REG - Thalassa Holdings - Preliminary Results

Thalassa HoldingsAnnouncement

06/02/2019 14:15

RNS Number : 2738P
Thalassa Holdings Limited
06 February 2019
 


This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
 
Thalassa Holdings Ltd
(Reuters: THAL.L, Bloomberg: THAL:LN)
("Thalassa", "THAL" or the "Company")
Preliminary Results for the Year ended 31 December 2018
 
HIGHLIGHTS
 
Group Results 2018 versus 2017
 
•    Revenue                                                                                        $0.003m vs. $nil
•    Gross Profit/(Loss)                                                                        ($0.106m) vs. ($0.034m)
•    Operating Profit/(Loss) before depreciation (EBITDA)                  ($4.5m) vs. ($1.6m)
•    Gain on disposal of WGP Assets                                                  $13.4m vs. N/A
•    Net Profit/(Loss) for the year                                                         $7.16m vs.$1.38m
•    Group Earnings Per Share (basic and diluted)*1                          $0.38/£0.30 vs. $0.06/£0.05
•    Book value / NAV per share*2                                                       $1.708/£1.340 vs. $1.29/£0.93
•    Cash                                                                                              $17.4m vs. $8.1m
•    Debt                                                                                              $nil vs.$ nil
 
          YE 2018 Forex £/$ 1:1.2747
           *1 based on weighted average number of shares in issue of 2018: 18,915,341 (2017: 21,882,648)
*2 based on actual number of shares in issue as at 31 December 2018 17,852,275 and 31 December 2017 of 19,812,640 and Net Assets of 30,486,133 as at 31 December 2018 and 25,629,730 as at 31 December 2017
 
 
2018 HIGHLIGHTS
 
WGP
·     Asset Sale of WGP Group Ltd ("WGP") completed 1 January 2018
·     Initial payments in respect of earn out of $1.2m received
·     Final payment of $4.8m of initial contract earn out due by 11 September 2019
·     Prospect of a further earn out payment associated with award of second specific contract to WGP "highly probable" as equipment currently being built for Client is also earmarked for second major new Oil Field, which has received funding approval, and which is scheduled to enter production 2022/2023. Ocean bed cable contract has been awarded and work on FPSO has also commenced.
 
LSR
·     Possible offer for The Local Shopping REIT plc ("LSR") announced on 9 January 2019
·     Firm intention to make an offer in accordance with Rule 2.7 of the Code no later than 5.00pm on 6 February 2019
 
ARL
·     Proof of concept of the Autonomous Robotics Ltd ("ARL") 'Flying Node' system has progressed during 2018
·     Once proof of concept is completed the number one priority will be in securing external funding for the full development programme
·     Defence industry Board Advisers were appointed in 2018 and various opportunities are being reviewed.
 
Investor Enquiries: 
Thalassa Holdings Ltd 
   Duncan Soukup, Chairman                                                 +33 (0)6 78 63 26 89
WH Ireland Limited (Financial Adviser) 
   Chris Fielding, Managing Director, Corporate Finance       +44 (0)207 220 1650 
www.thalassaholdingsltd.com  
Note to Editors:
Thalassa Holdings Ltd, incorporated and registered in the BVI, is a holding company with various interests across a number of industries.  
 
The Company's LEI number is 2138002739WFQPLBEQ42.
 
Chairman's Statement to the Preliminary Results
 
On 1 January 2019 the sale of WGP Group's Assets was completed. Subsequently, THAL received an initial payment of $1.2m relating to the performance related earn out. The remaining $4.8m under this agreement is due by 11 September 2019.
 
In the event that WGP secures a second specific contract, THAL stands to receive a further earn out payment of $4m. The THAL Board is confident that, subject to relatively stable oil price around the $50/$60 per bbl and no project development delays, that WGP should be awarded this contract within the 5-Year time limit agreed with the buyer, which expires 1 January 2023.
 
