REG-Alina Holdings PLC Alina Holdings PLC: Interim Results for the period ended 30 June 2022
02/08/2022 07:15
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Alina Holdings PLC (ALNA)
Alina Holdings PLC: Interim Results for the period ended 30 June 2022
02-Aug-2022 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
in accordance with the Market Abuse Regulation (MAR), transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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Highlights for the 6 months ended 30 June 2022
GROUP RESULTS 1H 2022 versus 1H 2021
Group Net Profit / (Loss) for the period (£0.33m) vs. (£0.08m)
Group Earnings / (Loss) Per Share (both basic and (1.44p) vs. (0.36p)
diluted)*1
Reported Book value per share*2 £0.26 vs. £0.28
Net Cash £1.1m vs. £2.9m
Investment Holdings £2.7m vs. £1.1m
*1 based on weighted average number of shares in issue of 22,697,397 (1H21:
22,697,397)
*2 based on actual number of shares in issue as at 30 June 2022 of 22,697,397
Chairman’s Statement
Trading update
The Company's hedging strategy served its purpose and partially protected
ALNA shareholders during the first half of 2022, thereby reducing the impact
of mark-to-market declines in the Companies quoted holdings. Both of the
Company’s two largest holdings Dolphin Capital Investors (DCI LN) and HEIQ
(HEIQ LN) traded lower, like many small cap. company shares, on lack of
interest, rather than on concerted selling.
Macro Background
Global Technology stock took the full brunt of the 2022 correction on the
chin, which has seen Cathie Woods’ ARK Innovation ETF give back virtually all
its ~383% gain and which is now down ~74% since peaking in December 2021.
Many of ARK’s investments had no earnings or were trading on triple digit p/e
multiples. Many of the major stock market indices have performed badly but
not as badly as the investment vehicles with substantial exposure to “Story
Stocks”. At the time of writing, the Dow Jones Index is down Year to Date
(“YTD”) 15.29%, the S&P 500 is down 51% and the NASDAQ Index is down 29.19%.
whilst European Indices are down YTD between ~7% and ~22%.
Macro Outlook
Your Board is not convinced by the Markets recent rally, but take the view
that there is another leg down in US and EU (incl. UK) Stock prices, which
will be driven by research analysts reducing their overly optimistic
earnings estimates for 2022, 2023 and 2024.
Analysts surveyed by Bloomberg are still estimating that S&P 500 earnings
will increase from current level of 199.67 to 235.78, an increase of 18.08%,
in 2022, by +5.22% in 2023, and by +9.02% in 2024. Given the fact that
inflation is currently running at record levels, and our view that Central
Bankers may well tighten too much, just as Western economic activity slows,
we believe that analysts will rapidly start to reduce their 2022 Q3 and Q4,
as well as 2023 and 2024, earnings estimates when they get back from their
summer holidays.
Operations
Real Estate
We continue to actively manage the Company’s realestate assets and a number
of properties will be put up for sale in the second half of the year. In
respect of the Hastings and Bristol properties, the Board has actioned a
refurbishment and capital expenditure plan, which we believe will enhance
both the yield and potential sale value of both properties.
Holdings
1. Dolphin Capital Investors Ltd (DCI LN)
1 https://www.dolphinci.com/?doing_wp_cron=1658743513.1735150814056396484375
ALNA currently owns ~3.2% of DCI, which is focused on the development of
luxury leisure properties in the Eastern Mediteranean Greece, Cyprus and
Croatia).
The company has had a torrid life and is currently trying to wind down its
realesate portfolio and return capital to shareholders. DCI’s most recently
released (July 2022) fact sheet indicates that the current NAV of the company
stands at 12p/share versus a market price of 3.15p (at the time of writing).
Clearly the new Board are struggling to convince the market that the
liquidation of the company’s assets will return stated NAV!. Your Board has
discounted the Company’s stated NAV by 33%, and estimate NAV to be ±8p, which
if achieved would result in excess of a 100% ROI.
