28th Aug 2019 13:54
(Alliance News) - Thalassa Holdings Ltd on Wednesday reported a swing to interim loss from a profit, following a disposal gain in the year-earlier comparative period.
Thalassa swung to an interim loss of USD2.9 million in the first six months of the 2019 from a USD4.3 million profit a year ago, after benefiting from a non-repeating USD7.4 million gain last year on the disposal of WGP Group Ltd.
The company did not generate revenue in the first half of 2019 and only USD3,286 a year ago.
In December 2017, Thalassa sold the WGP business and assets to Fairfield Industries Inc for a maximum cash consideration of USD30 million. Gross initial proceeds amounted to USD20 million, with USD10 million payable once "certain customer contracts" are secured within the next five years.
The second earn-out payment from the WGP sale, of USD4.8 million, is due by September 11.
Looking ahead, Thalassa commented: "The Thalassa board is firmly of the view that current stock market prices do not reflect either current corporate fundamentals nor the risk of a substantial correction caused by worsening economic conditions or the possibility of conflict in the Gulf, the South China Sea or even Kashmir; with this in mind the board is of the opinion that a substantial dose of caution is warranted until political and economic stability are reinstated…which we do not anticipate in the near future.
Shares in Thalassa were down 4.7% at 67.70 pence in London on Wednesday, giving the company a market capitalisation of just GBP11.6 million.
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