Ten Alps acquires small corporate video business

Ten Alps was in expansion mode on Monday, announcing it had agreed terms to swallow a small, unnamed corporate video business specialising in making videos for blue chip organisations.

The AIM-traded producer of television and multimedia content said the acquisition, which was subject to due diligence and a share purchase agreement, was expected to be earnings enhancing in the first full year following completion.

"The acquisition will further strengthen Ten Alps' stated strategy of building a video-led corporate storytelling and content marketing business", the company's board said in a statement, adding that it was expected to be completed by 31 March.

At the same time, the board announced it had received a capital injection from Herald Investment Trust, amounting to £750,000. Herald was an existing substantial shareholder of Ten Alps, and held part of its existing long-term debt obligations.

"The group has experienced delayed in programme commissioning in its TV division. As a consequence of this, the company considers it prudent to strengthen its cash reserves, with the proceeds of the loan to be used partly for general working capital requirements and the balance to be used to fund consideration for the acquisition", the board confirmed.

At 1511 GMT, shares in Ten Alps were at 1.5p.