IP Group plc 2025 Annual Results Release

About this update from Ip Group Plc

[{"type":"text","content":"\n \n \n \n \n \n FOR RELEASE ON \n \n \n 17 March 2026 \n \n \n \n \n   \n   \n (\"IP Group\" or \"the Group\" or \"the Company\") IP Group plc 2025 Annual Results Release \n   \n IP Group plc (LSE: IPO), which invests in breakthrough science and technology companies with the potential to create a better future for all, today announces its annual financial results for the year ended 31 December 2025. \n   \n Highlights \n   \n NAV/share up 13% to 110.4p with closing NAV of £975.1m; opportunity for significant potential future royalty income \n -       Following the acquisition of Metsera by Pfizer, the Group has now recognised the discounted value of future royalty and milestone income at £128.2m \n -       Group benefits from financial exposure to Pfizer's obesity drug franchise including Phase 3 PF'3944 alongside several other programmes \n -       Metsera announced positive Phase 2b results for its GLP-1 therapeutic candidate PF'3944; and Pizer announced the initiation of a first P3 study in late 2025 \n   \n Target confirmed to deliver >£250m of exits between 2025 and end 2027; encouraging portfolio developments \n -     Total cash proceeds from exits of £68.1m (FY24: £183.4m) \n -     Hinge Health floated on NYSE. £18.4m total FY25 proceeds. Remaining £16.8m exited in early 2026 \n -       Sale of Monolith to Nasdaq-listed CoreWeave, Inc. \n -       £914m of total capital raised by portfolio companies (+17%, 2024: £784m) \n -       Invested £70.5m across 31 companies, reflecting maintained capital discipline \n -       Portfolio company fund raises included Artios ($115m), Oxa ($103m), OXCCU (£20.75m), Accelercomm ($15m) and   Lumai ($10m) \n -       Strong pipeline of significant milestones through to the end of 2027 including exposure to AI-enabling technologies \n   \n Continued focus on funds under management \n -       Raised £ 29.0m of third-party funds (Parkwalk) - third-party AUM £557m (2024: £678m); reduced by several successful realisations \n -       Parkwalk and Northern Gritstone launched Northern Universities Venture Fund \n -       Group well placed to benefit from the reforms underway as major pension providers respond to the Mansion House Accord \n   \n Maintained financial strength and discipline/focus on shareholder returns \n -       Strong balance sheet and liquidity with gross cash of £211.0m (2024: £285.6m) \n -       Completed £75m buyback programme retiring 9% of share capital in the year \n Post period-end update \n -       Working with Aberdeen to manage a portfolio of early-stage and growth investments in the UK  \n -       Further £30m accumulated for future shareholder returns \n   \n Summary financials \n \n \n \n \n \n \n \n FY 2025 \n   \n \n \n FY 2024 \n   \n \n \n \n \n Net Asset Value (NAV) \n \n \n £975.1m \n \n \n £952.5m \n \n \n \n \n NAV per share (i) \n \n \n 110.4pps \n \n \n 97.7pps \n \n \n \n \n % change in NAV per share \n \n \n 13% \n \n \n (15%) \n \n \n \n \n Profit/(loss) for the year \n \n \n £66.9m \n \n \n (£207.0m) \n \n \n \n \n Total portfolio (i) \n \n \n £908.1m \n \n \n £852.1m \n \n \n \n \n Gross cash and deposits (i) \n \n \n £211.0m \n \n \n £285.6m \n \n \n \n \n Cash proceeds (i) \n \n \n £68.1m \n \n \n £183.4m \n \n \n \n \n Portfolio investment (i) \n \n \n £70.5m \n \n \n £63.0m \n \n \n \n \n (i)       Note 29 details the Alternative Performance Measures (\"APM\") \n   \n Greg Smith, Chief Executive of IP Group, said: \"2025 was a notable year for IP Group. Pfizer's acquisition of Metsera highlighted the strength and value of licensing activities in the obesity drug space where we hold valuable rights to several promising programmes. This drove a return to NAV growth. A further highlight was the successful IPO of Hinge Health on the NYSE, an investment from which we have now fully exited following the sale of our remaining holding in early 2026. We also delivered strong cash realisations, allowing us to retire almost a tenth of our shares in issue through buybacks, while maintaining a robust liquidity position. We are also pleased to be working with Aberdeen to manage a portfolio of early‑stage and growth investments in the UK, further extending our ability to support the next generation of innovation‑led businesses. As one of the world's most experienced university IP investors, our unique model - combining deep partnerships with leading research institutions and access to long-term committed capital - positions us to support breakthrough science from inception to scale. We remain focused on creating long-term value for our shareholders while driving innovation that addresses some of society's most pressing challenges.\" \n Webinar \n IP Group will host a webinar for analysts and investors today, 17 March, at 09:00am. For more details or to register as a participant please visit https://www.investormeetcompany.com/ip-group-plc/register-investor . \n For more information, please contact:        \n \n \n \n \n IP Group plc \n \n \n www.ipgroupplc.com \n \n \n \n \n Greg Smith, Chief Executive Officer \n David Baynes, Chief Financial and Operating Officer \n Liz Vaughan-Adams, Communications \n \n \n +44 (0) 20 7444 0050 \n   \n +44 (0) 20 7444 0062/+44 (0) 7967 312125 \n \n \n \n \n Portland \n \n \n \n \n Tristan Peniston-Bird \n Pauline Guénot \n \n \n +44 (0) 7772 031886 \n +44 73 7906 8832 \n \n \n \n \n Further information on IP Group is available on our website: www.ipgroupplc.com  \n Notes \n (i)   Nature of announcement \n This Annual Results Release was approved by the Directors on 16 March 2026. \n The financial information set out in this Annual Results Release does not constitute the Company's statutory accounts for 2025 or 2024. Statutory accounts for the years ended 31 December 2025 and 31 December 2024 have been reported on by the Independent Auditor. The Independent Auditor's Reports on the Annual Report and Financial Statements for 2025 and 2024 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. Statutory accounts for the year ended 31 December 2024 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2025 will be delivered to the Registrar following the Company's Annual General Meeting. \n The 2025 Annual Report and Accounts will be published in April 2026 and a copy will be posted on the Group's website ( www.ipgroupplc.com ). In accordance with Listing Rule 9.6.1 a copy of the Annual Report and Accounts will also be submitted to the National Storage Mechanism on or around this date and will be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism from that time. \n Throughout this Annual Results Release the Group's holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated. \n (ii)  Forward-looking statements \n This Annual Report and Accounts may contain forward-looking statements. These statements reflect the Board's current view, are subject to a number of material risks and uncertainties and could change in the future. Factors that could cause or contribute to such changes include, but are not limited to, the general economic climate and market conditions, as well as specific factors relating to the financial or commercial prospects or performance of individual companies within the Group's portfolio. \n STRATEGIC REPORT \n   \n CHAIRMAN'S SUMMARY \n   \n In 2025, the Group concentrated on continuing to support our leading portfolio companies together with building a pipeline of early-stage investment opportunities founded on scientific and engineering innovation. There were a number of notable events during the year which illustrated the patient capital approach which defines the Group's investment philosophy. \n In May, Hinge Health, a leading digital musculoskeletal clinic, whose roots trace back to a founding investment by IP Group in 2012, successfully launched its IPO on the New York Stock Exchange pricing at the top of the indicated range and subsequently trading up by 34%. Taking amounts realised to date and balance of £16.8m sold in early 2026, together amounting to £46.3m, the Group has generated 53x its aggregate investment. \n It is impossible today not to be aware of the emerging power and transforming impact that artificial intelligence, AI, will bring to all aspects of business and lived experience. IP Group has for some time been selectively investing in technology companies that enable or amplify AI. Monolith AI Limited, a spin-out from Imperial College London, and a pioneer in applying artificial intelligence and machine learning to solve complex physics and engineering challenges, was acquired by Nasdaq-listed hyperscaler, CoreWeave Inc, in October 2025. This was our largest disposal in the second half of last year with consideration falling predominantly into 2026. \n Shareholders will also be aware that the last few years have seen an explosion of interest in and application of weight-loss, GLP-1 drugs. Scientists at Imperial College London, with whom IP Group has for a long time been a commercialisation partner, were significant contributors to the advancement of GLP-1 in the treatment of obesity. Much of the intellectual property sat within portfolio company Zihipp Limited which was spun out of Imperial College London in 2019 and was subsequently sold to Metsera Inc ('Metsera') in 2023. Imperial College London and IP Group retained a continuing interest in certain compounds being developed by Metsera, through technical and commercial milestone payments as well as future licensing royalties on net sales. Metsera was itself acquired by Pfizer in November in a fiercely competed multi-billion-dollar deal which was fought and won to gain access to Metsera's portfolio of weight-loss drug compounds. IP Group's share of these future revenue streams was valued at £128.2m as at 31 December 2025 and was the major contributor to the Group reporting a profit in 2025. More information about the compound and the assumptions underlying the value attributed are set out in the Executive Directors and Managing Partner's reviews. \n These examples illustrate the long gestation periods often associated with investment in early-stage scientific discoveries as they mature to a successful scale up or exit or fall by the wayside. \n There were of course setbacks and disappointments during last year, in some cases combining both encouraging and more problematic experience. Oxa completed a major funding round with key investors, but at a significant discount to prior valuation. First Light Fusion demonstrated the efficiency of its amplifier technology, setting a record for the highest pressure observed at the top US nuclear research and engineering laboratory, while having to extend its search for the funding that will enable it to develop this new strategy. Istesso published groundbreaking data from its completed phase 2b trial regarding restoring the body's inherent capacity to repair and regenerate damaged tissue. Despite missing its primary trial endpoints in the Ph2b trial, the data has led to a fresh trial to evaluate the potential of its lead asset, leramistat, to repair the musculoskeletal system. Pulmocide, meanwhile, encountered a more fundamental setback with the failure of its Phase 3 trial, a disappointing outcome following earlier promise, and underlines the inherent risk in advancing novel therapies through late‑stage trials. \n Detail on progress within the portfolio is set out in some detail in the Managing Partner's Portfolio Review and illustrates the range of breakthrough technologies in which the Group is invested. This review also notes the challenging funding environment that existed throughout 2025 which contributed both to delays in agreeing terms and also a higher impact of valuation discounts to previous rounds. \n Such experience is inherent in the marketplace in which we operate. We are consciously, through investing in proven but early-stage technology yet to demonstrate scalability, accepting the risks that our investments take longer than expected to achieve commercial viability or ultimately will fail to make that breakthrough. We believe this type of investment is critical to address the known societal and economic challenges that require technological and innovative advances to be delivered and which over time will deliver appropriate financial returns to our shareholders. \n It is encouraging that both the Government and City institutions are coalescing around delivering reforms that will support greater allocation of risk capital into early-stage companies focused on innovation. Within these initiatives, the Mansion House Accord and the consolidation of Local Government Pension Schemes, together with accelerated execution of the mandates of the National Wealth Fund and British Business Bank all have the potential to make important contributions. We are hopeful that we will see further traction during 2026. \n Our 2025 profit of £ 66.9m, together with the reduction in share count from completion of the £75m share back programme announced in November 2025 generated a recovery in net asset value ('NAV') per share of 13 per cent to stand at 110.4p at the end of the year. Frustratingly, notwithstanding this advance, the share price discount to NAV remained elevated at 47 per cent and the closing share price at the end of last year, 58.6p, was broadly in line with where it started, albeit it recovered markedly from its low point of 34.5p during the year. The Board remains focused on considering actions within our control that could bring the share price into greater alignment with our reported NAV. Within this, we believe consistency of our capital allocation framework, including share buybacks, together with maintaining financial resilience are critically important. \n We closed 2025 with our balance sheet strong and liquidity intact. Cash proceeds in the year from disposals broadly matched investments made into portfolio companies. Gross cash and deposits exceeded £200m meeting our target for the year which took into account planned share buybacks of £45.7m in the year. \n Outlook \n As noted above, long gestation periods are inherent in our investment model and are particularly evident in life sciences - the Pfizer Obesity Royalty Interest being a prime example - which is why the maturity of the portfolio and the shape of the emerging pipeline are important. What is also becoming more evident is that the intersection of thematic investment strategies is creating fresh opportunities that play to the strengths of IP Group. \n As Dr Mark Reilly, our Managing Partner, notes in his report, the convergence of technologies such as AI with robotics, bioengineering with digital health, and clean energy with advanced materials is enabling solutions to challenges once thought intractable. \n We entered 2026 with many of our most exciting portfolio companies having raised fresh capital in 2025 to advance their efforts to scale up in areas such as sustainable aviation fuel, quantum computing, next generation 5G satellite networks and green hydrogen, to name but a few. Within our HealthTech portfolio , many of our leading portfolio companies have milestone and clinical trial readouts over the next 18 months. \n Over the next two years we are targeting significant cash realisations reflecting the maturity of the portfolio and the encouraging interest, in particular from pharma companies, regarding some of our life sciences companies due to release fresh data from current trials. While nothing is certain, the Board remains confident that there is significant unrecognised value within the portfolio. \n This will be my final report to you as Chairman as I step down at the conclusion of the AGM in June after close to eight years in that role. It has been a huge privilege to serve in that capacity, and I shall remain keenly interested in the Group's progress both as a friend and as a committed shareholder. \n Sir Douglas Flint \n Chairman \n 16 March 2026 \n CHIEF EXECUTIVE'S OPERATIONAL REVIEW \n   \n Overview \n   \n 2025 was an exciting year for the Group with Pfizer's acquisition of Metsera, Inc. highlighting the value of our licensing activities. IP Group owns and exclusively licenses certain underlying IP relating to Pfizer's obesity drug programmes including its lead product PF'3944 as well as PF'3945, PF'4696 and PF'6795 which have the potential to deliver significant potential future royalty income. \n   \n The Group has recognised the fair value of these licences on its balance sheet, contributing to an increase in NAV per share of 12.7p, or 13%, to 110.4p at the end of 2025 (2024: 97.7p) with closing NAV of £975.1m (2024: £952.5m). This increase more than offset the impact on our NAV per share of a small number of downward adjustments in the portfolio. \n   \n In addition to this development, IP Group made solid progress in generating profitable cash realisations , recording total cash proceeds of £68.1m . IP Group finished the year with a strong liquidity position, with gross cash and deposits of £211.0m (2024: £285.6m) at year end . As outlined in last year's Annual Report, the Group dedicated 50% of its 2025 exit proceeds to buybacks, enabling us to increase the programme while reinvesting for future growth. We remain committed to this Capital Allocation Policy as previously outlined and a further £30m of cash from realisations has been accumulated that can be used for future shareholder returns. \n   \n IP Group is the UK's leading science and technology investor, having formed more than 600 science-based businesses. By starting and growing businesses driving improved health outcomes, contributing to the energy transition and enhancing the digital transformation, the Group aims to have a significant impact on some of society's biggest needs and to deliver compelling financial returns for our shareholders. \n   \n A key differentiator for the Group is our deep partnerships with leading research institutions, predominantly through Parkwalk in the UK, providing access to a pipeline of pioneering scientific research and high-potential intellectual property from leading academic institutions including the universities of Oxford, Cambridge, Bristol, and Imperial College London as well as the universities of Leeds, Liverpool, Manchester and Sheffield. The EIS funds that are managed by Parkwalk provide a complementary source of funding for the earliest stage opportunities and create a pipeline of future investment opportunities for the Group's balance sheet. This, coupled with IP Group's access to private scale-up capital, notably that managed for Hostplus, provides a flexible approach to funding across all stages of company maturity, ensuring we can support our portfolio companies from inception through growth and scaling. We are also pleased to be working with Aberdeen to manage a portfolio of early-stage and growth investments in the UK as part of a private asset solution designed to improve long term returns for clients. \n   \n Delivery against strategic priorities \n   \n As noted in the Chairman's Summary, the Group made progress on delivering against many of the priorities that were planned for 2025. The most important of which was returning to NAV per share growth. This was achieved while delivering solid cash exits to support fresh investment, focusing on the return of capital while the share price remained below NAV per share, and making further progress on accessing capital for the portfolio and our private managed funds. \n As it was our priority for 2025, it is pleasing to report a positive return on NAV of 7% or £70m (2024: negative return of 17%, £208m). This was driven by the recognition of the discounted present value of the obesity drug programmes which are licensed to Pfizer. Pfizer's obesity franchise has a portfolio of promising therapeutic candidates and combinations with four programmes in clinical development and several next-generation programmes with IND-enabling studies ongoing, aimed at addressing key unmet needs via fewer injections while achieving improved efficacy and tolerability. \n As noted in IP Group's 2025 half-yearly results, the Group benefits from continuing finan cial interest in a number of Pfizer obesity drug programmes following Pfizer's acquisition of Metsera for up to $10bn in November 2025. Metsera, which acquired former IP Group portfolio company Zihipp in 2023, announced positive Phase 2b results for the most advanced of its programmes, its GLP-1 therapeutic candidate MET-097i (now designated PF'3944) in September 2025. At the JP Morgan Healthcare Conference in January 2026, Pfizer subsequently announced the initiation a global Phase 3 programme for this candidate in late 2025, that it expected to initiate ten Phase 3 studies for PF'3944 before the end of 2026 and estimated the anti-obesity drug market size at $150bn by 2030. \n PF'3944 could potentially be best-in-class in a new generation of injectable GLP-1 drugs, requiring injections only once per month instead of weekly, with the potential to deliver competitive efficacy with category-leading scalability, tolerability, and convenience. The importance of this exposure was underscored by Pfizer's announcement in September of an agreement to acquire Metsera and its obesity portfolio in a transaction valued at up to $10bn, including $7bn in upfront cash. \n Recognition of the discounted value of the Metsera licences, along with gains in our public portfolio and the positive impact of the Group's share buyback programme, more than offset the impact on our NAV of a small number of downward adjustments. As detailed in our half-yearly report, these included write-downs for Oxa (£30.5m) and Artios (£9.4m) along with the negative impact of FX translation on our portfolio which was (£7.4m) in the full year. We also saw valuation reductions in the second half of the year in Pulmocide (£24.1m) and First Light Fusion (£14.6m) as described in the Portfolio Review section. Our quoted portfolio recorded a small gain of £4.1m, following a protracted period of weakness in public markets from 2022. \n The performance of the Group's business units is summarised below with further detail in the Portfolio Review. \n \n \n \n \n All £m unless stated \n \n \n Invested \n \n \n Cash proceeds \n \n \n Net portfolio gain/(loss) \n \n \n Fair value \n at 31 December 2025 \n \n \n Simple return on  capital (%) \n \n \n \n \n HealthTech \n \n \n 26.1 \n \n \n 49.1 \n \n \n 116.0 \n \n \n 542.8 \n \n \n 25% \n \n \n \n \n DeepTech \n \n \n 29.3 \n \n \n 10.5 \n \n \n (16.0) \n \n \n 144.3 \n \n \n (16%) \n \n \n \n \n CleanTech \n \n \n 12.4 \n \n \n 2.9 \n \n \n (24.4) \n \n \n 158.8 \n \n \n (11%) \n \n \n \n \n Platform investments \n \n \n 2.7 \n \n \n 5.6 \n \n \n (11.6) \n \n \n 62.2 \n \n \n (15%) \n \n \n \n \n Total portfolio \n \n \n 70.5 \n \n \n 68.1 \n \n \n 64.0 \n \n \n 908.1 \n \n \n 8% \n \n \n \n \n   \n 58% of our portfolio carrying value is concentrated in 10 holdings, and 82% in 40 companies, across the Group's three main thematic areas. The Group invested in 31 opportunities in 2025 including 11 in HealthTech, 11 in DeepTech and 7 in CleanTech. 93% of our capital was invested into the existing portfolio, with 7% being invested into new opportunities. \n   \n Our portfolio continues to be well-funded with over 78 % by value of portfolio companies held at >£4m currently funded into 2027 or beyond. In 2025 (see analysis in Portfolio Review section), our portfolio companies successfully raised a total of £914m of which IP Group contributed £70m (2024: £784m, £63m). Notable transactions included the IPO of Hinge Health on the New York Stock Exchange in May, which saw the company raise £204m and which was priced at the top end of the pricing range. In addition, there were a number of fundraisings across the portfolio including for Oxa, Accelercomm, Lumai, Tado, Vytal and Mixergy; an analysis of the funding round pricing is included within the Financial Review section. \n   \n Cash exits \n   \n Following a very strong year of cash realisations in 2024, which included our largest ever cash exit through the sale of Featurespace to Visa, the Group continued this momentum in 2025, generating £68.1m of cash proceeds. More than two-thirds of that amount came from the sale of stakes in five life sciences holdings - Hinge Health, Intelligent Ultrasound, Centessa, Abliva and OrganOx (via our holding in the Technikos fund). We also received initial proceeds of £3.4m from the sale of portfolio company Monolith to Nasdaq-listed CoreWeave, Inc., with a balance of c.