Preliminary Results for the year ended 31 Dec 20

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      [phone]

WH Ireland Limited (Financial Adviser) 

  Chris Fielding, Managing Director, Corporate Finance  [phone] 

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

		2020	2019
	Note	$	$
Continuing Operations
Revenue	3	55,855	170,357
Cost of sales		900	(276,001)
Gross profit / (loss)		56,755	(105,644)
Administrative expenses excluding exceptional costs		(3,131,073)	(3,332,632)
Exceptional administration costs	5	(77,603)	(898,878)
Total administrative expenses		(3,208,676)	(4,231,510)
Operating loss before depreciation		(3,151,921)	(4,337,154)
Depreciation	14	(47,771)	(26,308)
Impairment		-	(157,185)
Operating loss	4	(3,199,692)	(4,520,647)
Net financial income/(expense)	7	3,591,382	(640,117)
Other gains		1,160,300	-
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.

 

END

 

 

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