News Column

TVC Profit Grows Fivefold; Plans Orderly Capital Return, De-Listing

May 13, 2014

Samuel Agini

LONDON (Alliance News) - TVC Holdings PLC Tuesday reported a five-fold increase in its full-year pretax profit, driven by realised gains on investment disposals and an increase in value of the remaining investment portfolio, as it proposed a EUR91.0 million capital return to shareholders and an orderly realisation of its remaining assets.

In a statement, TVC said pretax profit increased to EUR33.4 million in the year ended March 31, compared with EUR6.6 million a year earlier, boosted by a EUR13.4 million profit on the disposal of its shareholding in Dalata Hotel Group PLC and a EUR8.2 million profit on the sales of 7.6 million shares in UTV Media PLC. TVC retains a 10.05% stake in UTV.

Net asset value increased by more than half over the year, reaching EUR1.10 at the end of March, adjusting for the payment of the EUR0.495 per share paid in September 2013.

TVC's proposed capital distribution, set for July, will be made up of cash and shares valued at EUR0.95 per share, which is 90% of TVC's net assets based on March 31 valuations.

TVC said it intends to cancel its listings on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange, as it looks to to significantly reduce costs. TVC's operating expenses rose by 1.7% to EUR2.8 million in its last financial year.

Arrangements are to be put in place to manage the realisation of its remaining assets and liabilities in an orderly way. TVC said the process will take place over a number of years in order to maximise value for shareholders.

"Having completed a detailed review of TVC's strategic options, in the light of both the continuing lack of suitable investment opportunities and the current equity funding environment, the board of TVC proposes to make a large capital distribution to shareholders and, over a number of years, to carry out an orderly realisation of TVC's remaining assets to maximise value," Executive Chairman Shane Reihill said in a statement.

TVC shares were Tuesday quoted at 79.90 pence, up 3.8%.

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Source: Alliance News