Ip Group (LSE:IPO) — Final Results

0:01 Good afternoon, ladies and gentlemen, and welcome to the IP Group Final Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time using the Q and A tab that's situated on the right hand corner of your screen. Please just simply type in your question at any time and press send. The company may not be in a position to answer every question it receives during today's meeting. However, the company review all questions submitted today and publish those responses where it's appropriate to do so. We'll notify you when they're ready for your review. Before we begin, we'd like to submit the following poll. And if you would give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand over to CEO, Greg Smith. Good afternoon, Thank you very much, Mark, and good afternoon, everyone, and welcome to IP GROUP's twenty twenty one full year results presentation. And, you know, first up, thank you very much to Investor Meet company for hosting us. This is the first time we've used this platform.

0:54 I think it's a great way of engaging with a, a really important stakeholder group for us. So very grateful. And, of course, thank you to all of you watching for investing

1:03 your time to hear this update. Now as many of you may know, IP GROUP celebrated its twentieth anniversary in 2021, and I'm I'm very pleased to be reporting record results for this twentieth year. And I'm also pleased to be able to tell you that I believe our opportunity to unlock the value of science in the future is even more significant than in the past. On today's call, have myself, chief executive. I'm joined by David Baines, our chief financial and operations officer Sam Williams, who is our managing partner of life sciences, and Mark Riley, who is our managing partner of tech, who looks after the the technology and the clean tech part of our business. And this is my first set of results as CEO having taken over the role in October after ten years as group CFO. And so, you know, full year results presentations are therefore pretty pretty normal territory. And and yet, it feels somewhat strange to be here talking about financial results when there is such considerable disruption occurring in Europe, only, you know, 1,500 miles away from us here in our new head office in in London's knowledge quarter.

2:15 And, you know, our thoughts are very much with all those affected. But despite that, for this next little while, our job today is to take you through what we at IP GROUP achieved last year, and there's a there's a lot to talk about. And, of course, the the the paradox of the uncertainty caused by these significant geopolitical events and indeed other major global challenges like climate change is that it makes it all the more important for businesses like ours to set out and and deliver on a compelling vision. So in terms of the plan for this afternoon, I will, I'll cover a short overview of my plans for the the the strategy of the business going forward, and this includes an update on our highest conviction companies. And that that's at least in part to address a question that I know many many of our shareholders raise, which is, you know, what's the next Nanopore? What's after Nanopore?

3:09 And to give you some additional color on that, today, we've got some short videos from the excellent leaders of three of our highest conviction companies. And so you can hear the story briefly in their own words. And then Dave will run through the results and then on to questions. And and as Mark said, please post questions in the q and a, and we'll endeavor to cover them all. So the so the overview of results is really the sort of, you know, the the one minute version. It's in three parts. So the, you know, the first part is, you know, we had a record year in 2021, another record year indeed in 2021. We had record return on assets, almost £500,000,000, record realizations, and we finished the year with a strong liquidity position. Secondly, coming off of a record year and then therefore a position of real strength, I and the leadership team have taken the time to reflect on what we've learned and and really define how we will take on the next two decades and build the next generation of companies that are gonna have a real impact on the world. And then thirdly, we've continued the work that I've led over the last couple of years to ensure that our approach to capital and to returns will scale our business sustainably over the long term.

4:24 And over that time, I've had a very clear focus on unlocking value from our model, value and returns for shareholders. And this is about balancing competing uses for our capital investing for long term growth and providing returns to shareholders. As examples of this, we returned 34%, on our assets this year and in line with our policy, we distributed a proportion of our cash realizations, a total of 50,000,000, over the past twelve months through our first dividends and our first buyback program. If I very briefly touch on the results, our financial performance in 2021 surpassed all all prior years. You know, financially, we're a we're a very simple business to understand. KPIs like net assets, returns, and cash are the main ones that you need to understand this. And we delivered a return for the year, as I mentioned, a profit of 450,000,000.

5:17 And and this outcome is around 5% ahead of the 425,000,000 that we estimated in our trading statement in January. We again generated cash realizations of around 200,000,000 from the portfolio. That meant we finished the year with about GBP $270,000,000 of net cash. And I'll leave Dave to add a bit more color to these results shortly. So, you know, record year in 2021. And before I move on to the the vision and the and the and the plan for our long term future, I just want to talk briefly about the impact of heightened geopolitical risk, inflation, and our ability to adapt to current circumstances. And I think there's sort of two important points for us to to cover here.

6:03 Look, clearly, markets are volatile right now. You know, public market valuations, appetite for high growth companies has definitely reduced. And in some sectors such as biotech, especially in The US, this has exacerbated reductions that were already beginning in 2021. And and David will talk about the impact of that on our NAV since the, since the year end. Secondly, we are planning for the fact that the the funding environment for at least some of our companies may may be more challenging for a period of time. And I think in light of that, our strong cash and liquidity position is a real strategic asset. And like everybody else, we don't know how long this period will last or when cycles in in in public markets and the the sort of subsectors in which we operate will improve.

6:49 However, I am confident that our portfolio companies will continue to make progress, and I'll I'll come on to some examples of that later in the presentation. And a number have announced further funding rounds already this year. If you, if any of you follow, any of the the the broker and analyst notes, they highlight a few, funding rounds that are already completed this year that that we've announced. And I think it's really important for you to know as our shareholders that we're in a position where we can invest capital to support the development of our most compelling companies to ensure that we continue to unlock value for you. So I guess sort of despite these these sort of shorter term challenges, I just I want to spend a few moments just updating you on the the the type of business that we're aspiring to create to IP GROUP.

7:36 At IP GROUP, I I believe we have a business that that that can and is having a big impact, a change, making a dent, and unlocking value in doing so. And there's there's real momentum growing around what we're doing. You know, the wider sector in which the group operates has changed and grown in recent years. And in in many ways, it's it's sort of finally caught up with us. And post COVID, some of you may have seen recent announcements from companies like Sequoia and Anderson Horowitz who are discussing using breakthrough science and innovation to solve big problems. And and an IP GROUP in in companies like Oxford Nanopore and Ceres Power, we have helped to create and build two separate billion dollar companies based on UK science.

