Allied Minds

LN: ALM

£108.6m market cap

45p 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

Following a dialogue with shareholders, Allied Minds has announced a number of restructuring initiatives, including board changes, to cut costs and better align employee and shareholder interests. Mike Turner will step down as co-CEO, leaving Joe Pignato as CEO and CFO. The company has made amendments to the executive director compensation plan, including a reduction of the maximum bonus, elimination of the Management Incentive Plan and forfeiture of certain long-term incentive plan (LTIP) grants. These restructuring initiatives will allow recurring central costs to be cut by 20%, to $6m pa, in line with the Strategic Review announced in April 2019. Allied Minds now expects to be able to return c $40m (12.4p per share) to shareholders from the proceeds of the disposal of Hawkeye 360 ($65.6m) by early Q120.

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
Industry outlook

2019 has so far been a difficult year for patient capital, with stocks continuing to trade at a material discount to NAV. However, with Woodford-related issues now reaching their conclusion, there is scope for a recovery of sentiment and the closing of the NAV discounts as investors search for value. We expect investors to continue to differentiate between stocks that demonstrate progress and offer the potential for meaningful exits in a realistic time frame and those that do not.

Last updated on 12/12/2019
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 (6.3) (21.3) (34.8)
Relative* (5.3) (20.8) (39.5)
52-week high/low 84.2p/45.0p
*% relative to local index
Key management
Peter Dolan Chairman
Joseph Pignato Co-CEO, CFO
Mike Turner Co-CEO, general counsel

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