2. HEIQ plc (HEIQ LN)
2 https://www.heiq.com/investors/
ALNA currently owns ~0.68% of HeiQ is an IP creator and established global
brand in materials and textile innovation, adding hygiene, comfort,
protection and sustainability to the products we use every day.
HeiQ has a core chemical business, which in 2021 generated Revenues of $57.9m
and EBITDA of $6.5m.
HeiQ has a pipeline of innovative and potentially disruptive products such
as:
HEIQ AeoniQ, an innovative high-performance cellulose filament yarn that has
for the first time in textiles the potential to replace polyester and nylon.
Made from waste, recycled or reactor grown cellulosic biopolymers that bind
carbon (CO2) from the atmosphere.For every ton of polyester substituted by
HeiQ AeoniQ, up to +5 tons of CO2 can be reduced.
As of February 2022, only four months after we announced the project, AeoniQ
had on-boarded two global brands, The LYCRA Company and HUGO BOSS, with total
financial commitments (subject to milestone achievements) exceeding US$10m.
HeiQ GrapheneX, a highly porous graphene membrane electronics, batteries and
beyond.
Graphene is an atomically-thin, two-dimensional layer of carbon with unique
properties, including exceptionally high strength, high conductivity,
non-permeability, flexibility and chemical inertness. Permeable membrane
materials are a critical feature in diverse filtration and separation
applications that are essential to society and the environment. Membrane
performance is determined by material strength, minimal permeation
resistance to the substances being filtered and separated, and other material
properties such as conductivity and wettability. HeiQ aims to create an
ultra-thin, extra-strong, fully-permeable and conductive porous graphene
membrane material for use in applications such as batteries and filtration
that enable positive global impact in resource efficiency, health and
sustainability.
Conclusion
We remain cautious on the macro-economic outlook, and do not believe it is
safe to get back into the water yet. Having said that, we continue to
research and find potentially interesting businesses at increasingly
appealing vauations as investor interest dwindles with the increasing
expectation of recession.
Duncan Soukup
Chairman
Thalassa Holdings Ltd
1 August 2022
Responsibility Statement
We confirm that to the best of our knowledge:
a. the condensed set of financial statements has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ and gives a true and fair view
of the assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation as a whole as
required by DTR 4.2.4 R;
b. the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the year); and
c. the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties’ transactions and
changes therein).
Cautionary statement
This Interim Management Report (IMR) has been prepared solely to provide
additional information to shareholders to assess the Company’s strategies and
the potential for those strategies to succeed. The IMR should not be relied
on by any other party or for any other purpose.
Duncan Soukup
Chairman
Thalassa Holdings Ltd
1 August 2022
Interim Condensed Consolidated Statement of Income
For the six months ended 30 June 2022
Six months Six months Year
ended ended ended
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Gross rental income 196 218 437
Property operating expenses (158) (72) (136)
Net rental income 38 146 301
Profit/(loss) from change in fair value of (441) 125 -
investment holdings
Administrative expenses including (297) (245) (540)
non-recurring items
Operating loss before net financing (700) 26 (239)
costs
Depreciation (2) (2) (3)
Financing income* 405 54 23
Financing expenses* (30) (160) (75)
Loss before tax (327) (82) (294)
Taxation - - -
Profit/(loss) for the year from (327) (82) (294)
continuing operations
Attributable to:
Equity shareholders of the parent (327) (82) (294)
(327) (82) (294)
Earnings per share - GBP- pence (using
weighted average number of shares)
Basic and Diluted 3 (1.44) (0.36) (1.30)
The notes on pages 13 to 16 form an integral part of this consolidated
interim financial information.
Interim Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Six months Six months Year
ended ended ended
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) for the financial year (327) (82) (294)
Total comprehensive income (327) (82) (294)
Attributable to:
Equity shareholders of the parent (327) (82) (294)
Total Comprehensive income (327) (82) (294)
The notes on pages 13 to 16 form an integral part of this consolidated
interim financial information.
