Interim Results

Ten Alps Communications PLC
10 December 2002



                          Ten Alps Communications PLC

                      Interim Results to September 30 2002

Ten Alps, the integrated communications company producing TV, advertising and
events today announces its interim results.

'Rapid revenue growth, increased operating profits before goodwill and positive
cash flow have set the tone,' said Chairman Brian Walden, 'and we have made
potentially earnings-enhancing acquisitions.'

'Meanwhile, in current trading we are looking at further significant increases
in revenues and have begun developing our own content for the long-term.'


Financial highlights:

  • Turnover 44% increase to £5.42m (2001: £3.76m)
  • Operating profit before goodwill was 48% up at £176,000 (2001: £119,000)
  • Adjusted EPS 9% increase at 0.44p (2001:0.41p)
  • Cash balance of £2.568m at Sept 30 2002, equating to 48% of market
    capitalisation as at that date.
  • After charging £190,000 of goodwill, net profit was £6,000 (2001: £71,000)
    Goodwill charged in same period of 2001 was £45,000.
  • Equity Shareholders' funds were £6.54m (2001: £5.49m)

Operational highlights:

  • Major client wins on top of 80 or so existing customers - Discovery
    Europe, P&O Ocean Village, UK Gold, Escada, Office of National Statistics
    (UK Census) and Woodpecker
  • Development of significant own-brand content such as Winter City, Bark in
    the Park, and a number of TV and radio properties
  • Acquisition of 3-D graphics company Red Welly with no issue of shares.



Chairman's Statement - Brian Walden

Rapid growth and positive cash flow are our two goals for Ten Alps in the
financial year 2002-3 and we have so far achieved them both as we seek to build
a strong, multi-faceted communications company.

We have substantially boosted our overall revenues over a Summer period which is
traditionally quiet in one of our key divisions, events.  And looking forward,
the major addition of Brook Lapping without dilution of existing shareholders
could provide a further impetus in revenues and earnings per share.  Their last
reported profits were over 70% greater than those of the entire Ten Alps group.

But the focus of our efforts is actually the 2-year horizon, and that is the
basis on which we seek investor interest.  We aim to continue growing at our
current rate through investment and acquisition, as well as organically.


Current Trading

Current trading for the full year indicates (at this early, unaudited stage) a
healthy picture, with significant increases in revenue and operating profit
before goodwill, and net profit dented by the increased goodwill writeoffs.

The majority of the 8 divisions are currently performing ahead of our
expectations.   In particular TV division Brook Lapping has closed £1.46m in new
contracts in the 5 weeks since acquisition, with another £1m in deals at the
budget negotiation stage for possible inclusion in the next financial year.

Advertising agencies Ten Alps RMA and MTD have significantly outperformed last
year, as has agency Know Comment.  Ten Alps Events has so far underperformed
last year due to some weakness in the exhibitions market, but the picture has
not all been gloomy, with major work in the USA and UK, and development of
exciting Ten Alps-owned event projects for 2003-4. Meanwhile corporate launch
event division Dr Party has beaten last year's figures at this stage.


Scale through investment in owned content

The group was restored to profitability - and therefore stability - in the last
financial year, following the reverse takeover by the current management team in
July 2001.

In order to benefit from economies of scale, Ten Alps now needs to achieve
growth in revenues and then profits.  To achieve the necessary scale over the
medium term, we have begun in this period to invest a proportion of profits from
our client work back into development of our own content, such as large events
and TV shows.

Our experience of our own and other media businesses is that such investments
yield results over roughly an 18-month time horizon.  So in 2003-4, having
meanwhile maintained a basic level of profits and a positive cash flow, we now
plan to see revenues from major projects in which we have significant ownership.
Such revenues are where the real equity value lies for comparable companies.


Scale through opportunistic acquisition in depressed market

The current climate on the stock market sets certain conditions which we can
exploit, in that acquisitions are cheaper and far more available than they were
even a year ago.

