TVC holdings back in black with €3.8m pre-tax profits

INVESTMENT firm TVC Holdings is back in the black on a first half basis.

The company has reported a pre-tax profit of €3.8 million for the six months to the end of September; up from a loss before tax of €10.4m for the same period last year.

Operating costs were cut by 13% during the period and TVC also made €1.3m from the sale of its stake in international cloud technology specialist, OpSource, back in June.

TVC now has net assets worth €110m, no debt and a €73m cash balance.

The Dublin-based firm — formerly known as Trinity Venture Capital — holds an 18% stake in UTV Media and a near 29% holding in the Maldron Hotel Group; plus a number of non-core investments in a range of smaller technology companies. Its overall aim remains to make a further two or three investments — as well as some non-core disposals — to arrive at a portfolio of around four high profile shareholdings. Each of the companies in which TVC has invested are currently trading at a profit and generating cash.

TVC’s main management team — of executive chairman, Shane Reihill and chief executive, John Tracey — said yesterday that further investments are being held up by the lack of access to capital and non-movement in the markets. However, they added that the company is well positioned to make further investments when valuations become more attractive.

“We believe that there’ll be significant restructuring opportunities in Ireland and the UK, where trading companies with excessive debt will need to raise new equity at attractive terms for new investors, plus the banks are continuing to focus on resolving problems within their own corporate portfolios,” he said.