TVC Holdings plc Preliminary Financial Results for the year ended 31 March 2013

corporate news

TVC Holdings plc (“TVC” or the “Company”), the investment holding company, today (Thursday, 9 May 2013) announces its Preliminary Financial Results for the year ended 31 March 2013. 

Key Performance Highlights:

• Gross portfolio return of €9.3 million (22% of opening portfolio value) in the year to 31 March 2013 driven by a realised gain on disposal of an investment and an increase in value of the remaining investment portfolio.
• Profit before tax for the year of €6.6 million.
• 6% increase in net asset value (NAV) per share from €1.14 at 31 March 2012 to €1.21 at 31 March 2013 contributing to compound annual growth in NAV per share of 15.5% in the four years to 31 March 2013.
• Cash and government bonds increased by 9.5% during the year from €72.6 million to €79.5 million at 31 March 2013.  TVC has no debt.
• Sale of investment in The TAS Group in August 2012.  TVC received cash proceeds of US$9.2 million (€7.4 million) and realised a gain on the sale of this investment of €3.9 million in the year ended 31 March 2013.  The sale proceeds represented a return of 2.1 times the valuation of its investment at 31 March 2012. 
• Operating expenses, excluding a charge of €0.67 million for restructuring costs, decreased by over 15% to €2.06 million (2012: €2.44 million).
• Proposed special dividend of 49.5 cent per ordinary share to return €50 million of surplus capital to shareholders.  In addition, shareholder consent to be sought to provide for the flexibility to implement on-market share buy backs up to a maximum of 20 per cent of the issued share capital of the Company.

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

“We are pleased to report another year of strong performance at TVC.  Against a backdrop of continued economic uncertainty, for the fourth consecutive year the Company’s NAV per share has grown, driven by the sale of our investment in The TAS Group, realising proceeds of €7.4 million, and unrealised value growth in our investment portfolio.  During the year, we evaluated a number of potential new investment opportunities but chose not to complete any new investments.

“Since March 2011, TVC’s cash and government bonds have increased by almost €50 million to €80 million at 31 March 2013 as a result of the sale of Norkom and a number of our unquoted technology investments.  In light of the very limited number of investment opportunities during this period and after considering a range of strategic and financial options to enhance shareholder value, the Board has decided, subject to shareholder approval, to return the €50 million of cash generated by TVC to our shareholders.

“On a pro-forma basis, after adjusting for the payment of the proposed special dividend, TVC’s net assets at 31 March 2013 would be €72 million mainly comprised of the investment in UTV valued at €32m; three unquoted investments valued at €11m; and cash of €29m.  We believe that our selective investment approach is the correct strategy. TVC will continue to look for value enhancing investments and to manage its existing portfolio in order to maximise value for all our shareholders”.