TVC Holdings plc Preliminary Financial Results for the year ended 31 March 2014

corporate news

TVC Holdings plc (“TVC” or the “Company”), the investment holding company, today
(Tuesday, 13 May 2014) announces its Preliminary Financial Results for the year ended 31 March 2014.

Key Performance Highlights - Year to 31 March 2014:

• Profit before tax for the year of €33.4 million (2013: €6.6 million), driven by realised gains on disposal of investments and an increase in value of the remaining investment portfolio.
• Subscribed €15.0 million for new shares in the IPO of Dalata Hotel Group plc in March 2014 and subsequently disposed of TVC’s entire Dalata shareholding for a total consideration of €30.4 million, realising a profit on disposal of €13.4 million.
• Disposed of 7.6 million shares in UTV Media plc in February 2014 for a total consideration of €22.1 million (£18.2 million) realising a profit on disposal of €8.2 million.  Including dividends received to date, this sale enabled TVC to recover the full cost of its investment in UTV.  TVC’s remaining 10.05% shareholding of 9,640,262 shares in UTV was valued at €27.5 million at 31 March 2014.
• Sale of investment in Shenick Network Systems Limited in February 2014 realising a profit on disposal of €3.8 million.  The total cash proceeds payable to TVC, including escrow, amount to US$8.6 million (€6.4 million), representing a return of 2.4 times the valuation of its investment.
• Special dividend of €45.3 million representing €0.495 per share, approved at AGM in June 2013, paid to shareholders in September 2013.
• In August 2013, repurchased 9.6 million shares at a price equivalent to €0.445 per share (adjusting for payment of the special dividend).  TVC’s closing share price on 31 March 2014 was €0.91.
• Increase of 55% in net asset value per share over the year to €1.10 at 31 March 2014 (adjusting for payment of the special dividend).
• Net assets at 31 March 2014 of €101.0 million including cash at bank of €67.3 million, quoted equity investments of €27.5 millionand unquoted investments of €5.6 million.  TVC has no debt.

Significant Return of Capital and Cancellation of TVC’s Listings on AIM and ESM

• Detailed review of TVC’s strategic options completed, following the Group’s very strong 2014 financial performance and in the light of the current equity funding environment.
• Proposed capital distribution to shareholders in July 2014 of cash and UTV shares valued at circa €91 million or €0.95 per ordinary share, which is 90% of TVC’s net assets based on valuations at 31 March 2014.
• Intention to cancel TVC’s listings on AIM and ESM and significantly reduce group overheads.
• Arrangements, including appropriate board and corporate governance,to be put in place to manage the realisation of TVC’s remaining assets and liabilities in an orderly way, which is expected to take a number of years, in order to maximise value for shareholders.

Commenting on the year-end Financial Results, TVC Holdings’ Executive Chairman, Shane Reihill, said:

“We are pleased to report a year of very strong performance at TVC with a profit for the year in excess of €33 million.  Having completed a detailed review of TVC’s strategic options, in the light of both the continuing lack of suitable investment opportunities and the current equity funding environment, the Board of TVCproposes to make a large capital distribution to shareholders and, over a number of years, to carry out an orderly realisation of TVC’s remaining assets to maximise value.  We believe that this strategy is in the best interests of all our shareholders.”