ALINA HOLDINGS PLC Alina
Holdings PLC
Interim report
Six months to 30 June 2021
Directors, Secretary and Advisers
Directors | C Duncan Soukup, Chairman |
Gareth Maitland Edwards | |
Registered Office | Eastleigh Court, |
Bishopstrow | |
Warminster | |
BA12 9HW | |
Company Secretary | William Heaney (resigned 30.07.21) |
Broker | WH Ireland Limited |
24 Martin Lane | |
London | |
EC4R 0DR | |
Solicitors to the Company | Locke Lord (UK) LLP |
201 Bishopsgate | |
London | |
EC2M 3AB | |
Eversheds Sutherland | |
One Wood Street | |
London | |
EC2V 7WS | |
DWF LLP | |
No. 2 Lochrin Square | |
96 Fountainbridge | |
Edinburgh | |
EH3 9QA | |
Auditors | Jeffreys Henry LLP |
Finsgate 5-7 Cranwood Street | |
London EC1V 9EE | |
Registrars | Equiniti Limited |
Aspect House | |
Spencer Street | |
Lancing | |
BN99 6QQ | |
Company website | www.alina-holdings.com |
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Page | |
Contents | |
Highlights for the 6 months ended 30 June 2021 ........................................................................................................... | 4 |
Chairman's Statement.......................................................................................................................................................... | 5 |
Interim Condensed Consolidated Statement of Income................................................................................................. | 8 |
Interim Condensed Consolidated Statement of Comprehensive Income .................................................................... | 9 |
Interim Condensed Consolidated Statement of Financial Position.............................................................................. | 10 |
Interim Condensed Consolidated Statement of Cash Flows ........................................................................................ | 11 |
Interim Condensed Consolidated Statement of Changes in Equity ............................................................................ | 12 |
Notes to the Interim Condensed Consolidated Financial Information........................................................................ | 13 |
Notes to the Interim Condensed Consolidated Financial Information Continued..................................................... | 14 |
Notes to the Interim Condensed Consolidated Financial Information Continued..................................................... | 15 |
Notes to the Interim Condensed Consolidated Financial Information Continued..................................................... | 16 |
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Highlights for the 6 months ended 30 June 2021
GROUP RESULTS 1H 2021 versus 1H 2020
Group Net Profit / (Loss) for the period | (£0.08)m vs. (£0.21)m |
Group Earnings / (Loss) Per Share (both basic and diluted)*1 | (£0.36) vs. (£0.92) |
Reported Book value per share*2 | £0.28 vs. £0.30 |
Net Cash | £2.9m vs. £4.1m |
*1 based on weighted average number of shares in issue of 22,697,000 (1H20: 22,697,000) *2 based on actual number of shares in issue as at 30 June 2021 of 22,697,000
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Chairman's Statement
I am happy to present the unaudited interim accounts for the six months to 30 June 2021. Following the Company's readmission to the market and change of objectives, the Board has focused its efforts on reviewing potential new acquisitions whilst also managing the vestiges of the LSR property portfolio.
As shareholders may know, your board is not made up of what I would call, "property experts", which we think is a benefit, as we do not have any pre-, nor mis-conceptions of the value or opportunities of the Company's property assets. The current portfolio, which is not fully let is yielding in excess of 15%. Notwithstanding the yield and the Company's success in collecting in excess of 92% of rents during the duration of the Covid crisis, the Company's independent valuers, using the red-book method (akin to the car dealers' blue book!), have reduced their estimation of the value of the Company's assets. In the real world a portfolio of assets yielding 15% wouldn't be marked down when yielding 15%, unless of course interest rates were going through the roof, which they aren't…yet!
The Company's property portfolio includes shopping arcades in Oldham (nr Manchester), Brislington (Bristol) and Hastings (Sussex) where, as a reminder, England lost 1 - 0 to France in 1066.
Our 3 main properties are all leasehold for up to 186 years. Oldham has one vacant unit, where the tenant has vacated but is still paying, which we are working with them on re-leasing; Brislington is more or less fully let, needs some repairs but has some development potential, and Denmark Place in Hastings, where a major retailer, which has closed over 400 stores in the UK, has surrendered its lease, has ca. 9,000 sq. ft of available space. The good news is that the retailer was paying well below current market rates, and we believe that once cleaned up and repaired that we will be able to relet the property well above what we were previously receiving. Hastings may also have some expansion possibilities, which we are also investigating.
Given the above, we are not a seller at these levels.
As previously announced, the Company has dipped its toe into the leisure market and acquired 2.7% of Dolphin Capital Investors (DCI LON). DCI is a European Leisure business focused on developing high end hotels in the eastern Mediterranean (Greece and the surrounding area). DCI has lost its shareholders even more money than the previous board of Local Shopping REIT achieved…a record not to be proud of.
The shareholders of DCI voted some years ago to liquidate and return capital to shareholders. This process is still ongoing and will certainly take a few more years, in our opinion. Shareholders recently removed the previous board and are now working on accelerating the liquidation process. DCI's September 2021 NAV was 16p per share, as a going concern…which makes little sense to us when the company is in wind down mode. Nonetheless, we believe the break-up value of the Company is North of the current market price of 4.1p/share but South of 16p. We would be very happy to get out at 8p/share with a +100% gain on our cost or better. We do not, however, realistically believe that DCI shares will fetch 16p in liquidation. Time will tell.
The remainder of the Company's assets are in cash.
Conclusion
US markets are trading near their all-time highs, Chinese and Hong Kong markets are taking it on the chin. And interest rates are bouncing along the bottom of a pit whilst Central Bankers now have to find a way to ween drug addicts off free money…without causing a market collapse.
Dr Nouriel Roubini, (aka Dr Doom or Dr Realist, as he refers to himself) renowned for foreseeing the mortgage collapse which brought on the 2008 market collapse said, on 21 September 2021, that the post-pandemic world is heading for a repeat. His concern is that "We are in a debt trap" and in order to avoid a major market and economic collapse, Central Banks will inflate their way out of the situation they have created with, over time and inevitably, higher rates
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Alina Holdings plc published this content on 29 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2021 10:11:12 UTC.
