Final Results

Ten Alps Communications PLC 21 June 2004 For release 7:00am 21st June 2004 TEN ALPS COMMUNICATIONS PLC Preliminary results, year ended 31st March 2004 Ten Alps Communications PLC ('Ten Alps' or 'the Company'), the AIM listed media group, announces its preliminary results for the year ended 31st March 2004. Financial highlights 2003-4: * Turnover up 28.13% to £16.73m (2003: £13.06m) * Cash up 18.86% to £3.97m (2003: £3.34m) * Headline profits (Ebitda) up 19.46% to £712,000 (2003: £596,000) and net profits after tax up 69% to £149,000 (2003: £88,000) * Adjusted EPS up by 19.8% to 1.33p (2003: 1.11p) * Net Assets as at 31.03.04 £6.77m (2003: £6.62m) * No new shares issued since 2001 * No significant debt Teachers' TV: * Following competitive tender, a consortium 70%-owned by Ten Alps subsidiary Brook Lapping became preferred supplier for provision of a new digital television channel to the Department for Education and Skills (DfES). * A £1.2 million, 12-hour pilot was delivered. * Independent market research on the pilot showed strong approval amongst all levels of the education profession. * The DfES has indicated a final decision will be announced soon on whether the channel will be given the go-ahead. * If confirmed, the contract will be approximately £15m per year over four years, with an additional post-launch performance-related management fee of between 2.5% and 12.5%. Other operational highlights: * Acquisition (Feb 2004) of factual TV producer 3BM TV for £630,000 plus earnout * Acquisition (May 2004) of factual TV producer Blakeway Productions for £400,000 plus earnout. (Post balance sheet.) * Ten Alps Events wins £3m Foreign Office contract to represent UK at Japan's Expo 2005. Events order book is double that of this time last year. * Ten Alps now has 18 TV series or programmes currently in production, giving the group clear focus on factual TV. Prospects: * On current information we believe 2004-5 is likely to see increased turnover. Brian Walden - Chairman's Statement Media group Ten Alps has set out this year to become one of Britain's leading independent producers of factual television. We have taken 'serious media' as our corporate mandate, believing that there is money to be made in high-end, editorially-sound production of all kinds. There is evidence to support our view, both in Ten Alps' growth itself, and in the fact that broadcasters such as the BBC are signaling a switch away from reality TV and towards 'quality.' We have seen a substantial increase in the scale of our TV operations, and if the Teachers' TV contract were to be confirmed by the Department for Education and Skills we would have added visibility from a sizeable 4 year contract. In 2004, we made two further acquisitions of high quality factual TV production companies - 3BM TV and Blakeway Productions, the latter after the financial year end. This has added current and future programmes, development skills, award-winning producers and a programme rights library to our portfolio. In 2003-4 we saw a rise in commercial business and profits in both of our Advertising divisions' operations. Meanwhile our events teams saw a much stronger performance and were merged at the year end. Their Buckingham Palace projections made four broadsheet front pages on a single day. Their current order book is double what it was last year. Overall as a group, in 2003-4 we grew revenues by 28.13% and headline profits (EBITDA) by 19.46%. We issued no new shares to fund our acquisitions and increased our cash balance to £3.97m, avoiding any debt. 'Organic acquisition' is not a technical term, but it does characterise our approach to the group's finances quite well. Unnecessary dilution of share capital is something we have been keen to avoid when the market was depressed. In future, we may use equity to generate growth by acquisition, in a measured way. Since Ten Alps Communications is quoted on the stock market, we will work with the market to sensibly raise funds. As of June 2004, the industry background is reasonably positive, and our position within it is certainly far stronger than this time last year. We have eighteen series or films in production. We have a good range of advertising clients. We continue to seek the new and the innovative in events; just this month, we're building a big surprise in Trafalgar Square. Our success this year was created by the excellence and admirable hard work of our staff, and on behalf of the shareholders, we are more than grateful. The challenges now are to keep up the production quality, manage the high profile we now have, keep growing organically and target rather larger acquisitions in the television field, both here and overseas. Nitil Patel - Financial Director's Statement: Trading Analysis Group turnover grew by 28.13% to £16.73m with acquisitions contributing £0.33m. The gross profit increased by 11.68% to £4.78m (2003: £4.28m). Gross margin has fallen from 32.77% in 2002 to 28.55% in 2003. However, administrative expenses continue to be controlled and represent 25.48% of turnover (2003: 29.34%). The Group's EBITDA has increased by 19.46% to £712,000 (2003: £596,000) reflecting improved conditions in the Events Sector. The profit after tax (PAT) was £149,000 (2003; £88,000) reflecting a goodwill amortisation charge of £437,000 (2003: £404,000) for the year. The basic earnings per share (EPS) increased from 0.20p in 2003 to 0.34p in 2004. The adjusted EPS is 1.33p in 2004 compared to 1.11p in 2003. Group Balance Sheet Shareholders funds have increased from £6.62m to £6.77m, reflecting the results for the year. The profit and loss account shows the deficit being reduced to £ (42,000) (2003: £(191,000)). The long-term debt at the year-end reflects loans