Interim Results

Ten Alps PLC
09 December 2005


For immediate release

09 December 2005

                                   Ten Alps plc

                                  Interim Results


TV production group Ten Alps plc ('Ten Alps') announces its interim results for
the six-month period ended September 30, 2005.


Financial results - strong organic profits and revenue growth


  • Revenues up 84.8% to £21.99m (same period in 2004: £11.9m)


  • EBITDA increased to £1.94m (2004: £421,000)


  • Adjusted pre-tax profit increased to £1.79m (2004: £320,000)*


  • EBIT up to £1.33m (2004: £57,000)


  • Net profit up to £649,000 (2004: £26,000)


  • Basic EPS up to 1.46p (2004: 0.06p)


  • Cash up by 61.5% to £7.46m (2004: £4.62m)


*       Definition of adjusted profit: profit excluding goodwill amortisation


Current trading



  • Full year results to March 2006 should show continued profits growth,
    subject to unforeseen events.



  • TV production slate is strong (see details below in operational section),
    including a major docudrama for Discovery US about Hurricane Katrina is
    currently in pre-production, as well as other projects for American
    broadcasters.



Operational headlines - strong growth in factual TV operations



  • US growth for production subsidiary Brook Lapping.  9/11 docudrama The
    Flight that Fought Back was the highest-rated programme on Discovery US for
    the past five years.


  • 24% of group TV revenues came from international clients (excluding the
    Teachers' TV channel.)



  • Launch of Ten Alps Midlands division in Derby with year-round BBC TV
    politics commission, and other regional productions.



  • Brook Lapping's Elusive Peace for BBC2/PBS in the US and other major
    broadcasters worldwide secured the front page lead in The Guardian and The
    Independent and major coverage in other papers for its revelations of
    remarks President Bush made about instructions he had received from God.



•   Other successful shows included Man United's Greatest Goals (Ten Alps
    TV) and Catherine the Great (Brook Lapping) which achieved high ratings on 
    Sky One and BBC2 respectively.



•   Programmes coming soon from Ten Alps production companies include:
    Tsunami: Where was God? for Channel 4 (3BM), The Long War with Niall 
    Fergusson for Channel 4 (Blakeway), Dust to Dust for Channel 4 (3BM), a 9/11 
    docudrama project for BBC1 (Blakeway co-production), Goering and the 
    Nuremberg Jailer for Channel 4 (3BM), Enlightenment for More 4 (Blakeway), 
    and Summers for BBC2 (Blakeway)



  • Digital growth.  Teachers' TV is a market leader in online TV for
    teachers, having hundreds of hours of programmes downloadable through
    broadband.  Teachers' TV is operated by an independent consortium, the
    principal member of which is Brook Lapping, a Ten Alps Company.


  • Growth in radio production with substantial increase in projects for BBC
    Radio 4, including the critically acclaimed Lennon - the Wenner Tapes, as
    well as re-commission of weekly Worricker current affairs programme for BBC
    Radio 5 Live and strong repeat business at Radio 2 including Classic Singles
    and the 14th series of The Smith Lectures.



Corporate changes


  • Change of auditor (Oct 2005) to Grant Thornton UK LLP


  • Addition of broker Collins Stewart Limited as joint brokers with Canaccord
    Capital (Europe).  See separate RNS statement today.

  • Reorganisation of subsidiaries for greater tax efficiency underway


Press contact


Peter Binns,

Binns and Co. PR

0207 786 9600


Chief Executive : Alex Connock                  0207 089 3686

Finance Director: Nitil Patel                   07990 578356    www.tenalps.com


Chairman Brian Walden



'Our prospects for 2006 are exciting, with major new projects and expansion
within a TV industry which itself is seeing growth, consolidation and new
technologies.



The key to success is pretty simple: making very good programmes.



This is true whatever might be the broadcast delivery channel of the day,
because you don't need to own the technology or even the channel to make money
in a digital age.  What matters is owning rights in the programmes that make the
public want to use the technology or watch the channel.  For us that can mean
putting our programmes on podcast, Sky+, broadband TV, IPTV, digital radio or
Video on Demand.  The mantra of 1990s media investment bankers - 'content is
king' - is actually coming true, but just a bit late.



We are therefore continuing to focus our efforts on editorial quality, from
documentaries and talks on BBC Radio 4 to multi-million pound programmes for
BBC1 or Discovery US.  All of this is down the creative excellence of our staff,
to whom we are very grateful.'



Chief Executive Alex Connock


'These results show the value of factual TV production coming through in our
margins - really for the first time since Ten Alps joined the AIM market - and
the large turnover increases of the past few years converting into profits.



Our first set of stock market results was in December 2001.  In the four years
since, the TV production market has expanded due to regulatory changes, and
there has been significant consolidation.  During that time, we have also had
healthy compound growth - in revenues annually of 54%, and in EBITDA of 86%.



