Allied Minds boosted as activist plots mass sale

SHARES in Allied Minds were soaring after activist investor Crystal Amber revealed it had built up a 4.2pc stake.

Allied Minds, which is also backed by fund manager Neil Woodford, invests in nascent technologies and helps to turn them into viable businesses.

But the company has been struggling in recent months. It revealed in April that cash levels had shrunk, and unveiled a strategy to pause investment in new ideas for a while.

The move to hunker down left some shareholders wondering what the point was in an investment firm which didn’t invest.

Crystal Amber will put a cat among the pigeons, however, as the Mail understands it plans to call a shareholder vote to oust all members of Allied Minds’ board.

It also wants to wind up the firm and sell its remaining assets, to help return cash to shareholders.

The four biggest businesses in Allied Minds’ portfolio include internet network company Federated Wireless, memory chip creator Spin Memory, satellite firm Hawkeye 360 and communications business Bridgesat.

Crystal Amber’s stake was worth around £6.5m last night, while Woodford – the largest shareholder with 27.4pc – has around £43m tied up in the company.

Allied Minds’ shareholders, as well as savers invested in Woodford’s funds, will be hoping that the company can sell its businesses at a decent price so they can pocket some cash. Shares were up 15pc, or 9.8p, at 75p.

Job recruiter Staffline looked in need of a helping hand itself, as its shares plummeted by 60.5pc, or 507p, to 331p. The company has a band of workers which it places in businesses with vacancies, many of which are temporary. Staffline’s clients range from Marks & Spencer to Hotel Chocolat.

But the recruiter said Brexit uncertainty was causing its clients to transfer many of their temporary positions to full-time roles.

Staffline is also still to publish its 2018 accounts as it tries to iron out issues relating to its compliance with the national minimum wage. This delay had caused a slowdown in new client contracts.

Profit is expected to come in between £23m and £28m for 2019. Analysts at Liberum had previously expected £43.5m. The Restaurant Group, which owns chains such as Wagamama and Frankie & Benny’s, managed to avoid a revolt at its shareholder meeting, even after appointing disgraced former banker Andy Hornby as boss.

Hornby is the former chief executive of reckless lender HBOS, which crashed in the financial crisis. The Financial Conduct Authority is still conducting an investigation into senior management at HBOS at the time of its demise. Shareholders did not have the opportunity to vote on his appointment, but 7pc objected to the re-appointment of chairman Debbie Hewitt.

Like-for-like sales at the group, which don’t take into account the effect of any new outlets or acquired businesses, were up 2.8pc in the 19 weeks to May 12.

But including the buyout of Wagamama at the end of last year, total sales soared 57pc. Shares dipped 0.8pc, or 1p, to 128.8p.

The FTSE 100 ended the week almost flat, down 0.1pc or 4.89 points at 7348.62.

Sterling slid to $1.273 on renewed concerns over Prime Minister Theresa May’s future, giving exporters like Burberry (up 2.5pc, or 44.5p, to 1852.5p) a boost.

The effects of a major fire in February at one of Ocado’s high-tech warehouses are still being felt. The online grocer said 400 jobs were at risk as it admitted it would take two years to rebuild the Hampshire warehouse. Shares slid 1.8pc, or 22.5p, to 1242.5p.