Interim Condensed Consolidated Statement of Financial Position
As at 30 June 2022
As at As at As at
30 Jun 22 30 Jun 21 31 Dec 21
Note Unaudited Unaudited Audited
Assets £'000 £'000 £'000
Non-current assets
Investment properties 4 2,782 2,786 2,784
Total non-current assets 2,782 2,786 2,784
Current assets
Trade and other receivables 495 466 255
Investment holdings 5 2,680 1,082 1,819
Investment properties held for sale - 330 330
Cash and cash equivalents 1,129 2,920 1,767
Total current assets 4,304 4,798 4,171
Total assets 7,086 7,584 6,955
Liabilities
Current liabilities
Trade and other payables 856 815 398
Total current liabilities 856 815 398
Finance lease liabilities 6 324 324 324
Total non-current liabilities 324 324 324
Total liabilities 1,180 1,139 722
Net assets 5,906 6,445 6,233
Shareholders’ Equity
Share capital 10 319 319 319
Capital redemption reserve 598 598 598
Retained earnings 4,989 5,528 5,316
Total shareholders' equity 5,906 6,445 6,233
Total equity 5,906 6,445 6,233
The notes on pages 13 to 16 form an integral part of this consolidated
interim financial information.
These financial statements were approved by the board on 1 August 2022.
Signed on behalf of the board by:
Duncan Soukup
Interim Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
As at As at As at
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Profit/(Loss) for the period before taxation (702) (82) (239)
(Profit)/Loss from change in fair value of - - 26
head leases
Net financing loss/(income) - 117 (3)
Decrease/(Increase) in trade and other 90 (83) (27)
receivables
(Decrease)/Increase in trade and other 458 92 (168)
payables
Gain/(loss) on foreign exchange 144 (95) (44)
Lease liability interest (11) (11) (22)
Depreciation 2 2 -
Interest paid (17) - (6)
Profit from change in fair value of (17) (125) (4)
investments held for sale
Cash generated by operations (53) (185) (487)
Taxation - - -
Net cash flow from operating activities (53) (185) (487)
Purchase of holdings (3,592) (957) (1,993)
Sale of holdings 2,566 - 200
Unrealised Gain or (Loss) on holdings 441 - -
Net cash flow in investing activities (585) (957) (1,793)
Cash flows from financing activities
(Increase)/reduction on head lease - (11) (26)
liabilities
Net cash flow from financing activities - (11) (26)
Net increase(decrease) in cash and cash (638) (1,153) (2,306)
equivalents
Cash and cash equivalents at the start of the 1,767 4,073 4,073
year
Cash and cash equivalents at the end of the 1,129 2,920 1,767
year
The notes on pages 13 to 16 form an integral part of this consolidated
interim financial information.
Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2022
Attributable to owners of the Company
Capital
Share redemption Retained
Capital reserve Earnings Total
£'000 £'000 £'000 £'000
Balance as at 31 December 2020 319 598 5,610 6,527
Loss for Period - - (82) (82)
Balance as at 30 June 2021 319 598 5,528 6,445
Total comprehensive income for - - (212) (212)
the year
Balance as at 31 December 2021 319 598 5,316 6,233
Loss for Period - - (327) (327)
Balance as at 30 June 2022 319 598 4,989 5,906
The notes on pages 13 to 16 form an integral part of this consolidated
interim financial information.
Notes to the Interim Condensed Consolidated Financial Information
1. General information
Alina Holdings PLC (“Alina” or the “Company”) is a company registered on the
Main Market of the London Stock Exchange.
2. Significant Accounting policies
The Group prepares its accounts in accordance with applicable UK Adopted
International Accounting Standards (IFRSs).
The accounting policies applied by the Company in this unaudited consolidated
interim financial information are the same as those applied by the Company in
its consolidated financial statements as at and for the period ended 31
December 2021 except as detailed below.
The financial information has been prepared under the historical cost
convention, as modified by the accounting standard for financial instruments
at fair value.
Estimates
There are no changes to the estimates since last reporting period.
