Ten Alps’ acquisitive diversification away from TV production two years ago with a move into print publishing is paying off. Chief executive Alex Connock’s goal is to create a powerful online presence based on Ten Alps’ offline publishing strength, while leveraging its TV expertise to tap the burgeoning popularity of internet video.

Ten Alps shares have only just regained ground lost in the wake of the deal, despite the acquisition having been de-risked by its integration and nascent online migration, with 84 web titles launched and 60 trade events staged already. With web TV super-popular, internet advertising spend soaring and business-to-business (B2B) media stronger than ever, Connock aims to exploit the market to an impressive degree by building literally hundreds of websites based on Ten Alps’ 505 B2B titles.

The fast-expanding digital division has launched Public TV, a website aggregating hundreds of free video clips from partners across the public sector, business and Government; and it has won a contract to produce Kent TV, a Government site to deliver video for the people of Kent and potential tourists, a concept it hopes to sell on to the 206 other councils on its books. In the current year, a producer of video for ‘big Plcs and Government departments’ has been acquired for £3.3m, bringing pro forma revenues of around £3m and cross-selling opportunities aplenty.

Acutely demonstrating the company’s sagacity to diversify, TV production revenues fell by 7.8% in the year to March, representing less than half of sales, though Connock boasts of a strong slate for the current year. Group results showed earnings up 157% to 2.06p per share and retained profits after tax up 200% to £1.4m on turnover 63.5% higher at £69m.

This year, analysts are forecasting 40% earnings growth to 4.3p, putting the shares (recommended by GCI at 44p) on a lower p/e than the sector average of 21 times. They are still some way from fulfilling their potential. Add.