Interim Results
November 17 2003 - 2:00AM
UK Regulatory
RNS Number:1182S
Ten Alps Communications PLC
17 November 2003
TV Company Ten Alps Communications PLC - interim results
17 November 2003
Television-orientated media group Ten Alps Communications PLC ('Ten Alps') today
announces its interim results for the six months ended September 30, 2003.
Highlights:
* Group revenues increased 33.4% to #7.2m (2002: #5.4m)
* Group EBITDA increased 32.3% to #311,000 (2002: #235,000)
* Adjusted EPS increased by 25%
* Cash balance increased by 30.5% to #3.4m (2002: #2.6m)
* Net assets of #6.6m (2002: #6.5m)
* Increased revenues from television and advertising activities
* Significant improvement in events business
* Nigel Dacre, former editor of News at Ten and ITN News Channel, joins
company
* Share capital unchanged for past 24 months
Current trading:
* TV production revenues will be significantly higher in the second half
* TV shows now in production for BBC1, BBC2, Channel 4 and US networks
* Advertising business on track to exceed last year's performance
Commenting, Chairman Brian Walden said:
"We have cash in the bank and organic growth, and significant potential in
current major projects under discussion. We are optimistic that we can make
progress in the next six months towards our goal of being a significant TV
production business."
Chairman - Brian Walden
Ten Alps' aim is to become a force in the UK and European TV production business
over the next 5 years - and this set of results is an encouraging step in the
right direction.
We have had growing turnover, very healthy cash balances (for our size), zero
gearing, positive cash flow and a strong talent base. We make some very good TV
programmes. And we have weathered what is generally viewed as the worst of the
advertising sector recession. So our challenge is how to take the very small but
robust outfit we have, and turn it into a serious contender.
We are therefore targeting much larger TV contracts, and acquisitions of a far
greater scale than we have done so far. We have specific opportunities in our
sights in both regards, and seeking to bring them to a conclusion will be our
focus for the next six months. It's a case of 'think big.'
Chief Executive - Alex Connock
Ten Alps believes that the UK independent TV production sector stands to benefit
from significant opportunities as a result of the 2003 Communications Act. As a
profitable company with a strong base in quality factual programming, and as one
of only a very few listed independents, we believe we are well placed to take
this market on - not least with the talent base we have.
We have had 100% stability in our management team over the past two and a half
years, and are now able to add to it.
Nigel Dacre, formerly Editor at News At Ten and the ITN News Channel, has joined
our team and has already made a pivotal contribution to an interest we have in
factual TV channel development. We also have a talent agency (Know Comment)
which now represents around 40 commentators for TV appearances, including for
our own shows where appropriate. Bob Geldof and Brian Walden (non executive
directors) have been instrumental in putting together TV programmes recently.
And Brian Lapping and Norma Percy at Brook Lapping continue to win awards around
the world for their documentaries. We will always seek relationships with more
talented people.
Advertising
This was a good period for our agencies which continue to deliver growth in
revenues. They are well-managed and have prospered with relatively stable client
bases.
Ten Alps RMA has had superb results, as ever. The company continues to enjoy
particularly strong relationships in the maritime industry, with over 20 clients
exhibiting at the Southampton Boat Show alone.
Ten Alps MTD has seen revenues and profits jump, a particularly strong
performance given the wider gloom in the Scottish advertising market, in which
one or two major players have actually folded. The period saw significant sales
growth and account wins.
Television
Our TV business has grown in this period relative to last year, and we have a
good order book for the period to March 2004.
In current affairs television we produced political show The Sharp End with
Clive Anderson, I Met Osama Bin Laden and started work on documentary series Pax
Americana, all for BBC2. We also made Spies for Five, and a number of other
programmes. Meanwhile in entertainment TV we started work on John Thompson's
Stands up for Comedy for Bravo and made a five-part series with Jeremy Vine for
BBC1 in which he interviewed major stars, such as Sting. Our agency Red Welly is
currently in production on its second 3-D animated game for clients including
the BBC.
Radio
Our business continued at a stable but modest level relative to our other
activities. We continued to co-produce the Sunday morning current affairs
programme Julian Worricker for BBC Radio 5 Live. We produced documentaries The
History of Disco, The Story of Rolling Stone Magazine and Arthur Smith Lectures
for BBC Radio 2, and started work on The History of Betting and History of King
Tuts for BBC Scotland.
Events production
As a whole our events business was restored to a small profit. Our Dr Party
events business achieved growth in sales over the first six months of the year.
Significant repeat business was carried out for O2 and Sony Playstation. However
sales for the Christmas period are as yet currently looking weak compared to the
previous year, a likelihood which has been addressed by cost-cutting. Given the
relatively small size of Dr Party, this should not have a material impact on
group finances. Meanwhile our Ten Alps Events business improved on its previous
interim results , with new client wins including British Airways. Ongoing work
has been carried out for NCR, EMI, Corus, RMC and others. Sales are ahead of the
same period last year, but again we have low visibility so we remain cautious.
To address costs and sharpen up the sales function, we will in the New Year be
merging and rebranding our two events companies into one agency, and putting
more effort into rights-owned event properties such as our Firedance concept.
