Strong portfolio showing pushes IP Group into black

During 2010, the IP Group posted a profit after tax of £1.8m, compared with a loss of £6.1m the year before.

The investment in its portfolio companies increased to £6.9m from £5.7m in 2009.

Alan Aubrey, the company’s chief executive, said: “2010 has been an encouraging year for IP Group with many of the group’s portfolio companies making excellent progress towards key milestones and with commercial validation by industrial partners having been particularly encouraging.

“The valuation of the portfolio has increased despite a challenging financing and operating environment for small technology-based businesses. Cash balances remain strong, our pipeline of activity is healthy and this, coupled with the portfolio’s strong 2010 progress, gives us continued confidence that the group will generate significant long term returns for shareholders.

“The UK continues to produce a wealth of world class intellectual property from its universities, much of which we are helping to commercialise. The IP Group intends to play an increasingly central role in helping leading innovation to reach the market.”

A number of its portfolio companies enjoyed a good year, including the Avacta Group, a bio-analytical instrumentation and research company from the University of Leeds. York-based Avacta develops technology to speed up and reduce the cost of diagnosis.

More than £40m of capital was raised by portfolio companies during the year, of which more than £28m came from private financing rounds.