The IP firm widened its losses from $52.2m the year prior to $58.2m, after a tumultous start to 2017 prompted a major restructuring initiative.
The vast majority of that loss ($44.6m) was attributable to Allied Minds, not its portfolio companies. The parent company was responsible for a loss of $41.2m during the first half of 2016.
Revenue for the period was $2.0m, up from $1.3m the year prior.
The FTSE 250 IP firm has endured a rough 2017 in which its share price halved in the span of two months and it lost its CEO company co-founder Chris Silva, who stepped down in March.
Year-to-date, its share price has lost over 66% of its value, plunging from £4.70 per share early January to its current £1.62p per share.
Since Allied Minds’ share price woes, Woodford has increased his holding in the Boston IP firm, overtaking Barnett’s Invesco Perpetual-led UK equity team as the dominant shareholder.
The two heavyweight managers remain the largest shareholders in Allied Minds, with Woodford owning 65.94 million shares or a 27.76% stake in the company, followed by Invesco Asset Management’s 52.25m shares (22.00% stake).
Although, Allied Minds has been one of the largest detractors from the performance of Woodford’s flagship equity income fund so far this year, he said he remained “committed to the Allied Minds investment case” and claimed the market “overreacted” to March and April’s downbeat announcements.
Following the disarray at the IP firm, new president and CEO Jill Smith announced the group would be undergoing a major restructuring effort and ditching seven of its subsidiaries.
In Thursday’s update Smith confirmed that process has “been substantially completed” but had cost the company $8.4m, including $4.7m of non-cash charges for various inventory write-offs.
However, Smith said the measures being undertaken to “enhance focus and capital allocation discipline” were working and the firm was “accelerating the pace of new investments.”
She said: “We have set out clear goals for the group with the aim of sharpening capital allocation discipline, including: transitioning to thematic investing; securing earlier and broader syndication of investment partnerships for our portfolio companies where we see scope to validate and accelerate the path to commercialisation; and strengthening the governance and leadership of our portfolio companies.”
Smith added that its management buyout goals for its top six companies were progressing nicely and shareholders should expect “further achievements” for the remainder of the year.
Allied Minds’ shares bounced around as markets digested its update, falling to a low of £1.50p before settling at £1.58p by mid-morning.
