Allied Minds profit rises on higher investment values

Allied Minds' annual profit rose as the value of its technology investments increased.

Net profit for the year to the end of December rose to $50.3m (£40m) from $45.4m a year earlier. The Boston-based company said the result reflected $41.2m of net fair value gains on investments, $69.8m from the deconsolidation of Federated Wireless and a $29.8m loss from split-off entities.

The technology investor said its net cash and investments fell to $90.6m from $97.7m with $84.1m held at the parent level. The company, a former favourite of fallen star investor Neil Woodford, paid a $40m special dividend in February after selling its HawkEye 360 satellite business.

Joseph Pignato, Allied Minds' chief executive, said: ""The sale of our stake in HawkEye 360 clearly demonstrates the value in our portfolio. Our focus remains on supporting our existing investments through to meaningful commercialisation and generating value for shareholders.

"This has been a transformational year for the business. We have made significant progress in delivering our re-focused strategy, we optimised our cost base, right-sized the business, restructured the Board and delivered substantial value for shareholders."

Pignato took over as CEO in June 2019 as Woodford cut his stake in the company to raise cash. Pignato has said Allied Minds would focus on its existing portfolio of investments after shareholder criticism of its performance. The company's shares have plunged from more than £4 in March 2017 to 37.32p, down 7.6%, at 12:27 BST.