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Going still tough for Allied Minds

The IP specialist is back into the black on a statutory basis but sentiment remains negative
October 3, 2018

Allied Minds (ALM), an IP commercialisation company, reported finance income of $4.3m (£3.3m) from a $58.2m loss due to a change in accounting methods. The company said the change was primarily from adjustments in its Spin Transfer, SciFluor and Precision Biopsy portfolio holdings. Revenues were on the rise during the half-year on the back of contracts for Federated Wireless, offset in part by lower revenue from HawkEye360. Performance has been aided by thematic investing, focusing on creating businesses based on "theses and leveraged relationships with targeted research institutions".

IC TIP: Buy at 69.5p

President and chief executive Jill Smith said: "HawkEye360, Federated Wireless and STT are poised for commercialisation in 2019. Against this, Precision Biopsy and SciFluor have delayed the commencement of the next phase of their clinical trials by several months". At the close of the period, Allied Minds total portfolio value was $350m, down from $396m million at its last report, with the decrease stemming from the reductions in value of Spin Transfer, SciFluor and Precision Biopsy.

ALLIED MINDS (ALM)   
ORD PRICE:69.5pMARKET VALUE:£ 167m
TOUCH:68.6-69.6p12-MONTH HIGH:190pLOW: 68p
DIVIDEND YIELD:NILPE RATIO:NA
NET ASSET VALUE:27¢NET CASH:$132m
Half-year to 30 JunTurnover ($m)Pre-tax profit ($m)Earnings per share (¢)Dividend per share (¢)
20171.98-58.2-19.0nil
20182.064.3-5.0nil
% change+4---
Ex-div:na   
Payment:na   
£1=$1.30