Insider Media Limited

IP Group, a developer of intellectual property based businesses which includes Derby's Tracsis within its portfolio, has hailed a strong start to 2011.

The business, which raised £55m through a placing in June, said the value of its businesses had increased by £14m to £115.3m.

Transport software provider Tracsis, which purchased neighbouring Derby company MPEC earlier this year, is among the companies in IP Group's portfolio.

During the six months to 30 June 2011, IP Group invested a further £5.5m into its portfolio. Its £55m fundraising - cited as the most significant event in the first-half - was supported by both existing and new shareholders, and IP Group said was an endorsement of its investment strategy.

The business said the underlying performance of portfolio companies during the period has been encouraging, although share price performance of the quoted companies had been impacted by the weaker performance of equity markets. This, however, had been offset by a net gain in the value of the unquoted portfolio, it claimed.

IP Group chief executive Alan Aubrey said: "The first half of 2011 has been a strong period for the group, during which we have significantly strengthened our balance sheet by successfully raising £55m before costs. The group now has the flexibility to maintain or increase stakes in promising post-seed opportunities whilst also increasing its overall rate of capital deployment."

He added: "The second half of the year has started well with the group having already recorded more realisations in the eight months to date than in the whole of 2010. We continue to believe that innovation has never been of such importance to the UK economy and that the group will play an increasingly central role in helping UK innovation to reach the market.

"Overall, IP Group remains extremely well placed to deliver medium to long-term value for shareholders."