Investment vehicle TVC Holdings is to return €50 million in surplus cash to shareholders as part of a special dividend of 49.5 cent per ordinary share.
The move was prompted by what the Dublin-listed company said were the “very limited number of investment opportunities” and a review of its strategic and financial options to enhance shareholder value.
The group generated an annual return on its portfolio of €9.3 million for the year to the end of March on the back of a successful asset sale and a general rise in the value of its remaining investments
Its figures were boosted by the disposal of its stake in software developer TAS Group for €7.4 million last August, which realised a gain of €3.9 million.
The company said profit before tax for the year was €6.6 million.
TVC said net asset value per share stood at €1.21 at the end of March, compared with €1.14 a year previously, representing a 6 per cent increase.
Cash and government bonds increased by 9.5 per cent during the year from €72.6 million to €79.5 million.
The board said it had decided, subject to shareholder approval, to return €50 million of surplus capital to shareholders in the form of a special dividend of 49.5 cent per ordinary share.
After adjusting for the payment of the proposed dividend, TVC’s net assets would be €72 million.
This included stake in media group UTV, valued at €32 million; three unquoted investments valued at €11 million; and cash of €29 million.
"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," said executive chairman Shane Reihill.
“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”.