8:18 And the and the past couple of months aside, long term investment appetite for our space has seen quite significant levels of of capital committed. And and as an example, our analysis of the clean tech market in Europe showed that the number of VC funds who had explicit sort of green positioning tripled between the start of last year and COP26 in November. But not only that, the quantum of capital, was increased by more than 10 times. We you know, for those reasons, we we believe that the the medium to long term macro environment will be very supportive of of what we do and of our portfolio companies. But others entering the sector means we need to ensure that we remain at the head of the pack. And and, crucially, we have the experience and the expertise, particularly in our investment teams and a strong portfolio poised for further growth that will allow us to do so.

9:14 So during my first six months as CEO and and and given the successes of 2021, I've been working with the the wider leadership team to really develop and evolve the strategy to build on our great foundations and deliver a, you know, a step change in the impact that we and our companies can have on the world and the value we can unlock in doing so. This is a it's an evolution. It's a sharpening and a deepening. And I should start by saying IP GROUP is a very purpose led business. We've been founded on this idea of evolving science and innovation into world changing businesses, and this will remain a big part of the the group's approach. Our vision as a business is is a better future through the impact of science and technology based companies that we've identified, that we've backed and grown together as long term partners. And in in sort of simple terms, our core business model is to acquire equity holdings in these businesses, typically at an early stage, and we grow the value of those holdings by taking active involvement before selling down in whole or in part over time to to maximize returns, and then we reinvest that capital in the model under our capital allocation policy, and we return some to shareholders, as as we have done this year.

10:22 But I think the step change I was talking about was really in how we plan to to deliver this, a consistent theme, as I said, is this sort of sharpening and increasing focus. So firstly, said, you know, we're driven by having this meaningful impact on the world, and we are implicitly a company that's driven by impact. Our companies are already having creating impact every day, impacting people's lives, and this will be ever more of a focus for us going forward. You'll see more of it. You'll see us talking about it more, and you will see more of our company's products and services reaching more people's lives. Secondly, and and consistent with this, we're increasingly focusing our capital resources and expertise on clear thematic areas, so a deeper thematic focus. And then thirdly, our greatest returns and impact have come from companies addressing big societal need and big commercial opportunity. And you will see us increasingly focusing our capital and resource to accelerate a smaller number of conviction companies whose market opportunity and, you know, product market fit and progress means that we we find them to be most compelling. And then importantly, we will continue the work that I've led over recent years to evolve and then successfully apply our capital allocation framework to build IP Group sustainably for the next twenty years and beyond. Our shareholder value proposition is primarily capital growth over the medium term alongside the return of a proportion of realizations in the form of growing dividends and as

11:53 was the case at the end of twenty twenty one, other mechanisms such as buybacks.

11:58 And that the the the thematic focus areas that that we will be increasingly focusing on are those companies whose products and services contribute to a a healthier future, a tech enriched future, or a sustainable future. And we we plan to build significant investments, influence, and presence in these sectors. It's it's definitely worth saying that the we that doesn't mean to say that these themes will be exhaustive for all time. We will build on our networks and insight generated from having done this for twenty years to identify and evaluate new areas of opportunity. And each of these themes is that it at that intersection of big societal need, big commercial opportunity, but also crucially, IP groups, USPs. And these are quite wide themes.

12:45 And so within each of the themes, there are particular areas of focus. And I mentioned I'm joined, on the call today by our managing partners, and I will just hand over to them to say a little bit about each of the the sort of the focus areas. So firstly, Sam Williams. Thanks, Greg. So, in life sciences, our ambition is develop, cures for disease rather than simply trying to treat the, symptoms of disease, which is what most current drugs do. And we approach this along, four simple lines. Firstly, we're investing in technologies that help us understand the underlying biology of disease. So for example, we're invested in genetics through our holdings in, Oxford Nanopore, and genomics PLC, which are developing methods, needed to mine and understand the human genome.

13:38 And as another example, we're invested in the human gut microbiome through our holding in Microbiological Limited, which has developed methods for understanding the precise role of different gut bacteria

13:50 in disease, particularly cancer. And we use the fundamental understanding of biology that these sorts of technologies give us to develop products that can reprogram, recondition, and redirect the way that cells, tissues, and patients themselves behave so as to eliminate disease where it exists, but preferably and ultimately, to avoid the development of disease in the first place. And with that, I'll hand over to to Mark. Thank you, Sam. So the second of our three areas of of thematic focus across the group is deep tech, where we're building a future that is enriched by technology, various different types of technology, but we have four themes within that that area. We are particularly focused on the application of artificial intelligence in the fields of particularly in cybersecurity and fintech. We know, of course, that cybersecurity is an ever increasing threat that is now causing damage and losses versus over $6,000,000,000,000 every year. So a huge opportunity for tools that some that address that threat, and we are well exposed to some exciting companies in that sector.

14:58 Secondly, we are focused on next generation networks. Our existing communications infrastructure today just cannot support. It doesn't have the capability to support some of the use cases of tomorrow such as virtual reality, augmented reality, vast networks of Internet of of things devices. So we're investing both in the hardware layer and the software layer in our communications networks to improve them and to to give them the capability to cope with those those future use cases. Thirdly, we've got exposure to the this fascinating and emerging field of human machine interface. We're we're going through this this interesting change at the moment in our interaction with computers where those interactions are becoming much more like interacting with a a fellow human. And, of course, if you read our annual report, you'll see that we sold an exciting company in

15:44 this sector during 2021, a company called WaveOptics, but we remain exposed to the sector, particularly with our company, UltraLeaf, in the in the portfolio. And then finally, in this area, in in deep tech, we are we are looking at some opportunities in neuromorphic and quantum computing and have exposure to some very exciting early stage assets that could form the building blocks of the next generation of of computing capability. So that's the deep tech theme. The third of our group level themes is clean tech where we have a deep and long history of great experience in this sector now and has very strong teams. So we know that in order to achieve net zero by 2050, we will need to, across the globe, increase investments in renewable energy, clean energy.

16:30 We'll need to about triple that level of investment to about $4,000,000,000,000 by 2030 if we are to reach net zero. And so we IP GROUP is very well positioned to take advantage of this economic opportunity with all the expertise and experience we have in this field. And within CleanTech, we have four particular focus areas at present. First of all, we're focused on novel approaches to generating renewable electricity and replacements for fossil fuels in a variety of sectors. Secondly, we're focused on reducing fossil fuels and optimizing efficiency in the transport sector, which is a major contributor to emissions today. We're focused on the area of greenhouse gas capture and storage, which will play a key role in achieving net zero. And finally, we see a large opportunity in the area of climate risk management given that we know that the losses due to natural catastrophes are are increasing and we've we've we've now seen them reach a level of about 500,000,000,000 every year according to to Swiss Re. And so we see an opportunity to invest in in in tools and solutions and innovations that address, that particular financial opportunity.

