Ten Alps shares plummet after dire profit warning

Shares in television and multimedia producer Ten Alps, trading as Zinc Media, sank on Tuesday after the company issued a dire profit warning for the current financial year.

The AIM-traded firm said that while it does not yet have “total visibility” on its full-year results, the directors believe it will fall materially behind market expectations for the year ending this June.

It said it has continued to sustain losses in certain parts of its publishing operations, the turnaround of which has taken longer than expected.

“These continued losses are likely to result in the group not being profitable for the year as a whole, albeit the directors do expect some improvement on the losses recorded on FY15,” Ten Alps’ board said in a statement.

“The company is in advanced states of discussion on the disposal of certain areas of its publishing business and action is being taken to restructure and refocus the remaining parts of the division,” it explained.

Ten Also said its television and communications businesses continue to operate profitably, though the television division was impacted by delays in commissioning which affected the industry as a whole.

The group’s recent acquisition - Reef - was trading well, the board claimed.

Shares in Ten Alps were down 40% at 1215 BST, trading at 1.2p.