As we go into 2006 our production slate is strong, we have brought in a new
production operation since the end of the interim financial period (namely Ten
Alps Midlands) and we are looking at investments outside the factual genre.



We now have a five-year plan for the next stage of Ten Alps, the key points of
which are:


Entertainment and Drama.  We are now looking at going beyond factual TV into
other areas where formats and rights offer opportunities.  Through Ten Alps TV
we are working on a number of factual entertainment commissions, which have
format sales potential.  And we are seriously considering drama, building on the
success that our companies, such as 3BM TV, have had in docudrama.


International sales.  Our companies have achieved significant success with
European and American customers, and we aim to build on that.  There is every
possibility that in 2006 we will consider opening an American office, probably
in Washington, which is where some key customers are, and a good focus for the
kind of political programming we make.  There is an opportunity to build a
factual TV production company of scale in the US.


Acquisitions.  We have done five deals in the past four years, all for cash.  We
will continue to examine similarly EPS-enhancing acquisition opportunities, both
within and beyond the factual TV genre.


Rights exploitation - new platforms.  We are also looking at DVD and mobile
content opportunities and aim to firm one or more up in 2006.   The goal is to
make the absolute most of the intellectual property we have developed and
acquired, which includes some 350 past projects.


Digital revolution.  Teachers' TV is attracting interest from around the world
as a publicly-funded, quality, niche vocational TV channel, and we will explore
other opportunities in this digital space.  Teachers' TV is also a world leader
in broadband TV, with hundreds of hours of material online at www.teachers.tv
and the imminent launch of podcasting.  We are looking at a number of ways to
exploit this technology in other areas of our production business.'


Finance Director - Nitil Patel


Financial analysis


'This was a period in which we made progress on margins.


Group turnover grew by 85% to £21.99m (2004: £11.9m) and gross profit increased
by 55% to £5.23m (2004: £3.38m) signifying that we were able to deliver greatly
improved profitability.


EBITDA or headline profit, a key measure used by the board, increased by 360.8%
to £1.94m (2004: £421,000) reflecting improved conditions in the TV and Events
sectors and the inclusion of the Teachers' TV key performance indicator-related
Performance Management Fee ('KPI's'.)


Profit before tax (PBT) was therefore also very much improved at £1.394m (2004:
£72,000), even after a goodwill amortisation charge of £397,000 (2004: £248,000)
for the period, which was increased due to an exceptional writedown on our Dr
Party business.


Gross margin has increased from 20.1% in March 2005 to 23.8% in September 2005
(although it has decreased from 28.4% in September 2004 to 23.8% in September
2005.)

Shareholders' funds have increased from £6.80m to £7.73m, reflecting the results
for the period under review. The retained distributable profit and loss account
reserves are now at £839,000 (2004: £(16,000)).


The Company continues to maintain a strong cash balance and held £7.46m (2004:
£4.62m) as at 30 September 2005. The balance is £66,000 lower than at 31 March
2005, reflecting cash outflows on deferred earnouts on previous acquisitions and
a significant reduction in creditor balances.  


Profit Growth


The interim results reflect the full impact of payments confirmed following
assessment of the KPI's relating to Education Digital Ltd. for the period August
2004 to July 2005.  Confirmation of this figure was received on December 9 2005.


We had accrued for a conservative level of KPI fees as appropriate at 31 March
2005. However, the KPI fees actually received exceeded this accrued income, so
there is an extra contribution relating back to the earlier financial period.
Investors should bear this in mind when assessing our six-monthly profits going
forward.


In future periods, the Company will continue to account for the management fee
of 2.5%, which is guaranteed under the Teachers' TV contract.    Our
announcement of year end results next Summer will include a further accrual for
Teachers' TV, which will be made on the basis of our internal assessment of
performance on measurable parameters (such as audience figures, internet traffic
and so forth) against the KPI's.  This is because the external KPI assessment
for Teachers' TV for the year to July 2006 will not be confirmed until much
later that year.


Looking at the wider picture across the group, trading is favourable and the
market is expanding.  But whilst the results for the six months to 31 March 2006
could see profits growth, the rate of growth will not be as radical as we have
just seen.'