THAL is now well positioned for life after WGP and the oil industry and has started to implement the strategy laid out in the Company's 2018 Interim Report, released 17 September 2018.
 
I am happy with the relative and absolute NAV per share growth that we have achieved in both an incredibly difficult macro and micro economic environment over the past 10 years and look forward to reporting more fully in our Statutory Accounts, which we anticipate will be published on or before 6 March 2019.
 
The THAL Board also wishes to advise the market that the preference shares issued on 30 September 2018 and announced on 4 October 2018, will be cancelled upon successful completion of the LSR offer.
 
 
 
 
 
http://www.rns-pdf.londonstockexchange.com/rns/2738P_1-2019-2-6.pdf
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF INCOME
for the year ended 31 December 2018
 
 
 
 




 


 


2018


2017




 


$


$




Continuing Operations


 


 


 




Revenue


 


3,188


-




Cost of sales


 


(109,027)


(34,643)




Gross profit/(loss)


 


(105,839)


(34,643)




Administrative expenses


 


(4,428,743)


(1,532,021)




Operating profit/(loss) before depreciation


 


(4,534,582)


(1,566,664)




Depreciation


 


(41,919)


(101,067)




Operating profit/(loss)


 


(4,576,501)


(1,667,731)




Net financial income/(expense)


 


470,050


(576,295)




Share of profits less losses of associated entities


 


(2,353,182)


(284,000)




(Loss)/Profit before taxation


 


(6,459,633)


(2,528,026)




Taxation


 


201,143


28,007




(Loss)/Profit for the year from continuing operations


 


(6,258,490)


(2,500,019)




 


 


 


 




Discontinued Operations


 


 


 




Profit/(Loss) for the year from discontinued operations


 


-


3,884,519




Gain on disposal of WGP assets


 


13,419,475


-




 


 


 


 




Profit for the year


 


7,160,985


1,384,500




 


 


 


 




Earnings per share - US$ (using weighted average number of shares)


 


 


 




Basic and Diluted - Continuing Operations


 


(0.33)


(0.12)




Basic and Diluted - Discontinued Operations


 


0.71


0.18




Basic and Diluted


 


0.38


0.06




 
 
 
 
 
 

 

CONSOLIDATED STATEMENT OF   

COMPREHENSIVE INCOME
for the year ended 31 December 2018
 
 
 




 


2018


2017




$


$




Profit/(loss) for the financial year


7,160,985


1,384,500




Other comprehensive income:


 


 




Exchange differences on re-translating foreign operations


(23,784)


(6,106)




Unrealised (losses)/gains on AFS Securities


-


(132,631)




Total comprehensive income


7,137,201


1,245,763




 


CONSOLIDATED STATEMENT OF 

FINANCIAL POSITION
as at 31 December 2018
 
 
 
 




 


 


2018


2017




 


$


$




Assets


 


 


 




Non-current  assets


 


 


 




Property, plant and equipment


 


16,803


55,084




Available for sale financial assets


 


787,518


740,691




Loans


 


1,645,260


1,596,695




Investments in associated entities


 


6,727,670


9,065,888




Assets Held for Sale


 


-


10,155,525




Total non-current assets


 


9,177,251


21,613,883




 


 


 


 




Current assets


 




Trade and other receivables


 


6,095,202


1,440,962




Cash and cash equivalents


 


17,370,372


8,091,288




Total current assets


 


23,465,574


9,532,250




 


 


 


 




Liabilities


 




Current liabilities


 


 


 




Trade and other payables


 


2,156,692


5,516,403




Total current liabilities


 


2,156,692


5,516,403




 


 


 


 




Net current assets


 


21,308,882


4,015,847




 


 


 


 




Net assets


 


30,486,133


25,629,730




 


 


 


 




Shareholders' Equity


 




Share capital


 


255,675


255,675




Share premium


 


45,512,281


45,416,298




Treasury shares


 


(7,337,959)