from the European Union for development of programmes of £268,000 (2002: £276,000) and finance leases of £40,000 (2003: £71,000). Share Price The mid-market share price of the Group has fluctuated between 10p and 30.75p during the year. At the year end the mid-market closing price was 29.25p, giving the Group a market capitalisation of £12.92m. The group balance sheet as at 31 March 2004 was £6.77m, of which £3.97m was held in cash. Ten Alps Communications plc Consolidated Profit and Loss Account For the year ended 31 March 2004 2004 2003 £'000 £'000 Notes Turnover - continuing operations 16,399 13,059 - acquisitions 333 - ------- ------- 16,732 13,059 Cost of sales (11,955) (8,779) ------- ------- Gross profit 4,777 4,280 Administrative expenses (4,264) (3,832) Amortisation of goodwill (437) (404) ------- ------- Operating profit- continuing operations 68 44 - acquisitions 8 - ------- ------- ------- ------- Profit on ordinary activities before 76 44 interest Net interest receivable 50 35 ------- ------- Profit on ordinary activities before tax 126 79 Taxation 24 9 Minority Interest (1) - ------- ------- Retained profit for the year 149 88 ======= ======= Basic earnings per share 2 0.34 0.20 ======= ======= Earnings per share before goodwill 2 1.33 1.11 amortisation ======= ======= A statement of total recognised gains and losses is not included as there are no recognised gains or losses other than those disclosed above. Ten Alps Communications plc Consolidated Balance Sheet As at 31 March 2004 31 March 2004 31 March 2003 £'000 £'000 Fixed Assets Intangible assets 3,640 3,717 Tangible assets 499 560 --------- --------- 4,139 4,277 Current assets Work in progress 136 482 Debtors 2,683 2,215 Bank 3,971 3,339 ------- ------ 6,790 6,036 Creditors Amounts falling due within (3,849) (3,344) one year ------- ------ Net current assets 2,941 2,692 --------- --------- Total assets less current 7,080 6,969 liabilities Creditors Amounts falling due after (308) (347) one year --------- --------- Net assets 6,772 6,622 --------- --------- Capital and reserves Called up share capital 883 883 Share premium account 2,999 2,999 Merger reserve 2,930 2,930 Profit and loss account (42) (191) --------- --------- Equity shareholders' 6,770 6,621 funds Equity minority interest 2 1 --------- --------- 6,772 6,622 --------- --------- Ten Alps Communications plc Consolidated Cash Flow Statement For the year ended 31 March 2004 2004 2003 £'000 £'000 Net cash inflow from operating 651 1,579 activities Return on investments and servicing of finance 50 35 Taxation (65) (124) Capital expenditure and financial investment (101) (166) Acquisitions and disposals 65 (505) ------- ------- Net cash inflow before financing 600 819 Financing ------- ------- - capital element of finance lease (6) (25) rentals - Media loan net increase 38 - ------- ------- Net cash inflow/(outflow) from 32 (25) financing ------- ------- Increase in cash 632 794 ======= ======= Reconciliation of net cash flow movement to movement in net debt Increase in cash in the period 632 794 Cash outflow from decrease in debt and lease financing 6 25 ------- ------- Change in net debt resulting from cash flows 638 819 Finance leases - (34) Loans acquired with subsidiaries - (414) Movements in media loans (38) 1 Exchange adjustments 11 (39) ------- ------- 611 333 Net funds at 1 April 2003 2,791 2,458 ------- ------- Net funds at 31 March 2004 3,402 2,791 ======= ======= Notes ------- 1. No final dividend is being proposed 2.Earnings per share The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders of £149,000 (2003 - £88,000) and on 44,172,080 shares (2003- 44,172,080 shares) being the weighted average number of ordinary shares in issue during the year. The adjusted earnings per share have been provided in order that the effects of goodwill amortisation on reported earnings can be fully appreciated. This is based on earnings calculated as follows: 2004 2003 £'000 £'000 Retained profit for the year 149 88 Goodwill amortisation 437 404 ------- --------- Profit before goodwill amortisation profit 86 492 ======= ========= The calculation is also based on 44,172,080 shares (2003 - 44,172,080 shares) being the weighted average number of ordinary shares in issue during the year. The warrants and options granted over ordinary shares are considered to be non-dilutive. 3.The financial information relating to the year ended 31 March 2004 set out above does not constitute the Company's statutory accounts for that year, but have been extracted from the statutory accounts, which received an unqualified auditors' report and which have not yet been filed with the Registrar of Companies. The financial information relating to the year ended 31 March 2003 has been extracted from the 2003 Annual Report and Accounts,which received an unqualified auditors' report and have been delivered to the Registrar of Companies. 4.Copies of the Company's Annual Report and Accounts for 2004 will be sent to shareholders as soon as is practicable. Copies of this announcement are available at the Company's head office at 10 Blue Lion Place, 237 Long Lane London SE1 4PU and copies of the Annual Report and Accounts will also be available on request. For further information please contact: Press Contact: Peter Binns Binns and Co PR Ltd Tel: 020 7786 9600 Email: peter.binns@binnspr.co.uk Jacqui Graves Binns & Co PR Ltd Tel: 020 7153 1486 Email: jacqui.graves@binnspr.co.uk www.binnspr.co.uk Ten Alps: Alex Connock Chief Executive Tel: 020 7089 3686 Nitil Patel Finance Director Tel: 020 7089 3686 Email: nitil@tenalps.com www.tenalps.com This information is provided by RNS The company news service from the London Stock Exchange

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