LONDON (ShareCast) - (Sharecast News) - International surveying company Thalassa Holdings reported on Monday that it swung to a profit for the first half of the year after disposing of its marine seismic subsidiary, WGP.
Chairman Duncan Soukup suggested that, due to current market conditions, Thalassa will have to "reinvent" itself or disappear and said that its board is currently considering a "five pronged" investment approach into opportunities in finance, education, property, research and development or opportunistic, off-market firms.

"The reasons for selling WGP may not at first glance seem obvious as the business was operating profitably with good margins," Soukup said. "Unfortunately, with such a concentrated client base the board deemed the risks and capital required to expand the business disproportionate to the potential gains."

Subsidiary firm Autonomous Robotics completed initial testing during the period and will now seek further third-party funding after applying to HMRC for a £5m boost in its annual investment ceiling.

Meanwhile, subsidiary Local Shopping REIT, in which Thalassa holds a 25.6% stake, had a "woeful" period by Thalassa's reckoning, incurring losses on disposals.

For the six months ended 30 June the company recorded a profit of £4.5m after a loss from continued operations of £0.1m for the same period last year, driven by the receipt of £7.4m from the disposal of WGP's assets.

At 30 June, the AIM traded company reported net cash equivalents of £20.6m against £3.1m at the same point last year.

Thalassa's shares were up 2.22% at 92.00p at 0839 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE