Investment firm TVC Holdings has reported a 184% year-on-year increase in first half pre-tax profits, with earnings per share trebling.
The Dublin-based company — whose chief investment is an 18% stake in UTV Media — yesterday posted pre-tax profits of €6.82m for the six months to the end of September; up from a profit of just over €2.4m for the corresponding period last year.
Basic earnings per share amounted to 6.9c; up from 2.3c at the same stage last year.
A first half gross portfolio return of €8m was also delivered, up from a corresponding return of €3.5m last year.
Despite making any new investments — the firm’s stated aim is to build a platform of a small number of high profile investments/ shareholdings — TVC reached the halfway point of its current financial year with net assets of €74.4m (including cash at bank of €25.7m) and no debt.
Commenting on the progress made, executive chairman, Shane Reihill, said: “During the period we continued to work actively with our core portfolio investments to maximise their value and to evaluate potential new investment opportunities.
“TVC will continue to look for value-enhancing investments and to manage our existing portfolio in order to maximise value for all our shareholders,” he added.
During the period, TVC returned more than €45m to shareholders, via a special dividend payment, after it was deemed not to be in shareholders’ best interests to have €80m of surplus cash on the firm’s balance sheet in the midst of not making any further investments.
Simon McGrotty of Davy Stockbrokers said that TVC is strongly positioned with its minimal running costs, cash balances and debt-free status; adding that the stock is trading at a 29% discount to book value.
“Going forward, we expect that the portfolio will benefit from a number of positive factors: the potential and continued growth in the value of its quoted investment; the flexibility provided by €25.7m in making a value-enhancing acquisition; and the premium that should be generated at disposal on its unquoted investments,” he added.
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