17th May 2016 07:24
LONDON (Alliance News) - Ten Alps PLC warned Tuesday that the turnaround of its loss-making publishing business is taking longer than expected, and as a result the company's full financial year performance will "fall materially behind" market expectations as it prepares to post another loss.
Ten Alps shares were down 33% to 1.34 pence per share on Tuesday morning, hitting 1.25p, a new 52-week low, earlier.
"Whilst the company does not yet have total visibility on its full-year results, the directors believe that the company will fall materially behind market expectations for the year ending June 2016," said the TV and multimedia content producer.
"The group 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 in the 2015 financial year," Ten Alps added.
The company, which trades as Zinc Media, said it is in advanced discussions about disposing certain parts of its publishing business as it tries to restructure and refocus the business on the remaining parts of the unit.
On a more positive note, Ten Alps said its television and communications businesses are operating profitably, but warned the television division was negatively impacted by commissioning, but stressed this hit the "entire industry".
Reef, the company that was recently acquired by the London-listed firm, is "trading well".
By Joshua Warner; [email protected]; @JoshAlliance
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