TVC Holdings increased the value of its portfolio by 24 per cent in its last financial year, and reported a gross return of €10.7 million.
The return was mainly attributed to a rise in the value of its stake in UTV Media, a revaluation of an unquoted investment and the disposal of its interest in OpSource.
In the year ended March 31st 2012, the investment firm said the value of its investment portfolio was €8.1 million higher, with its UTV investment rising by €5.1 million, and a mark-up of €3 million on its unquoted portfolio.
Pre-tax profit for the year was €9.2 million, while operating expenses fell by 14 per cent to €2.4 million.
The company sold its investment in OpSource in June last year, for €1.3 million, as part of its acquisition by NTT Holdings subsidiary Dimension Data.
At the end of the financial year, TVC had net assets of €115 million, the majority of which was cash and government bonds, and no debt. Quoted equity investments make up 26 per cent of the firm’s assets, with unquoted investments of €12.2 million accounting for 11 per cent.
TVC said that although it had evaluated a number of new investment opportunities during the year, it did not complete any new investments.
“We believe that there are restructuring opportunities in Ireland and the UK where trading companies with excessive debt need to raise new equity at attractive terms for new investors. TVC’s management has extensive experience of complex restructuring and turnaround transactions and is well placed to capitalise on this environment,” executive chairman Shane Reihill said.
“With cash and government bonds increased to €72.6 million, we believe that TVC is in a very strong position to make additional long term investments at what we expect to be attractive valuations, adding further value to our investment portfolio.”
Bloxham Stockbrokers said the number of potential opportunities in Ireland and the UK had been slow to emerge, but noted the group's favourable position should the pipeline of deals improve as expected.
"In our view, the recent increase in high profile examinerships, liquidations and bank led restructurings would suggest that activity levels are likely to be higher in the current year," Bloxham said in a note.
