Experimental feature

Listen to this article

Experimental feature

There was little respite for Allied Minds shareholders on Thursday morning, as shares in the IP commercialisation group dropped below their IPO price after losing more than a quarter of their value yesterday.

Shares in the group dropped 29 per cent on Wednesday after the Boston-based company said it would take a $146.6m writedown on the value of seven of its businesses.

At publication time they were down another 8.1 per cent, to 170p, below the 190p level at which they joined the stock exchange in 2014.

However, some analysts are confident that the worst may now be over for the group after interim chief executive Jill Smith’s swift action to clean up the company’s portfolio.

Phil Dobbin, analyst at Jefferies – which downgraded its rating on Allied Minds to underperform just last week – increased its recommendation back to “hold”. Mr Dobson said:

[The] new CEO has taken less than a month to cull the weaker companies in the portfolio. This makes sense and should allow the results meeting and future to be focused on validating and realising value from the remainder.

Mr Dobbin said the portfolio changes “happened more quickly and broadly than we expected, but we see this $147m hit as decisive rather than panicked”.

Get alerts on Allied Minds PLC when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.

Comments have not been enabled for this article.

Follow the topics in this article