17:38 Thank you very much, Mark, for and Sam for going through that. Hope it gives a a little bit more color. And and so the idea is through this increasing sector focus, we'll be aspiring to tackle some of the biggest problems that the world faces and seeking to build meaningful category leading businesses with at least billion dollar company value potential. And the idea is that we maintain influential holdings in these companies. We generally have a board seat on these companies, and we increasingly will focus our capital on those companies as they mature. And the idea is, you know, in order to help our our shareholders and our stakeholders understand the the value creation journey, we will highlight the likely value creation milestones for a number of these bigger companies, and we've started to do that in our annual report this year. And on on this next slide, I'm just highlighting a, a few of those companies that we think have got that, that sort of billion billion dollar potential.

18:36 And there are three particularly this year that we would like to draw people's attention to. And as part of our last last year's results results presentation, I highlighted three companies, Innovata, WaveOptics, UltraLeap. And all of those had you know, they they enjoyed their various successes during the course of last year. And so I'm I'm confident of being able to report on progress for Esteso and FeatureSpace and and hopefully First Light this year. But to give you, as I mentioned at the start, to give you a bit of a deeper understanding of the companies and what they're looking to try to achieve, I thought we would just allow, the CEOs of each to, tell it in their own words for a couple of minutes. And we'll start, first up with, doctor Lisa Patel, the CEO of ESTESO.

19:24 ESTESO is at the forefront of a new field of science called immunometabolism, and we're applying the, science of immunometabolism to the treatment of autoimmune diseases. These are diseases that affect between five and ten percent of the world's population, and they carry an associated enormous health economic costs as well as acting as a burden for patients. These diseases occur when the immune system attacks the body's own tissues, and examples of them are multiple sclerosis where the attack is on the nerves, and diseases like rheumatoid arthritis where the attack is on the joints. The consequence for patients of that is that they experience progressive disability. And

20:10 although there are current treatments for these conditions, there's no real possibility for patients to actually resolve or recover from their condition in the long term. Our aim is really to solve that problem.

20:25 Our lead drug is called MDS twenty three twenty, and it's a first in class treatment for rheumatoid arthritis and other autoimmune diseases. And what that means is that it's the first drug that actually acts in this way to improve the treatments of the condition of rheumatoid arthritis. MBS twenty three twenty is in phase two clinical trials. And because of the unique way in which it works, it offers four real benefits for patients. So firstly, it can control their symptoms. Secondly, it can stop the progression of their disease, so the underlying damage that occurs in this case to their bones. Thirdly, it actually preserves immunity. And what this means for patients is that their body is able to continue to fight infections.

21:14 That's something really illustrates an unmet need in recent times because of the COVID pandemic and the need for patients to shield. And then finally, really uniquely for the patients, MES twenty three twenty offers them the possibility to ultimately, we hope, resolve their condition. Thank you there to to Lisa. And the the version of the presentation that's on our website on the on the doesn't have the the videos embedded. We're using some of the video content on our social media channels, but what we have set out in the presentation is the key milestones for each of these businesses. You can see those here and the key ones in the case of ESTESOs lead assets are to enter that phase two b trial that will be happening, during this first half, and that then is planned to read out, in the first half of twenty twenty four, and there are a few other milestones along the way.

22:10 Next, I will move on to, Martina King, who is the CEO of Feature Space.

22:20 Hello. I'm Martina King. I'm the CEO of Feature Space, and it's a pleasure to join the IP GROUP's results presentation today. So first of all, what are we here to try to do? Well, our job is to make the world a safer place to transact, and that we have been able to achieve with our award winning technology. We have invented adaptive behavioral analytics and more recently brought the we were the first company to bring recurring neural nets to protecting payments across the world, and this is, new technology that we have now patented. Our customers receive our technology and our groundbreaking, analytics through the ARRIC risk hub. And when we were looking for our market fit, our customers or potential potential customers said, could you make sure your technology is better than what's gone before?

23:09 And then on top of that, could you make sure that you provide us with exemplary customer service? And they're the two promises that we have kept our industry, and, and we have been rewarded for that dedication to technology advancement as well as deep customer service. And if I talk about the progress, therefore, commercially that we've made, during the course of the last year, we've put on 68 new customers. Our financial progress has been record breaking. We had our best new business year ever last year, our best year for recurring revenue. Our recurring revenue has grown by 75%. Our compound annual growth rate over five years has grown by 74%.

23:56 So tremendous growth, in all of our top line. And, and as far as the customer service is concerned, again, we have been able to achieve, consistently, an an NPS score that's north of 60. That puts us into that world class, category. And I'm really proud of the fact that we've been able to live up to that promise that we've made right at the early stages of getting our market fit. Where do we see our company in ten years' time? Well, the great thing is there's still plenty of scope for solving the financial crime problem. And every analyst that we look at agrees. The market has continued to be projected to expand, over the next five years, about an 8,000,000,000 market opportunity for us to go after.

24:46 It's also not a one technology wins all as far as our market is concerned. Thank you, Martina. So, I mean, I think as you will hopefully get from that video, milestones, if you will, for this business are really continuing recurring revenue growth in what is already a growing market. Martina talked about the scale of market opportunity that they have to address and indeed they are their aspiration is to outpace that growing market. You can envisage just on relatively normal metrics how that could get you to a potential billion plus valuation on that sort of time frame. And then finally, I will hand over to, doctor Nick Hawker, who is the CEO of First Light Fusion.

25:37 Hi. I'm Nick. I'm CEO of First Light Fusion, and our mission is solve the problem of fusion power with the simplest machine possible. And simplicity is a thread which runs through all of our technology. Our power plant concepts is dramatically simpler. It can be built with existing technology, existing materials, existing supply chains. We we neatly sidestep all of the some of the big known engineering issues of of fusion power.

26:08 It also comes into the the nature of the the core technology as well. So we're working on a new method for inertial fusion, which we call projectile fusion. We fire a high velocity projectile, flies for a short distance, and hits into a target, and the target contains the the fusion fuel. The machine which monitors the projectile is a lot simpler than what the the mainstream of inertial fusion is proposing, which is a laser. It's much cheaper. And then the last piece of simplicity is, actually, when the projectile hits the target, the physics that happens then, the physics takes place inside the target. That's simpler too, and that gives us a really crucial advantage, which is our process can be simulated and can be simulated accurately.

