TSV expects $4m loss for FY11

TSV expects $4m loss for FY11

Communications equipment vendor TSV Holdings (ASX:TSH) is expecting a $4 million net loss for FY11 despite an anticipated improved second-half performance.

In a market update, the company said it expects a $1.1 million loss for the second half of the year, but that this compares to the $2.9 million loss for FY11.

The company is projecting revenue of $9.6 million for the half and $17.5 million for the year, from ebitda of $600,000 for the half and $1.2 million for the year.

But TSV booked a number of one-off losses in the first half as it executed restructuring programs, the company said.

Going forward, TSV said it plans to evaluate divestment opportunities and focus on profitable parts of its business, including healthcare markets.

The company announced plans to raise around $720,000 in a rights issue to balance the anticipated losses.

The one-for-six non-renounceable offer is for $0.04 per share, and has a record date of May 17. It has been fully underwritten by Lodge Corporate and will be sub-underwritten to up to $321,000.

The company is conducting the rights issue in conjunction with a $560,000 placement to Silchester Investments, announced on April 29. The placement gave the family of Brian Blythe and James Blythe - who were appointed to the board in connection with the investment - a 15% stake in TSV.

Silchester has agreed to participate in the rights issue, TSV said.

TSH shares grew 30.77% during Monday's trading to $0.034. The last movement prior to Monday was a 35% decline from $0.040 the day the Silchester placement was announced.

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Tags TelecommunicationsHealthcareGuidanceTSV LimitedASX:TSHBrian BlytheJames Blythe

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