Syncona (SYNC) H2 2024 earnings summary

Executive summary

• Net Asset Value (NAV) increased by 1.2% year-over-year to GBP 1.2 billion (188.7p per share), reflecting resilience amid challenging market conditions and enhanced by share buybacks.

• Portfolio rebalanced toward later-stage and clinical assets, with 71% now at clinical stage, up from 31% at the start of 2023.

• Strategic focus on proactive portfolio management, rigorous capital allocation, and operational model enhancements, including consolidations, M&A, and expanded team.

• Added three innovative companies (iOnctura, Yellowstone, Forcefield) and deployed GBP 172.2 million, with 86.1% into clinical or near-clinical assets.

• Share buyback program expanded to GBP 60 million to capitalize on perceived undervaluation.

Financial highlights

• Life science portfolio valued at GBP 786 million, delivering a 2.2% return, with a GBP 122.4 million uplift from Autolus offset by write-offs in Gyroscope, Anaveon, and Clade.

• Capital pool at year-end was GBP 452.8 million, supporting funding to key value inflection points and returning 3.4% for the year.

• GBP 136 million of GBP 170 million deployed into companies approaching definitive data or market entry.

• GBP 40 million allocated to share buybacks, with GBP 20.2 million repurchased at a 35.1% discount and a further GBP 20 million post year-end.

• GBP 704.5 million raised by portfolio companies from third parties, with GBP 118.2 million committed by Syncona.

Outlook and guidance

• Anticipated capital deployment of GBP 150–200 million in the coming year, with focus on clinical-stage and near-clinical assets.

• Well positioned to deliver on 11 capital access milestones and eight key value inflection points by end of CY2026, including two in the next six months.

• Targeting GBP 5 billion net assets by 2032, with a portfolio of 20–25 companies and 3–5 late-stage assets with significant ownership.

• Portfolio positioned for growth as market conditions improve and capital becomes more accessible.