One of Neil Woodford's biggest investments is providing some reassurance to investors with a half year update.
Allied Minds (ALM) shares edged up in early trading after reporting good progress in the first six months of the year, but have since fallen back to where they started at 161p.
The star fund manager has a 20.7% stake in the technology commercialisation company - the second largest shareholder behind his previous firm Invesco Asset Management - which was rocked earlier this year after it was forced to cut funding in seven of its subsidiaries. The firm's share price plunged almost 40% as nervous investors fled.
At the time Woodford said the price drop was just 'short-term noise' and that he remained a strong supporter of the business. He may now be vindicated in his views as with new chief executive, Jill Smith, in place the business has made good progress since its turmoil in March.
Allied Minds invested $22.4m into its portfolio companies in the first six months of the year and completed fundraising rounds for two of its subsidiaries: satellite technology outfit HawkEye 360 and big data business BridgeSat. Both companies have now secured initial customer agreements and are on track to have initial services operational next year.
Allied reports revenues of $2m in the six months to 30 June, up from $1.3m in the same period last year. However, its half year loss widened to $58.2m, from $52.2m a year ago. The restructuring costs of stopping operations at seven subsidiaries were $8.4m.
Smith says the group has set out clear goals to tighten up its capital allocation discipline, including a move to thematic investing and strengthening the governance and leadership of its portfolio companies.
The group says it is confident of its ability to accelerate the pace of new investments and commercialisation of its subsidiaries.
Analysts at Numis have a 'hold' rating on the stock. The broker says good progress has been made by the newly strengthened team. It adds: 'Importantly, clear goals have been set for each of the top six companies, for which progress is constantly monitored and a full update on each has been provided.'
The group's portfolio has been valued at $417m, with the value of its top six companies rising to $371m from $358m.