26:54 That means we learn much faster in simulations in silico than you ever would with physical experiments. Although, of course, the ultimate question is, are the simulations right? So working towards sharing fusion, that's the mission now, but we actually raised some more money at the start of this year, 45,000,000 That's actually to to get ahead and start on the next phase, which is building a new experiment, bigger, designed to show more energy out than in for the first time. So we're already progressing into that next phase of demonstrating energy gain, And that is the the the crucial

27:34 physics demonstration that's needed, but it's not the only activity that we're gonna be starting in that next phase. We're actually gonna be really broadening out the work we're doing on the plant engineering. And the the goal of the next phase is is actually to get to a derisked design for a power plant. And that that includes the GAIN experiment as the single biggest, most important thing, but it there's lots of other detail which which we'll be working through.

27:58 And what that means is that the commercial opportunity for First Light starts at the end of that phase. It doesn't start no, you don't have to wait all the way until the power plant is operating before we start to have a commercial opportunity and potentially revenue opportunity. So thank you very much, Nick. And, you you won't be surprised to see that the the next milestone for that business is a is is the proof of concept, a validated fusion reaction. It's very hard to give, a time frame, on when that that will be successfully completed, but there are a number of steps that

28:34 will occur after that. And, I I look forward to keeping you updated with that over the course of the next year or so. So so three of our our highest conviction companies there and those with the opportunity to drive huge impact and and huge value. Now I'd also like to talk about Oxford Nanopore, which was, the most material contributor to our results in 2021. And although their share price performance since the year end has been, affected significantly by the, you know, the reduction in

29:05 risk appetite and valuation pressure on high growth companies, which Nanopore definitely, is. From a from a financial perspective, the company had a very strong 2021 as you can see depicted there on the left hand side. They have updated and upgraded their revenue forecast three times since the IPO in London in

29:27 the last quarter of last year. And the most recent upgrade gave guidance that the life science research tools, which is their sort of core revenue stream, would increase by more than 80 year on year 80% year on year to above 120,000,000. The company will be announcing their maiden full year results as a listed company next Tuesday, March 22. And so we will be looking for evidence of the continued revenue trajectory and traction in key areas that are core to that in the future such as the whole genome sequencing projects.

30:05 And I was talking earlier about, you know, the types of businesses that we want to create at IP GROUP, those that have really meaningful impact on the world and also huge, commercial opportunity, and Oxford Allopur is clearly delivering genuine real world impact. Many of you will know that a significant proportion of the COVID nineteen, coronavirus variants were sequenced on on Nanopore machines, not just here in The UK, but but but globally.

30:31 And, you know, there was a there was a very interesting release just in the last couple of months that that Nanaport put out. You know, on the one hand, it it contained a a Guinness World Record for the fastest whole human genome sequence, but sort of more importantly, it outlined the rapid point of care genetic analysis that allowed for quicker and more successful treatments across a range of conditions and patient types. In terms of the impact for IP GROUP and for our holding, you can see we invested a total of 77,000,000 in that company. We've realized a 106,000,000, and we remain the largest shareholder with a 10% holding in that that company. And and you heard Sam earlier talking about this an element of our healthier future theme is around understanding the underlying biology of disease, and we want to ensure that, you know, where we help to create successful industry disrupting companies like Nanopore

31:27 that we use that expertise and our and that network to to identify critical mass and build further. And I think we have an opportunity with Nanopore to to do that. Companies such as Microbartica that Sal mentioned are based up at the Sangar Centre in Cambridge, use Nanoport sequencing technology. And I and the team plan to do more with Nanoport over the course of of of this year and beyond. And I and I hope to be able to update you more more on that in due course. So and in terms of our holding, you know, we we have

31:58 significant experience and and expertise and and particularly in this space. And and with that knowledge, we see, you know, great potential for Nanopore ahead. But we remain focused on our on our capital allocation approach, and of course, we will consider, our holding over time in that light. So so those are the those are the leading companies in the portfolio. And as I as I sort of said at the start, this is this is all about unlocking value for the shareholders. And so I just want to talk about that briefly. So what is what is the value proposition for an IP GROUP shareholder? Well, the idea is that we are giving access, liquid public market access and exposure to some of the most impactful technologies. And that comes from, you know, some some USPs that we have. We have deep thematic focus and a highly experienced team.

32:47 We have we benefit from operating across different geographies, The UK, The US, China, and Australia, and that international expertise and networks enables us to not only see what's coming next, but to access international capital, international talent, and partnerships with, industry and businesses.

33:07 And we're not starting this from scratch. You know, you you you have exposure to and I I hope some of the examples I've given today exemplify that. You have exposure to, you know, an exciting portfolio of of of high growth companies across different sectors. And we intend, as I said, to to, you know, we maintain influential shareholdings and have an active management approach to help develop those businesses from quite often inception through to maturity.

33:32 And we have a very rigorous capital allocation and investment appraisal process, and that is, I mean, it sort of maybe to give you a bit of a demonstration of that. The the buyback that we did in towards the back end of 2021 is is a demonstration of our discipline, demonstration of the application of that model, balancing the the sort of the tension between the uses of internal and external capital. And of course, we will use those results again use those those tools and those mechanisms again in the future when we have future realizations.

34:06 So with that, I will hand on to Dave, who's going to just give you a bit more information on the results. Yes. Hello there. I'm David Baines. I'm the Chief Finance and Operating Officer. Very nice to meet you all and to be here today. What I'm gonna do is just in about five, six minutes take you through the three the basic fundamentals of the finances here and the results over the last year. I think as Greg said at the beginning, at one level, we're a really complicated business. We've got about a 100 sort of fascinating

34:35 technical scientific companies, all of which have an interesting story. But at a sort of financial level, we can be explained relatively simply. So, hopefully, I I can do that do that for you now. So looking at kind of three key areas, from over the year. First of all, what what we call return on NAV, effectively profit. We made a profit of about £450,000,000 during the year. That's up on the prior year where we made a 190,000,000. And if you put that in perspective, that 190 most of that, about 160 or so was made in the second half of last year. So, actually, in the last eighteen months, we've delivered over £600,000,000 of profit out of the business, which, again, to put into perspective, back two years ago, that was our entire market cap. So we've clearly had a, you know, a very strong period in the last eighteen months to two years.

