Fresh from announcing its biggest transaction in several years, Neil Woodford-backed, Boston-headquartered technology investor Allied Minds (ALM) is out with its first set of results since Joseph Pignato and Michael Turner took over in early June.
The co-CEOs' effect on half-year numbers – which show a further drop in cash and cash equivalents from $98m (£79m) to $57m in the six months to 30 June – is therefore limited. But the post-period revaluation and subsequent announced sale of HawkEye 360, the satellite analytics group Allied founded in 2015, shows the IP commercialisation group is not yet down and out.
There was no extra detail on the 11p-a-share windfall that investors have been promised from the $65.5m disposal. But a much-needed bump to balance sheet liquidity, further aided by the decision to focus only on existing investments, means the rate of cash burn has probably arrested – even if efforts to reduce annual operating costs to $5m-$6m are likely to fall slightly short.
Whether further cash realisations can soon be expected remains the million-dollar question. If management is keen to capitalised on momentum, the most likely stakes for disposal are spectrum technology outfit Federated Wireless, currently valued at $72m, or semiconductor innovator Spin Memory, worth $58m following a fundraising that closed in April.
Consensus forecasts are for a loss of 25¢ a share in 2019, narrowing to a loss of 14¢ in 2020.
| ALLIED MINDS (ALM) | ||||
| ORD PRICE: | 55.5p | MARKET VALUE: | £134m | |
| TOUCH: | 55-55.5p | 12-MONTH HIGH: | 89p | LOW: 37p |
| DIVIDEND YIELD: | nil | PE RATIO: | 3 | |
| NET ASSET VALUE: | 46¢ | NET CASH: | $56.8m | |
| Half-year to 31 Jul | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2018 | 2.1 | 4.3 | -5 | nil |
| 2019 | 1.5 | 2.5 | 1.0 | nil |
| % change | -26 | -40 | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.25 | ||||
