RNS Number : 7166B
Thalassa Holdings Limited
14 June 2021
Thalassa Holdings Limited
14 June 2021
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 2020
2020 HIGHLIGHTS
Group Results 2020 versus 2019 US$
• Group Profit /(loss) after tax for the year $0.9m vs. $(3.0)m
Continuing Operations
• Operating Loss before exceptional costs & depreciation $(3.1)m vs. $(3.4)m
• Operating Loss before depreciation (EBITDA) $(3.2)m vs. $(4.3)m
• Group Profit/(Loss) from continuing operations $1.7m vs. $(3.5)m
Discontinued Operations
• Group Profit/(Loss) from discontinued operations $(0.87)m vs. $0.5m
• Group Earnings Per Share (basic and diluted)*1 $0.06/£0.05 vs. $(0.18)/£(0.14)
• Book value per share*2 $1.97/£1.51 vs. $1.69/£1.28
• Investment Holdings $7.6m vs. $1.7m
• Net Cash $5.0m vs. $18.2m*3
• Shares repurchased (Number & Value) 3.6m ($2.1m) vs. 1.6m ($1.1m)
*1 based on weighted average number of shares in issue of 14,139,629 (2019: 17,143,300) and £1 = $1.29 (2019: £1 = $1.28)
*2 based on actual number of shares in issue as at 31 December 2020 of 7,945,838 (2019: 16,242,283)
and £1 = $1.36 (2019: £1 = $1.32)
*3 Cash reduced as a result of Capital Distribution
2020 HIGHLIGHTS
• LSR
Capital distribution to THAL shareholders of the Company's position in Alina Holdings PLC (formerly The Local Shopping REIT Plc ("LSR"))
• Autonomous Robotics Limited
Won a grant funded award from the Oil & Gas Technology Centre ("OGTC") to progress the development of the Company's Flying Node. The project is sponsored by two global energy companies from France and Norway.
Recruited three robotics software engineers to accelerate the development of the node software
Member of a consortium which was accepted onto a new MOD multi supplier framework agreement. Partners are two multi-billion-dollar defence contractors, one US, the other Israeli.
• id4 AG
id4 awarded Winner of Best Compliance Solution Award at the prestigious "WealthBriefing Swiss Awards 2020". Commercial software solution now being rolled out with successful contract announcements
• Tappit Technologies (UK) Limited
A £3m investment completed in Tappit Technologies (UK) Ltd, an events-based cashless payment system.
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.
CHAIRMAN'S STATEMENT
2020 an Annus Horribilis.
2020 was a serious reminder, especially for any advocates of big Government, why less is more. From China through India to Europe and the USA the recurring stories of failed Politically-led medical response to the COVID-19 virus and the resultant spend "whatever it takes" monetary policy response is a glaringly stark reminder why the World is better off with less not more Government intervention.
To make matters worse, if that was possible, 2020 also reminded us why Political leaders shouldn't actually be running soup kitchens. How arrogant does someone have to be to convince themselves, with disastrous consequences, that they knew more about medicine than the medical practitioners advising them. Global lockdowns and re-openings followed by further lockdowns brought travel chaos; mass business failures were only avoided due to Central Bank intervention as Interest rates were driven down to 0% and, in some cases, into negative territory, whilst money printing became the preferred drug of every Central Banker. And now, a year later Europe is only slowly progressing towards mass vaccination and economic recovery.
The consequences of unprecedented monetary intervention are still unknown, but as is already becoming clear from indicated changes to US and UK Fiscal policies, taxes will have to increase to pay the Piper. Whilst the USA appears to be 'normalising', Europe is still struggling to formulate either a unified medical or economic response to the COVID Pandemic.
Notwithstanding the above, somewhat critical assessment of the World's response to the COVID Pandemic, Stock markets are at or around all-time highs, driven by a limited number of "story stocks", long on rhetoric but short or devoid of earnings!
And to cap it all, market commentary would have us believe that it really is different this time and that infinite multiples, on stocks with minimal-, or in some cases, no earnings, are justified when interest rates are at or around 0%. I fear that US tech investors in the "it's different this time" camp will soon be subjected to a very rude lesson and reminder that what Mr Market giveth, he can also take away, in the blink of an eye, as interest rates rise in response to increasing inflation.
Operational update
Whilst 2019, was, from Thalassa's point of view, a period of immense hard work with very little reportable news. 2020 was not only busy but constructive in that we were able to capitalise on the collapse in stock prices between January and April 2020 which resulted in booking substantial gains on our hedge positions for the year. Whilst we were actively hedging, to protect the Company from the fallout from COVID-19, we were busy managing our current holdings and investing in a number of new situations:
Autonomous Robotics Ltd Proof of Concept completed. Discussions with potential commercial development partners at advanced stage but with no guaranty of successful completion. Focus on commercialisation of Node system and fundraising for production of shallow water system.
