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Share Name Share Symbol Market Type Share ISIN Share Description
Thalassa Holdings Limited LSE:THAL London Ordinary Share VGG878801031 ORD SHS USD0.01 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 52.50 51.00 54.00 52.50 52.50 52.50 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil Equipment Services & Distribution 0.1 -2.9 -12.8 - 9

Thalassa Holdings Limited Preliminary Results for the year ended 31 Dec 2019

26/06/2020 7:00am

UK Regulatory (RNS & others)


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TIDMTHAL

RNS Number : 1410R

Thalassa Holdings Limited

26 June 2020

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 2019

HIGHLIGHTS

 
Group Results 2019 versus 2018                              US$ 
---- Group (Loss) / Profit after tax for 
 the year                                                   $(3.0)m vs. $7.0m 
Continuing Operations 
---- Operating Loss before exceptional 
 costs & depreciation                                       $(3.4)m vs. $(4.5)m 
---- Operating Loss before depreciation 
 (EBITDA)                                                   $(4.3)m vs. $(4.5)m 
---- Group Loss from continuing operations                  $(3.5)m vs. $(6.4)m 
Discontinued Operations 
---- Group Profit from discontinued operations              $0.5m vs. $13.4m 
---- Group Earnings Per Share (basic and                    $(0.18)/GBP(0.14) vs. 
 diluted) *1                                                 $0.37/GBP0.28 
---- Book value per share *2                                $1.69/GBP1.28 vs. $1.71/GBP1.34 
----                     Cash                               $24.2m vs. $17.4m 
----                     Debt                               $ 8.0m vs. $ nil 
 

*1 based on weighted average number of shares in issue of 17,143,300 (2018: 18,919,049) and GBP1 = $1.28 (2018: GBP1 = $1.33)

*2 based on actual number of shares in issue as at 31 December 2019 of 16,242,283 (2018: 17,852,275) and GBP1 = $1.32

(2018: GBP1 = $1.27)

2019 HIGHLIGHTS

   ----      WGP 

September 2019, received second earn-out payment of $4.8m related to disposal of WGP.

Prospect of a further $4m earn-out payment associated with award of second specific contract to WGP.

Expected award and payment 2021/2022 not yet included in receivables.

   ----      LSR 

Thalassa's investment in The Local Shopping REIT plc ("LSR") increased to 92.62% as a result of LSR's Tender Offer which completed on 4 October 2019.

   ----      ARL 

Completed Proof of Concept of Flying Node

Attendance at EAGE in June 2019

Presented at the Defence & Security Equipment International show ("DSEI") in September 2019 on the Royal Navy stand as part of their NavyX initiative

Late-stage contract negotiations underway with potential strategic partners for both Commercial and Defence development programs

   ----      id4 

Completed acquisition in Dec 2019 of id4 AG, a Swiss fintech company specialising in Client Life Cycle Management systems.

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.

ECONOMIC BACKGROUND

S&P 500 1929 vs 2020

http://www.rns-pdf.londonstockexchange.com/rns/1410R_1-2020-6-25.pdf

Recommended reading for those who believe history doesn't repeat itself...

http://www.rns-pdf.londonstockexchange.com/rns/1410R_1-2020-6-25.pdf

Throughout history, rich and poor countries alike have been lending, borrowing, crashing-and recovering-their way through an extraordinary range of financial crises. Each time, the experts have chimed, "this time is different"-claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. With this breakthrough study, leading economists Carmen Reinhart and Kenneth Rogoff definitively prove them wrong. Covering sixty-six countries across five continents, This Time Is Different presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes-from medieval currency debasements to today's subprime catastrophe. Carmen Reinhart and Kenneth Rogoff, leading economists whose work has been influential in the policy debate concerning the current financial crisis, provocatively argue that financial combustions are universal rites of passage for emerging and established market nations. The authors draw important lessons from history to show us how much-or how little-we have learned.

Using clear, sharp analysis and comprehensive data, Reinhart and Rogoff document that financial fallouts occur in clusters and strike with surprisingly consistent frequency, duration, and ferocity. They examine the patterns of currency crashes, high and hyperinflation, and government defaults on international and domestic debts-as well as the cycles in housing and equity prices, capital flows, unemployment, and government revenues around these crises. While countries do weather their financial storms, Reinhart and Rogoff prove that short memories make it all too easy for crises to recur.

An important book that will affect policy discussions for a long time to come, This Time Is Different exposes centuries of financial missteps.

CHAIRMAN'S STATEMENT

Given the impact of Coronavirus on Global Commerce, a discussion of 2019 results appears more than somewhat irrelevant. Nonetheless, I am obliged to comment on past events and, somehow, peer into a crystal ball or divine some tarot cards and advise shareholders as to the Company's future. Given that I have neither a crystal ball nor a pack of tarot cards, this exercise should be interesting, if not equally irrelevant.

