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IP Group PLC on Tuesday said its net asset value has fallen since the start of 2022 as global stock market movements hit its public portfolio.
Net asset value per share fell to 139 pence at May 31 from 167p at the end of December, as its total net asset value shrank to £1.44 billion from £1.74 billion.
‘The fall in value in the year to date is largely attributable to the reduction in value of the group's public portfolio which has been impacted by the correction in global stock markets, particularly by the rotation out of growth and technology stocks,’ the London-based firm explained.
Its public portfolio recorded a fair value reduction of £360 million while its private portfolio rose by £60 million, it said.
Despite the recent turbulence, the firm said it believes the prospects for its portfolio are strong.
‘The board continues to consider that shareholder returns will be driven primarily by long-term capital appreciation. The board remains committed to delivering a regular dividend income, which is intended to comprise a relatively small component of total shareholder return. We will also continue to consider share buyback programmes and other capital return tools as we generate realisations from our portfolio,’ IP Group added.
IP Group shares were 0.3% lower at 71.30 pence on Tuesday in London.
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