Ten Alps plc

Consolidated Profit and Loss Account
Six Months ended 30 September 2005
                                             Six months ended         Six months ended            Year ended
                                               30 Sept 2005             30 Sept 2004            31 March 2005
                                                  (000's)                 (000's)                  (000's)

                                                
Turnover- continuing operations                  21,988                   11,900                   34,753
                                               
Cost of sales                                  (16,763)                  (8,522)                 (27,755)

Gross profit                                      5,225                    3,378                    6,998
                                                    
Amortization of goodwill                          (397)                    (248)                    (569)

Administrative expenses                         (3,497)                  (3,073)                  (5,862)

Operating profit                                  1,331                       57                      567

Profit on ordinary activities
before interest and taxation                      1,331                       57                      567
                                                   
Net interest receivable                              63                       15                       60

Profit on ordinary activities before              
tax                                               1,394                       72                      627

Taxation                                          (475)                     (21)                    (252)

Profit on ordinary activities
after taxation                                      919                       51                      375
                                                      
Equity minority interest                          (270)                     (25)                    (143)
                                                      
Retained profit for the year                        649                       26                      232

Basic earnings per share                           1.46p                    0.06p                    0.52p
                                             
Diluted earnings per share                         1.43p                    0.06p                    0.51p


Ten Alps plc
Consolidated Balance Sheet
Six Months ended 30 September 2005

                                                      As at                   As at                   As at
                                                  30 Sept 2005            30 Sept 2004             31 Mar 2005
                                                    Unaudited               Unaudited                Audited
                                                     £ '000                  £ '000                  £ '000
Fixed Assets

Intangible assets - goodwill                          3,467                   3,728                   3,658

Intangible assets - investment in productions           171                       -                       -

Tangible assets                                       1,178                     887                   1,279

                                                      4,816                   4,615                   4,937

Current assets

Work in progress                                         62                     303                     244

Debtors                                               7,585                   3,961                   7,233

Bank                                                  7,456                   4,617                   7,522

                                                     15,103                   8,881                  14,999

Creditors

Amounts falling due within one year                (11,140)                 (6,371)                (12,015)

NET CURRENT ASSETS                                    3,963                   2,510                   2,984
                                                     
Total assets less current liabilities                 8,779                   7,125                   7,921

Creditors

Amounts falling due after one year                    (636)                   (301)                   (737)

                                                     
Net assets                                            8,143                   6,824                   7,184


Capital and reserves
                                                        
Called up share capital                                 892                     883                     887

Share premium account                                 3,065                   2,999                   3,030

Merger reserve                                        2,930                   2,930                   2,930

Special reserve                                           2                       -                       2

Profit and loss account                                 839                    (16)                     190

Shareholders' funds                                   7,728                   6,796                   7,039

Minority interest                                       415                      28                     145

Equity shareholders                                   8,143                   6,824                   7,184


Ten Alps plc
Consolidated Cash Flow
Six Months ended 30 September 2005

                                                    As at                    As at                  As at
                                                 30 Sept 2005            30 Sept 2004            31 Mar 2005
                                                  Unaudited                Unaudited               Audited
                                                    £ '000                  £ '000                 £ '000

Net Cash inflow from operating activities             433                    1,102                  5,338

Return on investments                                  
and servicing of finance                               63                       15                     60

Taxation                                                -                     (14)                  (151)

Capital expenditure and financial                   (281)                    (395)                (1,027)
investment

Acquisitions and disposals                          (315)                    (288)                  (518)

Net cash (outflow)/inflow before                    (100)                      420                  3,702
financing

Financing

Issue of ordinary share capital                       40                         -                     35

Capital element of finance lease rentals             (6)                      (16)                   (52)

Media Loans net (decrease)/increase                    -                     (134)                  (134)

Net cash inflow/(outflow) from financing              34                     (150)                  (151)

(Decrease)/Increase in cash                         (66)                       270                  3,551
                                                     

Reconciliation of net cash flow movement
to movement in net debt                             

(Decrease)/Increase in cash in period               (66)                       270                  3,551

Cash outflow from decrease in debt and
lease financing                                        6                        16                     52
                                             
Change in net debt resulting from cash
flows                                               (60)                       286                  3,603

Movements in media loans                               -                       134                    134

Exchange adjustments                                   3                       (8)                    (8)

                                                    (57)                       412                  3,729

                                                  
Net funds at beginning of period                   7,131                     3,402                  3,402

Net funds at end of period                         7,074                     3,814                  7,131
                                                  

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:


Operating profit                                   1,331                        57                   567                
               
Depreciation                                         212                       116                   330

Goodwill amortisation                                397                       248                   569

Loss/ (gain) on sale of fixed assets                   -                         -                   (1)

Foreign exchange (gain)/loss on media loans          (3)                         8                     8

Change in work in progress                           182                     (148)                  (89)

Change in debtors                                  (352)                   (1,075)               (4,383)

Change in Creditors                              (1,334)                    1,896                  8,337

                                                                                                   
Net Cash inflow from operating activities            433                    1,102                  5,338


1. The financial information in this statement does not constitute statutory
   accounts.

The financial information in respect of the year ended 31 March 2005 has been
extracted from the statutory Accounts, which received an unqualified auditors'
report and have been delivered to the

Registrar of Companies.


ENDS


--------------------------


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