Q&A

I am interested in a company called Riverdeep that used to trade on the Irish Stock Exchange until early 2002. Do you have any idea what the situation is with this company now with regard to:

any plans to relist on the stock market?;

the approximate current value of its shares which I understand trade on the grey market?;

the performance of the company since it delisted?

Mr E.McE., Dublin

Riverdeep delisted in 2003, paying shareholders $1.51 a share, less than half the price at which the company floated in 2000.

In an interview with this newspaper's technology correspondent, Jamie Smyth, last week, Riverdeep chief executive and major shareholder Barry O'Callaghan said the company was unlikely to relist within the next couple of years as it had no need of the cash such a listing would bring.

I gather from the same interview that the company now values the shares at around $3, significantly higher than the controversial valuation at the time of the MBO but shy of the figure put on them by Davy last year.

I understand the company's bonds trade on the Luxembourg Stock Exchange and there might be a grey market through Davy in the shares.

As to performance, delisting has reduced the transparency on such issues. Mr O'Callaghan says revenues are around $350 million with operating profits of $65 million but then he is the chief executive. Analysts continue to have a mixed view of the company.

Loan repayments

I will be in a position soon to use a lump sum of around €40,000 to help pay off a number of loans. They are:

a mortgage with an interest rate of 3.6 per cent on a rental property (the interest of which is tax deductible) with a balance of €31,300 and 15 years still to run;

an equity release home loan at an interest rate of 3.6 per cent with a balance of €10,600 and seven years still to run;

a personal loan from the local credit union at an interest rate of 8.6 per cent with a balance of €17,900 and four and a half years yet to run.

In which order would you advise I pay off the loans?

Mr G.R., Dublin

The standard advice on repayment of loans is that you should prioritise them on the basis of their cost to you. In your case, although the credit union loan will be the first to be paid off if you continue to make your monthly payments, it is also clearly the most expensive - attracting an interest rate more than double the rate on your other debts.

I know credit unions are not very happy about people repaying loans early - or, for that matter, withdrawing credit union savings to meet debt obligations elsewhere - but your priority must be to use your funds to your best advantage.

Having got rid of the credit union loan, you are then confronted with two sets of borrowings at identical interest rates. However, you are receiving some tax advantage on the mortgage. As such, you would be best advised to first pay off the equity release loan.

That leaves you with €11,500 to reduce the balance outstanding on the mortgage.

To maximise the financial benefit, you really should continue to use the money that you would have used to pay each of the loans to accelerate the repayment of the remaining outstanding loan - the balance of the mortgage. The earlier you repay the loan, the less your overall interest bill will be.

Revenue inquiry

I hold insurance policies funded by single payments. I can account for the funds used in the purchase of these policies. Should I, at this stage, make a written submission?

Mr B.G., Dublin

The Revenue deadline for people to come forward has passed - last Monday (May 23rd). However, it was of no importance to you. The only people needing to take action by that deadline were those who had funded such insurance policies with money on which tax had not been paid.

As you can account for the funds used to open your policies, you have no need to communicate with Revenue at this time.

If the Revenue does subsequently contact you in relation to the source of your funds, you can always make a submission at that time. The fact that you have not done so ahead of the deadline will not colour your position one whit. As I say, only those with something to hide have to come clean by that deadline.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 10-16 D'Olier Street, Dublin 2 or by e-mail to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice.