IP Group plc said net asset value per share rose 3.0% in the first half of 2026 to 114p at June 30, 2026, after moving to about 117p by September 11. Total net asset value exceeded £1 billion. Chief Executive Greg Smith said the group carried the momentum from 2025 into 2026 with NAV growth, strong cash realizations and broad-based portfolio progress.
Cash realizations were a central feature of the half. Proceeds in the first half were £69 million, more than double the £30 million recorded in the first half of 2025 and above full-year 2025 levels. Including post-period activity, year-to-date proceeds reached the mid-£85 million to £86 million range, with £17 million added since June. Total proceeds since January 1, 2025 were £154 million, or about 61% of the company's cumulative exit target of £250 million by the end of 2027. Management said 15 to 20 potential realization opportunities were under review.
Gross cash rose to £256 million after the period, from £239 million at the end of June. The total portfolio was broadly flat at about £907 million to £908 million. IP Group deployed £30 million in new investments during the half and recorded fair-value gains of about £31 million. Under its capital allocation policy, £50 million was available for future shareholder returns, although no buyback took place during the period. Full-year 2026 overheads are expected to be about £17 million, slightly above full-year 2025 levels and broadly in line with inflation.
Management said the shares reflected a roughly 40% discount to underlying value. Smith said there was no single action that would close a discount of that size, and pointed to sustained delivery, shareholder-focused capital allocation and continued realizations as the path to narrowing it. Pre-market data showed the shares up about 4.5%, near the top of the stock's 52-week range.
The Pfizer royalty asset saw a £27 million valuation increase, taking the royalty interest to just over £150 million. Smith said the default position was to hold the asset and receive royalties, while noting that the range of strategic options should broaden as the program de-risks. The obesity market is externally forecast to reach about £100 billion to £150 billion annually by 2030. Primary completion for the berobenatide and amylin combination phase IIb study is expected in April 2027, while primary completion for two berobenatide phase III studies is expected in October 2027. Pfizer is targeting a launch of the berobenatide obesity program and the start of royalty payments in 2028. Istesso's sarcopenia study is due to read out in the second half of 2027.
Oxford Nanopore reported revenue of £117 million, up about 12% at constant currency. Gross margin increased by 400 basis points to 62%, and the adjusted EBITDA loss more than halved to just over £22 million. The company narrowed its market focus from 47 areas to 18 priority markets, which management said accounted for 40% to 45% of revenue generated over the last three years. A cross-licensing agreement provides $35 million of committed revenue over the next couple of years. Oxford Nanopore is targeting EBIT break-even in full-year 2027 and positive free cash flow in 2028.
Other portfolio developments included Hysata's expected first megawatt-scale electrolyzer delivery in the first half of 2027. IP Group also referenced portfolio companies including Railpen, Quantum Motion, Quantum Circuits, Oxa, First Light Fusion, Mantle8 and Centessa.
Marking its 25th anniversary, IP Group said it has invested more than £1.5 billion, helped form or support more than 600 companies and created more than 15,000 jobs. Portfolio companies have raised more than £500 million of third-party capital, with IP Group contributing about 5% of that amount.
