Pallas Air (formerly Lifa Air)

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Thomas’s preliminary comments as Pallas Air is expected to release its H2 report on Thursday. :slight_smile:

We expect the group to have achieved organic growth, while inorganic growth from the Genano merger will drive significant overall growth. Despite significant growth, we expect the group’s operating profit (EBITDA) to have remained around zero, as synergies from the merger will take time to materialize. Our attention will be on management’s comments regarding the advancement of the turnaround, the group’s current financial position, and the new strategy. We expect the group not to provide guidance for the current year, similar to last year.

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JULY–DECEMBER 2024 IN BRIEF

Revenue was 3,909 (1,979) thousand euros.
EBITDA was -2,522 (-902) thousand euros.
Operating profit was -4,753 (-2,463) thousand euros.
Earnings per share -3.81 (-22.78) euros.
Net one-off income and expenses affecting the result were -319 (-323) thousand euros.
JANUARY–DECEMBER 2024 IN BRIEF

Revenue was 8,345 (3,521) thousand euros.
EBITDA was -4,317 (-2,875) thousand euros.
Operating profit was -7,944 (-5,608) thousand euros.
Earnings per share -10.55 (-36.95) euros.
Net one-off income and expenses affecting the result were -2,044 (-1,779) thousand euros.

The more revenue increases, the more negative EBITDA and operating profit are generated. A rather poor equation. An investor might almost wish for declining revenue.

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Here is a recent company report on Pallas Air, typed by Thomas.

Pallas Air’s H2 revenue met our expectations, but the result fell short of both our forecasts and the comparison period’s level. In the short term, the investment narrative focuses on implementing a turnaround in results, even though the new financial targets pave the way for a significantly larger scale. At the current share price, the stock’s risk/reward ratio remains unbalanced in our eyes until we see signs of progress in the earnings turnaround and strengthening of the balance sheet, which is exposed to financing risks. We reiterate our target price of 0.70 euros and our sell recommendation.

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Thomas has commented on the recent news from Pallas Air.

Pallas Air announced yesterday that the company’s CEO, Tomi Viitanen, has resigned from his position. Viitanen will be available to the company until September 11, 2025, and will continue as the company’s CEO for the time being.

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Will Fifax get a successor?

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Kurssien ja niiden muutosten kyselyt, kauhistelut ja hehkuttelut (Osa 4)
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Here are Thomas’s comments as Pallas Air releases its H1 results, perhaps on Friday (or perhaps not).

Pallas Air is expected to release its H1 report on Friday, according to our understanding. The company’s development no longer benefits from the inorganic growth brought by the Genano merger, so growth relies on its own efforts and synergies extracted from the merger. We expect good organic growth from the company, similar to the previous year, but due to the company’s liquidity crisis, attention will focus on its profitability and balance sheet position. In addition to its weak financial position, the company is struggling with management turnover, as former CFO Teppo Sipilä and COO Aleksi Ahti have moved to other positions during the current year, and CEO Tomi Viitanen will leave the company in September.

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Below is Pallas Air’s overview. It didn’t perform very well. :slight_smile:

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Interim Report 1.1.–30.6.2025, unaudited

Pallas Air Plc, company announcement 29.8.2025 at 2:00 PM EET

This announcement is a summary of Pallas Air Plc’s interim report for January-June 2025. The announcement in its entirety is attached to this company announcement and available on our website at https://pallasair.com/tiedotteet/.

Interim Report 1.1.–30.6.2025, unaudited

Operational efficiency improving, business development slowed down due to delays in financing arrangements.

Figures presented in parentheses refer to the corresponding period of the previous year, unless otherwise stated.

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The rest of the information can be viewed here:

https://www.inderes.fi/releases/pallas-air-oyj-puolivuosikatsaus-11-3062025-tilintarkastamaton

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If one wants to know what the income statement and balance sheet of a company ripe for bankruptcy look like, it’s worth reading Pallas Air’s half-year report for learning purposes. It might well be the last one this outfit ever publishes.

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Here are also Thomas’s comments on Pallas Air’s H1. :slight_smile:

Pallas Air’s H1 figures remained weak, as the company was unable to invest in the working capital required by the business due to liquidity challenges. Due to liquidity constraints and a weak earnings level, we do not see the company having the prerequisites to achieve a sustainable turnaround in earnings without significant external financing. Consequently, the valuation of the share has become completely speculative and dependent on external factors. Therefore, we no longer give Pallas Air a target price (previously 0.70 eur) and reiterate our sell recommendation.*

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Here’s an announcement for Friday.

Pallas Air Plc, insider information September 12, 2025 at 7:30 PM EET

Insider Information: Innovation Funding Centre Business Finland Orders Discontinuation of Grant Payment and Recovery of Already Paid Grant

Innovation Funding Centre Business Finland orders the discontinuation of the grant payment and the recovery of the already paid grant of EUR 322,106.00 with interest, concerning the BIOPROT project.

Innovation Funding Centre Business Finland orders the discontinuation of the grant payment and the recovery of the already paid grant of EUR 239,296.00 with interest, concerning the E3 project.

The company is reviewing the decisions and is considering appealing them.

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This story seems to be over unless a new coronavirus or something similar emerges from somewhere. Verneri was already quite skeptical about this at the time of the listing.

