17th Sep 2018 11:05
LONDON (Alliance News) - Thalassa Holdings Ltd on Monday swung to an interim profit as it gained on the disposal of marine seismic exploration unit WGP Group Ltd's assets and business.
For the six months to June 30, the surveying services firm posted pretax profit of USD4.3 million compared to a USD97,136 loss a year prior.
The swing was due to USD7.4 million gained on the disposal of WGP to Fairfield Industries Inc for a maximum cash consideration of USD30 million.
"The reasons for selling WGP may not at first glance seem obvious as the business was operating profitably with good margins. Unfortunately, with such a concentrated client base the board deemed the risks and capital required to expand the business disproportionate to the potential gains," Chairman Duncan Soukup said.
Meanwhile, the company generated revenue of USD3,286 versus nothing a year prior, following the reclassification to discontinued operations of revenue generated from WGP.
Looking ahead, Soukup said the company is "cautious in its view as to how its cash should be redeployed".
Thalassa shares were trading 3.3% higher at 93.0 pence each.
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