Dublin-based investment group TVC Holdings said today that the value of the company's investment portfolio increased by €22.1 million during the first six months of 2009.
In a trading update issued this morning the company said the increase in value comprised of a mark up of €24.1 million on its quoted investments and a mark down on its unquoted portfolio of €2 million which included unrealised foreign exchange losses of €0.4 million.
The group said it saw a strong gross portfolio return of €22.7 million in the six months to the end of September on the back of an increase in the value of the company's quoted investments, Norkom and UTV.
“TVC’s cash plus two quoted investments, Norkom and UTV, represents 81 per cent of our balance sheet value at September 30th2009. Four unquoted investments, which are prudently valued, represent most of the remaining 19 per cent of our balance sheet value at 30 September 2009," said TCV Holdings executive chairman Shane Reihill.
TVC recorded a 28 per cent increase in equity value per share from €0.68 at the end of March to €0.87 at the end of September.
The equity value per share represents a discount of 31 per cent when compared to TVC’s closing bid price on September 30th of €0.60 and a discount of 46 per cent, excluding cash and liquid investments.
Net assets totalled €96.4 million. This mainly comprised of cash at bank and other liquid investments of €28.9 million, quoted equity investments of €49.0 million and unquoted equity investments of €16.6 million. TVC said that it currently has no debt.
The group said there was little investment activity during the period under review due to the economic downturn. It said it's main focus at present was on optimising the value of its existing portfolio as well as positioning the business for a stabilisation in market conditions.
“With cash and liquid investments of almost €29 million and no debt in the company, we believe that TVC is in a strong position to make further long term investments at what we expect to be attractive valuations, adding real value to our investment portfolio. We also believe that, given this significant cash balance, the company is in a very strong position to deliver its strategy and maximise value for all our shareholders," added Mr Reihill.
Davy Research analyst Simon McGrotty said TV was strongly positioned with a portfolio which will benefit from continued growth.
He added that TVC is ideally placed to deliver its goal of four to five core investments over the medium term
