TSV expects $4m loss for FY11

Communications equipment vendor TSV Holdings (ASX:TSH) has forecast a $4m loss for FY11, but said its 2H performance is expected to be significantly improved year-on-year

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 17 May. 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 29 April. The placement gave the family of Brian Blythe and James Blythe - who were appointed to the board in connection with the investment - a 15 per cent stake in TSV.

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

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

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