2019, was from Thalassa's point of view a period of immense hard work with very little reportable news. Having said that it was also a year of substantial progress on all fronts:

Autonomous Robotics Ltd (ARL) completed Proof of Concept of its Flying Node and has commenced negotiations with a number of major corporations with regard to commercial and defence collaborations.

Apeiron completed the acquisition of id4, which, as announced in February 2020, won a Swiss FinTech award for its software and has commenced sales whilst it completes the final phase of software development.

Anemoi due to a combination of market and Covid-19 related circumstances the listing process is progressing more slowly than anticipated. Since the year end we have set up Anemoi International, a BVI registered company, and will update further as the situation evolves.

WGP , as previously reported, Thalassa received the second payment of the initial performance related earn-out in the amount of $4.8m. The total amount of the initial earn out in the amount of $6m has now been received. The Company stands to earn a further $4 million if a second specific contract is awarded before 1 January 2023. We anticipated that this contract could be awarded in 2021.

Local Shopping REIT Plc (LSR) , as reported, the LSR board are currently working on a plan to transfer the Company to the Standard List and change the Company's investment objectives from a Real Estate Investment Trust to an operating company focused on Travel and Leisure, subject to necessary approvals. Further details will be announced in due course.

Miscellaneous Holdings Thalassa went into the market collapse well positioned and benefited substantially from the 30% fall in Global stock prices. Unfortunately, we have given some of these gains back along with the rapid recovery in US stock prices, notwithstanding the huge rise in global unemployment and, in our opinion, inevitable collapse in demand which is likely to last far longer than the current recovery appears to reflect.

Gitone After the year end we announced in January 2020 that Thalassa had entered into a loan contract with Gitone Beteiligungsverwaltungs GmbH (Gitone) to lend e11 million through two tranches of e5.5m. Gitone is a company established in Croatia for the purpose of purchasing shares in Liburnia Riviera Hoteli d.d. and other hospitality investments. The first tranche of EUR5.5m was paid in January 2020, and as announced 20 May 2020 the terms of the contract were renegotiated and the loan reduced to EUR5.5m.

Share buy-back The Company's share buy-back programme has been suspended in order to conserve cash during the current economic turmoil; at the time of writing the Company has repurchased a total of ca.9.325 million shares at an average price of 69.97 pence per share for an aggregate amount of ca. GBP6.5 million. Under the current buy-back authority of 5 March 2019 the Company has GBP5.05 million of facility left.

Covid-19 In the Board's opinion, a smooth Global economic recovery from the impact of Covid-19 is unlikely. The Directors have considered a number of potential downside scenarios and taken steps to minimise any impact on the Group. Actions have been taken across all Group companies to reduce our outgoings where possible.

The Group has fully assessed its financial commitments and as at the time of writing has net cash of $10.5m plus a further $5.5m of available for sale investments. We are confident that the Company can mitigate any potential impact from Covid-19 and can deploy its capital profitably.

I would like to thank the Company's staff who continue to work tirelessly in these difficult times.

Duncan Soukup

Chairman

26 June 2020

CONSOLIDATED STATEMENT OF INCOME

for the year ended 31 December 2019

 
                                                           2019         2018 
                                                              $            $ 
Continuing Operations 
Revenue                                                 170,357        3,188 
 
Cost of sales                                         (276,001)      (109,027) 
 
Gross profit / (loss)                                 (105,644)      (105,839) 
 
Administrative expenses excluding exceptional 
 costs                                              (3,332,632)    (4,428,743) 
 
Exceptional administration costs                      (898,878)            - 
 
Total administrative expenses                       (4,231,510)    (4,428,743) 
 
Operating loss before depreciation                  (4,337,154)    (4,534,582) 
 
Depreciation                                           (26,308)       (41,919) 
 
Impairment                                            (157,185)            - 
 
Operating loss                                      (4,520,647)    (4,576,501) 
 
Net financial income/(expense)                        (640,117)      470,050 
 
Share of losses of associated entities                (629,523)    (2,353,182) 
 
Profits on disposal of associated entities            2,000,978            - 
 
Loss before taxation                                (3,789,309)    (6,459,633) 
 
Taxation                                                253,065       68,015 
 
Loss for the year from continuing operations        (3,536,244)    (6,391,618) 
 
Discontinued Operations 
 
Profit for the year from discontinued operations        478,046            - 
 
Gain on disposal of WGP assets                                -   13,419,475 
 
(Loss) / Profit for the year                        (3,058,198)    7,027,857 
 
Attributable to: 
Equity shareholders of the parent                   (3,028,479)    7,027,857 
Non-controlling interest                               (29,719)            - 
 
                                                    (3,058,198)    7,027,857 
 
Earnings per share - US$ (using weighted 
 average number of shares) 
Basic and Diluted - Continuing Operations                (0.20)         (0.34) 
Basic and Diluted - Discontinued Operations                0.03         0.71 
 
Basic and Diluted                                        (0.18)         0.37 
 
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2019

 
                                                2019       2018 
                                                   $          $ 
Profit for the financial year            (3,058,198)  7,027,857 
Other comprehensive income: 
Exchange differences on re-translating 
 foreign operations                          578,281    109,344 
 
