Interim Results
November 21 2001 - 2:00AM
UK Regulatory
RNS Number:4565N
Ten Alps Communications PLC
21 November 2001
TEN ALPS COMMUNICATIONS PLC ("TEN ALPS")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001
Financial Highlights
Results for six months ended 30 September 2001, during which time (July 27)
the company underwent a reverse takeover and name change from Osprey
Communications to Ten Alps.
* Operating profit of #74,000 up from a corresponding loss of (#647,000)
in the same period last year.
* Net Profit was #71,000 compared to a loss of (#719,000) before
exceptionals in the previous period.
* Turnover from continuing operations up 11% and operating profit from
continuing operations up 63%.
* EBITDA of #159,000 compared to a loss of (#458,000) on turnover of
#3.75m.
* Cash balance at end of period was #2.9m compared to an overdraft of
(# 420,000).
* Net current assets of #2.7m compared to net current liabilities of (#
2.05m) in 2000.
* Equity shareholders' funds were #5.49m compared to a deficit of
(#1.90m).
Operational Highlights
* Increased revenues in advertising businesses, despite general downturn
during the period.
* Client list during month of October 2001 alone for event marketing and
production now includes Sony, Microsoft, BBC, BSkyB, EMI, Ford, NCR,
Flextech and Music Choice.
* Interim results do not include recent acquisition (October 17) of events
company Pacesetter, which showed profits before excess directors' pay of #
419,000 on turnover of #3.17m in year to May 31, 2001.
* Interim results include only two months' contributions from Ten Alps
Broadcasting and Dr Party.
Chairman's Statement
Ten Alps Communications is about 'bringing brands to life,' whether that be
through event marketing or advertising.
It is targeting what many see as a new space in the media between production
and advertising - one which in our view has no dominant, global player.
During the past year, companies now forming the Ten Alps group have served
over 70 companies with such skills. We believe this is a broad client base for
a company this size (roughly one client per employee). This contributed to
reassuringly stable revenues in the face of a wider advertising slowdown.
After an absence of three years profits have now returned to the company.
Profitability, as well as growth, was a key part of the reverse takeover and
renaming of the company as Ten Alps.
We now have a sturdy base going forward. We have a much stronger balance
sheet, substantial cash in the bank, and a focussed management team under
Chief Executive Alex Connock.
We also have considerable depth of experience amongst the managers at
subsidiary level - such as events and branding expert Tim Spencer at
Pacesetter and advertising executive Roger Maber at Osprey RMA. Both have
delivered six-figure profits every year for the last four years.
Building on our client base, we have now targeted international growth around
sporting events such as Formula One Grand Prix. We have also increased our TV
and radio production levels, both because these are profitable undertakings,
and also because they are key commodities in content provision for brands.
We are keeping separate brands at subsidiary level because clients expect
best-in-class services from specialists. So Dr Party can offer corporate
entertainment to Microsoft, whilst Pacesetter can offer the more sober annual
reports presentation service to EMI. Some integration of clients and sharing
of cost bases between divisions is taking place behind the scenes.
During the next six months your board will continue to look at appropriate
acquisitions targeted at strengthening its offering in event marketing.
We will strike a balance between considering the kind of internal investment
that will target steeper revenue growth in the long term, and of pursuing
prudent, shorter-term profit. In these uncertain times, we believe this mix of
prudence and acceleration is appropriate.
Brian Walden
Chairman
Ten Alps Communications PLC
21 November 2001
Financial Overview
Profit and Loss Account
Highlights above show the benefits of the Group's recent restructuring, with
group profitability improving significantly. Interest payments have ceased,
reflecting strong cashflow and the recent share placing. The results reflect
the acquisition of Ten Alps and Dr Party only for the 2 months of August and
September 2001.
Net profit is #71,000 for the six months whilst for the whole financial year
to 31 March 2001 the Group reported losses of (#129,000). The Group has
reported operating profits of #74,000 compared to operating losses of (#
466,000) after discounting the gain on the disposal of the discontinued
operations for the previous year.
Balance Sheet
At 30 September 2001 Group had a cash balance of #2.9m and net current assets
of #2.7m. After the restructuring and share placement the Group's net assets
strengthened from #71,000 to #5.49m as at 30 September 2001.
Due to acquisitions, the Group has goodwill of #2.498m, which is being
amortised over 10 years. The charge for the period was (#45,000).
