Alina : Interim Results (30 June 2023)

Alina

Holdings PLC

Interim report (unaudited)

Six months to 30 June 2023

Directors, Secretary and Advisers

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Chairman's Statement

Trading update

First Half 2023 results were disappointing due to the negative impact of refurbishment delays at the Hastings property and the decline in HEIQ shares. I am confident that once the refurbishment in Hastings is completed that the Company will find a solid tenant for the vacant unit at market rates, above what the previous tenant was paying. Notwithstanding the cyclical nature of all chemical companies, HEIQ's performance has been more than disappointing, and the suspension of the Company's shares, due to delayed Audit, is clearly very concerning.

Macro Background/Outlook

Western economies are in the eye of the storm, with stock market bulls and bears reacting (read over reacting!) to every snippet of economic news and comment from the FED and the ECB. China's growth has stalled and the World waits to see what the impact will be on Western inflation and economic growth. Worryingly, inflation in Europe having shown signs of abaiting, now appears to be on the rise again.

Niall Fergusson, Bloomberg columnist and the Milbank Family Senior Fellow at the Hoover Instituion at Stanford University recently wrote…As Humpty Dumpty says to Alice: "When I use a word, it means just what I choose it to mean - neither more nor less." Inflation has been above target for nearly two and a half years. Whenever it returns to 2%, we'll be told: "That's what we meant by transitory!"

The Company's Board is still in the "Markets arer overvalued camp", and believe that Central Bank fiddling and tinkering will eventually result in the likelihood of stagflation in the UK and Europe and, if they get lucky, only recession in US.

Recessions have a habit of creeping up on one and then falling off a cliff. Past downturns have taken longer than expected to manifest themselves, but when they arrive they invariable bring pain and a dose of sanity back to markets as they adjust to the new "normal".

Given that the FED and ECB are still way behind the curve, their efforts to curb inflation are, in my opinion, ironically adding to inflation rather than killing it. The outcome will be a slow and painful death probably resulting in a longer recession, rather than the desired short sharp recessions which characterised the past couple of corrections. In our opinion, the current increase in interest rates will severly damage property prices in the US, UK and Europe (the greatest store of personal value for most families), which will ultimately result in a substantial stock market correction … that I and other (older!) participants have aluded to for some time.

Operations

Real Estate

Hastings: the detection of asbestos in Hastings has delayed the letting of the largest area of the property (nearly 50%). Remediation is, however, now nearing completion and the unit will shortly be available to rent, which should have the dual positive impact of reducing costs (the Company is currently paying rates) whilst also substantially increasing revenues. With regard to the upper floors, planning permission has been applied for, and we are currently awaiting consent from the local council for conversion to mixed residential and commercial use.

Bristol: the local council is currently carrying out recladding to the residential tower, which abuts our retail units. Unfortunately, refurbishment of the sdjoining property has been substantially delayed due to the scarcity of replacement cladding.

Staffordshire: the refurbishment of the last unlet unit at Company's small residential property in Staffordshire is now nearing completion and the property will be put into auction in Q4 2023.

Holdings

1. DCI Advisors Ltd (DCI LN)

https://www.dciadvisorsltd.com/index.html

As at June 30 2023, ALNA owned ~3.2% of DCI Advisors Ltd., 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 has unsuccessfully been trying to wind down its property portfolio and return capital to shareholders for a number of years.

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