Total comprehensive income               (2,479,917)  7,137,201 
 
Attributable to: 
Equity shareholders of the parent        (2,450,198)  7,137,201 
Non-Controlling interest                    (29,719)          - 
 
Total Comprehensive income               (2,479,917)  7,137,201 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2019

 
                                              2019         2018 
                                                 $            $ 
Assets 
Non-current assets 
Goodwill                                   204,724            - 
Intangible assets                          173,466            - 
Investment properties                    4,138,318            - 
Property, plant and equipment               75,455       16,803 
Available for sale financial 
 assets                                  4,801,450      787,518 
Loans                                    1,695,302    1,645,260 
Investments in associated entities               -    6,727,670 
 
Total non-current assets                11,088,715    9,177,251 
 
Assets Held for Sale                       435,383            - 
Current assets 
Trade and other receivables              1,432,031    6,095,202 
Cash and cash equivalents               24,198,744   17,370,372 
 
Total current assets                    25,630,775   23,465,574 
 
Liabilities 
Current liabilities 
Trade and other payables                 1,685,491    2,156,692 
Borrowings                               7,557,243            - 
 
Total current liabilities                9,242,734    2,156,692 
 
 
Net current assets                      16,388,041   21,308,882 
 
Non-current liabilities 
Lease liabilities                          510,965            - 
 
Total non-current liabilities              510,965            - 
 
Net assets                              27,401,174   30,486,133 
 
Shareholders' Equity 
Share capital                              255,675      255,675 
Share premium                           45,416,298   45,416,298 
Treasury shares                        (8,690,465)  (7,337,959) 
Other reserves                             439,199    (139,082) 
Non-Controlling Interest                   628,673            - 
Retained earnings                     (10,648,206)  (7,708,799) 
 
Total shareholders' equity              27,401,174   30,486,133 
 
Total equity                            27,401,174   30,486,133 
 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 December 2019

 
                                                               2019          2018 
                                                                  $             $ 
Cash flows from operating activities 
Profit/(Loss) for the year before taxation              (3,789,309)     6,959,842 
Impairment losses on goodwill                               157,185             - 
(Increase)/decrease in trade and other 
 receivables                                              5,956,290       (185,787) 
(Decrease)/increase in trade and other 
 payables                                                 (896,649)     (3,359,710) 
Loss/(gain) on disposal of PPE                                2,686    (13,419,475) 
Gain/(loss) on disposal of AFS investments                 (23,484)       (207,509) 
Net exchange differences                                  (287,533)        (32,875) 
Accrued interest income                                    (50,042)        (48,565) 
Depreciation                                                 26,308        41,919 
Share of losses of associate/gain on disposal           (1,371,455)     2,338,218 
Fair value movement on AFS financial assets                 224,307        (25,516) 
 
Cash generated by operations                               (51,696)     (7,939,458) 
Taxation                                                    132,663        68,015 
 
Net cash flow from operating activities                      80,967     (7,871,443) 
 
Net cash flow from discontinued operations                        -             - 
 
Sale/(purchase) of property, plant and 
 equipment                                                 (15,181)         (3,638) 
Sale/(purchase) of intangible assets                      (173,466)             - 
Sale/(purchase) of investment property                      293,521             - 
Net (purchase)/sale of AFS financial assets             (4,214,755)       186,197 
Net cash acquired on acquisition of subsidiaries          4,450,049             - 
 
Net cash flow in investing activities - 
 continuing operations                                      340,168       182,559 
Proceeds from the disposal of WGP assets                          -    19,106,548 
Payment/proceeds from the Norwegian tax 
 settlement of WGP group                                  (346,296)             - 
 
Net cash flow from / (used) in investing activities 
 - discontinued operations                                (346,296)    19,106,548 
Cash flows from financing activities 
Purchase of treasury shares                             (1,352,506)     (2,280,798) 
Proceeds from borrowings                                 23,649,036             - 
Repayment of borrowings                                (16,128,792)             - 
 
Net cash flow from financing activities 
 - continuing operations                                  6,167,738     (2,280,798) 
 
Net increase in cash and cash equivalents                 6,242,577     9,136,866 
Cash and cash equivalents at the start 
 of the year                                             17,370,372     8,091,288 
Effects of exchange rate changes on cash 
 and cash equivalents                                       585,795       142,218 
 
Cash and cash equivalents at the end of 
 the year                                                24,198,744    17,370,372 
 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2019

 
                                                            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 
  2017             255,675  45,416,298  (5,057,161)  (248,426)  (14,736,656)   25,629,730            -    25,629,730 
Purchase of 
 treasury shares         -           -  (2,280,798)          -             -  (2,280,798)            -     (2,280,798) 
Total 
comprehensive 
income for 
 the period              -           -            -    109,344     7,027,857    7,137,201            -     7,137,201 
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 
 
 

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.

END

FR ZZGZVVKKGGZM

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June 26, 2020 02:00 ET (06:00 GMT)

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