15th Aug 2022 11:49
Thalassa Holdings Ltd - British Virgin Islands-based investment holding company - Swings to an interim profit but cautions of an "unsustainable" market rally and badly performing Western economies to come. In the half-year to June 30, turns to GBP203,680 pretax profit from a loss of GBP808,062 a year ago. Revenue roughly the same at GBP119,498 versus GBP122,712. Posts a net financial income of GBP553,522 compared to a net financial expense of GBP9,262.
Warns of the economic future: "Your board is of the opinion that the market's recent rally is unsustainable, and take the view that there is another leg down in US and EU and UK stock prices, which will be driven by earnings' misses and subsequent reduction in overly optimistic earnings estimates for 2022, 2023 and 2024."
Cautioning further, it adds: "Given the fact that inflation is currently running at record levels, and our view that central bankers could well tighten too much, just as Western economies grind to a standstill, we believe that analysts will rapidly start to reduce their 2022 third quarter and fourth quarter, as well as 2023 and 2024 earnings estimates when they get back from their summer holidays."
Current stock price: 36.50 pence, up 11% on Monday
12-month change: down 43%
By Tom Budszus; [email protected]
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