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Thalassa Holdings (THAL)

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Monday 14 June, 2021

Thalassa Holdings

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      +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

 

 

 

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.

 

 

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