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IP Group plc
(LSE:IPO)
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Rating:58Neutral
Price Target:
72.00 p
▼(-0.83% Downside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak and inconsistent cash generation and historically volatile profitability, despite a resilient balance sheet. Technicals are a meaningful positive with price above key moving averages and supportive momentum, and valuation looks favorable on a low P/E, but fundamentals remain mixed.
Positive Factors
Resilient balance sheet
Modest leverage and a large equity base provide durable financial flexibility across cycles. This structure lets the group support portfolio companies, provide follow-on funding or absorb valuation swings without immediate solvency pressure, preserving optionality for future realisations.
Negative Factors
Weak, inconsistent cash generation
Persistent negative operating cash flow reduces resilience: reported profits are not consistently converted to cash. This limits the company's ability to self-fund follow-ons or cover expenses, increasing dependency on external financing and elevating execution risk for long-term value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient balance sheet
Modest leverage and a large equity base provide durable financial flexibility across cycles. This structure lets the group support portfolio companies, provide follow-on funding or absorb valuation swings without immediate solvency pressure, preserving optionality for future realisations.
Read all positive factors
IP Group plc (IPO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£611.33M
Dividend Yield2.09%
Average Volume (3M)1.68M
Price to Earnings (P/E)9.3
Beta (1Y)1.18
Revenue Growth-35.12%
EPS GrowthN/A
CountryUK
Employees64
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.07
Shares Outstanding883,427,600
10 Day Avg. Volume1,039,104
30 Day Avg. Volume1,684,575
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.55
Price to Sales (P/S)12.04
P/FCF Ratio-27.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)£68.45M
IP Group plc Business Overview & Revenue Model
Company Description
IP Group Plc functions as a private equity and venture capital enterprise, allocating funds across the entire lifecycle of businesses, from initial seed and early-stage rounds to start-up, incubation, growth capital, and mature financing. A specif...
How the Company Makes Money
IP Group primarily makes money through returns on its equity (and equity-like) investments in portfolio companies. Key revenue/earnings drivers include: (1) Realisations and exits: selling shareholdings in portfolio companies via trade sales, IPOs...
IP Group plc Earnings Call Summary
Earnings Call Date:Sep 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong progress in portfolio developments and increased cash proceeds offset by specific challenges in individual holdings and a foreign exchange loss. The management expressed confidence in meeting future targets and highlighted strategic buybacks as an accretive tool for shareholder value.Positive Updates
Strong Portfolio Developments
Four out of the top five holdings showed encouraging developments, including the successful IPO of Hinge Health, which marked a 50x overall return on investment, and Oxford Nanopore beating city expectations.
Negative Updates
Istesso Trial Setback
Istesso's recent trial did not meet its primary endpoint, impacting market confidence despite evidence of the drug's potential.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Portfolio Developments
Four out of the top five holdings showed encouraging developments, including the successful IPO of Hinge Health, which marked a 50x overall return on investment, and Oxford Nanopore beating city expectations.
Read all positive updates
Company Guidance
In the first half of 2025, IP Group Plc reported strong progress, driven by notable developments in their portfolio and public markets contributing significantly to fair value. Key highlights included a successful IPO of Hinge Health in May and strong half-year results from Oxford Nanopore, which exceeded city expectations. The company recorded total cash proceeds of GBP 30 million, a ninefold increase compared to the first half of 2024. Although there was a small overall loss for the first six months, the NAV per share stabilized and increased to approximately GBP 1 post-period. The company remains confident in achieving its target of GBP 250 million in exits by the end of 2027, supported by a strong balance sheet with gross cash of GBP 237 million. Additionally, there is increasing momentum in efforts to enhance private scale-up capital under management, with expectations to secure at least one new mandate by the next full-year results.IP Group plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.90M | 69.20M | -4.90M | -700.00K | 95.10M |
| Gross Profit | 44.40M | 68.60M | -5.50M | -1.30M | 93.50M |
| EBITDA | 71.70M | -199.40M | -170.10M | -341.50M | 458.00M |
| Net Income | 66.80M | -202.60M | -170.90M | -342.00M | 448.20M |
Balance Sheet | |||||
| Total Assets | 1.10B | 1.15B | 1.41B | 1.56B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 16.50M | 285.60M | 226.90M | 241.50M | 321.90M |
| Total Debt | 119.70M | 150.00M | 156.40M | 101.80M | 71.80M |
| Total Liabilities | 123.50M | 198.70M | 221.30M | 181.70M | 141.20M |
| Stockholders Equity | 975.10M | 966.00M | 1.20B | 1.38B | 1.74B |
Cash Flow | |||||
| Free Cash Flow | -19.60M | -25.10M | -17.90M | -23.80M | 10.30M |
| Operating Cash Flow | -14.50M | -25.10M | -17.90M | -23.50M | 10.50M |
| Investing Cash Flow | -32.10M | 82.90M | -4.40M | -2.30M | 26.30M |
| Financing Cash Flow | -52.50M | -42.90M | 34.70M | 8.80M | -58.30M |
IP Group plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | £528.87M | 12.59 | 46.72% | 5.23% | 7.26% | 30.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | £82.50M | 11.07 | 27.84% | 8.29% | -3.44% | -16.56% | |
58 Neutral | £611.33M | 9.26 | 7.14% | 2.09% | -35.12% | ― | |
56 Neutral | £894.60M | -123.00 | -0.66% | 2.69% | -88.06% | -107.88% | |
55 Neutral | £1.17B | 10.04 | 9.21% | ― | -78.12% | 30945.45% | |
52 Neutral | £113.67M | -13.30 | -4.78% | 3.59% | -2.25% | -350.00% |
* Financial Sector Average
GB:IPO
IP Group plc
68.00
7.50
12.40%
GB:GROW
Molten Ventures
685.50
316.10
85.57%
GB:MERC
Mercia Asset Management
27.00
-5.00
-15.63%
GB:REC
Record plc
43.40
-14.38
-24.89%
GB:FSG
Foresight Group Holdings Ltd.