35:21 Second thing, obviously measure our NAV, which is the value of, of our portfolio and our cash, as you'll see in a minute. That's up from 1,300,000,000 to 1,700,000,000. You can kinda rationalize that quite easily. We made about 450,000,000 profit. As you'll see, we've paid out dividends and share buybacks of about 50,000,000, and therefore, the the result is a 400,000,000 uplift. And then the, last thing I want to talk about is a little bit talk about the the cash position. So, we'll we'll move on. I'll deal with each of these in turn. I'll I'll deal with the kind of profits and where that came from first. So if I look at that first slide, uplift overall across the group were about £500,000,000, just slightly shy, £500,000,000 of uplift across the group. Now it's true that a big proportion of that, 300,000,000, came from Nanopore itself, which IPO we made about an 80,000,000 uplift at the time of IPO, and and the rest post IPO as the share price strengthened.

36:12 But it's not all about, Nanopore. If you look at that, we've got kind of color coded divisions there, but, you can see that in blue there, that health care division, they also generated 78,000,000 of uplifts. If you look to the right, can see in that slide two of the key components of that. Hinge Health, very successful business that we were in from the very beginning. That did a 6,200,000,000 pre money fundraising last year, and we took an uplift of £32,000,000 on that. And then Innovata was acquired by NeoGenomics, which required another update of about 30,000,000 as a result. So so 63, 64,000,000 of that uplift came from just those two companies. If you look at the yellow, that's our deep tech side. And on that side, similar kind of uplift, 72,000,000 in the period. Slightly more spread. It was WaveOptics.

36:59 You can see there that was acquired by Snap during the year. For what we think is one of the biggest, tech deals in Europe, it was a $500,000,000 deal, and it was also the £27,000,000 uplift. But also, the business we used to know is YOYO, Wallet, which had been acquired by Thoughtpay. That was up 16. FeatureSpace, who we've heard about today, that was up by 15. And the Ultra Leap, a a haptic touch in the air business, that was up by a further 10. So, actually, valuation updates are quite wide reaching within the technician. Green appropriately for cleantech, our cleantech side. That's mainly in first light fusion. You can see there again on on the right, you see that had a significant uplift around about 200,000,000 plus raised £33,000,000 generated nearly all that uplift.

37:44 And last but certainly not least, our our newer divisions, the American and Australian divisions. But again, they had very strong years. Both of them may had significant uplift, both made profits. Australia actually more than doubled its open position. It had about $11,000,000 Australian dollars in that asset at the beginning and about 23 by the end of the period. So for them, a a very strong, a year. So that sort of explains to some extent what drove the p and l, if you like. So the next thing I look at is the balance sheet, really. And this is the way you see how simple it really is. If you if you look at that slide, you see, effectively, our balance sheet is made up a big chunk of portfolio. It's our portfolio companies that are directly held or sometimes held through funds. And then there's a chunk of cash, and a then a relatively small amount of debt at the bottom, that dark line you can see at the bottom, right, three components. Debt is small, as I say. We have 51,000,000 of, debt from European Investment Fund, and that gets paid down most over the next four years, paying at a rate of about £17,000,000 a year.

38:38 And obviously, over that period, that will disappear. So the main thing to look at here, of course, is that, the uplift we've already talked about. So if you look on the right in 2021, we have, if you remember, 1,500,000,000 of portfolio assets, assets, and I'll I'll come to those in a second. And we've got 270,000,000 of cash, which, again, I'll look at lastly. So if you look at our pie chart on the right there, this is this is a pie chart of how the business breaks down as a complete balance sheet, the whole of the net assets. So the whole net assets, about 31% is NanoPort. But then some of the other companies we looked at today, first, like, Fusion and Visa based, were still significant proportions, three to 5%. Also, cash is an important component. You can see that 15%. If I, I I then and and then, but it's just quickly worth mentioning that the share, price per the the value of net assets per share, I should say.

39:27 So at the year end, that was, £1.67. Now I should have mentioned that there has been a weakening since the year end, and that's mainly because of a a tightening of tech markets, which started occurring certainly in January. And then independently, of course, obviously, the invasion of the Ukraine by the Russians, which has obviously dampened quite a lot of the tech stocks. I mean, as a result of that, we have seen quite a significant correction, in in our portfolio since year end. It's down about 264,000,000, most of that driven by Nannapur. So I'm looking now as of the end of play on Monday. So Nanopore was about 233,000,000 of that adjustment. So we have seen, quite a significant retrenchment. However, still that, net asset per share is still about £1.42, so it's still significantly ahead of today. It's about 94p to our share price. We still seem to trade a significant discount, about 34% as I looked at it a moment ago discount. So even allowing for that pre adjustment.

40:28 And, obviously, you know, we'll we'll have to see how these more bigger global factors play out and how they affect really all share prices. If I now look, therefore, coming back to the numbers as at the end of December, if I look at that, the 1,500,000,000 itself, the actual portfolio, the value of the portfolio, can look at it in two ways. We've got how it splits by the sectors we've been looking at. So in this case, so that's a 1,500,000,000. Nanopore actually makes up 38% of it, if not including the cash. Life sciences, they're a similar chunk, about 30% in life sciences. Deep tech, a significant sized portfolio at 15%. The reason CleanTech is slightly smaller is actually because it had some significant exits, not least to also its power a couple of years ago. So but actually, as you've heard already in today's presentation, that is a day of great interest, and we will be focusing both expertise and money in that area. So I expect to see that grown. And Australia and US being newer, but, again, they're growing fast.

41:18 I'd expect those percentages to grow in that kind of left hand donut if you like. The other point I'd like to make is our model, starting very early and building some of the most promising technology companies right through to maturity, means you tend to have quite a large portfolio traditionally. We have about a 100 companies that we value. But actually, despite that, much of our effort is really focused on a relatively small number of the top companies, which makes it a more kind of traditional sized portfolio. So you can see there by value on that right hand doughnut, about 75% of all that 1,500,000,000 is actually contained in the top 20 companies. We then have what we call our focus companies. So they're companies that we're really putting additional effort in. There's there's about another 24 of those. So have a total sort of focus and top companies are 44 companies. And you can see that makes up 87% of our whole balance sheet. So it's a vast majority of it. And then all the rest account for just 13%.

