'It’s time to retell our story,’ says Alex Connock, chief executive of Ten Alps Communications. In a year when investors have shown renewed interest in the media sector by flocking to the recent IPOs of Shed Productions (which raised £22.4 million) and RDF Media (£28 million), the Ten Alps share price has rather lost out. But that could provide a buying opportunity ahead of interim figures due in the middle of this month.

‘I admit it’s frustrating to see all the attention Shed and RDF attracted, especially as we’ve experienced radical growth over the past year,’ says Connock. ‘Until our results come out, it’s impossible to shout about it. But believe me, once they’re out we will definitely be calling for a re-rating.’

Ten Alps was founded in 1999 by Connock and musician-cum-statesman, Sir Bob Geldof. It is chaired by another media personality, TV political interviewer Brian Walden. The business has three divisions: events, advertising and TV production. After floating on AIM in 2001, it originally intended to build up its events side, snapping up the first of its five acquisitions, Pacesetter, an events organiser.

But, after acquiring factual TV production company Brook Lapping for an initial consideration of £2.35 million in 2002, the company has since focused on TV production, also buying 3BM Television and Blakeway Productions in 2004. Ten Alps is now one of the largest TV documentary producers in the UK and, according to Connock, this division makes up 80 per cent of total revenues.

Brook Lapping is a prime example of the shrewd strategy of pursuing earnings-enhancing acquisitions, as it was profitable and had £2.45 million in cash. All acquisitions have been paid for with cash or a combination of cash and shares. The group has not turned to the market for more funds and, being cash generative, is debt free.

There has been strong organic growth too. For the year to end-March 2004, turnover rose 28 per cent to £16.7 million, of which acquisitions only contributed £330,000. Pre-tax profits reached £149,000. But profits are set to rise dramatically in 2005, with house broker Canaccord forecasting £1.55 million on turnover of £35 million.

With more than 11 TV productions and five radio transmissions in development, Ten Alps boasts it has a healthier pipeline than many of its peers. It should also enjoy increased business, after one of its major clients, the BBC, recently announced as part of its charter renewal it will increase its quotas for independent producers with a particular emphasis on factual programming.

But the really big contributor in coming years will be the new Government-funded TV channel, Teachers’ TV, which Ten Alps launched in February and in which it has a 70 per cent interest. The channel targets professionals in education, with programmes that enable experience-sharing and guidance on training and development as well as education news. Should more Government-funded initiatives be forthcoming, Ten Alps has first-mover advantage.

Connock has ambitious plans for growth. ‘The sector is consolidating, with companies such as ourselves acquiring smaller businesses. However, like the advertising industry in the 1980s and 1990s, I do believe that the consolidators will consolidate with each other. There are now four TV production companies listed: us, Shed, RDF and TV Corporation. Our market caps are between £20 million and £60 million. But to make an impact, players need to be £100-300 million in size. I think there will be a lot of change in the next 12 to 18 months.’

In the meantime, Canaccord predicts turnover, based on organic growth, will rise to £41 million in 2006, to produce profits of £2.53 million. Earnings of 4.05p a share would leave the shares selling for less than 11 times earnings 18 months out. That looks a steal.