FINANCIAL DETAIL
CONSOLIDATED PROFIT AND LOSS ACCOUNT
SIX MONTHS ENDED 30 SEPTEMBER 2003
Six months Six months Year ended 31
ended 30 Sept ended 30 Sept Mar 2003
2003 2002
Total Total Total
Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover 7,230 5,420 13,059
Cost of sales (4,954) (3,499) (8,779)
----------- ---------- ----------
Gross profit 2,276 1,921 4,280
Administrative expenses (2,054) (1,745) (3,832)
Amortisation of Goodwill (217) (190) (404)
----------- ---------- ----------
Operating profit/(loss) before
interest 5 (14) 44
Net interest receivable 23 20 35
----------- ---------- ----------
Profit on ordinary activities
before tax 28 6 79
Tax (charge)/credit (1) 0 9
----------- ---------- ----------
Profit on ordinary activities
after tax 27 6 88
Minority Interest 0 0 0
----------- ---------- ----------
Retained profit for the period 27 6 88
=========== ========== ==========
Basic earnings per share 0.06p 0.014p 0.20
Adjusted earnings per share
before goodwill amortisation 0.55p 0.44p 1.11
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2003
As at As at As at
30 Sept 2003 30 Sept 2002 31 Mar 2003
Unaudited Unaudited Audited
# '000 # '000 # '000
Fixed assets
Intangible 3,500 3,422 3,717
Tangible assets 515 443 560
----------- ----------- -----------
4,015 3,865 4,277
----------- ----------- -----------
Current assets
Work in progress 465 59 482
Debtors 2,776 2,268 2,215
Cash at Bank 3,350 2,568 3,339
----------- ----------- -----------
6,591 4,895 6,036
----------- ----------- -----------
Creditors
Amounts falling due within one yea (3,626) (2,166) (3,344)
----------- ----------- -----------
NET CURRENT ASSETS 2,965 2,729 2,692
----------- ----------- -----------
Total assets less current liabilities 6,980 6,594 6,969
Creditors
Amounts falling due after more
than one year (331) (54) (347)
----------- ----------- -----------
6,649 6,540 6,622
=========== =========== ===========
Capital and reserves
Called up share capital 883 883 883
Share premium account 2,999 2,999 2,999
Merger Reserve 2,930 2,930 2,930
Profit and loss account (164) (273) (191)
----------- ----------- -----------
Equity shareholders' funds 6,648 6,539 6,621
Equity Minority Interest 1 1 1
----------- ----------- -----------
6,649 6,540 6,622
=========== =========== ===========
CONSOLIDATED CASHFLOW STATEMENT
SIX MONTHS ENDED 30 SEPTEMBER 2003
Six months Six months Year ended
ended 30 Sept ended 30 Sept 31 Mar 2003
2003 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash inflow from operating
activities 102 179 1,579
Return on investments and servicing
of finance 23 20 35
Taxation (52) - (124)
Capital expenditure and financial
investment (43) (105) (166)
Acquisitions and disposals - (60) (505)
---------- ---------- ---------
Net cash inflow before financing 30 34 819
---------- ---------- ---------
Financing
Capital element of finance lease
rentals and media loans (19) (12) (25)
---------- ---------- ---------
Net cash (outflow) from financing (19) (12) (25)
---------- ---------- ---------
Increase in cash 11 22 794
---------- ---------- ---------
Reconciliation of net cash flow movement to movement in net debt
Increase in cash in the period 11 22 794
Cash outflow from decrease in lease
financing and media loans 19 12 25
---------- ---------- ---------
Change in net debt resulting from
cash flows 30 34 819
Finance leases - - (34)
Loans acquired with subsidiaries - - (414)
Movements in loans - - 1
Exchange adjustments - - (39)
---------- ---------- ---------
30 34 333
Net funds at beginning of period 2,791 2,458 2,458
---------- ---------- ---------
Net funds at end of period 2,821 2,492 2,791
---------- ---------- ---------
Notes
Analysis of cash flows for headings netted in cash flow statement.
Reconciliation of operating profit/(loss) to net cash inflow from operating
activities.
Notes to Cashflow:
Analysis of cash flows for headings netted in cash flow statement
Reconciliation of operating loss to net cash inflow/(outflow) from operating
activities.
Six months Six months Year ended 31
ended 30 Sept ended 30 Sept Mar 2003
2003 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Operating profit/(loss) 6 (14) 44
Depreciation 89 59 148
Goodwill amortisation 217 190 404
Loss/ (gain) on sale of fixed assets - - (1)
Foreign exchange loss/(gain) on media
loans - - 39
Change in work in progress 17 (15) (145)
Change in debtors (562) (142) 388
Change in creditors 335 101 702
---------- ---------- ---------
Net cash inflow from operating
activities 102 179 1,579
---------- ---------- ---------
1. The financial information in this statement does not constitute
statutory accounts. The financial information in respect of the year ended 31
March 2003 has been extracted from the statutory accounts which received an
unqualified auditors' report and have been delivered to the Registrar of
Companies.
2 Adjusted earnings per share has been provided in order that the effects of
goodwill amortization can be fully appreciated.
Further Details:
www.tenalps.com
Peter Binns
Binns & Co. PR Ltd
peter.binns@binnspr.co.uk
0207 786 9600
Chief Executive Finance Director
Alex Connock Nitil Patel
Alex@tenalps.tv Nitil@tenalps.com
0207 089 3686 0207 089 3686
This information is provided by RNS
The company news service from the London Stock Exchange
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