42:06 But it it gives you a sort of idea of how focused the business already is really on the balance sheet side. So we've talked there about the balance sheet. Then we talked about the portfolio component. So we'll talk about the second component, which is cash. Now you can look at a traditional cash flow format in the accounts, and it's not immediately obvious how simple our cash position is. But this simple waterfall kinda just shows you how it works. These are our gross numbers. We started the year with 270,000,000 of cash. We had net overheads of about 19,500,000. That's about 1.1% of portfolio, which seems a sensible amount. It's down from last year where it was about 21.5. And it's a number I think we'd expect to remain fairly consistent for the next one or two years anyway and keeping kind of down to sort of 1% of, total portfolio. The second kind of big thing I've already talked about is about 17,000,000 for the next two or three years we'll have to pay back on the European Investment Bank loan. So that's second big number. And then after that, really, the only thing that's got left are the money we've been giving back to shareholders through dividends and share buybacks. Referred to at the beginning. I mentioned it was 50,000,000 that because the last bit of that share buyback completed in January is actually 42,000,000 during the year, that's at 7.8, just in January.

43:13 And then the big ones are the investments. That 87,000,000 number is the number we invested in the portfolio at South America. And then in bigger number, I'm glad to say, which is the the realizations we had of 213,000,000. And so perhaps the last drill down I'll do before handing back to Greg, we remember that number, that 213,000,000. Let's look at that. A few points I'd like to make about that. It's the third year in which we've had strong exits. It's the third year in which they've they've gone up consider by a considerable amount. Secondly, I'd like to point out that it's not all just one company. It's quite well spread. Nanopore, of course, has made a fantastic contribution. We sold about £84,000,000 worth at the time of the IPO. But, actually, as you've already heard in Nevada, it generated significant exit, 64,000,000. WaveOptics, part of the payments in that exit gave us another 30,000,000. And Hinge Health, which we slightly trimmed back on when it did its last significant fundraising. But then there's another 24,000,000 above our exit. So the exits are are relatively widely spread.

44:07 The firm point I'd like to make is the returns are good. Hinge Health is exceptional. You know, you do a 6,000,000,000 fundraising pre money fundraising on a a company that you founded or or a cofounder or an early investor in that sense there. You get significant returns, but we're still getting five to six times on on on many of our assets. So we're getting good returns. And then the last thing is worth point that's worth making is that actually the returns suggest we're carrying our assets at a sensible valuation. The 213,000,000 of exits we had in the year at the beginning of the year, beginning of, 2021 were valued at a 131 So we had an 82,000,000 uplift on those, about 62%. And, actually, in the prior year, that ratio was even higher over the 76%, ratio because about it was about 83,000,000, less, about 108,000,000 at the beginning of the year in 2020.

44:56 Now what that tells me is one at one level, that's slightly inevitable. Because if you take companies that maybe just sort of cross over around or pre IPO, when you IPO, then we'd hope to have a 25 to 50% uplift. But it also suggests we're not overvalued our portfolio, being relatively prudent. Because clearly, if you were overvalued your portfolio, what would happen is when you came to sell the assets, you'd be getting write downs. You wouldn't be able to realize the money you'd be carrying on it. So I think we we take the view that should give us confidence that, that actually our values in the portfolio are are conservative. So quite frankly, if we say it's 1,500,000,000, there almost certainly is 1,500,000,000 of value in that portfolio. So I think that hopefully gives a good idea of our numbers overall, and I'll hand back to Greg. Thanks very much, Dave. So so just to summarize, I'll come back to, where we started really. So, the, you know, the key points of takeaway for this presentation are, a threefold. One, we had a record year again in in 2021.

45:49 That has given us the the platform and the financial strength to, look at evolving, sharpening, focusing, deepening our strategy for developing companies over the next twenty years. And you can see that we're trying to do that through a greater degree of thematic focus, a greater acceleration and focus of capital onto those leading businesses, three of which we highlighted today. And it's something we haven't spoken about a great deal, but we manage about 500,000,000 of third party funds under management, and we continue to grow that to leverage the business model and help to support those companies as they go through their stages of growth. And then third is on unlocking shareholder value. I talked quite a lot about this sort of sustainable capital allocation policy.

46:34 The idea here is to balance the internal and external and calls on capital. And I think we did that pretty successfully during the course of the last couple of years. We delivered a strong return from a from a capital growth point of view and 34% return on NAV, but we also returned a proportion of our realizations 50,000,000 in in cash returns. And I guess in in sort of in terms of outlook, really, I mean, it's kind of, you know, undoubtedly difficult times probably lie ahead at least for the short term, but we aspire to deliver far more impact and returns and to really make a dent in some of the world's biggest problems. And I and I hope from this presentation that you, you take from it that we have, the the team, the expertise, and the portfolio companies and the capital for us to be able to do that. So with that, I will hand over now to the question and answer section. Thank you very everyone, for putting And call of copy of slides and the published Q and A can be accessed via your Investor Meet company dashboard. Mark, Sam, please feel free to bring up your cameras as and when appropriate.

48:03 And if I may, Greg, you can see that investors have submitted a number of questions throughout your presentation today. So thank you to everybody for their engagement this afternoon. If I could, if I may hand back to you, if you could just read out the questions and give a response where it's appropriate to do so. And then I'll pick up from you at the end. Great. Thanks very much, Mark. And, yeah, thanks very much everyone for engaging with the the with the presentation. So I'll I'll well, I'll take them in time honored fashion in order that they were they're posted. So first one, great results. Many congratulations. How many companies do you look through before selecting one for investment, and what criteria must they have? I mean, that definitely varies a bit from, sector to sector, from geography to geography. And sometimes if we find, an area that we think is high societal need, high compelling opportunity and there isn't a company, then quite often we have the ability to do what we sort of consider to be venture building or venture creation and we create companies that address that issue from novel technology.

49:06 But I will let Sam and Mark sort of give you an idea of the the stats roughly for for that question. Thanks, Sam. Thanks, Greg. Yeah. So we probably look in in life sciences tens, if not possibly over a 100 sort of investment opportunities a year. We use very stringent criteria when choosing which ones to take forward and potentially invest. We're highly selective. We do a huge amount of technical due diligence. I work on top of the parameters we use, but, I mean, for example, drug discovery, we bring to bear a huge amount of expertise in in in a number of different technical areas. And then, of course, we have to do commercial analysis and so on and so forth. So it's it's it's a multi sort of pronged approach in dissecting these things.

