Interim Results

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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