Monday 19 February 2018

Half-year pre-tax losses at TVC hit €11.3m

Shares slide 9pc despite upbeat forecast from executive chairman

John Mulligan

John Mulligan

Shane Reihill, the executive chairman of investment group TVC, said the company's public listing remains important for the firm and that value in the share price "will out" eventually.

Mr Reihill was speaking after TVC reported results for the six months to the end of September. Two listed companies -- Northern Ireland media group UTV and Irish financial software firm Norkom, account for 53pc of TVC's current investment portfolio.

The majority of the remainder, representing just over one-third of the portfolio, is either sitting on deposit or invested in short-term German bonds.

TVC wrote down the value of its investment in Norkom by €15.5m in the period, and marked up the value of its stake in UTV by €3.6m.

That resulted in a pre-tax loss of €11.3m for the half-year and a 9pc reduction in equity value per share. The writedown is a non-cash exercise.

UTV and Norkom represented 88pc of TVC's net asset value at the end of September, while TVC also has stakes in four unquoted firms -- hotel operator Maldron, two software companies (Tas Group and CR2), as well as technology firm Shenick.

Shares in TVC are trading at a discount of about 41pc to the book value and at 65pc if cash of €31m is excluded. Mr Reihill owns almost 21pc of TVC, while management as a whole own a combined 30pc. AIB Investment Fund Managers, and the bank proper, own 10pc.

Mr Reihill said that €10m of the firm's cash is invested in German six-month bunds that currently yield a coupon of about 0.5pc. An additional €15m is sitting on deposit with an Irish branch of a foreign-owned bank.

Chief executive John Tracey and Mr Reihill said TVC is keeping a watching brief on a number of potential investment candidates, but they don't expect to make any moves in the short-term.

Irish Independent

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