The music and video rights acquirer One Media Publishing has added another catalogue of songs to its portfolio. For an initial $25,000 the company has purchased the rights, on a royalty sharing basis, for the worldwide distribution of over 6,000 tracks of `country’, `blues’ and `mid-American’ rock music performed by over 250 various artists, for a term of twenty five years. Artists include Bo Diddley, George Benson and Steely Dan. All tracks will be distributed by One Media’s digital partner The Orchard, the world’s largest digital music distributor. They will be available to download from approximately 250 music downloading websites, including iTunes, Amazon, Tesco, Spotify, Verizon and eMusic.

This deal is further evidence of the acquisitive company’s growth ambitions. Importantly, the initial consideration will not eat too much into cash balances, which stood at £153,927 as at 30th April this year.

Recent interims were positive, showing pre-tax profits of £104,556 and assuming that the company’s operational gearing continues to kick in, along with rising sales, the full year to October should see an excellent performance. Assuming that revenues for the year hit £1.1 million (a reasonable assumption given the rate of growth) then we see One Media making post tax profits of at least £200,000. For a rapidly growing company currently capitalised at £1.87 million that means the shares look good value. Buy.

*One Media Publishing is a corporate client of Rivington Street Holdings, the ultimate owner of this website. Worship Street Investments, which is managed by a subsidiary of Rivington Street Holdings, owns shares in One Media Publishing.