Nitil Patel
Finance Director
Ten Alps Communications PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
SIX MONTHS ENDED 30 SEPTEMBER 2001
Six months Six months
ended 30 ended 30
September September 2000
2001
Conti- Discont- Contin- Disconti-
nuing inued uing nued
Opera- Acquisi- Opera- Total Opera- Opera- Total
tions tions tions tions tions
Unaud- Unaud- Unaud- Unaud- Unaud- Unaud- Unaud-
ited ited ited ited ited ited ited
Notes #'000 #'000 #'000 #'000 #'000 #'000 #'000
Turnover 3,459 294 3,753 3,112 2,451 5,563
Cost of sales (2,296) (141) (2,437)(2,049) (1,309) (3,358)
_____ _______ _______ _____ ______ ________ _____
Gross profit 1,163 153 1,316 1,063 1,142 2,205
Administrative (1,096) (146) (1,242)(1,022) (1,830) (2,852)
expenses
_____ _______ _______ _____ ______ ________ _____
Operating 67 7 74 41 (688) (647)
profit/(loss)
Profit on - 1,247 1,247
disposal of
businesses
Goodwill
previously
written off to
reserves
written back
on disposal
_____ _______ _______ _____ ______ ________ _____
Profit on 67 7 74 41 559 600
ordinary
activities
before
interest
===== ======= ======= ====== ========
Net interest 20 (72)
receivable/(
(payable)
_____ _____
Profit on 94 528
ordinary
activities
before tax
Tax charge (22) -
_____ _____
Profit on 72 528
ordinary
activities
after tax
Minority (1) -
Interest
_____ _____
Retained 71 528
profit/(loss)
for the period
===== =====
Basic 0.2p 1.76p
earnings/(loss)
per share
Adjusted 0.2p (2.39p)
earnings/(loss)
per share
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 MARCH 2001
Year ended 31
March 2001
Continuing Discontinued
Operations Operations Total
Audited Audited Audited
Notes #'000 #'000 #'000
Turnover 6,523 2,445 8,968
Cost of sales (4,267) (1,314) (5,581)
_________ _________ _______
Gross profit 2,256 1,131 3,387
Administrative expenses (1,985) (1,868) (3,853)
_________ _________ _______
Operating profit/(loss) 271 (737) (466)
Profit on disposal of businesses - 1,239 1,239
Goodwill previously written off to - (807) (807)
reserves
written back on disposal
Profit on ordinary activities before 271 (305) (34)
interest
======== ========
Net interest receivable/(payable) (95)
_______
Profit on ordinary activities before tax (129)
Tax charge -
_______
Profit on ordinary activities after tax (129)
Minority Interest -
_______
Retained profit/(loss) for the period (129)
=======
Basic earnings/(loss) per share (0.13)p
Adjusted earnings/(loss) per share 0.68p
CONSOLIDATED BALANCE SHEETS
As at As at As at
30 September 2001 30 September 2000 31 March 2001
Unaudited Unaudited Audited
# '000 # '000 # '000
Fixed assets
Intangible 2,498 - 80
Tangible 306 149 140
assets
___________________ _____________________ _____________________
2,804 149 220
_________________ __________________ __________________
Current assets
Work in - 21 34
progress
Debtors 1,357 1,125 1,336
Cash at Bank 2,907 - 115
___________________ _____________________ _____________________
4,264 1,146 1,485
_________________ __________________ __________________
Creditors
Amounts falling 1,538 3,192 1,634
due within one
year
_________________ __________________ __________________
NET CURRENT 2,726 (2,046) (149)
ASSETS/
LIABILITIES
_________________ __________________ __________________
Total assets 5,530 (1,897) 71
less current
liabilities
Creditors
Amounts falling (38) - -
due after more
than one year
_________________ __________________ __________________
5,492 (1,897) 71
================= ================== ==================
Capital and
reserves
Called up share 786 7,516 267
capital
Share premium 5,356 438 527
account
Minority 2 -
Interest
Profit and loss (652) (9,851) (723)
account
_________________ __________________ __________________
Equity 5,492 (1,897) 71
shareholders'
funds
================= ================== ==================
For further information please contact:
Sheila Gunn MBE
Brown Lloyd James
Tel: 0207 591 9610
e-mail: sheilag@blj.co.uk
Alex Connock
Chief Executive
Ten Alps Communications plc
Tel: 0207 627 4190
e-mail: Alex@10Alps.com
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