£20m to be received in 2026. \n   \n We were particularly encouraged by the IPO of Hinge Health, further evidencing improving sentiment in public markets. Hinge Health floated on the New York Stock Exchange in May at a price of $32 a share and traded up to a 63% premium to close the period at $46 per share. Having sold £18.4m of our position in 2025, the Group sold the balance of our holding for £16.8m in 2026. \n   \n Continued focus on private capital under management \n IP Group continued to focus on growing its private capital under management and attracted £29.0m of new third-party managed funds in 2025. The Group now manages or advises £557m (2024: £678m). Approximately two-thirds of that figure, or £379m (2024: £481m), is managed by Parkwalk, the Group's specialist EIS fund management subsidiary. This reduction is largely as a result of our distributing over £50m of exit proceeds to underlying investors in 2025. This includes funds managed in conjunction with the universities of Oxford, Cambridge, Bristol and Imperial College London. In 2025, we also launched a new EIS fund in collaboration with Northern Gritstone, covering the universities of Leeds, Liverpool, Manchester and Sheffield. \n Parkwalk invested £20.6m in 2025 (2024: £47.2m) in the university spin-out sector across 27 companies (2024: 38 companies). A report from market data provider Beauhurst evidenced that IP Group and Parkwalk are by far the UK's leading investor in the sector. Fifteen new companies joined the Parkwalk portfolio, six positive exits were achieved, and two escrow releases from previous exits allowed for over £40m of distribution to underlying investors. Eleven portfolio companies closed funding rounds at uplifts in valuation, three unchanged, six at lower valuations and eight companies were revalued lower than their previously held valuations. These companies raised c.£96m in funding this year. \n Through Parkwalk, we liaised closely with the UK Government, including HMRC, on ways to improve the financial ecosystem for knowledge-intensive spin-out companies and across political parties to ensure science and innovation remains at the heart of the UK Government's growth mission. We were pleased to see the amount that can be invested into EIS qualifying companies was doubled in the November 2025 Budget. \n Most of our remaining funds are managed for Hostplus, a top ten Australian superannuation fund, by the Group's Australian team. The total committed to the IP Group Hostplus Innovation Fund is A$435m, following the allocation of a further A$125m during 2024. This fund has invested in several of the Group's portfolio companies including Oxford Nanopore, Genomics, First Light Fusion, Oxa and Hysata, providing additive growth capital for companies as they scale. \n Since the period end, IP Group is pleased to be working with Aberdeen to manage a portfolio of early-stage and growth investments in the UK as part of a private asset solution designed to improve long‑term returns for clients. This partnership marks a significant step in widening institutional access to the next generation of maturing, high‑growth, innovation‑led businesses while contributing to the UK's broader ambition to drive innovation‑focused economic growth. Following a rigorous selection process, IP Group will manage a UK‑focused venture allocation. \n The Group continues to focus on increasing funds under management and believes there is scope to further increase private capital under management this year. \n   \n Buybacks accelerated in 2025 \n   \n Delivering returns for shareholders, including focusing on narrowing the share price discount to our NAV per share, remains a key focus. \n   \n Under the Group's Capital Allocation Policy, a proportion of cash proceeds is reinvested and a proportion is used to deliver a cash return to the benefit of shareholders. The Directors regularly consider the mechanism to be used for such cash returns and, as previously announced, this will typically be in the form of share buybacks while the share price discount to NAV exceeds 20%. \n   \n We remain committed to this Capital Allocation Policy. Since the completion of our 2025 buyback programme, a further £30m of cash from realisations has been accumulated that can be used for future shareholder returns under our policy. The Board expects to update on timing of the commencement of the 2026 buyback programme in due course. \n   \n Since the introduction of this approach in 2021, the Group has delivered more than £150m of cash returns to the benefit of our shareholders via dividends and more significantly through share buybacks, retiring 9.4% of the share capital in 2025 and 17.7% to date. During 2025, the Group purchased 91,858,626 shares for £45.7m . \n   \n Outlook \n   \n Building on the strong progress made in 2025, IP Group enters 2026 with confidence and a clear focus on delivering sustainable growth and enhancing shareholder value. The recognition of value in our licensing activities, particularly through Pfizer's acquisition of Metsera, has highlighted the potential for meaningful future royalty income. We continue to believe the environment for high-growth science and technology businesses remains supportive and that IP Group continues to be well positioned. \n   \n Our deep partnerships with leading research institutions, coupled with access to committed capital, provide a differentiated platform for sourcing and scaling breakthrough innovation and we continue to see significant opportunities to increase funds under management .   Having delivered £68.1m of cash proceeds in 2025, we remain confident of our target to deliver over £250m of exits between 2025 and the end of 2027 and are focused on creating long-term value for all stakeholders while addressing some of society's most pressing challenges. \n   \n Greg Smith \nChief Executive Officer 16 March 2026 \n   \n MANAGING PARTNER'S PORTFOLIO REVIEW \n   \n Overview \n   \n IP Group invests in breakthrough technologies that address the world's most pressing societal and economic challenges. Our portfolio spans HealthTech, DeepTech and CleanTech, with a focus on companies that are shaping a healthier, tech-enriched and regenerative future. In addition, a small number of investments are categorised as platform investments, which are funds or portfolio companies that invest in other opportunities. \n   \n \n \n \n \n \n \n \n As at 31 December 2025 \n \n \n As at 31 December 2024 \n \n \n \n \n Sector \n \n \n £m \n \n \n % \n \n \n £m \n \n \n % \n \n \n \n \n HealthTech \n \n \n 542.8 \n \n \n 60% \n \n \n 460.9 \n \n \n 54% \n \n \n \n \n DeepTech \n \n \n 144.3 \n \n \n 16% \n \n \n 98.9 \n \n \n 12% \n \n \n \n \n CleanTech \n \n \n 158.8 \n \n \n 17% \n \n \n 215.3 \n \n \n 25% \n \n \n \n \n Platform investments \n \n \n 62.2 \n \n \n 7% \n \n \n 77.0 \n \n \n 9% \n \n \n \n \n Total portfolio \n \n \n 908.1 \n \n \n 100% \n \n \n 852.1 \n \n \n 100% \n \n \n \n \n   \n 2025 saw the acceleration of several global megatrends, reshaping the opportunity for early-stage technology investors. The digital transformation of industry and society is gathering pace, with artificial intelligence, advanced computing and cybersecurity now recognised as foundational to future prosperity. Climate technologies are scaling rapidly, driven by the urgent need for decarbonisation and energy security. In healthcare, breakthroughs in personalised medicine, gene therapies, and AI-enabled drug discovery are opening new frontiers for human health. These trends are not only expanding the addressable markets for innovation but are also creating unprecedented opportunities for value creation. The convergence of technologies such as AI with robotics, bioengineering with digital health, and clean energy with advanced materials is enabling solutions to challenges once thought intractable. In 2025, the World Economic Forum and leading analysts have highlighted that frontier technologies are moving from promise to deployment, with early-stage companies at the heart of this transformation. \n   \n Performance of key holdings \n   \n The following table outlines the performance of the top ten constituents of our portfolio: \n   \n \n \n \n \n Company Name \n \n \n   \n \n \n Group stake at 31 December 2025 \n \n \n Net investment/ (divestment) \n \n \n Net unrealised + realised fair value movement \n \n \n Fair value at 31 December 2025 \n \n \n \n \n   \n \n \n   \n \n \n % \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Pfizer Obesity Royalty Interest \n \n \n HealthTech \n \n \n n/a \n \n \n - \n \n \n 126.4 \n \n \n 128.2 \n \n \n \n \n Oxford Nanopore Technologies plc \n \n \n HealthTech \n \n \n 8.4% \n \n \n (4.0) \n \n \n (0.6) \n \n \n 102.0 \n \n \n \n \n Istesso Limited \n \n \n HealthTech \n \n \n 56.5% \n \n \n - \n \n \n 1.1 \n \n \n 93.0 \n \n \n \n \n Hysata Pty Ltd \n \n \n CleanTech \n \n \n 37.0% \n \n \n - \n \n \n - \n \n \n 76.2 \n \n \n \n \n Mission Therapeutics Limited \n \n \n HealthTech \n \n \n 22.3% \n \n \n 3.7 \n \n \n - \n \n \n 26.2 \n \n \n \n \n North America University Innovation L.P. \n \n \n Platform investments \n \n \n 68.1% \n \n \n 2.0 \n \n \n (15.0) \n \n \n 22.3 \n \n \n \n \n Nexeon Limited \n \n \n CleanTech \n \n \n 3.9% \n \n \n (2.9) \n \n \n 3.6 \n \n \n 19.8 \n \n \n \n \n Oxa Autonomy Limited \n \n \n DeepTech \n \n \n 10.6% \n \n \n 7.5 \n \n \n (30.5) \n \n \n 19.4 \n \n \n \n \n CoreWeave, Inc. \n \n \n DeepTech \n \n \n 0.0% \n \n \n (0.5) \n \n \n 17.4 \n \n \n 18.5 \n \n \n \n \n UCL Technology Fund L.P. \n \n \n Platform investments \n \n \n 46.4% \n \n \n 0.2 \n \n \n 0.3 \n \n \n 18.4 \n \n \n \n \n Other investments \n \n \n   \n \n \n \n \n \n (3.6) \n \n \n (31.3) \n \n \n 384.1 \n \n \n \n \n FX \n \n \n   \n \n \n \n \n \n - \n \n \n (7.4) \n \n \n - \n \n \n \n \n Total Portfolio \n \n \n   \n \n \n   \n \n \n 2.4 \n \n \n 64.0 \n \n \n 908.1 \n \n \n \n \n   \n As described in the CEO's Operational Review, IP Group's biggest portfolio value movement in 2025 was delivered by our financial exposure to next-generation obesity drug candidates being developed by Metsera, Inc., valued at £128.2m within our year end net asset value. Metsera's pipeline includes four clinical-stage programmes and several next-generation assets, all targeting improved efficacy and tolerability with fewer injections, addressing a major unmet need in obesity treatment. IP Group is entitled to receive future returns from these compounds through a combination milestone payments and tiered, low single digit percentage royalties on net sales of the licensed products. It is important to note that the above numbers are stated after allowing for the fact that 50% of all monies received by the Group from Metsera will be payable to Imperial College London under revenue share arrangements. While the eventual approval and commercial launch of new drugs based on these compounds is not guaranteed, the positive Phase 2b results for PF'3944 and initiation of a global Phase 3 programme in late 2025 are highly encouraging.   \n   \n Oxford Nanopore delivered a strong performance in 2025, with revenue of £223.9m, up 24.2% on a constant currency basis, slightly ahead of the top end of 2025 guidance. Gross margin increased by 110 basis points to 58.6% compared with 57.5% the previous year. While Oxford Nanopore reported an adjusted EBITDA loss of £(86.7)m (2024: £(117.9)m), it remains well capitalised with £302.8m in cash, cash equivalents and other liquid investments. For 2026, Oxford Nanopore noted that demand for its sensing platform remains strong and that it expects to continue to outperform versus underlying end market growth in all regions with revenue growth of 21-25% on a constant currency basis and gross margin of approximately 62%. The company also reaffirmed its commitment to reach adjusted EBITDA breakeven in 2027 and become cash flow positive in 2028. \n   \n 2025 also marked the transition to a new Chief Executive at Oxford Nanopore as Chief Executive Gordon Sanghera announced he would step down after more than 20 years in the role. IP Group worked closely with Gordon through the founding, early growth and subsequent flotation of the company and we want to take this opportunity to pay tribute to him for his dedication and visionary leadership. We look forward to the outstanding platform that Gordon has created being built on by his successor, Francis Van Parys, who brings more than 20 years of experience leading multi-billion-dollar life science businesses, with a strong track record of scaling innovation-driven organisations through commercial and operational excellence. \n   \n Another of our portfolio success stories, Hinge Health, hit a major milestone in May when it listed on the New York Stock Exchange. IP Group was the first institutional investor in the company that eventually became Hinge Health when its founder Daniel Perez was still a PhD student at the University of Oxford. We realised £10.9m from our Hinge holding when it was still a private company and realised a further £1.8m through a partial sale on the day of the IPO. Our remaining stock was then subject to a \"lock-in\" agreement for a period of time, subsequent to that restriction being lifted we sold a further package of shares, taking the total sold in the year to £18.4m. Our remaining holding of 521,120 shares was sold in early 2026 for total proceeds of £16.8m. \n   \n In the largest disposal in the second half of the year, our portfolio company Monolith, an Imperial College London spin-out that provides artificial intelligence software to engineering teams, was sold to Nasdaq-listed CoreWeave, Inc. in October. IP Group yielded an initial £3.4m in cash and £18.5m of CoreWeave convertible promissory notes from the transaction, and a further estimated £1.9m of deferred proceeds due in 2026. The sale of Monolith marks another positive exit from our stable of companies commercialising digital technologies, following the sales of Featurespace and Garrison in 2024. \n   \n In November, following positive clinical trial readouts, portfolio company Artios Pharma Limited successfully completed an oversubscribed $115m Series D financing round. Artios, a leader in next-generation DNA damage response (\"DDR\") therapies for cancer, will use the proceeds to expand clinical evaluation of its lead ATR inhibitor, alnodesertib, including enrolling additional ATM-negative patients in second-line pancreatic and third-line colorectal cancer, areas of high unmet need. The funding will also support the initiation of a Phase 2 trial for ART6043, a potential first-in-class Polθ inhibitor, in BRCA-mutant HER2-negative breast cancer. The round was co-led by SV Health Investors and new investor RA Capital Management, with participation from Janus Henderson Investors and strong support from existing backers. While the pricing of the round resulted in a £9.4m non‑cash fair value write‑down for IP Group, this reflected the challenging biotech funding environment rather than changes in operational progress. IP Group invested £5.5m in the round and now holds a 6.8% undiluted beneficial interest in Artios. \n   \n Our autonomous vehicle software company, Oxa, closed a significant investment round at the end of the year to support its continued commercial expansion, attracting significant new investors, including the National Wealth Fund and NVentures (NVIDIA's venture capital arm) to its shareholder base. While market conditions led to a notably lower valuation than the previous round, which was reflected in the significant valuation write-down recognised by IP Group in 2025, Oxa's progress in autonomous vehicle technology and commercial partnerships remains encouraging and we continue to believe in its potential to become a genre-defining company. \n   \n Istesso, the adaptive tissue-repair company, reported that it has conducted further analysis of the data from its recent Phase 2b clinical trial in rheumatoid arthritis (\"RA\"). This has revealed that alongside the compelling evidence of leramistat's ability to protect bone and improve disability and fatigue responses in patients with RA, there were also signs that leramistat had a muscle-protective effect. These protective effects on both bone and muscle position leramistat for potential use as a musculoskeletal protective agent with application across a range of degenerative age-related conditions, including sarcopenia (muscle loss), osteoporosis and osteosarcopenia. In addition, in RA, leramistat offers the potential to create novel combinations with existing drugs to halt or reverse disability progression and deepen disease control. \n   \n Hysata continues to make strong progress in scaling up its high-efficiency hydrogen electrolyser technology. In February 2025, the company signed a landmark agreement with ACWA Power to deliver commercial-scale demonstrations in Saudi Arabia, using its capillary-fed electrolysis technology. This demonstration is expected to unlock significant opportunities in green hydrogen across the Gulf region. Hysata's technology remains a leader in efficiency, and the company is on track to deliver its first commercial units in 2027. \n   \n First Light Fusion has continued to make progress on its journey to transition into an IP-rich technology provider to the wider fusion sector, and in March 2025 set a record for the highest pressure observed on Sandia National Laboratories' Z Machine, achieving 3.67 TPa. This validated First Light's expertise while also opening up new research commercial opportunities in the fusion, defence and space sectors. To support the company through this transitional phase, the Group extended a convertible loan to First Light to extend its cash runway whilst the company continues to seek further third-party capital. First Light Fusion has since received interest from sector-relevant investors and we are hopeful that new funding will be secured in 2026 to enable it to further advance its new strategy.   \n   \n In early 2026, Pulmocide announced that having reviewed the results of an interim analysis it had taken the decision to terminate its Opera-T Phase 3 Study with opelconazole in refractory Invasive Pulmonary Aspergillosis (\"IPA\"). The company will be conducting a thorough review of the unblinded data from this trial to determine potential next steps for the programme. As a result, the Group reduced the carrying value of its holding in Pulmocide by £24.1m to £0.6m. \n   \n Other notable portfolio developments \n   \n OXCCU, a leader in converting carbon dioxide and hydrogen into jet fuel, was again named on Cleantech Group's 2026 Global Cleantech 100. The company successfully raised $28m in Series B funding in September with blue-chip investors including IAGi Ventures (the dedicated corporate venturing arm of the International Airlines Group), Safran Corporate Ventures, and Orlen VC alongside reinvestment from world-class Series A participants. This new funding will enable OXCCU to accelerate its commercialisation efforts, expand its operations and advance its next phase of technology scale-up, building on the launch of the company's OX1 demonstration plant at London Oxford Airport in 2024. \n   \n Quantum Motion Technologies delivered the industry's first full-stack quantum computer to be built using a standard silicon CMOS chip fabrication process - the same transistor technology used in conventional computers and a major milestone for the company. \n   \n In October, Mantle8, the DeepTech company pioneering natural hydrogen exploration, revealed its proprietary multiphysics technology had produced the world's first 3D images of an active underground natural hydrogen system. Natural hydrogen, produced continuously through natural geological processes, represents a potentially vast, low-carbon energy resource. Multiple academic studies including the US Geological Survey estimate global reserves at 5.6 trillion tonnes, sufficient to meet world energy demands for generations. However, without reliable exploration technology, this resource has remained largely theoretical. \n   \n In June 2025, portfolio company AccelerComm secured $15m of funding to support delivery of its high-performance 5G technology for low earth orbit satellite networks. This technology enables Direct-to-Device (\"D2D\") communications between phone handsets and space-based satellite networks without specialist hardware, a sector which is predicted to grow to $20bn by the end of the decade. \n   \n Lumai, a spin-out from the University of Oxford, is an AI accelerator startup using optics to address global computational challenges, which secured more than $10m in new investment in 2025 to develop its revolutionary optical computing technology for use in AI data centres. Lumai's technology enables dramatic cost reduction alongside exponentially increased performance, while simultaneously minimising energy consumption, and is potentially a gamechanger for the AI industry. \n   \n Slamcore, a leader in spatial intelligence software, announced the launch of Slamcore Alert, a dedicated pedestrian detection and driver alert solution. This new system immediately transforms existing industrial machines, such as forklifts and manual material handling equipment, into safety-aware assets. While the warehouse and logistics industry is increasingly focused on expensive, full-scale autonomous robots, Slamcore is addressing the market's immediate need for practical solutions that maximise current resources and help protect workers. \n   \n Microbiotica, which has a proprietary microbiome profiling platform that allows it to identify whether specific bacterial strains have clinical benefits, announced in February 2026 that its Phase 1b ulcerative colitis study of MB310 had met its primary and secondary objectives. After a 3-month treatment period, clinical remission was observed in 63% of MB310 patients (versus 30% in the placebo), and, notably, 100% of the patients who responded to MB310 were still in clinical remission at a 3-month post dosing follow up. The drug was also well tolerated, with a safety profile similar to patients on placebo. These encouraging results highlight the potential of MB310 to transform the management of ulcerative colitis by delivering disease modifying, long lasting remission. \n   \n Audioscenic, a leader in 3D immersive sound projection from conventional speakers, continued to expand its product line with the launch of several AI-enhanced monitor products including those for gaming enthusiasts. \n   \n Our portfolio company Bramble Energy, which focused on scalable clean energy technology, entered administration in 2025 after failing to raise fresh capital. IP Group backed this Imperial College London spin-out from its early days and provided a loan to the company during the period to give it the best chance of securing the new funding needed to reach technical and commercial milestones. Unfortunately that funding could not be secured and the company made the difficult decision to cease trading, leading to a write-down of £12.3m for the Group in relation to that asset. \n   \n Upcoming milestones \n   \n Many of the Group's \"up and coming\" portfolio companies have key developmental milestones approaching that could have a material impact on their value in the next six to eighteen months. Clinical trial results are expected from Enterprise Therapeutics and Iksuda Therapeutics. Enterprise is expected to report data from its Phase 2a trial of ETD001 for cystic fibrosis in the first half and Iksuda, which is developing next-generation Antibody Drug Conjugates (\"ADCs\") for difficult-to-treat cancers, is expected to complete several Phase 1 studies by H2 2026. We also anticipate that during 2026, Centessa will start a registrational study for its lead narcolepsy drug (ORX750) and Pfizer will report data from two further clinical studies from the Metsera pipeline (Phase 2b of monthly PF'3944 and Phase 1/2 of PF'3944 in combination with PF'3945) .  \n   \n In DeepTech and CleanTech, a number of our companies are targeting funding rounds and commercial milestones. We also expect to see further progress in Intrinsic's ReRam and HBM memory technologies, and more progress towards the deployment of Accelercomm's technology in LEO satellite constellations. \n   \n Platform Investments \n \n IP Group's Platform investments portfolio comprises holdings in funds and companies that operate in a similar way to IP Group, including our interest in our US platform, North America University Innovation L.P., Oxford Science Enterprises Limited, the UCL Technology Fund and Cambridge Innovation Capital Limited, and in all of which IP Group was a founding investor. This portfolio was valued at £62.2m at 31 December 2025 (2024: £77.0m), reflecting a fair value decrease of £11.6m in the period driven by valuation reductions within North America University Innovation L.P.'s portfolio. \n   \n In 2025, the US platform's LPs agreed a restructuring of the platform which greatly reduced its operating costs while the GP seeks to optimise returns from realising its portfolio assets. As part of this restructuring, the LPs committed to provide funding to cover the fund's operating costs for a fixed five-year period, the fund was redomiciled to the US and its administration was transitioned to Anzu Partners, a highly regarded investor and fund manager. At the same time $11.7m in SAFE notes which the Group had provided to fund the platform in 2022-24 were converted into regular units within the fund. The restructuring, including the termination of all legacy governance rights, was formalised in May 2025 and the fund was renamed North America University Innovation L.P. (formerly IPG Cayman L.P.). \n   \n Other portfolio disclosures \n   \n Number of investments by sector \n   \n \n \n \n \n \n \n \n As at 31 December 2025 \n \n \n As at 31 December 2024 \n \n \n \n \n Sector \n \n \n Number \n \n \n Number \n \n \n Number \n \n \n % \n \n \n \n \n HealthTech \n \n \n 33 \n \n \n 39% \n \n \n 30 \n \n \n 37% \n \n \n \n \n DeepTech \n \n \n 29 \n \n \n 35% \n \n \n 27 \n \n \n 33% \n \n \n \n \n CleanTech \n \n \n 17 \n \n \n 20% \n \n \n 20 \n \n \n 24% \n \n \n \n \n Platform investments \n \n \n 5 \n \n \n 6% \n \n \n 5 \n \n \n 6% \n \n \n \n \n Total number of portfolio investments 1 \n \n \n 84 \n \n \n 100% \n \n \n 82 \n \n \n 100% \n \n \n \n \n 1 Excludes de minimis holdings, which have a small value to the Group and are not actively managed to the same extent as core holdings \n   \n Portfolio funding position \n   \n The following table lists information on the expected cash-out dates (the date by which portfolio companies are projected to need to have raised further funding) of portfolio companies in which IP Group's investment holding value is greater than £4m. The values in the below table show the IP Group portfolio value which falls within each of the cash-out periods. \n \n \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n Cash-out date 1 \n \n \n £m \n \n \n % \n \n \n \n \n 2026 H1 \n \n \n 34.2 \n \n \n 6% \n \n \n \n \n 2026 H2 \n \n \n 99.1 \n \n \n 16% \n \n \n \n \n 2027 \n \n \n 176.5 \n \n \n 28% \n \n \n \n \n 2028+ \n \n \n 147.9 \n \n \n 24% \n \n \n \n \n Funded to breakeven \n \n \n 160.0 \n \n \n 26% \n \n \n \n \n Total companies > £4m value \n \n \n 617.7 \n \n \n 100% \n \n \n \n \n Companies < £4m value \n \n \n 74.7 \n \n \n \n \n \n \n \n Interest in Limited Partnerships and Platforms \n \n \n 62.2 \n \n \n \n \n \n \n \n Fair value of cash flows from intangible assets \n \n \n 99.1 \n \n \n \n \n \n \n \n Deferred and contingent consideration \n \n \n 54.4 \n \n \n \n \n \n \n \n Total portfolio \n \n \n 908.1 \n \n \n \n \n \n \n \n 1 Cash-out dates based on portfolio company forecast as at publication date of Annual Report. \n Dr Mark Reilly \nManaging Partner 16 March 2026 \n   \n FINANCIAL REVIEW \n I am pleased to report, as outlined above, that the results for the year were a significant improvement and reflect the significant opportunity available to the Group through its exposure to Pfizer's anti‑obesity franchise. The valuation of the associated licence is expected to be a material driver of future valuation growth. \n   \n As part of a year‑end assessment, IP Group has revisited its designation as an investment entity under IFRS 10. Historically, this assessment had been finely balanced with IP Group concluding it was not categorised as an investment entity. However, the value attributed to the licence has tipped that assessment in favour of investment entity classification, and the Group has therefore adopted the investment entity basis. This approach is consistent with that taken by most of our peers for external reporting. \n   \n The effect of this change is that certain subsidiaries are no longer consolidated in the statutory accounts - instead the value of all assets and liabilities within these subsidiaries are shown in a single line (Investments in investment entity subsidiaries) in the Group balance sheet, reflecting the overall net assets of these subsidiaries. For the avoidance of doubt, these entities remain 100% owned and fully controlled by the Group. They include subsidiaries that hold a significant proportion of the Group's cash and deposits. For this reason, some of the balances will look different year-on-year, particularly the cash balance, most of which is now incorporated in the investments line. We have prepared the tables below on a line by line consolidation basis to allow comparison of key balances across the two years, and included a new unaudited 'pro forma' balance sheet which is presented after our financial statements. \n   \n •     Profit for the year of £66.9m (2024: loss of £207.0m) \n •     Net assets £975.1m (2024: £952.5m) \n •     Net assets per share 110.4p (2024: 97.7p) \n •     Net overheads for the year were £15.9m, a reduction of £3.9m from the previous year (2024: £19.8m) \n   \n Consolidated statement of comprehensive income \n A summary analysis of the Group's performance is provided below: \n \n \n \n \n \n \n \n Year ended 31 December 2025 \n £m \n \n \n Year ended 31 December 2024 \n £m \n \n \n \n \n Net portfolio profit/(loss) 1 \n \n \n 64.0 \n \n \n (195.0) \n \n \n \n \n Deferred tax recognised within investment entity subsidiaries \n \n \n 8.4 \n \n \n - \n \n \n \n \n Net overheads 2 \n \n \n (15.9) \n \n \n (19.8) \n \n \n \n \n Foreign exchange loss/gain on movement \n \n \n (0.1) \n \n \n 2.7 \n \n \n \n \n Restructuring costs - labour \n \n \n - \n \n \n (2.4) \n \n \n \n \n Restructuring costs - professional \n \n \n - \n \n \n (0.3) \n \n \n \n \n Administrative expenses - share-based payments charge \n \n \n (2.4) \n \n \n (1.9) \n \n \n \n \n Carried interest plan and other deal incentives credit \n \n \n 7.0 \n \n \n 7.9 \n \n \n \n \n Net finance income \n \n \n 3.8 \n \n \n 2.1 \n \n \n \n \n Taxation \n \n \n 2.1 \n \n \n (0.3) \n \n \n \n \n Profit/(loss) for the year \n \n \n 66.9 \n \n \n (207.0) \n \n \n \n \n Other comprehensive income/(expense) (FX on retranslation of foreign subsidiaries) \n \n \n 0.3 \n \n \n (3.0) \n \n \n \n \n Total comprehensive profit/(loss) for the year \n \n \n 67.2 \n \n \n (210.0) \n \n \n \n \n Exclude: \n \n \n   \n \n \n \n \n \n \n \n Share-based payment charge \n \n \n 2.4 \n \n \n 1.9 \n \n \n \n \n Return on NAV 1 \n \n \n 69.6 \n \n \n (208.1) \n \n \n \n \n 1 Defined in note 29 Alternative Performance Measures. \n 2 See net overheads table below and definition in note 29 Alternative Performance Measures. \n   Fair value movements \n Net portfolio gains/(losses) consist primarily of realised and unrealised fair value gains and losses from the Group's equity and debt holdings in spin-out businesses and include changes in the fair value of licensing assets which have been recognised for the first time in 2025 as a result of the change investment entity basis described earlier in this section. These movements are analysed in detail as follows: \n \n \n \n \n \n \n \n 2025 \n £m \n \n \n 2024 \n £m \n \n \n \n \n Quoted equity and debt investments \n \n \n 4.1 \n \n \n (52.0) \n \n \n \n \n Private equity and debt investments \n \n \n (31.7) \n \n \n (123.5) \n \n \n \n \n Investments in Limited Partnerships \n \n \n (10.4) \n \n \n (13.1) \n \n \n \n \n Recognition of intangible asset at fair value following change of investment entity status \n \n \n 109.4 \n \n \n - \n \n \n \n \n FX translation \n \n \n (7.4) \n \n \n (6.4) \n \n \n \n \n Net portfolio gains/(losses) \n \n \n 64.0 \n \n \n (195.0) \n \n \n \n \n A summary of the largest positive and negative net portfolio fair value movements is as follows: \n \n \n \n \n Gains \n \n \n £m \n \n \n \n \n \n Losses \n \n \n £m \n \n \n \n \n Pfizer Obesity Royalty Interest \n \n \n 126.4 \n \n \n \n \n \n Oxa Autonomy Limited \n \n \n (30.5) \n \n \n \n \n Monolith AI Limited \n \n \n 17.4 \n \n \n \n \n \n Pulmocide Limited \n \n \n (24.1) \n \n \n \n \n RAGE Biotech Pty Ltd \n \n \n 6.8 \n \n \n \n \n \n North America University Innovation L.P. 1 \n \n \n (15.0) \n \n \n \n \n Carrick Therapeutics (Licence) \n \n \n 6.0 \n \n \n \n \n \n First Light Fusion Limited \n \n \n (14.6) \n \n \n \n \n Technikos LLP \n \n \n 4.3 \n \n \n \n \n \n Bramble Energy Limited \n \n \n (12.4) \n \n \n \n \n Other Quoted \n \n \n 6.9 \n \n \n \n \n \n Other Quoted \n \n \n (2.8) \n \n \n \n \n Other Private \n \n \n 43.9 \n \n \n \n \n \n Other Private \n \n \n (40.9) \n \n \n \n \n FX translation \n \n \n 1.0 \n \n \n \n \n \n FX translation \n \n \n (8.4) \n \n \n \n \n Total \n \n \n 212.7 \n \n \n \n \n \n Total \n \n \n (148.7) \n \n \n \n \n 1 Formerly IPG Cayman L.P. \n Net overheads \n   \n \n \n \n \n \n \n \n Year ended 31 December 2025 \n £m \n \n \n Year ended 31 December 2024 \n £m \n \n \n \n \n Other income \n \n \n 7.4 \n \n \n 5.5 \n \n \n \n \n Administrative expenses - all other expenses \n \n \n (20.9) \n \n \n (22.5) \n \n \n \n \n Administrative expenses - annual incentive scheme \n \n \n (2.4) \n \n \n (2.2) \n \n \n \n \n Net overheads \n \n \n (15.9) \n \n \n (19.2) \n \n \n \n \n   \n Net overheads \n Other income comprises fund management fees on our third-party managed funds and licensing and patent income. In the current period other income totalled £7.4m (2024: £5.5m) and was up by 34% year-on-year largely due to additional performance and 'catch up' fees earned within Parkwalk following a very successful year for exits within their portfolio. \n Other central administrative expenses, excluding performance-based staff incentives, share-based payments charges and the impact of FX translation movements, have reduced by 7% from the prior period at £20.9m (2024: £22.5m) reflecting the impact of the restructuring carried out in the second half of 2024 which resulted in a significant reduction in the Group's 2023 cost run rate. \n As a result of the reduced level of net overheads, which declined from £19.2m in 2024 to £15.9m in 2025, and our increased NAV value year on year, our net overheads as a % of NAV reduced to 1.6% in 2025. \n The charge of £2.4m in respect of the Group's Annual Incentive Scheme reflects a provisional assessment of performance against 2025 AIS targets which include Group, Team, and Individual performance elements (2024: charge £1.8m). \n   \n Carried interest plan credit \n   \n The carried interest plan credit of £7.0m (2024: £7.9m credit) relates to the recalculation of liabilities under the Group's carry schemes, reflecting the unrealised portfolio losses in the period. The liabilities are calculated based upon any excess of current fair value above cost and the hurdle rate of return within each scheme or vintage. Any payments will only be made following the