Zinc Media Regulatory News (ZIN)

2 Apr 2007 07:02

Ten Alps PLC02 April 2007 Ten Alps PLC Acquisition Media group Ten Alps Plc ('Ten Alps', 'the Group') announces the purchase fromEuromoney Institutional Investor PLC ('Euromoney') of the entire issued sharecapital of Atalink Limited. ('Atalink', 'the company'), a London-basedspecialist media and advertising sales company producing over 25 titles plus arange of B2B internet sites. The acquisition is designed to enhance Ten Alps' development as a multi-platformproducer of content - integrated across TV, internet, print and events. Financial terms Ten Alps has paid £1.761m on completion. A further payment will be made, on apound for pound basis, for the net current assets of the company as at 30thMarch 2007, on agreement of the completion accounts. This amount is anticipatedto be c. £0.75m. At 30th March 2008 a further £0.465m will become payable. Net assets on completion of the acquisition are anticipated to be c£4.3m. Thisincludes an intangible asset of £3.5m and a net cash balance of c.£0.7m. The majority of the funding for the deal has been provided by Bank of Scotland.The rest was sourced from Ten Alps' existing cash balances. Profitability In the year to 31st December, 2006 Atalink's management accounts recordedpre-tax profits of £0.4m on revenues of £4.517m. These profits were achieveddespite inclusion of significant corporate costs from the parent company. Atalink's profitability has been consistent over the past three years, and hasstrong visibility. Within the Ten Alps group, given that the publication datesof Atalink titles are principally in December, Atalink's delivery of profit willbe considerably weighted towards the second half of Ten Alps' financial year,which runs to March 31. Atalink's revenues from internet sales increased during the year to December 312006 from a standing start to £0.271m. Ten Alps believes rapid digital growth issustainable. Atalink Founded in 1985 and based in rented premises in London, Atalink produces over 25Specialist and Direct Response titles, as well as a fast-growing slate ofaccompanying internet sites. The company has a team of 42. Atalink's managing director, Tim Murphy, has signed a new service contract andwill continue to run the business within the Ten Alps Group. Atalink produces specialist titles such as: Director of Finance, FacilitiesManager, Directory for Institute of Healthcare Management, Energy IndustriesCouncil, Pira International Profit Through Innovation, Pre-school LearningAlliance, Institute of Insurance Brokers, Woman's World, Womens' Health, BCsComputing in the 21st Century and SMEs - Growth in the 21st Century. Atalink will aim to build its position in these sectors and target continuedgrowth of online revenues. Atalink produces direct response books for distribution at Clotheshow Live, BBCGardeners' World Live, The Daily Mail Ideal Home Show, BBC Good Food Show, withtitles such as Good Housekeeping, ID Pre-School Learning Alliance, Prima and tothe Women's Institute Membership. Atalink within Ten Alps Atalink will form a business unit within Ten Alps' Communications Division, andmay be rebranded at a later time. The acquisition is complementary to the McMillan-Scott Plc and CameronsPublishing Limited (now both rebranded as Ten Alps Publishing) acquisitions,made by Ten Alps during the last thirteen months, and aims to enhance Ten Alps'scale in the multi-platform media and content arena. The acquisition of Atalink brings the number of titles under management by TenAlps to over 450 and strengthens its advertising sales operation to in excess of250 staff. Ten Alps' total staff count now stands at over 550. The Group aimsto expand its print, web and events operations on the back of the specialistsector knowledge and its sales reach. Given Atalink's strength in direct advertising and sponsorship sales, Ten Alpsbelieves that there exists an opportunity to add additional own-titledevelopment, trade events and further digital and internet video capabilities tothe business, along precisely the lines that Ten Alps has been doing this yearwith its own existing titles. Contact Press: Paul McManus, Parkgreen Communications Ltd020 7479 793307980 541 893paul.mcmanus@parkgreenmedia.com Ten Alps Plc: Alex Connock (CEO)0207 878 2311 c/o Moira McManusMoira@tenalps.comwww.tenalps.com Ten Alps Publishing: Adrian Dunleavy (CEO)01625 667515 c/o Carol HollettCarol.Hollett@tenalpspublishing.comwww.tenalpspublishing.com This information is provided by RNS The company news service from the London Stock Exchange