476.50
39.26
8.98%
GB:ICGT
ICG Enterprise Trust PLC GBP
1,470.00
99.57
7.27%
IP Group plc Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
IP Group Executives Boost Holdings with New Share Purchases
Positive
Aug 5, 2026
Senior leaders at IP Group plc have increased their personal stakes in the company, with Non-executive Chair Michael Queen, Chief Executive Officer Greg Smith and Chief Financial and Operating Officer David Baynes buying a combined 271,368 shares ...
Business Operations and StrategyM&A Transactions
IP Group backs strategy as Railpen drops takeover interest
Neutral
Jul 27, 2026
IP Group plc has confirmed that Railways Pension Trustee Company Limited, via Railway Pension Investments Limited, will not make an offer for the company and is now bound by U.K. takeover rules restricting further approaches. With the end of the o...
Business Operations and StrategyM&A Transactions
IP Group Rejects Railpen’s Revised Bid but Extends Takeover Talks
Neutral
Jul 20, 2026
IP Group plc has rejected a revised takeover proposal from Railways Pension Trustee Company Limited and Railway Pension Investments Limited that valued each share at 71.3 pence, excluding a contingent value right tied to the future performance of ...
Business Operations and StrategyM&A Transactions
IP Group rejects Railpen’s ‘final’ takeover approach as undervaluing firm
Neutral
Jun 23, 2026
IP Group’s board has rejected a preliminary, highly conditional takeover proposal from Railways Pension Trustee Company Limited, acting via Railway Pension Investments, to acquire the entire share capital of the London-listed investor in res...
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
IP Group faces shareholder pushback on capital powers as new chair takes helm
Negative
Jun 18, 2026
IP Group plc reported the results of its Annual General Meeting, where most resolutions, including the receipt of 2025 accounts, auditor reappointment, director elections and changes to articles, were approved by shareholders. There was a signific...
Business Operations and Strategy
IP Group portfolio firm Istesso advances Phase 2 trial of regenerative drug
Positive
Jun 16, 2026
IP Group has highlighted progress at portfolio company Istesso, which has begun dosing patients in a Phase 2 trial of its lead drug candidate leramistat for sarcopenia linked to rheumatoid arthritis. The study, run with Newcastle University, Newca...
Regulatory Filings and ComplianceShareholder Meetings
IP Group Sets June Date and Hybrid Access for 2026 AGM
Neutral
May 13, 2026
IP Group plc has published its 2026 Notice of Annual General Meeting, along with proposed new articles of association, and has made these documents available to shareholders both in hard copy and electronically via its website and the UK national ...
Business Operations and StrategyProduct-Related Announcements
IP Group portfolio firm posts positive Phase 2 cystic fibrosis data
Positive
May 12, 2026
IP Group portfolio company Enterprise Therapeutics has reported positive Phase 2 trial results for ETD001, its lead inhaled therapy targeting the 10% of cystic fibrosis patients with the greatest unmet need. The 28-day study met its primary effica...
Business Operations and StrategyExecutive/Board Changes
IP Group names former 3i chief Michael Queen as chair designate
Positive
May 7, 2026
IP Group plc, a UK-listed early-stage science and technology investor, concentrates on healthtech, deeptech and cleantech, primarily funding innovation spun out of universities and research institutions. Through its specialist investment teams and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.