Mindflair reports NAV and profit surge, strong portfolio gains in FY24

Mindflair (MFAI) Follow | MFAI, an AI-focused tech investment firm, announced its final results for the year ended December 31, 2024 (FY24). Mindflair's net asset value jumped by 85% to £10.79m from £5.84m last year. The group swung to a £3.16m profit from a £2.67m loss in FY23.

The surge in NAV yielded a NAV/share of 2.05p/share, compared to an year-end share price of 0.6p and a current share price of 0.95p. Despite the substantial increase in share price over the past 7 months, MFAI is still trading at a significant discount to NAV.

Mindflair raised £925k in July 2024 and a further £490k in December 2024, alongside the issue of new shares in relation to the reprofiling of 2-year loan notes amounting to £1.24m.

In terms of the portfolio, the main highlight was the disposal of Landvault to Infinite Reality in July 2024 for US$450m in shares. Six investments were made during the period in AI-focused companies through Sure Valley Ventures' SVV2 venture capital fund. A further 2 investments were made through the new SVV3 fund in Inspeq AI and Jentic AI.

Sure Valley Ventures (SVV) is now 23.8% owned by Mindflair after the latter increased its stake in SVV in August 2024 to boost indirect exposure to the AI and ML companies held by the SVV funds.

Post-period end, the standout event was the disposal of Getvisibility in April 2025, yielding c. £2.6m in proceeds and a £0.54m profit on MFAI's direct holding through the SVV1 fund. This was a significant inflow compared to MFAI's current market cap of £5.0m.

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An excellent set of 2024 results by Mindflair, marked by an 85% increase in NAV, bringing NAV/share to 2.05p. At a current share price of 0.95p, Mindflair is trading at a 54% discount to NAV, presenting an attractive opportunity for growth investors. The company swung to a substantial £3.16m profit during the period from a £2.67m loss in FY23.

The surge in NAV and profit were driven by the growth of Mindflair's SVV investments, primarily the increase in the value of Infinite Reality. Mindflair strategically increased its stake in Sure Valley Ventures from 18% to 23.8% in August 2024, boosting its exposure to the SVV funds and further benefiting from the sale of Landvault to Infinite Reality in an US$450m all-share deal and subsequent boost to the latter's valuation. In January 2025, Infinite Reality raised US$3bn in new equity and was valued at US$12bn.

Additionally in April 2025, Mindflair successfully exited one of its major investments, Getvisibility, generating substantial proceeds of £2.6m and profit of £0.54m on just MFAI's direct investment through SVV1. The disposal represented a return of 6.0x on the total investment made into the company directly and 4.5x on the investment made by SVV1. Part of the cash was used to repay existing debt. Post-period end, the SVV funds continued to invest in exciting AI companies, including Inephany, Capably, Momentum AI, and Literal Labs.

We maintain that MFAI is undervalued, given the scope for material valuation uplift of the companies within its portfolio, evidenced by the abovementioned realisations and continued increase in NAV and profit. Continued projected growth of the AI sector, and progress reported so far across the SVV1, SVV2 and SVV3 funds through which MFAI invests, have bolstered confidence in the company's portfolio.

Investors should note that realisations achieved within Mindflair's SVV portfolio generally result in cash distributions to the company and are not retained within the fund. MFAI bolstered its balance sheet during the period with two placements yielding a combined £1.42m. The company is now debt free with a significant cash balance to deploy and further cash inflows expected in the coming months from more realisations.

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