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Finnvera also recovers €625k based on the guarantee liability. So, I guess that’s the end of it.

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This company might even get the “most ridiculous IPO of all time” award. They came to the stock market under the guise of corona, the entire board resigned immediately, and the rest is like from Kummeli :smiley:

No more of these on the stock market, please.

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In the casino craze of the 80s and the IT bubble at the turn of the millennium, at least similar quality stuff came to the stock market, e.g., the legendary Notareal Oy, where the entertainment factor was in a completely different league than in the poorly managed Lifa/Pallas Air.

More of these (too) on the stock market, please. The stock market is a ruthless place because all financial information of a company there is public, and in an IPO, you have to disclose everything possible. Scams quickly come to light, unlike in funding rounds for unlisted companies.

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Here are Thomas’s comments on Pallas Air’s recent news.

In our view, the announcements are clearly negative for Pallas Air, as the company is already in a liquidity crisis due to an overdue credit account and weak profitability. Pallas Air’s investment story currently relies entirely on equity-based financing sources or business transactions to improve the company’s liquidity situation. Due to the company’s very high-risk profile and value drivers being in the hands of external parties, we recommend extreme caution to investors with the stock.

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Here are Thomas’s comments on Pallas Air’s actions to lighten its cost structure.

*Pallas Air’s actions to lighten its cost structure are, in our assessment, necessary to restore the company’s profitability. However, the company’s weak liquidity situation limited its ability to achieve a turnaround in results, and recent news flow has not brought clarity regarding the progress of critical financing arrangements for the company. Therefore, we still consider the

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I completely forgot about this company.

Change of direction: from respirators to data management and the application of AI.
Why not…

Inside Information: Pallas Air Plc updates its strategy. Due to the clarification of strategic priorities, the company will record write-downs totaling EUR 3.8 million for the year 2025.
Pallas Air Plc, Inside Information 19.2.2026 at 12:30 EET

Inside Information: Pallas Air Plc updates its strategy. Due to the clarification of strategic priorities, the company will record write-downs totaling EUR 3.8 million for the year 2025.

Pallas Air Plc is updating its strategic focus toward data management and the use of artificial intelligence in its service solutions. The manufacturing of high-technology products will continue to form a significant part of the business. The manufacturing of respirators will be completely discontinued during the first half of 2026.

The change in technology focus will be implemented through partnership models, which are an integral part of the strategy’s updated priority areas:

AI-based learning sensors for demanding operating environments (AI neuron technology),
combining sensor technology with autonomous units (robotics), and
monitoring software for property maintenance and optimization.
At the core of the solutions remain clean air product and service solutions, for which the aim is more precise value creation according to customer needs.

AI Neuron Technology in Air Purification

Pallas Air has established a subsidiary in the USA to strengthen cooperation with the company NeuralAi. NeuralAi has developed sensor technology whose key feature is to actively react to learned conditions, e.g., in air composition. The small size, easy installability, and data transfer of the sensors enable a reaction to various changes and the provision of the right types of purification solutions. Business generated through the partnership between the companies is predicted to start during 2026, and more detailed financial targets will be updated thereafter.

Sensor Technology with Robotics and Autonomous Units

The next steps in the productization of learning sensor technology will be built through partnerships with autonomous unit and robotics manufacturers. Details of the negotiations are still ongoing, but a partnership with, for example, the mining sector and manufacturers of multi-use products is a primary goal. Prototypes enabling autonomous movement for current Genano air purifiers will be completed in the first half of 2026.

Property Maintenance Optimization Software Homeworks TM as a Partner for Pallas Air

Pallas Air has entered into a partnership and distribution agreement with the producer of Homeworks TM software. The cooperation model covers Europe, and the current distribution network of the Pallas Air Group will be used for the product’s distribution.

The Homeworks software combines databases related to property management and optimization and is integrable with the aforementioned sensor systems. Distribution of the software product will begin during the first half of 2026, and more detailed forecasts will be provided thereafter.

Strategy Period

The impact of the aforementioned strategic changes on the strategy period will be specified during 2026.

In accordance with its updated strategy, Pallas Air Plc will discontinue the manufacturing of respirators in the early part of 2026. As a result of the ramp-down, the company will record a one-time write-down of approximately EUR 2.8 million on inventories and equipment for the year 2025, as well as a EUR 1.0 million write-down on the valuation of subsidiary shares.

Changes in strategic priority areas aim for leadership in technology solutions and long-term partnerships to strengthen business growth and profitability.

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I’ve got a bit of a feeling that these are the last attempts before the company is finally buried. AI mentioned and all, what could go wrong :grinning_face:

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Here are Thomas’s comments on Pallas Air’s new plans. :slight_smile:

Pallas Air announced on Thursday that it is updating its strategy and will completely exit the manufacturing of respirators in the first half of 2026. At the same time, the company will focus more heavily on data management, AI, and robotics in its service solutions going forward. Following the change, the company will record write-downs totaling EUR 3.8 million for 2025, relating to inventories, equipment, and the valuation of subsidiary shares. We consider the exit from the mask business to be a justified and expected move. However, the company’s very tight financial situation limits its ability to implement the updated strategy.

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Entering the U.S. market without any cash reserves, and what on earth is this Homework software? Million-euro write-downs for a subsidiary two years after the merger raise some big question marks…

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