Segmental reporting
IFRS 8 requires operating segments to be identified on the basis of internal
reports that are regularly reported to the chief operating decision maker to
allocate resources to the segments and to assess their performance. Since the
strategy review in July 2013 the Group has identified one operation and one
reporting segment, being rental income in the UK, which is reported to the
Board of directors on a quarterly basis. The Board of directors is considered
to be the chief operating decision maker.
2.1. Basis of preparation
The condensed consolidated interim financial information for the six months
ended 30 June 2022 has been prepared in accordance with International
Accounting Standard No. 34, ‘Interim Financial Reporting’. They do not
include all of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial statements
of the Company as at and for the year ended 31 December 2021.
These condensed interim financial statements for the six months ended 30 June
2022 and 30 June 2021 are unaudited and do not constitute full accounts. The
comparative figures for the period ended 31 December 2021 are extracted from
the 2021 audited financial statements. The independent auditor’s report on
the 2021 financial statements was not qualified.
All intra-group transactions, balances, income and expenses are eliminated in
full on consolidation.
2.2. Going concern
The financial information has been prepared on the going concern basis as
management consider that the Group has sufficient cash to fund its current
commitments for the foreseeable future.
3. Earnings per share
Six months Six months Year
ended ended ended
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
The calculation of earnings per share is
based on the following loss and number of
shares:
Profit/(loss) for the period (£'000) (327) (82) (294)
Weighted average number of shares of the 22,697 22,697 22,697
Company ('000)
Earnings per share:
Basic and Diluted (GBP - pence) (1.44) (0.36) (1.30)
Number of shares outstanding at the period 22,697,397 22,697,397 22,697,397
end:
4. Investment Properties
Freehold Leasehold
Investment Investment
Properties Properties Total
£000 £000 £000
At 31 December 2020 40 2,722 2,762
Fair value adjustment - head leases - 26 26
Depreciation - head leases - (2) (2)
At 30 June 2021 40 2,746 2,786
Fair value adjustment - head leases - (1) (1)
Depreciation - head leases - (1) (1)
At 31 December 2021 40 2,744 2,784
Fair value adjustment - head leases - - -
Depreciation - head leases - (2) (2)
At 30 June 2022 40 2,742 2,782
The six property assets held at 30 September 2020 were valued at that date by
Allsop LLP. Two of the larger assets were subject to full RICS valuations,
including site inspections, with the remainder subject to desktop updates of
their previous carrying values. In view of the market uncertainty and the
operational restrictions arising from the COVID-19 outbreak, the directors
did not consider it appropriate to carry out a fresh valuation of the
property portfolio at the half-year. The six properties contained in the
portfolio were therefore continued to be recognised in the financial
statements at their holding value in the Company’s accounts at 30 September
2020. One property was considered to be held for sale and its holding value
in the Company’s accounts therefore took account of agreed pricing and sales
costs. There were no sales during the period.
The Directors are pleased to announce the completion of sale of the Westcliff
property held for sale as at 31 December 2020 and 2021, which was agreed
under the previous board in 2019 and has taken this reporting period to
finalise.
The Directors have concluded that they will be maintaining the valuation of
the property portfolio at previous levels. The Board is also of the opinion
that the carrying values, based on the "Red Book" valuation, do not reflect
the real value of the properties.
The Company's objective is still to liquidate the current portfolio of
shopping assets which currently show a Gross Initial Yield of more than 16%,
but only if a sale can achieve a sensible return in excess of the year end
2021 carrying value of £2.45m.
The Directors obtained pricing and yields of similar transactions made within
the accounting period to December 2021 and compared them to the Gross Initial
Yield stated above. In all cases the transactions that were measured came in
at a lower value than that currently being achieved. As stated, although the
data is below the Yield being achieved it was felt prudent to leave the
valuations as they stand.
