LONDON (Alliance News) - Intellectual property commercialization company Allied Minds PLC on Thursday reported a large swing to finance income from a loss previously, due to a change in accounting methods.
In the six months ended June, Allied Minds swung to finance income of USD4.3 million from a USD58.2 million loss the year before.
The company said the increase reflects USD48.5 million from IFRS 9 fair value accounting, which Allied Minds adopted at the beginning of 2018.
The investment company said the change was primarily from adjustments in its Spin Transfer, SciFluor and Precision Biopsy portfolio holdings.
As a result, Allied Minds swung to total pretax income of USD4.3 million from a comprehensive loss of GBP58.2 million a year before.
Allied Mind's revenue increased 5% to USD2.1 million from USD2.0 million.
The increase was attributed to new contracts from Federated Wireless, offset in part by lower revenue from HawkEye360.
At the close of the period, Allied Minds total portfolio value was USD350.1 million, down from USD395.6 million at its last report. The company said the decrease stems from the reductions in value of Spin Transfer, SciFluor and Precision Biopsy.
The overall value was partially offset by the increase in value in both HawkEye360 and BridgeSat, as both had financing rounds in the period.
President and Chief Executive Officer Jill Smith said: "During the period we secured financing for HawkEye360 and BridgeSat with first rate strategic co-investors. These financings come with valuable broader partnerships and provide strong external validation, as well as substantial technical, distribution, network and other advantages. Following the successful financing of Federated Wireless in September last year, and with a strategic-led Series B round at STT pending, we expect our top four technology companies to have strong strategic co-investors.
"HawkEye360, Federated Wireless and STT are poised for commercialisation in 2019. Against this, Precision Biopsy and SciFluor have delayed the commencement of the next phase of their clinical trials by several months. We continue to focus on strengthening management and boards where appropriate, and have added several new executives, directors and advisors. Finally, we made investments in three companies, including one that was created by Allied Minds. All leverage and build on our core advantages, particularly in our focus areas in emerging space and connectivity."
Shares in Allied Minds were down 1.3% Thursday at 74.00 pence each.