(5,057,161)




Other reserves


 


(342,677)


(248,426)




Retained earnings


 


(7,601,187)


(14,736,656)




Total shareholders' equity


 


30,486,133


25,629,730




 


 


 


 




Total equity


 


30,486,133


25,629,730






CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2018
 
 




 


 


2018


2017




 


$


$




Cash flows from operating activities


 


 


 




Profit/Loss for the year before taxation


 


6,959,842


(2,528,026)




(Increase)/decrease in trade and other receivables


 


(185,789)


507,026




(Decrease)/increase in trade and other payables


 


(3,359,713)


631,260




Gain on disposal of PPE


 


(13,419,475)


-




Net foreign exchange gain


 


(23,784)


(6,106)




Accrued interest income


 


(48,565)


(47,131)




Taxation


 


201,143


28,007




Share of losses of associate


 


2,338,218


284,000




Fair value movement on AFS financial assets


 


(25,512)


-




Cash generated by operations


 


(7,563,635)


(1,130,970)




Depreciation


 


41,919


101,067




Net cash flow from operating activities


 


(7,521,716)


(1,029,903)




Net cash flow from discontinued operations


 


-


5,259,547




 


 


 


 




Purchase of property, plant and equipment


 


(3,638)


(40,642)




Purchase of AFS financial assets


 


(21,312)


(47,300)




Investments in associated entities


 


-


(712,916)




Net cash flow in investing activities - continuing operations


 


(24,950)


(800,858)




 


 


 


 




Proceeds from the disposal of WGP assets


 


19,106,548


-




Purchase of property, plant and equipment


 


-


(189,093)




Net cash flow from / (used) in investing activities - discontinued operations


19,106,548


(189,093)




 


 


 


 




Cash flows from financing activities


 


 


 




(Purchase)/disposal of treasury shares


 


(2,280,798)


(3,099,107)




Issue of new shares


 


-


218,487




Net cash flow from financing activities - continuing operations


 


(2,280,798)


(2,880,620)




 


 


 


 




Net increase/(decrease) in cash and cash equivalents


 


9,279,084


359,073




Cash and cash equivalents at the start of the year


 


8,091,288


7,732,215




Cash and cash equivalents at the end of the year


 


17,370,372


8,091,288





 

CONSOLIDATED STATEMENT OF CHANGES  IN 

EQUITY
for the year ended 31 December 2018
 
 




 


 


 


 


 


 


Total




 


Share


Share


Treasury


Other


Retained


Shareholders




 


Capital


Premium


Shares


Reserves


Earnings


Equity




 


$


$


$


$


$


$




 


 


 


 


 


 


 




Balance as at

31 December 2016


250,675


45,202,810


(1,958,054)


(109,689)


(16,121,162)


27,264,580




Issue of new shares


5,000


213,488


-


-


-


218,488




Purchase of treasury shares


-


-


(3,099,107)


-


-


(3,099,107)




Total comprehensive income for the period


-


-


-


(138,737)


1,384,506


1,245,769




Balance as at

31 December 2017


255,675


45,416,298


(5,057,161)


(248,426)


(14,736,656)


25,629,730




Purchase of treasury shares


-


-


(2,280,798)


-


-


(2,280,798)




Total comprehensive income for the period


-


-


-


(23,784)


7,160,985


7,137,201




Balance as at

31 December 2018


255,675


45,416,298


(7,337,959)


(272,210)


(7,575,671)


30,486,133




 
 
 
Accounting policies
 
The Group prepares its accounts in accordance with applicable International Financial Reporting Standards ("IFRS") as adopted by the EU.
The accounting policies applied in this Preliminary Statement of results are the same as those applied by the Company in its consolidated financial statements as at and for the year ended 31 December 2017 except that the Available for sale financial assets are included at fair value through profit and loss account on adoption of IFRS 9 on 1 January 2018.
 
 
 
 




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END
 
 
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