TVC Holdings plc Audited Financial Results for the 15 Month Period Ended 31 March 2008

TVC Holdings plc (“TVC” or the “Company”), the leading investment holding company, is today (Thursday, 12 June 2008) pleased to announce its Audited Financial Results for the 15 month period ended 31 March 2008.  Following the change in the Company’s year end to 31 March, the comparative figures relate to the 12 month period ended 31 December 2006 and are, therefore, not entirely comparable.

Key Performance Highlights are outlined below:

Admitted to trading on the AIM market of the London Stock Exchange and IEX market of the Irish Stock Exchange on 11 July 2007

•Successfully raised gross proceeds of €50 million to finance development of existing portfolio companies and fund new investments

•Equity value per share of €1.24 as at 31 March 2008 (Shareholders’ equity of €125.8m and 101.1 million shares in issue) compared to the like-for-like equity value at Admission of €1.34 per share (being the IPO price of €1.50 per share excluding goodwill and IPO costs)

•During the 15 month period, TVC invested €22.2 million to grow and develop the business.  This consisted of €10 million in August 2007 when the Company led a consortium of investors, including Pat McCann and Davy Private Clients, to acquire the operating businesses of 11 Comfort Inn and Quality Hotels in Ireland, which employ 500 people, for a total consideration of €41.5 million.  TVC hold a 29% shareholding.  The Group also invested €4.3 million in Norkom Group plc in August 2007 and €7.9 million in unquoted portfolio companies

•During the 15 month period ended 31 March 2008, the Company has made a net loss of €12.6 million on its investment portfolio, which included an unrealised loss of €16.3 million against Norkom Group plc (to reflect the movement in Norkom’s share price from €2.05 to €1.36); a provision against its unquoted portfolio of €6.5 million (including unrealised foreign exchange losses of €3.0 million); and a realised gain of €10.2 million, mainly on the disposal of its shareholding in Havok

•Excluding the effect of the reduction in the valuation of the investment in Norkom Group plc, the Company’s shareholders’ equity as at 31 March 2008 was substantially unchanged from that reported in its Interim Results as at 30 September 2007

•At 31 March 2008, net assets were €141.4 million which mainly comprised cash at bank and other liquid investments of €47.7 million (34%); quoted equity investments of €32.9 million (23%) and unquoted equity investments of €59.0 million (42%).  The Company has no debt

Commenting on the Audited Financial Results TVC Holdings’ Executive Chairman, Shane Reihill, said:

“The successful IPO of TVC Holdings has transformed the Company. It has allowed the Group to significantly expand its strategic focus and leverage its investment expertise into further promising sectors. The best example of this was our Comfort Inn and Quality Hotel deal which we announced last year. In addition, it has allowed us to reinvest significantly in our growth portfolio companies such as Norkom, while retaining the ability to make further substantial investments. During this period, the value of our portfolio companies was underlined by the sale of Havok at a substantial gain. Our strategy is now to build further value in our investment portfolio, which we believe is prudently valued, and to grow our portfolio with a limited number of significant new investments. With cash and liquid investments in excess of €47 million and no debt in the Company, we believe that TVC Holdings is in a very strong position to deliver its strategy and maximise value for our shareholders”. 

To read the full 2008 Annual Report, please click here...