Allied Minds — CEO steps down, now a board-led company

Allied Minds (ALM)

Last close As at 11/04/2024

22.60

−0.60 (−2.59%)

Market capitalisation

54m

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Research: TMT

Allied Minds — CEO steps down, now a board-led company

Allied Minds has announced that Joe Pignato has decided to step down as CEO and from the board with immediate effect. However, he will continue to support the company as CFO for an interim period as the board continues its search for a permanent CFO. As part of a streamlining process, Allied Minds will now become a board-led company with no immediate intention to appoint a new CEO. The chairman and NEDs (experienced VCs and private company investors) will represent Allied Minds on portfolio company boards (including Federated Wireless, BridgeComm and Spin Memory) with an intention to accelerate realisations where possible.

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TMT

Allied Minds

CEO steps down, now a board-led company

Change of directorate

Investment companies

19 January 2021

Price

29.28p

Market cap

£71m

Estimated parent cash (US$m) at
31 December 2020

20.4

Shares in issue

242.2m

Free float

91%

Code

ALM

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

Business description

Allied Minds is a technology investment company with a concentrated portfolio focused on early-stage spin-outs from US federal government laboratories and universities.

Analysts

Richard Williamson

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5700

Allied Minds is a research client of Edison Investment Research Limited

Allied Minds has announced that Joe Pignato has decided to step down as CEO and from the board with immediate effect. However, he will continue to support the company as CFO for an interim period as the board continues its search for a permanent CFO. As part of a streamlining process, Allied Minds will now become a board-led company with no immediate intention to appoint a new CEO. The chairman and NEDs (experienced VCs and private company investors) will represent Allied Minds on portfolio company boards (including Federated Wireless, BridgeComm and Spin Memory) with an intention to accelerate realisations where possible.

Period end

Portfolio fair value (US$m)

Parent-level net cash (US$m)

NAV
(US$m)

NAV/share
(p)

P/NAV
(x)

06/19*

266.1

31.3

297.3

100.2

0.29

12/19*

169.0

31.9

200.8

66.1

0.44

06/20*

175.3

22.7

197.9

62.7

0.47

12/20

182.9

20.4**

203.3

61.7

0.47

Note: NAV is based on our estimate of fair value, plus net cash at the parent level. *H119, FY19 and H120 net cash and NAV figures include post period-end adjustments. **Edison estimate.

With the progress made to date, together with the independent management teams at each of Allied Minds’ portfolio companies, the companies have the potential to deliver appropriate returns on exit if they continue to meet their planned technical and commercial goals. Given this, and with only seven companies remaining in the portfolio, of which three are consolidated, the board and management have determined that the most effective and efficient path forward is direct management of the portfolio by the board.

One of either the Chairman Harry Rein, Senior Independent Director Bruce Failing or Non-executive Director Mark Lerdal will join certain boards (including Federated Wireless, BridgeComm and Spin Memory) to provide strategic guidance and support in advancing the portfolio company towards a realisation event.

Allied Minds’ FY20 results are due on 25 March 2021, with the intention remaining for a capital markets day to be held in April.

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