Full-year results from Thalassa demonstrated a challenging period for the Group and the wider oil services market. However, driven by a better margin performance than expected, the outturn for the year was ahead of our forecasts. Underlying PBT of $0.5m was against our expectation of a $0.4m loss and year-end net cash stood at $17.7m. A review of the balance sheet has been undertaken, with $11.7m in impairments/provisions taken against the FY 2014A accounts, resulting in reported net assets of $39.4m.
Set against the current backdrop, management reports a more encouraging outlook. The pipeline of order-enquiries and tenders submitted currently stands at $93.5m, with an anticipation that three RFP’s (request for proposal) will be put out to tender for new North Sea Life of Field projects in 2015. Good progress has been made in the year at Autonomous Robotics, with external development funding/partners currently being sought.
With the exception of the impairments/provisions, our FY 2015E estimates remain unchanged PBT $1.0m/EPS 3.4c), based purely on contracted revenue and we also introduce FY 2016E estimates (PBT $1.5m/EPS5.0c). Following the results, we maintain our Buy recommendation and raise our SOTP share price target to 110p."
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