Thalassa profits decline following delayed WGP disposal

AIM-quoted submersible drone developer Thalassa saw net profits fall in its last trading year as its disposal of WGP took just 24 hours too long to complete.

Net profits decreased 30% to $1.4m and losses from continuing operations widened 23% to $1.6m.

Thalassa turned in a 4% higher book value per share at $1.29 but noted that if FairfieldNodal had completed its acquisition WGP's assets in 2017, rather than on 1 January, the firm's book value per share would have amounted to $1.66.

In addition to the EGP sale, Thalassa successfully completed in-water design tests and integrated and evaluated its acoustic transponder technology over at its Autonomous Robotics business.

As of 31 December 2017, Thalassa had cash of $8.1m, a 5.1% increase year-on-year, and was debt free.

Chairman Duncan Soukup said, "I believe the company is well positioned for the future but remain of the opinion that stock valuations in Europe and the USA reflect a late cycle peak in earnings rather an early cycle low. I also believe that the equity markets generally represent a 'congested' trade and that European and US stock markets need to fall (possibly substantially!) before stock prices will reflect the political and economic dangers that currently exist but which investors currently choose to ignore."

"In the meantime, whilst global markets continue to rise towards the heavens like the Tower of Babel, we will continue our search for value and watch while those braver (foolhardier?) than us continue to push markets ever higher. As Mr Buffet famously said, it's only when the tide goes out that you discover who has been swimming naked!"

As of 1030 BST, Thalassa shares had lost 1.78% to 83p.