49:59 And but, of course, overlaying that is our investment our thematic approach. So there are particular therapeutic areas and biological areas that we want to be in. So we are not just a reactive investor looking at opportunities coming in. We'd go out and seek investment opportunities in the areas that we're interested in. And and in some cases, we will actually put the companies together ourselves by finding the science and putting it together with the right management team. Mark, do you wanna add to that? Yeah. I wouldn't say anything very different. We have it depends a little bit on how you define what what we're looking at as a a kind of pipeline company. So sometimes I'm talking to an innovator about an idea, and I I speak to lots of innovators about lots of ideas, and sometimes it's a company coming to us to pitch. So it's a bit difficult to sort of say exact number of companies come through the pipeline for y number of of investments, but the numbers are probably similar to the ones that Sam cited.

50:54 In terms of the criteria, we're looking for disruptive innovations with a very strong value proposition in a large market. Obviously, like most VCs, we're looking for a great team and a good execution strategy, but we can influence both of those as a sort of hands on investor. And so we our fundamentals of that disruptive technology in a large market. Thank you. Then next question, do you have a maximum number of investee companies? And do you take seats on the board of the companies you hold? I I think we've addressed that quite a lot during the course of the presentation. Hopefully, you've got the the message that we the idea is to build these companies as in in deep partnership with teams, build teams, build capability, and that's a that's a core part.

51:42 I mean, ultimately, we want the portfolio companies that we invest to have a greater chance of success as a result of us being an investor in them, working in partnership. The there's not there's not a hard cap on the number of investee companies, but certainly, Mark, Sam, within the clean tech team, within, the different, geographic divisions, the idea is to have a a portfolio which which follows that, that sort of Pareto principle where sort of 80% of the value is in a small number of companies. You know, in the case of the group, it's and as Dave said, it's, about 75% of the value in the top 20 companies. So the idea is to try to balance that very wide earlier pipeline with the focus of those companies as they come through.

52:30 I think the key point is that our resource and capital are concentrated amongst a relatively small number where we really see the maximum opportunity. So it's not so much about the number of holdings, it's about how we devote our time and capital. That's a great point, Mark. Next question, how do you see buybacks dividend balanced versus the strong performance? What should we expect going forward from a capital allocation perspective? Yeah. That's a great question and one we spend, a lot of time on. And to be honest, this is this is a lot about trying to balance, capital growth and therefore providing a vehicle which is liquid for shareholders, but also having the capital available and having liquidity within the company to invest in our portfolio companies for growth.

53:17 The I would say the approach we took in in 2021 was not atypical. So we returned about 40,000,000. And if you take off the the the full year dividend that that related to 2020, we returned about 40,000,000 on about 200,000,000 of realizations. And so that sort of, ratio, is is what we're thinking about. But obviously, we can we can move that up and down depending on, what's happening in the external markets and and balance those opportunities to invest with, with with shareholder returns and ensuring liquidity. One for you, Dave. Who does the valuations for the private companies and and what methods do they use? Well, but you would, it's an extraordinary process. An enormous amount of effort goes into valuing our private companies. We have sort of two people who are pretty much dedicated to it full time during the valuations.

54:12 Then at the OEM, when it comes to the audit, there's, again, an amazing amount of time that's spent. You can have various levels of certainty if ever. In its best case, you obviously have public companies, you know their price. And then private companies, you can often see very closely with the valuation in the last funding round. So there you can you know, got something you can pin your hat on. If something's done a funding round in the last six months, had significant money from a third party, you're pretty safe at the fair valuation. And then as you go forward, as you get further away from those kind of certain, observable data that you can kind of pin your hat on, we then do have to use greater, amounts of estimation. And then you are then using things like discounted cash flows. In some instances, we have used third party valuations, our models. But there's a whole kind of a whole variety of unobservable data that you can gather to try and put a sensible value on on your portfolio companies. And I think overall, it's fair to say that, and if if we had an audit partner who would confirm, we take a very prudent approach to valuations.

55:11 They say we are generally, fairly cautious is the expression they use for us on our valuations. We tend to when in doubt to take, you know, the the the best observable data we can and take a fairly, prudent approach to anything that becomes unobservable data, such as progress towards a yet unachieved milestone. So it's a fairly advanced process, but a lot of time and effort goes into it. In the current year, of course, the values are probably even more certain than they've ever been because you have a significant portion you've seen, 38% of NanoPole alone, plus other public companies and cash. So, actually, quite a significant proportion of our whole balance sheet is actually, based on observable data, if you like. Yeah. Good. And, probably also just to add, we we have quite a lot of disclosure in the accounts. There's a a table of how we value the top 20 companies.

56:00 There's a a split by value of the different methods that we use. So there's there's quite a lot of it's a question that we get quite frequently, and so we're trying to be as transparent as we can be and also highlight where we use a a third party, to support our internal valuations. So hopefully that, answers that one. Yeah. So the the next question is one that we you know, I I hope part of this, getting out and and telling the story and making sure that people are aware of the, the company is is is is driving really this question. So the the question was, given the significant increase in the valuation of the assets, why do you feel the share price of IPO has not responded to what you've achieved, and how might you address this, buybacks, etcetera? And then there's another question a little bit further down, which says, given the wide discount to NAV, what are you doing in terms of investor relations and other initiatives to reduce the discount? So the I'll I'll start a little bit with just saying that, you know, we we have tried to think quite deeply about what is the best way to allocate our capital balancing those two internal and external requirements. We think we've got an incredibly compelling opportunity here to invest in our in our businesses and grow them and generate returns that are market leading.

57:18 To give you an idea of the available pool of capital that we could deploy, our portfolio companies this year between them raised about GBP 2,000,000,000. Now obviously, you had a couple of significant transactions including the the NanoCore IPO, so it won't always be that significant. But we did about a 100,000,000 of that. So there is, there is there's definitely, a a lot of it that we could that we could play for. And then and then, know, sort of secondly, there's a there's quite a number of tactical things that we can do, and and and Dave has been leading the charge on that. So I'll I'll let Dave talk a bit about the sort tactical type initiatives around share price. Yeah. The tactical front, think we're going to traditionally, I think we perceive that IP groups taking a relatively low profile.