Apeiron Holdings AG The Company's subsidiary id4, a Swiss RegTech Software developer has now completed Phase 2 development of its SAAS software and has begun securing initial contracts whilst simultaneously expanding current relationships with initial clients.
Anemoi International Ltd London listing (on the Standard List) completed and now actively looking for an RTO target.
WGP The Company stands to earn a further $4 million if a second specific contract is awarded before 1 January 2023. Unfortunately, the project has been delayed due to welding failures during construction of the client's new Floating Production Storage and Offloading vessel ("FPSO") currently being built in Singapore. The new oil field should have commenced production in 2022; this has now been pushed out to 2023. Our contract expires in January 2023. It is still likely that seismic work will commence before production is due to commence in Q3 2023, however it is too early to get a feel for the revised timetable.
Alina Holdings Plc (formerly The Local Shopping REIT Plc.) In November 2020 Alina successfully relisted on the London Stock Exchange as an operating company in the Leisure sector. Management are reviewing a number of opportunities in the European market, however, given the resurgence in COVID-19 related cases and renewed lockdowns in France and Germany may well have a significant negative impact on summer tourism this year, it is unlikely that Management of Alina will be in a big hurry to complete an early transaction given the overhang of opportunities currently available in the market.
Miscellaneous Holdings As previously reported, Thalassa went into the January/March 2020 market collapse well positioned and benefited substantially from the ~30% fall in Global stock prices and were able to extend those gains through the second half of the year.
2021 Outlook Continued Central Bank intervention, coupled with President Biden's recently announced $2.25 Trillion infrastructure spending plan have substantially changed our view on Stock Market Risk, particularly in the USA. If, and in our view, it is a big if, the infrastructure spending plan is approved by both Congress and the Senate, it is likely to only do so after significant horse trading and compromise. In our opinion, the euphoric response to the President's spending plan leaves little or no room for disappointment and leaves the US (Tech) Market wide open to disappointment.
Share buy-back. As previously announced, the Company's share buy-back programme has been suspended in order to conserve cash.
I would like to thank the Company's staff who continue to work tirelessly in these difficult times.
Duncan Soukup
Chairman
8 June 2021
CONSOLIDATED STATEMENT OF INCOME
for the year ended 31 December 2020
Share of profits less (losses) of associated entities
24
-
(629,523)
Profits on disposal of associated entities
-
2,000,978
Profit/(loss) before taxation
1,551,990
(3,789,309)
Taxation
8
109,303
253,065
Profit/(loss) for the year from continuing operations
1,661,293
(3,536,244)
Discontinued Operations
Profit/(loss) for the year from discontinued operations
25
(868,303)
478,046
Gain on disposal of subsidiary
25
121,891
-
Profit/(loss) for the year
914,881
(3,058,198)
Attributable to:
Equity shareholders of the parent
765,725
(3,028,479)
Non-controlling interest
149,156
(29,719)
914,881
(3,058,198)
Earnings per share - US$ (using weighted average number of shares)
Basic and Diluted - Continuing Operations
0.13
(0.20)
Basic and Diluted - Discontinued Operations
(0.06)
0.03
Basic and Diluted
9
0.06
(0.18)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2020
2020
2019
$
$
Profit for the financial year
914,881
(3,058,198)
Other comprehensive income:
Exchange differences on re-translating foreign operations
(332,954)
578,281
Total comprehensive income
581,927
(2,479,917)
Attributable to:
Equity shareholders of the parent
432,771
(2,450,198)
Non-Controlling interest
149,156
(29,719)
Total Comprehensive income
581,927
(2,479,917)
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
as at 31 December 2020
2020
2019
Note
$
$
Assets
Non-current assets
Goodwill
11
204,724
204,724
Intangible assets
11
948,739
173,466
Investment properties
13
-
4,138,318
Property, plant and equipment
12
418,656
75,455
Available for sale financial assets
14
1,934,068
4,801,450
Loans
15
7,606,077
1,695,302
Total non-current assets
11,112,264
