Edison Investment Research is terminating coverage on Photon Control (PHO), Allied Minds (ALM) and Bioasis Technologies (BTI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Previously published reports can still be accessed via our website.
Companies: Allied Minds PLC
Allied Minds’ FY20 results confirmed parent cash of US$22.3m, with revenues of US$0.5m (FY19: US$2.7m), mainly from one-off engineering and service contracts. There has been no further material news on portfolio developments, with FY21 funding rounds anticipated for Federated Wireless, BridgeComm, Spin Memory and Spark Insights. Given their short-term need for cash, we have elected to reduce the value of Spin Memory and Spark Insights to zero in our estimated NAV, so any funding news should be a
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 comp
In its strategic update, management highlighted robust commercial progress across the majority of Allied Minds’ portfolio in FY20 (notably at Federated Wireless, BridgeComm and Orbital Sidekick), expected to be reflected by multiple funding rounds in FY21. Spin Memory was the exception, where, although technical progress has been made, six to nine months of commercial progress was lost with the closure of its foundry due to COVID-19. Together with the unexpected loss of a government bid, managem
Allied Minds’ interim results showed progress at four of its seven portfolio companies – BridgeComm, Orbital Sidekick, Federated Wireless and Spin Memory – together c 95% of portfolio fair value. Despite progress, there was no uplift in fair value as top-up funding was committed at valuations established in 2018/19 funding rounds. This leaves latent value as, in order for deeptech companies progressing to plan, we would expect a doubling in valuation between funding rounds 12 to 18 months apart.
BridgeComm, Allied Minds’ third largest holding in which it holds a 63% fully diluted stake (81% pre-dilution), has announced a high-speed optical communications partnership with Nokia. The partnership will leverage BridgeComm's expertise in free-space optical technology and Nokia's portfolio of network equipment and services backed by Nokia Bell Labs, the industrial research arm of Nokia, to facilitate faster deployment of 5G networks. BridgeComm is held by Allied Minds at a fully diluted book
Allied Minds made significant progress in FY19, focusing on its slimmed down portfolio of seven investee companies, with strategic funding rounds for Federated Wireless (FW) and HawkEye 360, before the sale of HawkEye 360. Recurring central costs have been cut to $6m in FY20, with a headcount of seven. Post the period-end, FW announced partnerships with AWS and Microsoft Azure with initial revenues expected in FY20. Parent cash at 31 December 2019 was $84.1m. The company no longer discloses NAV,
Federated Wireless has completed a $13.7m Series C extension round to accelerate expansion of its connectivity-as-a-service partnership with Microsoft Azure and Amazon Web Services, first announced in February 2020. Pennant Investors, an existing investor, and Allied Minds each invested $6.85m to accelerate the roll-out of the leading private 4G/5G wireless cloud solution as well as to enable expansion of the spectrum controller for private wireless networks into the 6GHz band for 5G services. T
Allied Minds’ portfolio company Federated Wireless has announced new connectivity-as-a-service (CaaS) offerings with Microsoft Azure and Amazon Web Services. This brings to market the first private 4G/5G wireless cloud solution, offered as an end-to-end managed service. These parallel announcements herald a trial period, with initial commercialisation expected towards the end of FY20, but with meaningful revenues expected to build in subsequent years. Having only received FCC approval for initia
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) grant
H119 has been a period of real progress for Allied Minds, with strategic funding rounds for Federated Wireless and HawkEye 360 and the $65.6m sale of Allied Minds’ stake in HawkEye 360 to Advance. With the transaction subject to shareholder approval, 50% of the sale proceeds ($32.8m, c 11p/share) are expected to be returned to shareholders in Q419. Management expects HQ operational costs to reduce to c $7.5m for FY20. It has also taken the opportunity to rationalise the investment portfolio, wit
Allied Minds has announced the sale of its stake in HawkEye 360 for $65.6m to Advance Publications, a US family office. The transaction is expected to complete in Q419, subject to shareholder approval (shareholders representing 58% of shares have indicated they will vote in favour). HawkEye 360 announced its $70m Series B funding round in August 2019, backed by Airbus and Esri, at a pre-money valuation of $200m. The Advance offer has been struck at a c 13% discount to the fully diluted valuation
AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
Companies: DNL SYM ANCR SLN MOSB ALM GTC WKP MTPH
The Federated Wireless funding round comes hot on the heels of the Hawkeye360 fund-raise in August 2019. We estimate that the Federated Wireless round provides a further NAV uplift of $22m, equating to 4p per share (net of the $10m cash invested). Allied Minds has now delivered additional validation for two of its three principal portfolio companies, with 2019 funding rounds closed with strategic investors (in line with its June AGM statement), each offering material NAV uplifts. We calculate th
