Allied Minds will focus on funding existing companies after exiting the red to bank a $47.3m net profit for 2018.
Commercialisation firm Allied Minds is to concentrate on equipping its existing portfolio with capital after swinging to a $47.3m net profit for 2018 from a $111m deficit the previous year.
Allied Minds will halt new investments in favour of spending an estimated $50.6m at its current investees. It believes the budget provides enough headroom for it to take part in substantial follow-on rounds.
Allied Minds’ new and existing portfolio businesses together generated $84.9m of funding in 2018, $76.9m of which was raised by three Allied Minds-backed businesses – Virginia Tech satellite data analytics company HawkEye 360, New York University computer memory technology spinout Spin Memory and satellite communication technology developer BridgeSat.
However, the firm’s net cash and funding availability shrank to $97.7m from $169.1m year-on-year as it was frustrated by development delays at some of its life science businesses.
Allied Minds is in the process of shaving its annual costs to between $5m and $6m from approximately $13.6m spent during 2018.
The firm entered the black in spite of the tightening cash outlook after registering a $92.9m fair value accounting gain and freeing up $45.4m from the deconsolidation of its HawkEye 360 and Spin Memory investments.
Allied Minds also increased its turnover by 12% year-on-year during the reporting period, generating $5.6m in revenue against $5m in 2017. The firm’s selling, general and administrative expenses fell by an annual 11% to $49.3m, while its R&D outlay contracted 8.4% year-on-year to $44.9m, according to Morning Star.