Using a combination of self-financing earnout and purchase of net assets, we
have completed two deals in the last two months (details below) without diluting
existing investors, or dropping our group cash balance below £2m.

We aim, subject to finalising a suitably profitable target in TV or events, to
carry out another synergistic acquisition on the scale of Brook Lapping.


Ten Alps operational focus and strategy

The Ten Alps strategy is to build a strong, multi-faceted communications
company.  Everything in the media today - from a TV format to a non-traditional
marketing agency - is cross-genre.  And we are no exception.


Ten Alps seeks to create value and earnings in two ways.

  • Short term: communications 'service' work, such as advertising campaigns
    or marketing events, for 100 or so clients on as broad a front as possible.

  • Long term: reinvestment of some of the profits from that activity into the
    creation of our own content direct to the consumer.  This must be done
    prudently, without prejudicing cash balances or going into losses.  We are
    already holding rights in TV documentary series or formats with
    international potential, and large events with multiple revenue
    opportunities such as 'Winter City.'


Ten Alps should keep its activities broad within communications, because of:

  • Vertical synergies between current activities.  For instance, advertising
    and events and graphics units work together on projects for the Boat Show,
    state openings and corporate events clients.

  • Back office synergies.  Our TV and radio units (including Brook Lapping)
    are merging into the same office and facilities.  Our events offerings have
    merged under one roof.

  • Market vulnerability.  Sectorally-focussed media companies have
    underperformed Ten Alps, as one particular aspect of the media (such as TV
    advertising, sports rights, radio licences etc) is perceived in a downturn.

  • Intra-group overlap.  We prefer to buy or start companies which offer
    complimentary rather than overlapping services, so that they do not
    cannibalise each others' market.



                     Financial detail during the period


Profit and Loss Account

The highlights above show the continued benefits of the Group's strategy, with
group profitability being maintained. Operating profit before goodwill was
£176,000 in the first six months compared to £119,000 in 2001.

Turnover has increased by £1.7m producing a 48% increase in EBITDA to £235,000.
The adjusted EPS for the period was 0.44p (0.41p)

Balance Sheet

As at 30 September 2002 the group had net assets of £6.54m (2001: £5.492m). Net
current assets were £2.729m (2001: £2.726m) reflecting our strong cash balance
of £2.568m.

The group has goodwill of £3.422m, which is being amortised over 10 years. The
charge for the period was £190,000 (2001: £45,000)


Divisional analysis during the period

Top divisions in this period have been advertising agency Ten Alps RMA, whose
revenues and profits were significantly up during the period, and political
agency Know Comment, which has quadrupled its revenue and continues to grow
rapidly since the end of the period. Know Comment now represents over 30
commentators, and has offered consultancy to clients as diverse as the Home
Office and the Professional Contractors Group.

Although for Ten Alps Events trading was weaker in April and May when a key
employee was incapacitated, it then picked up significant business and new
clients into the Summer, notwithstanding the standard seasonal dip.

Ten Alps Broadcasting increased its profits for the period and Ten Alps MTD, the
Edinburgh-based advertising agency, showed a small rise in profits - no small
achievement given what was a tough period in the Scottish advertising industry,
with two agencies closing down altogether.

The single biggest cost area, despite constant cost reviews and an extremely
streamlined executive board (only two people), remains the PLC overhead itself.
This inherent and unavoidable cost of being a PLC is another reason why staying
small is not an intelligent option for Ten Alps or indeed in our view any other
small AiM-listed company.



                                  Acquisitions

                                 Brook Lapping

On November 4, 2002, Ten Alps acquired Brook Lapping Productions, one of
Britain's best-known independent factual television production companies, with a
20-year history of producing programmes for the BBC, Channel 4, ITV, The
Discovery Channel and broadcasters in America and over 40 other countries around
the world.   The group had net assets of £2.02m, including £2.45m in cash (as at
October 31 2002.)  For the year ended 31 December 2001, Brook Lapping reported
profits before taxation of £841,937 on turnover of £4.6m.   Ten Alps paid
consideration of up to £2.35m in cash.