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Agronomics is an investment company focused on investing in the cellular agriculture sector. The sector is responding to global mega-trends driving increased demand for animal protein, which in turn could lead to negative environmental effects. Cultivated meat, for example, uses cell culture technology to grow cells in bioreactors producing differentiated cells (such as muscle and fat cells) that can be formed into consumer food products. These technologies have the promise of producing animal p
Companies: Agronomics Limited
Duke's H1/22A results give evidence that FY22E will be a record year, with a strong rebound from Covid-19 disruptions, with impressive YoY growth across all metrics. Having already completed all forecast deployments for FY22E, our forecasts are well underpinned and upgraded by +9% today. Comments of Duke having its healthiest ever pipeline with near-term deals likely, suggests further upgrades could be possible this year. If seen, any improvement in FCF p/s is likely to drive DPS uplifts, in add
Companies: Duke Royalty Limited
Companies: Oakley Capital Investments
Evidencing the strength of Belvoir’s long-term growth strategy and the very buoyant conditions in the UK housing market in 2021, the company has detailed that trading in the ten months to the end of October was ahead of expectations. Lettings income was up 21% and Housing Sales income up 65%, driving total Property gross profit up 29%. Financial Services gross profit increased 39%. We have upgraded FY 2021E EPS by 3%. While we maintain our view that next year will likely see more normal housing
Companies: Belvoir Group PLC
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide work
Companies: TGN AFC COIN COIN HL/ OMI
Following the recent release of MJ Hudson's (MJH) FY21A results, we update our FY22E forecasts (Adj EBITDA raised from £7.1m to £7.5m) and release new forecasts for FY23E (Adj EBITDA of £9.0m). Macro drivers remain highly favourable for MJH (eg increasing investment into alternatives, heightened focus on regulation and governance etc), which should support continued strong growth over the coming years (annual organic revenue growth expected to be in the mid-teens for each of FY22E and FY23E). Ou
Companies: MJ Hudson Group Plc
Liontrust has reported a strong, in line H1 performance (+93% adj. PBT) on continued organic growth including £2.1bn net inflows YTD, as well as a full period contribution from Architas. The H1 outturn has covered 47% of our FY adj. PBT estimate, which we leave unchanged. AuM has continued to grow: +2.2% to £36.5bn in Q3 so far – momentum has been sustained. We think the valuation is not challenging given the outlook for growth. We set a 2450p 12m Target Price (18x FY23e PER) and a BUY recommend
Companies: Liontrust Asset Management PLC
Companies: NewRiver REIT plc
Liontrust has announced the acquisition of Majedie – developing further scale (£42bn+ proforma AuM). Consideration is up to £120m; initially £80m in shares – equating to 1.4% EV/AuM and 9x EV/EBITDA post-cost synergies. It also diversifies Liontrust into the institutional channel without creating risk to existing economics, whilst also creating a distribution opportunity for Liontrust into the institutional space and Majedie into the UK intermediary space. We update our forecasts for the acquisi
Caracal Gold (GCAT LN) has signed two agreements to acquire assets in Tanzania, amongst the Northern Greenstone belts, which are host to numerous multi- million-ounce deposits, as part of the growth strategy to secure 50kozpa of production and over 2mnoz in compliant resources. The acquisition of development and advanced exploration assets sees the company rapidly realising its ambitious stated aims. The Nyakafuru project was advanced by Resolute Mining (RSGR LN) between 1992 to 2017 while the n
Companies: Caracal Gold PLC
Avation is a lessor of 42 commercial aircraft to a diversified airline client base. This morning, the group has provided an update to coincide with its AGM, that illustrates the further progress made and wider developments in the first five months of the current financial year. The group presently has three ex-Virgin Australia ATR 72-600 aircraft subject to a sale agreement with Aegean Airlines, three further ATR 72-600 aircraft that may be sold or leased and an A320 due to transition from Air F
Companies: Avation PLC
We have published research on TMT Investments recent News flow, which is attached and a snapshot of the research is below.
The venture capital company investing in high-growth technology companies has seen its share price fall some 23% to US$7.25 over the last week, against a backdrop of weak global equity markets, concerns over the emergence of the Omicron Covid-19 variant and signs of tightening monetary policy. However, since the publication of HY June 2021 results on 18 Augus
Companies: TMT Investments
Marlowe has released a strong set of H1/22E results, with 15% organic revenue growth (or 8% if you adjust for the impact of Covid-19 on prior year comps), divisional Adj EBITDA margins up 300bps YoY to 17.8%, Marlowe's high-margin GRC division accounting for over half of H1/22E group Adj EBITDA. Boosted by recent acquisitions and organic growth, Marlowe's high-margin GRC division now accounts for more than half of the group's total Adj EBITDA. Management recently confirmed it was trading ahead
Companies: Marlowe Plc
Today's news & views, plus announcements from BGK, SSPG, SUR, INCE, RQIH & GHS.
Companies: SUR RQIH INCE