Allied Minds

LN: ALM

£122.8m market cap

51p last close

Allied Minds is an IP commercialisation company focusing on early-stage companies within life sciences and technology. Its portfolio companies are spin-outs from US federal government laboratories and universities. The top six holdings comprise 92%+ of portfolio fair value.

Investment summary

Allied Minds’ portfolio has been significantly rationalised since 2017, with the portfolio now focused on six principal companies. Management expects the top three companies to achieve commercialisation in 2019, and we believe there could be substantial upside if this is achieved. The shares trade at 0.41x H118 NAV (adjusted for latest net cash). Allied Minds’ enterprise value (market capitalisation less parent cash) trades at a 45% discount to our valuation for the top four portfolio companies, each of which has been validated by external fund-raisings. Following recent cash management measures, management believes that Allied Minds’ cash runway has been extended into 2021.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2016A 2.7 (97.3) (119.2) (39.84) N/A N/A
2017A 5.0 (88.4) (101.1) (27.84) N/A N/A
2018E 6.0 (66.5) (22.2) (11.13) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
Last updated on 20/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 126.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.6 (23.2) (54.5)
Relative* 0.7 (29.5) (55.4)
52-week high/low 129.2p/37.2p
*% relative to local index
Key management
Peter Dolan Chairman
Jill Smith CEO
Joseph Pignato CFO

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