TVC Holdings plc (“TVC” or the “Company”), the investment holding company, today (Wednesday, 12 November 2008) announces its Interim Financial Results for the 6 months ended 30 September 2008.
Key Performance Highlights:
•Net assets at 30 September 2008 of €114.4 million mainly comprised of cash at bank and other liquid investments of €20.9 million (18%), quoted equity investments of €52.9 million (46%) and unquoted equity investments of €39.2 million (34%). TVC has no debt.
•Invested €24.6 million to acquire a 15% shareholding in UTV Media plc, a leading radio and TV business (July 2008). TVC is now the largest shareholder in UTV and Shane Reihill has joined the Board of the Company. Invested €3.7 million across unquoted software portfolio.
•At 30 September 2008, the Company reduced the value of its investment portfolio, reflecting the current difficult market conditions and steep decline in asset prices, by €28.0 million, which comprises of an unrealised mark down of €4.6 million on its quoted investments and an unrealised mark down on its unquoted portfolio of €23.4 million.
•Equity value per share of €1.01 as at 30 September 2008 (Shareholders’ equity of €101.8m and 101.1 million shares in issue) compared to equity value at 31 March 2008 of €1.24.
Highlights Post Period-End:
•Announced cash realisation of up to US$20.1 million (US$16.4 million net of minority interests) following the sale of its investment in ChangingWorlds as part of its acquisition by a wholly-owned subsidiary of Amdocs Limited (NYSE:DOX). This represented a return of 3.7 times the original cost and a 1.3 times return on the valuation placed on its investment at 30 September 2008.
•Announced acquisition of an additional 3% shareholding in UTV for a consideration of €2.7 million (£2.2 million) bringing TVC’s total shareholding to 18%.
•Allowing for the receipt of the full consideration from the sale of ChangingWorlds of up to $16.4m at the current exchange rate, the additional investment in UTV and adjusting the valuation of quoted investments for the closing bid price of both Norkom and UTV on Monday, 10 November 2008, pro-forma net assets at 30 September 2008 would be €98.7 million, mainly comprised of cash at bank and other liquid investments of €30.9 million (31%), quoted equity investments of €39.3 million (40%) and unquoted investments of €27.2 million (28%).
•On the same basis, pro-forma equity value per share at 30 September 2008 would be €0.89. This compares to a closing bid price of TVC on Monday, 10 November 2008 of €0.49, representing a discount of 45%.
Commenting on the Interim 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.
“On a pro-forma basis, after receipt of all the ChangingWorlds’ consideration, the additional investment in UTV and adjusting the valuation of quoted investments for the closing bid price of both Norkom and UTV on Monday, 10 November 2008, TVC’s cash plus two quoted investments represents 71% of our balance sheet value at 30 September 2008. Six unquoted investments, which we believe are prudently valued, represent most of the remaining 29% of our pro-forma balance sheet value at 30 September 2008.
“After receipt of all the ChangingWorlds’ consideration and the additional investment in UTV, we will have cash and liquid investments in excess of €30.9 million and no debt in the Company. We believe that TVC Holdings is in a strong position to take advantage of any opportunities and make further long term investments at what we expect to be attractive valuations, adding real value to our investment portfolio. Given this significant cash balance, we believe the Company is in a very strong position to deliver its strategy and maximise value for all our shareholders”.
To read the full Interim Results, please click here...
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