11,088,715
Assets Held for Sale
-
435,383
Current assets
Trade and other receivables
16
680,443
1,432,031
Cash and cash equivalents
9,712,779
24,198,744
Total current assets
10,393,222
25,630,775
Liabilities
Current liabilities
Trade and other payables
17
1,044,721
1,685,491
Borrowings
18
4,706,981
7,557,243
Total current liabilities
5,751,702
9,242,734
Net current assets
4,641,520
16,388,041
Non-current liabilities
Long term debt
18
39,331
510,965
Total non-current liabilities
39,331
510,965
Net assets
15,714,453
27,401,174
Shareholders' Equity
Share capital
21
208,522
255,675
Share premium
36,714,225
45,416,298
Treasury shares
21
(11,414,289)
(8,690,465)
Other reserves
106,245
439,199
Non-Controlling Interest
(166,925)
628,673
Retained earnings
(9,733,325)
(10,648,206)
Total shareholders' equity
15,714,453
27,401,174
Total equity
15,714,453
27,401,174
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2020
Notes
2020
2019
$
$
Cash flows from operating activities
Profit/(Loss) for the year before taxation
(3,199,699)
(3,789,309)
Impairment losses on goodwill
-
157,185
(Increase)/decrease in trade and other receivables
123,388
5,956,290
(Decrease)/increase in trade and other payables
78,171
(896,649)
Loss/(gain) on disposal of PPE
-
2,686
Gain/(loss) on disposal of AFS investments
1,907,391
(23,484)
Net exchange differences
1,379,321
(287,533)
Accrued interest income
-
(50,042)
Depreciation
12
47,771
26,308
Share of losses of associate/gain on disposal
(701,165)
(1,371,455)
Fair value movement on AFS financial assets
1,290,219
224,307
Cash generated by operations
925,397
(51,696)
Taxation
109,303
132,663
Net cash flow from operating activities
1,034,700
80,967
Net cash flow from discontinued operations
(563,302)
-
Sale/(purchase) of property, plant and equipment
(390,971)
(15,181)
Sale/(purchase) of intangible assets
(775,273)
(173,466)
Sale/(purchase) of investment property
3,725,261
293,521
Net (purchase)/sale of AFS financial assets
(2,608,009)
(4,214,755)
Investments in subsidiaries
(8,150,392)
4,450,049
Net cash flow in investing activities - continuing operations
(8,199,384)
340,168
Payment/proceeds from the Norwegian tax settlement of WGP group
-
(346,296)
Proceeds from disposal of Alina Holdings PLC
121,891
Net cash flow from / (used) in investing activities - discontinued operations
121,891
(346,296)
Cash flows from financing activities
Purchase of treasury shares
(2,723,824)
(1,352,506)
Leasing Liabilities
39,331
-
Proceeds from borrowings
212,344
23,649,036
Repayment of borrowings
(3,007,076)
(16,128,792)
Net cash flow from financing activities - continuing operations
(5,479,225)
6,167,738
Net cash flow from financing activities - discontinued operations
(468,856)
-
Net increase in cash and cash equivalents
(13,554,176)
6,242,577
Cash and cash equivalents at the start of the year
24,198,744
17,370,372
Effects of exchange rate changes on cash and cash equivalents
(931,790)
585,795
Cash and cash equivalents at the end of the year
9,712,778
24,198,744
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
for the year ended 31 December 2020
Attributable
to owners
of the Company
Non-
Total
Share
Share
Treasury
Other
Retained
controlling
Shareholders
Capital
Premium
Shares
Reserves
Earnings
Total
Interest
Equity
$
$
$
$
$
$
$
$
Balance as at 31 December 2018
255,675
45,416,298
(7,337,959)
(139,082)
(7,708,799)
30,486,133
-
30,486,133
Purchase of treasury shares
-
-
(1,352,506)
-
-
(1,352,506)
-
(1,352,506)
Acquisition of subsidiary with NCI
-
89,072
89,072
658,392
747,464
Total comprehensive income for the period
-
-
-
578,281
(3,028,479)
(2,450,198)
(29,719)
(2,479,917)
Balance as at 31 December 2019
255,675
45,416,298
(8,690,465)
439,199
(10,648,206)
26,772,501
628,673
27,401,174
Redemption of Capital
(47,153)
(8,702,073)
-
-
-
(8,749,226)
-
(8,749,226)
Purchase of treasury shares
-
-
(2,723,824)
-
-
(2,723,824)
-
(2,723,824)
Disposal of subsidiary with NCI
149,156
149,156
(944,754)
(795,598)
Total comprehensive income for the period
-
-
-
(332,954)
765,725
432,771
149,156
581,927
Balance as at 31 December 2020
208,522
36,714,225
(11,414,289)
106,245
(9,733,325)
15,881,378
(166,925)
15,714,453
ACCOUNTING POLICIES
The Group prepares its accounts in accordance with applicable International Financial Reporting Standards ("IFRS") as adopted by the European Union.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR KXLFFFQLZBBE
