Marketing services minnow Cagney, which floated on AIM in early 2006, has extended its reach into the fast-growing digital space through an exclusive alliance with University Choice TV (UCTV).

Described by Cagney chief executive Paul Simons as ‘the groovy alternative to UCAS’, UCTV has evolved from an information website for prospective university students into an online platform offering everything from course, campus and university city life to MySpace-style social networking. Tracking student life from university selection to graduation and to eventual career, the site has had over 50 million ‘hits’ this year alone.

Through advertising agency Chick Smith Trott, Cagney will promote the site’s content while also promoting the brand to advertisers. ‘It is a unique situation,’ says Simons, ‘and one we suspect will be emulated over time as conventional advertising firms recognise the challenges of converting expensive creative talent into a worthwhile return in the internet world.’

The UCTV venture isn’t expected to boost the figures for Cagney’s 2007 calendar year, though investors might expect income from the alliance in 2008, and UCTV could prove the first of several such innovative collusions.

Cagney's other growing businesses, from which it looks to drive cross referrals, include the brand consultancy BrandAid, the promotional marketing business Cubo, the PR firm Media Foundry and the market research and data analysis operation Tree, which was acquired in January and is proving ‘embarrassingly successful’, according to Simons.

Forthcoming interim figures to June from Cagney will reflect short-term growing pains, with operating losses expected due to heavy investment in senior management. Nevertheless, the group, which reported pre-tax profits of £300,000 and 0.3p of earnings for 2006, is on track with good growth prospects and looks unduly unloved. The shares have intelligent recovery appeal.