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TVC posts €11.6m profit and has €72m for equity investment

TVC management is under no pressure to make any fresh equity investment and could hold out as long as 18 months before securing an appropriate target, according to its executive chairman, Shane Reihill.

"There's no points for speed here," said Mr Reihill yesterday as he disclosed full-year figures for TVC. "Opportunities will come. We just have to be patient."

TVC hasn't made any significant equity investment since November 2008, and is currently sitting on €72m in cash and government bonds after it realised €41.6m for its near 30pc stake in Irish software firm Norkom, when the business was sold earlier this year to BAE Systems. That represented a 2.8 times return on TVC's original investment.

The divestment, which followed an auction process initiated by TVC, left the company with just one major holding -- an 18pc directly-held stake in Northern Ireland broadcaster UTV, which owns a number of radio stations in Ireland, such as Q102 and FM 104 in Dublin, as well as 96FM in Cork.

That shareholding and its cash balance now represent 91pc of TVC's total €106m net asset base. The remainder comprises holdings in hotel operator Maldron, as well as three small software companies.

TVC's annual results showed the firm made a pre-tax profit of €11.6m in the year to the end of March, while there was a 13pc increase in the equity value per share during the period.

Mr Reihill, who owns 20pc of TVC, said that while some of the firm's shareholders were under some liquidity pressure, the company had no intention at the moment of returning any of its cash to them.

"The majority of shareholders do not want dividends. They're a tax-inefficient way of getting capital back," he said, adding that if the company began doing so it would signify that it had failed to uncover investment opportunities.

Shares in TVC closed relatively flat yesterday at 81.5 cent in Dublin.

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