full achievement of cost and hurdle via cash proceeds and are only paid on the event of a cash realisation. \n   \n Consolidated statement of financial position \n   \n A summary analysis of the Group's assets and liabilities from the pro forma balance sheet is provided below: \n \n \n \n \n \n \n \n Year ended 31 December 2025 \n £m \n \n \n Year ended 31 December 2024 \n £m \n \n \n \n \n Portfolio \n \n \n 908.1 \n \n \n 852.1 \n \n \n \n \n Other non-current assets \n \n \n 19.8 \n \n \n 1.9 \n \n \n \n \n Other net current assets/(liabilities) \n \n \n (3.0) \n \n \n (6.3) \n \n \n \n \n Cash and deposits \n \n \n 211.0 \n \n \n 285.6 \n \n \n \n \n Borrowings \n \n \n (122.8) \n \n \n (129.1) \n \n \n \n \n Other non-current liabilities \n \n \n (38.0) \n \n \n (51.7) \n \n \n \n \n Total Equity or Net Assets Value (\"NAV\") \n \n \n 975.1 \n \n \n 952.5 \n \n \n \n \n NAV per share \n \n \n 110.4p \n \n \n 97.7p \n \n \n \n \n The composition of, and movements in, the Group's portfolio are described in the portfolio review above. \n Portfolio valuations \n   \n In terms of the funding round dynamics in the period, the proportion of down rounds (i.e. rounds raised at a lower valuation than the previous financing round) within the period increased marginally from the previous year at 31% (2024: 32%). For seven of the eight down rounds, impairments had been recognised already in the Group's previous full year results in anticipation of the funding round outcomes. There was, however, evidence that the funding market for private companies remains challenging, resulting in the Group recognising funding-related valuation reductions in Oxa (£30.5m), Bramble (£12.4m) and First Light Fusion (£10.8m). \n   \n 2025 saw an increased level of capital raised by the portfolio compared to 2024, with £914m raised (2024: £784m), of which the majority (93%) was raised as equity with only 7% raised as debt. Of this amount £199m related to the Hinge Health IPO and £217m related to Centessa's underwritten public offering. In line with long-term trends, IP Group contributed around 7% (2024: 10%) of the total capital raised by our portfolio in the period. \n In the year we commissioned third-party valuation reports for three companies, namely Hysata, our Pfizer obesity royalty interest and Microbiotica (2024: six companies). \n \n \n \n \n   \n \n \n Year ended \n 31 December 2025 \n \n \n Year ended \n 31 December 2024 \n \n \n \n \n Analysis of priced funding rounds in private portfolio \n \n \n Number of companies \n \n \n % \n \n \n Number of companies \n \n \n % \n \n \n \n \n Up round \n \n \n 14 \n \n \n 54% \n \n \n 10 \n \n \n 52% \n \n \n \n \n Flat round \n \n \n 4 \n \n \n 15% \n \n \n 3 \n \n \n 16% \n \n \n \n \n Down round \n \n \n 8 \n \n \n 31% \n \n \n 6 \n \n \n 32% \n \n \n \n \n Total \n \n \n 26 \n \n \n 100% \n \n \n 19 \n \n \n 100% \n \n \n \n \n   \n The above table reflects priced funding rounds in the private portfolio (excluding organic and de minimis companies) and excludes debt funding and funding transactions where a subsequent tranche is drawn based on pre-agreed pricing. \n The table below summarises the valuation basis for the Group's portfolio. Further details on the Group's valuation policy and approach can be found in notes 13 and 14. \n \n \n \n \n \n \n \n Year ended 31 December 2025 \n £m \n \n \n   \n Year ended \n 31 December 2024 \n £m \n \n \n \n \n Quoted \n \n \n 133.2 \n \n \n 133.1 \n \n \n \n \n Financing transaction (<12 months) \n \n \n 177.9 \n \n \n 216.0 \n \n \n \n \n Financing transaction (>12 months) \n \n \n 159.0 \n \n \n 53.5 \n \n \n \n \n Other: Future market/commercial events \n \n \n 75.3 \n \n \n 59.6 \n \n \n \n \n Other: Adjusted financing price based on past performance - upwards \n \n \n - \n \n \n 35.9 \n \n \n \n \n Other: Adjusted financing price based on past performance - downwards \n \n \n 58.0 \n \n \n 151.7 \n \n \n \n \n Other: Discounted cash flow (\"DCF\") \n \n \n 234.8 \n \n \n 97.2 \n \n \n \n \n Other: Revenue multiple \n \n \n 13.4 \n \n \n 13.1 \n \n \n \n \n Other: Receipt of expected sale proceeds \n \n \n 14.5 \n \n \n 20.1 \n \n \n \n \n Fair value of investments \n \n \n 866.1 \n \n \n 780.1 \n \n \n \n \n Statements from LP \n \n \n 42.0 \n \n \n 58.1 \n \n \n \n \n Assets held for sale 1 \n \n \n - \n \n \n 13.9 \n \n \n \n \n Total portfolio \n \n \n 908.1 \n \n \n 852.1 \n \n \n \n \n   1 Assets held for sale are valued at the agreed sale price unless quoted, and hence are excluded from the valuation basis analysis \n   \n Other assets and liabilities \n   \n Other long-term liabilities relate to carried interest (described above), and loans from LPs of consolidated funds; IP Venture Fund II LP is a fund in which the Group has a significant interest. Loans from third parties of consolidated funds represent third-party loans into this partnership. These loans are repayable only upon these funds generating sufficient realisations to repay the Limited Partners. \n   \n Borrowings \n   \n Most of the Group's outstanding debt relates to a £120m private placement issued in 2022 and 2023. This loan has a fixed interest rate of 5.25% and is due to be repaid with three equal maturities in December in 2027, 2028 and 2029. The Group also had a £3.1m fixed-interest loan with the European Investment Bank (2024: £9.4m), the last remaining repayment was made in January 2026 settling the loan. \n Under the terms of the £120m private placement, the Group is required to maintain a minimum balance of cash and cash equivalents which includes deposits maturing within 30 days held by any subsidiary of £25m at any time, equity must be exceed £500m and gross debt less restricted cash must not exceed 25% of total equity as at the Group's 30 June and 31 December reporting dates. See Note 20 for further detail \n The private placement also includes 'Cash Trap' provisions which stipulate that the Group is required to maintain cash and cash equivalents of no less than £50m at any time, equity must be at least £750m, and gross debt less restricted cash must not exceed 20% of total equity as at the Group's 30 June and 31 December reporting dates. In the event of the Cash Trap being triggered, the Group is not permitted to pay or declare a dividend or purchase any of its shares. In addition, investments are restricted to £2.5m per calendar quarter other than those legally committed to. The Group is also required to place the net proceeds of all cash proceeds (over a threshold of £1m) into a blocked bank account. Entering a Cash Trap does not constitute a default. \n Following the change in investment entity basis, the Group undertook a detailed review of the classification of cash and cash equivalents for reporting and financing purposes, including engagement with noteholders to ensure a shared understanding of relevant definitions. Further detail is provided in the notes to the financial statements. \n Cash and deposits \n   \n At 31 December 2025, the Group's cash and deposits totalled £211.0m, a decrease of £74.6m from a total of £285.6m at 31 December 2024, predominantly due to outflows from investing activities of £70.5m, a £19.5 net cash outflow from operations, £45.7m spent on the share buyback scheme  and a £6.3m cash outflow from the repayment of debt, net of an inflow of cash proceeds from the sale of equity and debt investments of £52.5m, a £10m inflow from sale of assets held for sale and distributions from limited partnerships of £5.6m. \n Of the total cash and deposits of £211.0m, £16.5m of cash is held in consolidated subsidiaries and the remainder in fair value investment subsidiaries. \n Investments and realisations \n The Group invested a total of £70.5m across 33 portfolio companies during the year (2024: £63.0m; 38) and realised cash proceeds of £68.1m (2024: £183.4m). \n Largest investments and realisations by portfolio company: \n   \n \n \n \n \n Investments \n \n \n £m \n \n \n \n \n \n Cash Realisations \n \n \n £m \n \n \n \n \n Oxa Autonomy Limited \n \n \n 7.5 \n \n \n \n \n \n Hinge Health, Inc. \n \n \n 18.4 \n \n \n \n \n Artios Pharma Limited \n \n \n 5.4 \n \n \n \n \n \n Intelligent Ultrasound Group plc \n \n \n 8.8 \n \n \n \n \n RAGE Biotech Pty Ltd \n \n \n 5.4 \n \n \n \n \n \n Centessa Pharmaceuticals plc \n \n \n 7.2 \n \n \n \n \n First Light Fusion Limited \n \n \n 5.0 \n \n \n \n \n \n Technikos LLP \n \n \n 5.4 \n \n \n \n \n Fortify Solutions Cambridge Limited \n \n \n 3.7 \n \n \n \n \n \n Abliva AB \n \n \n 5.1 \n \n \n \n \n Other \n \n \n 43.5 \n \n \n \n \n \n Other \n \n \n 23.2 \n \n \n \n \n Total \n \n \n 70.5 \n \n \n \n \n \n Total \n \n \n 68.1 \n \n \n \n \n   \n Deferred consideration from both expected royalty and milestone achievement was estimated at £54.4m at 31 December 2025 (2024: £20.1m), relating to the Group's realisation of Zihipp (£36.4m, exited in 2023), Featurespace (£10.1m, exited in 2024), Enterprise Therapeutics (£3.5m, programme exited in 2020), Oxular (£1.9m, exited in 2024), Monolith AI (£1.9m, exited in 2025) and Kynos Therapeutics (£0.5m exited in 2024). \n   \n Share buyback \n   \n The Board remains committed to making regular cash returns from realisations, normally made in the form of share buybacks when the share price discount to NAV exceeds 20%. On 18 November 2025 the Group completed its announced £75m buyback programme. The buyback was originally announced on 18 December 2023 with an initial £20m, subsequently increased by £10m on 7 October 2024, £25m on 9 January 2025 and £20m on 26 June 2025. Since commencing its buyback programme, the Group has purchased 157,968,634 shares at an average price of 47.5p per share for an aggregate consideration of £75m. Of the shares acquired under the buyback programme, 4,481,489 were used to settle employee share-based payments in 2024, and the remainder were cancelled. The Company's issued share capital consists of 883,427,642 ordinary shares with voting rights and there are no ordinary shares held in treasury. \n Taxation \n   \n The Group typically holds at least a 10% equity holding in its portfolio companies and as a result most of the portfolio will qualify for the Substantial Shareholdings Exemption (\"SSE\") on disposal. On these companies, capital gains are exempt from UK corporation tax and hence no deferred tax is recognised on capital gains at the balance sheet date for SSE-qualifying companies. \n   \n Capital gains from companies not qualifying for SSE will be at least partially offset by a deduction for the Group's current year net overheads and further reduced by using brought-forward tax losses relating largely to the Group's historic net overheads (restricted to 50% above a £5m annual threshold). As a result, the tax rate payable on any non-SSE disposals will be significantly less than the headline UK corporation tax rate of 25%. Deferred tax is calculated on non-SSE disposals and recognised through the income statement. In the current year the income statement credit was £2.1m and the cumulative balance sheet liability including amounts in fair valued companies was £3.7m. \n An £8.3m asset has been recognised in respect of losses held in investment entity subsidiaries where the recognition criteria are met. We consider that there is convincing evidence that sufficient taxable income will be generated in the future, supported by the acquisition of Metsera by Pfizer for consideration of up to $10 billion and the combined probability of success across multiple programmes. Within Pfizer's anti-obesity portfolio, this includes the lead programme which has entered Phase 3 trials at the balance sheet date, and four other programmes which are in clinical trials, as well as a separate Phase 3-ready programme licensed to Carrick Therapeutics. \n The Group complies with relevant global initiatives including the US Foreign Account Tax Compliance Act (\"FATCA\") and the OECD Common Reporting Standard. \n Alternative Performance Measures (\"APMs\") \n   \n The Group discloses alternative performance measures, such as NAV per share and Return on