The outbreak of the Coronavirus (COVID-19), declared by the World Health
Organization as a “Global Pandemic” on 11 March 2020, has impacted global
financial markets and global economy. Despite the easing of restrictions, the
future impact that COVID-19 might have on the real estate market gives that
less certainty should be attached to the valuation than would normally be the
case. A reconciliation of the portfolio valuation at 30 June 2022 to the
total value for investment properties given in the Consolidated Balance Sheet
is as follows:
As at As at As at
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
£000 £000 £000
Portfolio valuation 2,445 2,775 2,775
Investment Properties held for sale - (330) (330)
Head leases treated as investment properties 337 341 339
per IFRS 16
Total per Balance Sheet 2,782 2,786 2,784
5. Investment Holdings
The Group classifies the following financial assets at fair value through
profit or loss (FVPL):-
Equity investments that are held for trading
As at As at As at
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
£000 £000 £000
Securities investments
At the beginning of the period 1,783 - -
Additions 2,844 957 1,957
Unrealised gain/(losses) (169) 125 23
Disposals (2,566) - (197)
1,892 1,082 1,783
Investment Holdings
Securities held 1,892 1,082 1,783
Portfolio Holdings 788 - 36
2,680 1,082 1,819
Investments have been valued incorporating Level 1 inputs in accordance with
IFRS7. They are a combination of cash and securities held with the listed
broker.
Financial instruments require classification of fair value as determined by
reference to the source of inputs used to derive the fair value. This
classification uses the following three-level hierarchy:
Level 1 — quoted prices (unadjusted) in active markets for identical assets
or liabilities;
Level 2 — inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices);
Level 3 — inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
6. Lease liabilities
Finance lease liabilities on head rents are Minimum
payable as follows: Lease
Payment Interest Principal
£000 £000 £000
At 30 June 2021 3,040 (2,694) 346
Movement in value (11) 11 -
At 31 December 2021 3,029 (2,683) 346
Movement in value (11) 11 -
At 30 June 2022 3,018 (2,672) 346
Short term liabilities 22 - 22
Long term liabilities 3,018 (2,694) 324
At 30 June 2021 3,040 (2,694) 346
Short term liabilities 22 - 22
Long term liabilities 3,007 (2,683) 324
At 31 December 2021 3,029 (2,683) 346
Short term liabilities 22 - 22
Long term liabilities 3,007 (2,683) 324
At 30 June 2022 3,029 (2,683) 346
In the above table, interest represents the difference between the carrying
amount and the contractual liability/cash flow. All leases expire in more
than five years.
7. Related party balances and transactions
As at the period end the Group owed £49,303 (December 2021: £nil, June 2021:
£139,599) to Thalassa Holdings Limited (“Thalassa”), a company under common
directorship. The balance relates to accounting and registered office
services supplied to the Group by Thalassa at cost. The total amount is
treated as an unsecured, interest free loan made repayable on demand.
During the period the Group was invoiced £88,887 (December 2021: £158,401,
June 2021: £77,598) for consultancy and administrative services provided to
the Group by a company in which the Chairman has a beneficial interest. The
balance owed by the Group at the period end date was £88,887 (December 2021:
nil, June 2021: £77,598)
8. Share capital
As at As at As at
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
£ £ £
Allotted, issued and fully paid:
22,697,397 ordinary shares of £0.01 each 226,970 226,970 226,970
9,164,017 treasury shares of £0.01 each 91,640 91,640 91,640
Total Share Capital 318,610 318,610 318,610
During the year to 30 September 2019, the Company underwent a Court approved
restructure of capital and buy back of shares. Under this action the issued
20p shares were converted to 1p; capital reserves were transferred to
distributable reserves; 59,808,456 shares were repurchased, and a new Capital
Redemption Reserve of £0.598m was established.
Investment in Own Shares
At the year-end, 9,164,017 shares were held in treasury (June 2021:
9,164,017), and at the date of this report 9,164,017 were held in treasury.
9. Subsequent events
There were no subsequent events.
10. Copies of the Interim Report
The interim report is available on the Company’s website:
www.alina-holdings.com.
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ISIN: GB00B1VS7G47
Category Code: IR
TIDM: ALNA
LEI Code: 213800SOAIB9JVCV4D57
OAM Categories: 1.2. Half yearly financial reports and audit
reports/limited reviews
Sequence No.: 178537
EQS News ID: 1410705
End of Announcement EQS News Service
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