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Alina Holdings PLC: Audited results for the year ended 31 December 2022
Alina Holdings PLC (ALNA) Alina Holdings PLC
Alina Holdings PLC (Reuters: ALNA.L, Bloomberg: ALNA:LN) (“Alina”, “ALNA” or the “Company”)
AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022 The Company today announces its audited results for the year ended 31 December 2022. The information set out below is extracted from the Company's Report and Accounts for the year ended 31 December 2022, which will be published today on the Company's website www.alina-holdings.com. A copy has also been submitted to the National Storage Mechanism where it will be available for inspection. Cross-references in the extracted information below refer to pages and sections in the Company's Report and Accounts for the year ended 31 December 2022. The Company will liaise with the FCA and seek to have the temporary suspension of trading of its shares lifted imminently. Report for the Year to 31 December 2022
Alina Holdings PLC (“Alina” or the “Company”) is a company registered on the Main Market of the London Stock Exchange. The group financial statements consolidate those of the Company and its subsidiaries (together referred to as the “Group”).
Chairman’s Statement The Board of Alina apologise for the delay in presenting the Company’s Accounts for the year ended 31 December 2022, due to the untimely and unforeseen resignation of the Company’s previous auditor. 2022 was a year of transition for ALNA. Significant Board time was spent on repositioning the Company’s property assets in Brislington, Bristol, for which development plans for a substantial mixed commercial and residential development have been prepared and where preliminary planning discussions with Bristol Council have been initiated. In Hastings, the Company is still in dispute with Argos (now part of Sainsbury), which had a ‘full-repairing’ lease but vacated the property without completing their contractually obligated repairs. Nonetheless, repair of the vacated property is now nearing completion despite the discovery of asbestos in some of the floor and ceiling tiles. The Board is confident that once building works have been completed that the company will achieve a substantial uplift on the rent previously received from Argos. The Company’s holdings in HEIQ and Dolphin Capital (DCI) went in opposite directions. HEIQ is guilty of over promising and under delivering, and suffering from cyclical weakness in the retail sector, which resulted in a substantial fall in the Company’s share price. DCI, on the other hand announced the disposal of one of its assets at a premium to BV, which was well received by the market. Notwithstanding the political chaos across the Western Hemisphere, stretching from Russia and Turkey to the USA, your Board is confident that the Company is well positioned to benefit from the initiatives commenced in 2022 and being implemented in 2023.
Duncan Soukup Chairman Alina Holdings plc 31 May 2023
Financial Review The financial statements contained in this report have been prepared in accordance with UK Adopted International Accounting Standards. Result The Group recorded an IFRS loss for the year to 31 December 2022 of £136,000, or 0.60 pps (2021: loss £294,000, or 1.30 pps). Key Performance Indicators (“KPI’s”) Throughout the reporting period the Group had no borrowings and held cash reserves at 31 December 2022 of £0.873 million (31 December 2021: £1.767 million). The KPI’s relating to Interest Cover, Loan to Value and Gearing, shown in previous reports, are therefore no longer applicable. The Net Asset Value per Share at 31 December 2022 was 26.9p (31 December 2021: 27.5p). Property Operating Expenses Property operating expenses for the year to 31 December 2022 were £300,000 (2021: £136,000). This was predominantly caused by the property rates increases and the vacancy of a larger floorspace in Hastings. There was a release of bad debt provision in the comparable period which increases the variance. Administrative Expenses Administrative expenses were £604,000 during the year to 31 December 2022 (2021: £540,000). Net Asset Value (“NAV”) The NAV at 31 December 2022 was £6.10 million or 26.9p per share, based on 22.7 million shares in issue, excluding those held in treasury (31 December 2021: £6.23 million, 27.5p per share, based on 22.7 million shares in issues
At 31 December 2022 the Group held £0.873 million of cash (31 December 2021: £1.767 million). At 31 December 2022 the Group had no banking debt (31 December 2021: £nil).
At 31 December 2022, investment properties were held at an assessed fair value of £2,504,000 (2021: £2,784,000). The fair value has been assessed with reference to a third party valuation performed in 2020. The Board has, however, assessed that the rental yield resulting for the recent sale of the Group’s Oldham property suggests that its two largest properties were undervalued and has revised the carrying value to reflect this most recent market data.
The Oldham property considered to be held for sale at 31 December 2022 is valued in the Company’s accounts at that date at its anticipated sale price less sales costs.
The 2020 external valuation was undertaken in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Standards on the basis of market value. Market value is defined as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. Financing The Group had no borrowings during the year and the Group’s operations were financed from its property income.
During the reporting period the Group held some of its cash in foreign currencies. These holdings generated a small unrealised profit at the end of the period, principally from the reduction in GBP value against USD across the period. The risk associated with foreign currency holdings is described in Note 16 to the financial statements. Dividend In line with the Group’s current dividend distribution policy no dividend will be paid in respect of the reporting period. The directors will continue to review the dividend policy in line with progress with the Group’s investment strategy. Risk Management & Operational Controls The directors recognise that commercial activities invariably involve an element of risk. A number of the risks to which the business is exposed, such as the condition of the UK domestic economy and sentiment in the UK property market, are beyond the Company’s influence. However, such risk areas are monitored and appropriate mitigating action, such as reviewing the substance and timing of the Company’s operational plans, is taken wherever practicable in response to significant changes. The directors consider the risk areas the Company is exposed to in the light of prevailing economic conditions and the risk areas set out in this section are subject to review.
In relation to asset management, the Company’s approach to risk reflects the Company’s granular business model and position in the market and involves the expertise of its directors, management and third-party advisers. Operational progress and key investment and disposal decisions are considered in regular management team meetings as well as being subject to informal peer review.
Higher level risks and financial exposures are subject to constant monitoring. Major investment and disposal decisions are subject to review by the directors in accordance with a protocol set by the Board.
The Board’s approach in this area is further explained in the Governance section, under Risk & Internal Control. Principal Risks and Uncertainties
Operational Controls During the year, the directors continued to recognise that the Company’s ability to operate successfully is largely dependent on the maintenance of its straightforward approach to doing business and its reputation for integrity. All those who act on the Company’s behalf are required to behave and transact business in accordance with the highest professional standards. As well as compliance with all relevant regulatory requirements, this extends to customer care and external complaint guidelines. The Company has adopted a Code, Policy and Procedures under the Market Abuse Regulation. During the period the employee responsible for operations reduced working hours and the majority of the operations were contracted to Eddisons Property Management. Eddisons have looked after the property management for previous years and include the provision of all applicable compliance procedures. The directors were satisfied that the governance procedures adopted by Eddisons in relation to its clients were appropriate and protected the Company’s interests. The Company’s corporate governance regime is underpinned by a whistle-blowing procedure, enabling perceived irregularities to be notified to members of the Board, principally the senior independent non-executive director.
The Board has overall responsibility for the Company’s internal control systems and for monitoring its effectiveness. The Board’s approach is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable assurance against material misstatements or loss. The directors have not considered it appropriate to establish a separate internal audit function, having regard to the Company’s size. The Board’s approach to internal controls covers all companies within the Group and there are no associate or joint venture entities which it does not cover.
The principal foundations of the Company’s internal control framework during the reporting period were:
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