TVC boosted by Norkom and UTV share price gains

INCREASES IN the share prices of Norkom and UTV helped boost the value of listed investment vehicle TVC in the 12 months ended March 31st.

TVC holds 27 per cent of banking security software specialists Norkom and 18 per cent of broadcaster UTV as well as a range of unquoted investments, cash and government bonds.

At the end of its financial year on March 31st last, TVC had net assets of €103.6 million. The value of its quoted equity investments increased 59 per cent during the 12-month period to €61 million.

TVC said yesterday that the value of the company rose 37 per cent in its last financial year to 93 cent per share from 68 cent.

The overall value of its investment portfolio increased by €28.7 million, made up of a €36 million gain on Norkom and UTV, and a markdown on the value of its unquoted portfolio of €7.3 million.

Overall, TVC delivered a gross portfolio return of €30.4 million during the year.

The company’s unquoted investments include: stakes in Maldron Hotels, which manages hotels on behalf of their owners; sales software group TAS; broadband testing equipment manufacturer Shenick and banking software developer CR2.

The overall carrying value of its stakes in these companies at the end of March was €9.4 million. The group has always said that it values these holdings prudently.

At the close of business on March 31st, TVC’s shares traded at 62 cent, a discount of 34 per cent to its overall value, and of 48 per cent when cash and bonds are excluded.

Executive chairman Shane Reihill pointed out yesterday that TVC’s shares have consistently traded at a discount to the actual value of the company.

He added that investment companies have tended to trade at a premium to the value of their holdings, but pointed out that may not be the case in the current investment climate.

Mr Reihill said that, with €28 million in cash and bonds, the company is in a position “to make long-term investments at what we expect to be attractive valuations”.

The company pursued a number of potential deals during the year, but did not complete any of them.