Shares in multimedia producer Ten Alps (LON:TAL) took a beating after the group announced the UK Department for Education has terminated its Teachers TV project with effect from 29 April 2011.
Teachers TV was launched in 2005 as the first government funded digital TV channel with a budget of £20 million.
The news sent Ten Alps shares into a nosedive, and by midday they were changing hands at 11.5 pence, down 25.8 percent.
The company did not give any specific reason why the project was shelved and said that it was given no prior notification. The move is believed to be part of the new government’s ongoing campaign to cut expenses.
The company will now consider the options available to it regarding the online TV project.
Following a review of its business, Ten Alps has commenced a reorganisation of its business streams to reduce overheads and simplify its offering in the marketplace.