buyback. There are still bruises in parts of the private portfolio, but the direction of travel looks better than last year.
Quick definitions for newer readers:
- NAV per share – the value of all assets minus liabilities, divided by the number of shares. It’s the best single yardstick for an investor in IP Group.
- Exits – cash proceeds from selling down or selling out of portfolio positions.
- AUM – assets under management for third-party clients, which generate fee income.
Headline takeaways from the half year
- Cash proceeds from exits of £30.3m – nine times HY24 (£3.4m).
- NAV of £883.1m and NAV per share of 96.2p. Management says NAV per share was approximately 100p on 12 September 2025.
- Gross cash and deposits of £237.3m, up 47% year on year.
- Hinge Health listed in the US at $32; shares were $52 at 30 June, valuing IP Group’s remaining stake at £39.1m.
- Oxford Nanopore delivered H1 revenues of £105.6m and lower adjusted EBITDA losses.
- Portfolio companies raised £372m in the half; IP Group invested £35.7m across 22 companies.
- Share buybacks: £25.6m completed in H1; a further £11m post period-end with £9m of the June extension still to go. 6% of share capital retired in H1 and 14% retired to date.
- Loss for the period £(43.0)m, driven by private valuation reductions and FX.
NAV, cash and buyback: where the numbers landed
NAV per share hardly moved in the half, slipping from 97.7p at FY24 to 96.2p despite sizeable markdowns in a handful of names. The stabilisers were public holdings – notably Oxford Nanopore and newly listed Hinge Health – plus the arithmetic benefit of the buyback. Since 1 July, quoted holdings added a further £32m, including £23m from Oxford Nanopore, which is why the company quotes c.100p NAV per share on 12 September.
Liquidity is solid: gross cash and deposits of £237.3m gives plenty of room to support winners, keep buying back shares and meet debt obligations. Net overheads fell 12% to £7.4m, in line with guidance.
| Metric | HY25 | HY24 | FY24 |
|---|---|---|---|
| NAV | £883.1m | £1,072.2m | £952.5m |
| NAV per share | 96.2p | 104.7p | 97.7p |
| Loss for the period | £(43.0)m | £(109.9)m | £(207.0)m |
| Total portfolio | £799.9m | £1,111.0m | £837.4m |
| Gross cash and deposits | £237.3m | £161.3m | £285.6m |
| Cash proceeds (exits) | £30.3m | £3.4m | £183.4m |
| Portfolio investment | £35.7m | £49.1m | £63.0m |
Portfolio movers: Hinge Health and Oxford Nanopore vs Oxa and Artios
The star of the half was Hinge Health. The IPO at $32 and a strong close at $52 by 30 June generated a £7.6m fair value gain and left a £39.1m carrying value. It’s a great example of IP Group’s model working – total investment was under £1.0m and the Group previously realised $15.0m in 2021.
Oxford Nanopore’s delivery helped sentiment: H1 revenue rose 25.6% to £105.6m with improving cashflow and a smaller adjusted EBITDA loss. The public book added £12.0m in H1 and a further £32m post period-end, with Oxford Nanopore the key driver.
On the flipside, funding headwinds in private markets bit hard. Oxa’s valuation was cut by £28.7m due to fundraising delays, and Artios by £10.6m despite presenting encouraging data. FX translation shaved another £14.2m off the portfolio.
Other notable names
- Pulmocide: £4.1m fair value uplift; Phase 3 readout for opelconazole targeted during 2026.
- Istesso: equity and debt held at £91.9m; post period-end data suggest its oral agents can elicit tissue repair, with more Phase 2 trials planned.
- Hysata: progressing high-efficiency electrolysers; agreement with ACWA Power for commercial-scale demonstrations.
- First Light Fusion: record 3.67 TPa on Sandia’s Z Machine; £5.0m convertible to extend runway while seeking third-party capital.
- Nexeon: £3.6m gain; Mixergy closed a £12m round; OXCCU expects an equity round “shortly”.
Dealflow and funding: still flowing, but selective
Portfolio companies raised £372m in HY25, broadly flat year on year (HY24: £380m). Equity accounted for 91% of that, with £199m linked to Hinge Health’s IPO. IP Group invested £35.7m across 22 companies, with 88% going into the existing book – sensible triage in a still-tough environment.
Two-thirds of the portfolio by value is funded into 2027 or beyond, which should reduce forced raises at poor terms. Even so, 38% of funding rounds were down rounds, matching last year’s rate.
Funds business and the Mansion House tailwind
Third-party fundraising continued, with an additional £24m raised and Parkwalk launching the Northern Universities Venture Fund alongside Northern Gritstone. The Group now manages or advises £644m, of which £461m sits at Parkwalk. Management also highlights the structural opportunity from pension fund reform under the Mansion House Accord.
Balance sheet, debt and covenants
Debt is modest relative to equity: a £120m private placement at a fixed 5.25% with maturities in 2027, 2028 and 2029, plus a £6.3m EIB loan with two payments left. All covenants were met. There are “cash trap” provisions if equity or liquidity thresholds are breached, but these were not triggered.
Why this matters for shareholders
The investment case is simple: if IP Group can keep converting private holdings into cash at good multiples while public holdings recover, NAV should grow and the share price discount should narrow. The company has committed to allocate 50% of 2025 exit proceeds to buybacks while the discount exceeds 20%. At 30 June, the discount sat at 46% – punchy.
Positives:
- NAV stabilisation with a double-digit bounce post period-end.
- Strong liquidity and lower overheads provide flexibility.
- High-profile winners – Hinge Health and Oxford Nanopore – are moving the needle.
- Clear target of over £250m of exits between 2025 and 2027.
Watch-outs:
- Private market funding remains tight, as seen with Oxa and Artios.
- FX can swing results – a £14.2m headwind in the half.
- Loss for the period of £(43.0)m shows the P&L will stay choppy while valuations reset.
What to watch next
- Quoted portfolio performance, especially Oxford Nanopore.
- Clinical catalysts at Pulmocide and Istesso.
- Funding outcomes at Oxa, Monolith and Intrinsic.
- Further cash exits to support the £250m target and buybacks.
- Progress growing third-party AUM via Parkwalk and Northern Universities Venture Fund.
My take
This is the first set of results in a while where the positives feel durable rather than fleeting. The public book is helping, exits are happening again, and the buyback is doing exactly what it should at a 46% discount. The portfolio still has its problem children, but the combination of liquidity, cost discipline and a clearer route to exits gives IP Group a decent shot at compounding NAV from here.
For investors, the story is about patience and catalysts. If the team delivers on the >£250m exit target and the market continues to warm to listed life sciences and deeptech, the gap between price and value should narrow.