58:07 I think our plan is to be a bit more firm foot on that. Think I you'll see us speaking to Sydney more conferences. You'll see us doing more IR activity. We already see a lot of institutions, but we plan to see a lot more institutions. We've done a we're doing a a project at the moment looking at, for example, the the kind of, investors who've invested in companies that look a bit like IP GROUP, but haven't invested in IP GROUP to go in and then we'll directly approach them. We'll be doing some overseas road shows as well, which we target going to Europe as well as The US. So we are looking to increase our profile and increase that sort of IR activity. So we think that at a tactical level will certainly make a difference. As well as, of course, at the other end, the strategic as as Greg sort of referred to, obviously, you know, showing more shareholder returns by actively paying money back to shareholders and having a clearer dividend policy, and also making it clear to people the kind of real value there is in the portfolio after Nanopore. Because I think sometimes we slightly suffered from perception that we're Nanopore and nothing else, and that's very, very clearly not the case as you can see when you look at at least the next 10 companies.

59:08 Thanks, Dave. Hopefully, that covers that one. Then, there's two more questions on here. One for, which one's gonna be we're gonna need thinking time. So, Dave, there's a risk one. Yeah. But but I think probably Mark and Sam might have a view. So the question is, you mentioned geopolitical risk, but did not highlight your protocols on this when deciding to invest in the company and viewing its potential clients. While I assume The UK office primarily invests in UK opportunities, do our US and Australia offices follow your same geopolitical risk analysis? Particularly interested in your views on investing in company startups where large involvement with Russian and Chinese markets. So we've done that. Dave will answer that one. Then just to read the last question so Sam can get thinking, can you talk us through the thinking behind the sale of the Avapta shareholding, happened a couple of years ago? So Dave, do want to talk on that? Yeah.

1:00:02 Are I think we have a internal compliance division in here, we we're keeping an eye on this stuff all the time. We're very focused on on compliance. The you're right. Generally, in The UK, we're mainly investing in UK businesses. But, actually, you'll find that The US and Australia are just as focused on the CFIUS in United States legislation about foreign investment in American companies, which is particularly rigorous. But there's also now a a compatible legislation being launched in The UK and also in Australia. So, actually, we are sort of, pocket experts in those areas as you can imagine, and, actually, we're very focused on them. So it's an area we're very aware of. We don't actually have any Russian investments as you'd imagine. Well, we don't imagine or not. We don't, and, we don't build up any investors either at PLC. So there there's no sort of involvement there. We do have, some Chinese investors, which, you know, as as an awful lot of technology companies would. We do have a, a business owner in Hong Kong, a small business in Hong Kong. And we are we have recently set up a a fund which will be being rolled out this year. But that's mainly about, obtaining a foothold for British companies, but being spun out to actually raise funding to set up operations in China to grow and build businesses there. That obviously seems very much, in the interest of our expanding technology companies. So I would say in summary, it's, an area we're very focused on, and we're very linked up across the group. And I I particularly don't think we have any troubles at all in that on the on the Russian investment side.

1:01:25 And it's probably also worth saying we have, an externally chaired ethics committee. We have, professor Gordon Clark, who's a bit of a leader in this space. And, obviously, given the nature of what we do, we're very, very highly aligned around, impact and purpose, but we want to be best in class on the ESG front as well. And we were very pleased to be rated AA by MSCI, and that's sort of been a journey to get MSCI to understand what we do. And the part of that involves that sort of externally chaired ethics committee, and that looks at everything from, you know, what stance do we take on products and services that could be used for defense, could be used in military applications, but it also looks at situations such as this. So it is it's a it's a it's a big area. It is. And, yeah, you got me getting a very good point actually because I spent a lot of time this year on on working with the Americans and getting our epic investment policy aligned between The UK and America. Because you find find it slight cultural differences and differences in attitude.

1:02:21 We've worked very hard now on both sides to make sure we're aligned. So, you know, we take the view that you're only as good as your weakest link. You know? So you have to you you kind of have different ethics and different territories. As much as possible, we try to ensure they are aligned across the group. And, Mark, are you Mark or Sam, are you microphone off to to add into that? Well, I was gonna say something to you, Greg, but we're we're we're on a mission to make the future better, and part of that is not inadvertently making it worse. And so we approach every investment decision with a an ethical lens and and and try to ensure that we're doing good things, and and that that may or may not cover different territories and different different outlooks that those territories have. Yeah. That's a great addition. Thank you, Mark. And, Sam, do you want to just talk through the Avakta Avakta shareholding?

1:03:09 Yeah. So just going back to that time at beginning of two thousand twenty, COVID had just hit, and we were in a very different balance sheet situation from the one we find ourselves in today. And we were particularly keen in life sciences to take cash off the table where we could. And fundamentally, we had at that stage of the company's development, we had lost our conviction in the company's approach to the development of cancer agents in particular. And I could talk in in that on that in more detail on a on a different occasion. And so we we decided to where there was a chance to take money off the table, where there was liquidity and a stop, did. Clearly, the timing was unfortunate. So I like to think of it as a a decision was was made for the right fundamental reasons for both us as a business, our balance sheet needs, and in terms of our view of the fundamentals of the company where we also believe the work the company was doing in COVID would not have major fundamental impact.

1:04:19 And, unfortunately, the timing was, obviously unfortunate, but, you know, time will tell whether our fundamental view of the stock is proven correct or not. That's great. Greg and to the rest of the team from IP, I think you've taken every question from investors that has come through, and I am mindful of your time as well. Greg, I know investor feedback is particularly important to you and to the company, and I'll shortly redirect investors to provide you with their thoughts and expectations. But before doing so, if I may, if I could just ask you for a few closing comments, and then I'll redirect investors for their feedback. Yeah. Thank you, Mark. Well, I I guess to sum up, IP GROUP is is seeking to build a better future through the impact of science and technology based businesses that we identify, create, and build together as as long term partners. And as I said, markets are undoubtedly volatile and difficult times may well lie ahead, but we have the ambition to deliver significant impact and returns, really make a dent in the world's big problems. But ambition and drive is is important, but it's not sufficient. So importantly, I believe we have the team, the experience, the expertise, the the portfolio, and and crucially, the capital to do this.

1:05:35 And and I I would just say that on behalf of our portfolio companies and the current and future beneficiaries of their their their cures, their products, their services, thank you for providing the growth capital to enable them to deliver. It will be well worth it. And and I will finish by saying thank you very much to Investor Meat Company, an excellent first experience. Thank you for hosting us. Thank you all for investing your time today, and I look forward to updating on our progress, over the course of this year and beyond. Thank you. That's great. Mark, Greg, David, Sam, thank you once again for your time this afternoon and updating investors. Can I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order management can better understand your views and expectations? This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of IP GROUP, we'd like to thank you for attending today's presentation.

1:06:27 Good afternoon to you all.