TVC Holdings plc Audited Financial Results for the year ended 31 March 2009

TVC Holdings plc (“TVC” or the “Company”), the investment holding company, today (Wednesday, 10  June 2009) announces its Audited Financial Results for the year ended 31 March 2009.

Key Performance Highlights:

•Equity value per share as at 31 March 2009 of €0.68 (Shareholders’ equity of €68.6 million and 101.1 million shares in issue).  Adjusting the valuation of the quoted investments (Norkom and UTV), for the closing bid price as at 9 June 2009, increases the equity value per share to €0.77c.  This represents a discount of 32% when compared to TVC’s closing bid price on 9 June 2009 of €0.52 and a discount of 53%, excluding cash and liquid investments.

•Net assets at 31 March 2009 of €75.6 million mainly comprised of cash at bank and other liquid investments of €31.0 million (41%), quoted equity investments of €25.0 million (33%) and unquoted equity investments of €18.3 million (24%).  TVC has no debt.

•In the year ended 31 March 2009, the Company reduced the value of its investment portfolio, reflecting the steep decline in asset prices and current difficult market conditions, by €66.6 million, which is comprised of an unrealised mark down of €35.2 million on its quoted investments and an unrealised mark down on its unquoted portfolio of €31.4 million.

•Disposed of investment in ChangingWorlds as part of its acquisition by a wholly-owned subsidiary of Amdocs Limited (NYSE:DOX).  The total consideration payable to TVC, including an escrow and a performance-based earnout, is US$20.5 million (US$16.8 million net of minority interests). This represented a 1.3 times return on the valuation placed on its investment at 30 September 2008, realising a gain of €2.0 milion, and a return of 3.7 times the original cost.

•Invested €27.3 million to acquire an 18% shareholding in UTV Media plc, a leading radio and TV business.  TVC is now the largest shareholder in UTV and Shane Reihill has joined the Board of the Company.

•Invested €4.3 million across unquoted portfolio.

Commenting on the Audited Financial Results, TVC Holdings’ Executive Chairman, Shane Reihill, said:

“We have continued to work actively with our core portfolio investments to maximise their value and identify new opportunities for investment despite challenging market conditions.  This is shown by the successful sale of ChangingWorlds and our strategic investment in UTV Media plc.   

“TVC’s cash plus two quoted investments, Norkom and UTV, represents 74% of our balance sheet value at 31 March 2009.  Four unquoted investments, which we believe are prudently valued, represent most of the remaining 26% of our balance sheet value at 31 March 2009. 

“With cash and liquid investments in excess of €31.0 million and no debt in the Company, we believe that TVC is in a strong position to take advantage of the anticipated opportunities to make further long term investments at what we expect to be attractive valuations, adding real value to our investment portfolio.  We also believe that, given this significant cash balance, the Company is in a very strong position to deliver its strategy and maximise value for all our shareholders”.

To read the full 2009 Annual Report, please click here...