NAV, in this annual report. The Directors believe that these APMs assist in providing additional useful information on the underlying trends, performance, and position of the Group. Further information on APMs utilised by the Group is set out in note 29. \n   \n David Baynes \n CFOO \n 16 March 2026 \n   \n RISK MANAGEMENT \n   \n Managing risk: our framework for balancing risk and reward \n   \n Governance \n   \n Overall responsibility for the risk framework and definition of risk appetite rests with the Board which, through regular review of risks, ensures that risk exposure is balanced with an ability to achieve the Group's strategic objectives. The IP Group Risk Council is the Executive body that operates to establish, recommend and maintain an appropriate risk management framework for the Group and to oversee the effective application of the framework across the business. The Risk Council is chaired by the CFOO, its members include the Company Secretary, Finance Director and Group Risk Officer, and it has representation from operational business units as required during the year. Risk identification is carried out through a bottom-up process via operational risk registers maintained by individual teams, which are updated and reported to the Risk Council at least annually. There is additional top-down input from Executive Management, with a Non-executive review carried out by the Audit and Risk Committee at least annually. \n   \n Risk management process \n   \n Ranking of the Group's risks is carried out by combining a scoring of their impact and likelihood. Operational risks are aggregated into strategic risks, which identifies key themes, and ultimately informs our principal risks, which are described in the principal risks and uncertainties section of this report. The operations of the Group, and the implementation of its objectives and strategy, are subject to a number of principal risks and uncertainties. Were more than one of the risks to occur together, the overall impact on the Group may be compounded. The design and ongoing effectiveness of the material controls over the Group's principal risks are documented using a \"risk and control matrix\", which includes an assessment of the design and operating effectiveness of the controls in question. The material controls over the Group's identified principal risks are reviewed as part of the Group's risk management process, by management, the Audit and Risk Committee and the Board during the year. However, the Group's risk management programme can only provide reasonable, not absolute, assurance that principal risks are managed to an acceptable level. \n   \n Risk management activity in 2025 included updating the Group's existing operational, strategic and principal risk registers; updating and testing the material controls over principal risks; and the appropriateness of our principal risks and discussion of emerging risks via a Board risk workshop. \n   \n Risk Council activity \n   \n During 2025, the Risk Council continued to oversee the Group's existing risk management framework, enhancing risk management and internal control processes and, in doing so, supported the Board in exercising its responsibility surrounding risk management. \n   \n During the year, the Risk Council focused on developing the implementation plan for the revised UK Corporate Governance Code, released in January 2024, which introduced new review and reporting requirements for material controls (\"Provision 29 requirements\") effective for financial years beginning on or after 1 January 2026. As part of this work, the Risk Council held further PwC-facilitated workshop sessions to finalise the Group's list of material operational, financial, compliance and non-financial reporting controls aligned to the Group's identified material risks.  PwC was also engaged to perform control design and operating effectiveness testing, while the Risk Council worked closely with control owners to address areas requiring improvement. In 2026 the Risk Council will shift its focus to regular testing of the Group's material controls to firmly embed the new regime and ensure that any issues identified are resolved promptly. \n   \n Other areas of focus for the Risk Council during the year included: \n •     Review of consolidated operational risk registers following annual updates \n •     Monitoring the completion status of remediation points raised by an FY24 internal audit review \n •     Review of the results of an annual testing of the Group's material controls performed by PwC's internal audit team \n •     Facilitating executive team and board risk workshops \n •     Monitoring of the Group's key risk indicators \n •     Discussing material controls, developments in the year and emerging risks with the Head of IT & Operations and the People Director in respect of Group's cyber and people risks respectively \n •     Review of the Group's Cyber Crisis Response Framework and oversight of annual simulation training \n •     Other procedural matters including overview of the completion status of e-learning programmes, review of the Group's conflicts register and review of gifts and hospitality as part of our anti-bribery controls \n   \n The Risk Council was supported during the year by PwC's Internal Audit team which conducted testing work over the design and operating effectiveness of the Group's material controls over its principal risks and advised on the implementation of the UK Corporate Governance Code 2024 Provision 29 requirements as set out above. \n   \n Principal and emerging risks \n   \n A summary of the principal risks affecting the Group and the steps taken to manage these is set out in this section. Further discussion of the Group's approach to principal risks and uncertainties is given in the Corporate Governance Statement and the Audit and Risk Committee Report, while further disclosure of the Group's financial risk management is set out in note 4 to the consolidated financial statements. \n   \n As part of the Group's preparation for the forthcoming internal controls regime, a workstream to identify the Gorup's material risks was undertaken. This assessment reviewed all existing strategic level risks to the Group and from this list approximately 25% of these met the threshold for materiality. None of the strategic risks identified as material mapped to the Group's \"Operations\" principal risk, the risk that the Group may be negatively impacted by operational issues both from a UK central and international operations perspective, indicating that this risk was no longer material to the Group. The executive team noted that its potential impact had significantly reduced, the relevance of the risk had diminished following the discontinuation of the Hong Kong business launch and the successful establishment of the Australian business had substantially lowered the likelihood of occurrence. The Board considered these findings at its December 2025 risk workshop and agreed to remove the \"Operations\" principal risk. \n   \n Risk appetite \n   \n The Group accepts that certain risks are inherent in achieving its strategic aims, which are set out in the Strategy section of the Group's report Annual Report and Accounts. The Group accepts risk provided it is consistent with the Group's purpose and strategy, and where it can be effectively managed and offers an appropriate trade-off between risk and reward. The Board has determined its risk appetite in relation to each of its principal risks and considered appropriate metrics to monitor performance relative to defined thresholds. \n   \n Risk appetite ratings defined: \n   \n Very low: Following a marginal risk, marginal reward approach that represents the safest strategic route available \n Low: Seeking to integrate sufficient control and mitigation methods in order to accommodate a low level of risk, though this will also limit reward potential. \n Balanced: An approach which brings a moderate chance of success, considering the risks, along with reasonable rewards, economic and otherwise \n High: Willing to consider bolder opportunities with higher levels of risk in exchange for increased business payoffs \n Very high: Pursuing high-risk, inherently uncertain options that carry with them the potential for high-level rewards \n Emerging risks: The Group identifies and monitors emerging risks through regular updates to the Group's operational risk registers, horizon scanning and risk-severity assessments. In 2025, the Group considered several themes that, while related to existing principal risks, reflected new developments or shifts in the external environment that could alter their potential impact or likelihood. Areas monitored during the year included: (1) valuation and market risks associated with a potential correction in public markets should AI-related stocks under-deliver, which could affect sentiment and comparables for venture portfolios risk to the Group in the longer term. (2) funding and ecosystem risks, notably the increasing shortage of UK scale-up capital and the growing trend of early-stage companies considering re-domiciling to the US. (3) Broader economic, societal, geopolitical and regulatory shifts that, while encompassed within existing principal risks, have shown signs of accelerating and therefore required enhanced monitoring. \n   \n PRINCIPAL RISKS AND UNCERTAINTIES \n   \n \n \n \n \n 1 \n \n \n The Group may have insufficient capital to deliver its investment strategy \n \n \n The Group's business model relies on the recycling of capital for re-investment from realisations, with a proportion of realisations also being allocated to shareholder returns. In the longer term, other sources including debt and equity issues may be used to manage the Group's capital position. The ability of the Group to deliver realisations and raise additional funding is influenced by macroeconomic and capital market conditions. \n \n \n \n \n Link to strategy \n 3 4 \n Access to sufficient capital allows the Group to deliver its investment strategy thereby delivering attractive financial returns \n \n \n Actions taken by management \n •     The Group has significant balance sheet capital and managed funds capital to deploy in portfolio opportunities \n •     The Group regularly forecasts cash requirements of the portfolio to ensure that the Group's investment plans reflect currently available capital and expected realisations \n •     The Group actively monitors compliance with the NPA covenants on an ongoing basis and maintains an ongoing dialogue with its noteholders \n \n \n Risk appetite \n Low \n \n \n \n \n Examples of risk \n •     The Group may not be able to provide the necessary capital to key assets, which may affect the portfolio companies' performance or dilute future returns of the Group \n •     The Group may not be able to realise capital from its portfolio to fund the desired level of investment activity in the portfolio \n \n \n Development during the year \n •     Cash proceeds totalled £68.1m in 2025 \n •     The Group raised £29.0m of third party-funds during 2025 \n •     The Group remains well positioned to benefit from the Mansion House related reforms. Investor engagement and fundraising capability were enhanced during the year. \n •     Hinge Health completed its IPO on NYSE in 2025, increasing the liquidity position of the portfolio \n •     We continue to maintain an active dialogue with the Group's major equity investors and debt investors \n •     The Group's share price continued to trade below NAV during the year \n •     The quoted portfolio value saw a fair value increase of £4.1m in the year \n \n \n Change from 2024 \n No change \n   \n \n \n \n \n 2 \n \n \n It may be difficult for the Group's portfolio companies to attract sufficient capital \n \n \n Many of the Group's portfolio companies are in their development or growth phases and will fund their growth through raising additional capital from IP Group and other co-investors. The ability of portfolio companies to attract further capital is influenced