Additional consideration may also be payable under an earnout arrangement.


                                     Red Welly

On September 27, Ten Alps acquired 100% of the issued share capital of Red Welly
Studios Limited, a digital effects and animation production company.

The initial payment was £50,000 in cash, for assets valued at £50,000.

For further information on the acquisitions please go to our website
www.tenalps.com

Contacts

Chief Executive - Alex Connock  0207 428 3117 (c/o Lesley Calmels)
Finance Director - Nitil Patel 0207 089 3686 (c/o Rebecca Brown)

www.tenalps.com



TEN ALPS COMMUNICATIONS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
SIX MONTHS ENDED 30 SEPTEMBER 2002

                                                                              
                         Six months             Six months                Year
                              ended                  ended               ended
                            30 Sept                30 Sept              31 Mar
                               2002                   2001                2002
                              Total                  Total               Total
                          Unaudited              Unaudited             Audited
                              £'000                  £'000               £'000

  Turnover                    5,420                  3,753              10,446

  Cost of                   (3,499)                (2,437)             (6,763)
  sales                                                                       

  Gross                       1,921                  1,316               3,683
  profit                                                                      
                                                                   
  Administrative expenses   (1,686)                (1,157)             (2,974)
  Depreciation                 (59)                   (40)               (105)
  Amortisation of Goodwill    (190)                   (45)               (220)
                                                             
  Operating profit/(loss)      (14)                     74                 384
                                                               
  Profit on disposal
   of businesses                 0                       0                  41
                                                                        
  Profit on ordinary
  activities before
  interest                     (14)                     74                 425
                                                           
  Net interest receivable       20                      20                  52
                                                                    
  Profit on ordinary
  activities before tax          6                      94                477
                                                       
  Tax charge                     0                    (22)               (33)
                                                                   
  Profit on ordinary
  activities after tax           6                      72                444
                                                        
  Minority Interest              0                     (1)                  0
                                                               
  Retained profit for
  the period                     6                      71                444
                                                                 
  Basic earnings per share  0.014p                   0.25p              1.36p
                                                              
  Adjusted earnings per
  share before goodwill 
  amortisation and profit on
  disposal of business       0.44p                   0.41p              1.91p



TEN ALPS COMMUNICATIONS PLC
CONSOLIDATED BALANCE SHEETS
SIX MONTHS 30 SEPTEMBER 2002

                                                                     
                                     As at         As at        As at
                              30 Sept 2002   30 Sept2001   31 Mar2002
                                 Unaudited     Unaudited      Audited
                                    £ '000        £ '000       £ '000
          Fixed assets                                               
          Intangible                 3,422         2,498        3,588
          Tangible assets              443           306          358
                                     3,865         2,804        3,946
          Current assets                                             
          Work in progress              59             -           44
          Debtors                    2,268         1,357        2,104
          Cash at Bank               2,568         2,907        2,545
                                     4,895         4,264        4,693
          Creditors                                                  
          Amounts falling due
          within one year          (2,166)       (1,538)      (2,041)
                                                                   
          NET CURRENT
          ASSETS/LIABILITIES         2,729         2,726        2,652
                                                                       
          Total assets less
          current liabilities        6,594         5,530        6,598
                                             
          Creditors 
          Amounts falling due
          after more than one year    (54)          (38)         (64)
                                                                 
                                     6,540         5,492        6,534
          Capital and reserves                               
          Called up share capital      883           786          883
          Share premium account      2,999         5,356        2,999
          Merger Reserve             2,930             -         2930
          Profit and loss account    (273)         (652)        (279)

          Equity shareholders'funds  6,539         5,490        6,533

          Equity Minority Interest       1             2            1

                                     6,540         5,492        6,534

Notes                                              

1. The financial information in this statement does not constitute statutory
   accounts. The financial information in respect of the year ended 
   31 March 2002 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 amortisation and profit on disposal of businesses can be fully
   appreciated.




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