Allied Minds

LN: ALM

£113.3m market cap

46.95p last close

Allied Minds is an IP commercialisation company with a concentrated investment portfolio focused on early-stage companies within life sciences and technology. Its portfolio companies are spin-outs from US federal government laboratories and universities.

Investment summary

Allied Minds is a technology holding company focused on early-stage businesses. Over the summer, Allied Minds delivered additional validation for two of its three principal portfolio companies and, following the sale of its stake in HawkEye 360 for $65.6m, has now (subject to the shareholder vote) effected a material return of capital to shareholders. Allied Minds shares trade at a 35% discount to our estimated FY18 NAV of 92.7p or at a 38% discount to our estimated adjusted NAV of 96.3p (adjusted for Hawkeye 360, Federated Wireless and cash).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 5.0 (88.4) (101.2) (27.88) N/A N/A
2018A 5.6 (77.5) 55.3 19.67 2.9 N/A
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 18/10/2019
Industry outlook

Investor sentiment towards the IPC sector in general has remained negative in 2019, with stocks continuing to trade at a meaningful discount to NAV. This has only been exacerbated by the recent fallout from Woodford, a major investor in the patient capital sector. In H219, we expect investors to continue to differentiate between stocks that offer the potential for meaningful exits in a realistic timeframe and those that do not.

Last updated on 18/10/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (US$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (24.6) (33.9) (22.4)
Relative* (23.3) (31.7) (24.2)
52-week high/low 84.2p/37.2p
*% relative to local index
Key management
Peter Dolan Chairman
Mike Turner Co-CEO, general counsel

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