by their financial and operational performance and the general economic climate and trading conditions, particularly in the UK. \n \n \n \n \n Link to strategy \n 3 4 \n Access to sufficient levels of capital allows the Group's portfolio companies to invest in technology and commercial opportunities to ensure future financial returns. \n \n \n Actions taken by management \n •     The Group maintains Board representation on the majority of its portfolio companies and monitors their funding position and plans \n •     The Group regularly forecasts cash requirements of the portfolio and tracks those with a heightened funding risk \n •     The Group operates a corporate finance function, which is experienced in carrying out fundraising mandates for portfolio companies \n •     The Group maintains close relationships with a wide variety of co-investors that focus on companies at differing stages of development \n \n \n Risk appetite \n Balanced \n   \n \n \n \n \n Examples of risk \n •     Portfolio companies may not be able to close investment rounds, reducing their ability to scale quickly and in extremis leading to company failure \n •     Reduced investor appetite may lead to lower valuation funding rounds, resulting in an unrealised fair value loss in the value of the Group's holding \n •     Lack of investor appetite for IPOs may mean that this is not a viable funding option for portfolio companies in the short to medium term \n \n \n Development during the year \n •     The Group's portfolio raised £914m in 2025, with £70.3m (7.7%) of this funding being provided by IP Group \n •     IP Capital worked on 5 corporate finance engagements during the year \n •     Excluding the Oxford Nanopore holding, the Group held board seats on 88.6% of portfolio companies valued at greater than £5m by value \n •     Our third-party funds had capital to deploy of £64.1m at year end \n •     IP Group hosted its 2025 Capital Markets Day offering investors a comprehensive update on company performance, portfolio progress and strategic positioning in the UK deeptech ecosystem. \n •     We continued international investor roadshows in the year in the US, UK, EU and Middle East \n \n \n Change from 2024 \n No change \n   \n \n \n \n \n 3 \n \n \n The returns generated by the Group's portfolio may be insufficient \n \n \n The Group's portfolio of science-based businesses has the potential to deliver outsize returns, however they are by their nature riskier than more stable, lower-yielding asset classes or companies. The Group may not realise a sufficient return on its invested capital at an individual company or overall portfolio level. \n \n \n \n \n Link to strategy \n 3 4 \n Insufficient investment returns reduce the Group's ability to deliver attractive returns to shareholders and may also limit the Group's ability to raise additional capital. \n \n \n Actions taken by management \n •     The Group's employees have significant experience in sourcing, developing and growing early-stage technology companies to significant value \n •     There is a rigorous process for the approval of investments and divestments within a delegated authority framework \n •     Members of the Group's investment teams typically serve as non-executive directors to portfolio companies to help identify and remedy critical issues \n •     The Group has portfolio company holdings across different sectors to reduce the impact of a single company failure or sector decline \n •     The Group employs a capital-efficient process deploying low levels of initial capital to enable identification and mitigation of potential failures at the earliest possible stage \n \n \n Risk appetite \n High \n \n \n \n \n Examples of risk \n •     Portfolio company failure directly impacts the Group's value and profitability \n •     Concentration of value within a small numbers of companies could exacerbate the impact of any impairment or failure of one or more of these companies \n •     The value of the Group's drug discovery and development portfolio companies may be significantly impacted by a negative clinical trial result \n \n \n Development during the year \n •     We completed three new balance sheet investments during the year, and a further 15 within Parkwalk \n •     Excluding the Oxford Nanopore holding, the Group held board seats on 88.6% of portfolio companies valued at greater than £5m by value \n •     The Group's IP license portfolio, most notably its economic interest in Zihipp increased materially in the year following rapid clinical development by Metsera and its acquisition by Pfizer in November 2025. \n \n \n Change from 2024 \n No change \n   \n \n \n \n \n 4 \n \n \n The Group may lose key personnel or fail to attract and integrate new personnel \n \n \n The industry in which the Group operates is a specialised area and the Group requires highly qualified and experienced employees. There is a risk that the Group's employees could be hired by competitors or other technology-based companies and organisations or could otherwise choose to leave the Group. \n \n \n \n \n Link to strategy \n 2 4 5 \n The Group's strategic objective to develop and scale a portfolio of compelling science-based businesses capable of delivering attractive financial returns on our assets, is dependent on the Group's employees who work with the portfolio companies and those who support them. \n \n \n Actions taken by management \n •     Detailed succession plan in place for all senior employees and other selected key-person dependencies \n •     Regular compensation benchmarking carried out for all employees \n •     Maintenance of a balanced incentive package comprising a mix of salary, benefits, performance-based long-term incentives, and benefits such as flexible working and salary sacrifice arrangements \n •     The Group encourages employee development and progression through targeted learning and development activity, coaching and mentoring and supports this through the annual appraisal process \n •     The Group promotes an open culture of communication and provides an inspiring and challenging workplace where people are given autonomy to do their jobs. The Group is fully supportive of flexible working, empowering employees to work where and how works best to deliver against the requirements of their role \n •     An employee forum, \"IP Connect\" with an appointed designated Non-executive Director to facilitate dialogue with the Board in both directions. Part of IP Connect's remit is also to support the evolution of the culture and continuous improvement of working life at the Group \n \n \n Risk appetite \n Low \n \n \n \n \n Examples of risk \n Loss of key executives and employees of the Group or an inability to attract, retain and integrate appropriately skilled and experienced employees could have an adverse effect on the Group's competitive advantage, business, financial condition, operational results and future prospects. \n \n \n Development during the year \n •     Continued excellent employee engagement scores obtained in the year from employee engagement surveys, with eNPS of+30 remaining broadly consistent with the previous year (2024: +31), which is within the \"very high\" category \n •     Continued high frequency of employee communications from Executive Directors, People Director and other leadership team members via regular virtual and in-person all-staff meetings \n •     Approximately 66% of employees in place at 31 December 2025 have been with the Company for at least five years \n •     The Group experienced a higher number of regretted leavers within its investment teams than in previous years (2025: 3; 2024: 1) \n \n \n Change from 2024 \n No change \n   \n \n \n \n \n 5 \n \n \n Macroeconomic conditions may negatively impact the Group's ability to achieve its strategic objectives \n \n \n Adverse macroeconomic conditions including volatility in interest rates and inflation could reduce appetite for investment within the sectors in which we operate. Geopolitical uncertainty including global conflicts may impact the cost of raw materials; changes to the labour market regulations may reduce the availability of highly skilled staff within the Group's portfolio; and protectionist policies may reduce trade and cross-border investment. \n \n \n \n \n Link to strategy \n 3 \n The Group's strategic objective to develop a portfolio of commercially successful portfolio companies and deliver attractive financial returns on our assets and third-party funds can be materially impacted by the current macroeconomic environment. \n \n \n Actions taken by management \n •     Senior management receive regular capital market and economic updates from the Group's capital markets team and its brokers \n •     Regular capital allocation process and ongoing monitoring against agreed budget \n •     Regular oversight of upcoming capital requirements of portfolio from both the Group and third parties \n •     The Group's Risk Council monitors key macroeconomic trends that may impact the Group \n \n \n Risk appetite \n High \n \n \n \n \n Examples of risk \n •     The success of those portfolio companies that require significant external funding may be influenced by the market's appetite for investment in early-stage and growth companies \n •     Of the Group's portfolio value, 14.7% is held in companies quoted on public markets and therefore subject to market price volatility \n \n \n Development during the year \n •     Macroeconomic conditions continued to stabilise throughout 2025, with easing inflation across major advanced economies supporting expectations of a gradual shift toward monetary loosening. In the UK, annual CPI inflation declined to 3.2% in November 2025, its lowest level in eight months, indicating continued but incomplete progress toward the 2% target. The Bank of England reduced the UK base interest rate to 3.75% in December down from 4.50% earlier in the year, reflecting a gradual shift toward monetary easing as inflation moderated. \n •     Geopolitical tensions persisted in 2025. Global conflicts and renewed trade frictions, including heightened tariff uncertainty following the US political transition, continued to shape market sentiment and contribute to wider macroeconomic uncertainty. \n •     The Group has maintained significant cash reserves available for investment and as such is well placed to respond to macroeconomic uncertainty \n \n \n Change from 2024 \n No change \n   \n \n \n \n \n 6 \n \n \n There may be changes to, impacts from, or failure to comply with, legislation, government policy and regulation \n \n \n There may be negative impacts from changes in government policy, regulation or legislation and taxation. The Group may fail to comply with legislation and regulation, leading to financial and reputational damage. \n \n \n \n \n Link to strategy \n 2 \n The Group's strategic objectives of creating and maintaining a portfolio of compelling opportunities to deliver attractive returns for shareholders could be materially impacted by failure to comply with, or adequately plan for, a change in legislation, government policy or regulation. \n \n \n Actions taken by management \n •     The Group utilises professional advisors as appropriate to support its monitoring of, and response to changes in, tax, insurance or other legislation \n •     The Group delivers regular training in areas including bribery and anti-money laundering and regulatory compliance \n •     The Group has internal policies and procedures to ensure its compliance with applicable regulations \n •     The Group maintains Directors and officers (\"D&O\") and professional indemnity insurance policies \n •     The Group responds to public consultations and is in dialogue with the UK Government in policy areas such as the Enterprise Investment Scheme \n \n \n Risk appetite \n Low \n \n \n \n \n Examples of risk \n •     Changes to tax legislation or the nature of the Group's activities, in particular in relation to the Substantia...

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