Alina

Holdings PLC

Interim report

Six months to 30 June 2022

Directors, Secretary and Advisers

Directors

C Duncan Soukup, Chairman

Gareth Edwards (resigned 7 February 2022)

Tim Donell (appointed 7 February 2022)

Martyn Porter (appointed 20 May 2022)

Registered Office

Eastleigh Court,

Bishopstrow

Warminster

BA12 9HW

Company Secretary

Alasdair Johnston

Broker

Peterhouse Capital

3rd Floor

80 Cheapside

London

EC2V 6EE

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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Contents

Highlights for the 6 months ended 30 June 2022 ..........................................................................................................

4

Chairman's Statement.........................................................................................................................................................

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Responsibility Statement ....................................................................................................................................................

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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........................................................................................

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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 2022

GROUP RESULTS 1H 2022 versus 1H 2021

Group Net Profit / (Loss) for the period

(£0.33m) vs. (£0.08m)

Group Earnings / (Loss) Per Share (both basic and diluted)*1

(1.44p) vs. (0.36p)

Reported Book value per share*2

£0.26 vs. £0.28

Net Cash

£1.1m vs. £2.9m

Investment Holdings

£2.7m vs. £1.1m

*1 based on weighted average number of shares in issue of 22,697,397 (1H21: 22,697,397) *2 based on actual number of shares in issue as at 30 June 2022 of 22,697,397

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Chairman's Statement

Trading update

The Company's hedging strategy served its purpose and partially protected ALNA shareholders during the first half of 2022, thereby reducing the impact of mark-to-market declines in the Companies quoted holdings. Both of the Company's two largest holdings Dolphin Capital Investors (DCI LN) and HEIQ (HEIQ LN) traded lower, like many small cap. company shares, on lack of interest, rather than on concerted selling.

Macro Background

Global Technology stock took the full brunt of the 2022 correction on the chin, which has seen Cathie Woods' ARK Innovation ETF give back virtually all its ~383% gain and which is now down ~74% since peaking in De- cember 2021. Many of ARK's investments had no earnings or were trading on triple digit p/e multiples. Many of the major stock market indices have performed badly but not as badly as the investment vehicles with substantial exposure to "Story Stocks". At the time of writing, the Dow Jones Index is down Year to Date ("YTD") 15.29%, the S&P 500 is down 51% and the NASDAQ Index is down 29.19%. whilst European Indices are down YTD between ~7% and ~22%.

Macro Outlook

Your Board is not convinced by the Markets recent rally, but take the view that there is another leg down in US and EU (incl. UK) Stock prices, which will be driven by research analysts reducing their overly optimistic earnings estimates for 2022, 2023 and 2024.

Analysts surveyed by Bloomberg are still estimating that S&P 500 earnings will increase from current level of

199.67 to 235.78, an increase of 18.08%, in 2022, by +5.22% in 2023, and by +9.02% in 2024. Given the fact that inflation is currently running at record levels, and our view that Central Bankers may well tighten too much, just as Western economic activity slows, we believe that analysts will rapidly start to reduce their 2022 Q3 and Q4, as well as 2023 and 2024, earnings estimates when they get back from their summer holidays.

Operations

Real Estate

We continue to actively manage the Company's realestate assets and a number of properties will be put up for sale in the second half of the year. In respect of the Hastings and Bristol properties, the Board has actioned a refurbishment and capital expenditure plan, which we believe will enhance both the yield and potential sale value of both properties.

Holdings

1. Dolphin Capital Investors Ltd (DCI LN)

https://www.dolphinci.com/?doing_wp_cron=1658743513.1735150814056396484375

ALNA currently owns ~3.2% of DCI, which is focused on the development of luxury leisure properties in the Eastern Mediteranean Greece, Cyprus and Croatia).

The company has had a torrid life and is currently trying to wind down its realesate portfolio and return capital to shareholders. DCI's most recently released (July 2022) fact sheet indicates that the current NAV of the company stands at 12p/share versus a market price of 3.15p (at the time of writing). Clearly the new Board are struggling to convince the market that the liquidation of the company's assets will return stated NAV!. Your Board has discounted the Company's stated NAV by 33%, and estimate NAV to be ±8p, which if achieved would result in excess of a 100% ROI.

2. HEIQ plc (HEIQ LN) https://www.heiq.com/investors/

ALNA currently owns ~0.68% of HeiQ which is an IP creator and established global brand in materials and textile innovation, adding hygiene, comfort, protection and sustainability to the products we use every day.

HeiQ has a core chemical business, which in 2021 generated Revenues of $57.9m and EBITDA of $6.5m.

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Disclaimer

Alina Holdings plc published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 09:36:03 UTC.