Ten Alps refinances after sliding into red
TEN Alps, the media group, is refinancing to shore-up, its balance sheet after a difficult six months.
The AIM-listed company which has operations in Manchester and Cheshire, slumped to a loss in the six months to the end of September refecting “slow advertising and public sector” markets.
Along with a major reorganisation of its structure Ten Alps said it was placing 58.7 million new shares 8p per share to raise £4.7m, which will be used to repay an existing bank loan and overdraft.
It has secured a new £6.95m term loan with Bank of Scotland expiring at the end of March 2014.
Ten Alps said it was focused on increase performance by creating two distinct and focused operating units, in TV and Education content and in business-to-business.
The TV & Education division will continue to be called Ten Alps and will comprise six operating units and be run by group chief executive Alex Connock and Nitil Patel.
The other division, which will be renamed in the early in the new year, will be made up of two units: Business Information and Media Services and will be run by Adrian Dunleavy and Derek Morren.
The company said turnover in the period had fallen from £35.4m to £28.5m, while the business made a bottom-line loss of £13m, compared with £1.8m profit a year ago. The loss came after £11.3m in non-cash impairment and amortisation charges.
Mr Connock said: “New long term financing is in place (subject to shareholder approval) alongside a lower cost base for 2011 and reorganisation.
“The directors believe that this action, combined with a stabilisation of revenue run rates in recent trading, has created a platform for improved performance as we move into 2011.”
Ten Alps said it has lost £10.7m in revenue and around £1m in earnings before interest, tax, depreciation and amortisation (ebitda) after the government pulled the plug on the Teachers TV contract.
