TVC holds off new investments even as reserves climb
Investment group TVC said it's still holding off making any fresh investments even as its cash and government bonds balance climbed to €80m at the end of September following the sale of its stake in the TAS group in August.
The company reported a pre-tax profit of €2.4m in the six months to the end of September compared to a pre-tax profit of €3.8m in the corresponding period a year ago.
The company said that its balance of cash and government bonds climbed by 10pc at the end of September from €72.6m to €80m.
After selling its 27pc holding last year in financial software firm Norkom, TVC's major investment is its 18pc stake in Northern Ireland broadcaster UTV.
TVC was represented on the board until earlier this year when then-chairman John McGuickian was ousted amid boardroom dissent.
Mr McGuckian was removed by other board members due to what they termed his "close association" with TVC.
Executive chairman of TVC Shane Reihill subsequently resigned as a non-executive director of the Northern Ireland firm. TVC said the majority of non-executive directors at UTV had been opposed to Mr McGuckian's removal.
The investment group's stake in UTV, combined with its cash and government bond balances, represent 92pc of the company's €118m net asset value.
"TVC actively considered the limited number of investment opportunities during this period, but we decided that it was not in the interests of our shareholders to pursue these investments," Mr Reihill said.
"We believe that our selective investment approach is the correct strategy and that TVC is in a very strong position to make additional long-term investments at what we expect to be attractive valuations and to continue to maximise value for all our shareholders".
Davy Stockbrokers yesterday said TVC has "significant upside potential".