Music and video rights acquirer, One Media Publishing, has paid an advance of £10,000 to extended its contract, for a further 10 years, for the use of over 400 tracks which include performances by The Sex Pistols, Lou Reed, Paul Weller, T.REX, Iggy Pop and a selection of other music from the 1970’s. The company reported that the contract extension is on better terms than the original five year contract signed in February 2009, and also provides greater access. The company added that the catalogue of tracks has performed well to date, and securing the contract extension is part of a longer term strategy to enhance shareholder value and improve profitability. Chief executive Mike Infante commented "…In addition I am a child of this era and could not possibly run a company without some ‘explicit lyrics’ somewhere in our content."

This is another small extension to the portfolio but its adds to a growing number of music rights that will provide visible revenues for the next 10 years. As noted in our previous update, the current share price of 3p puts One Media on an historic earnings multiple of 15 times. We maintain our view that this represents good value, considering the pre-tax profit growth of 44.5% to £151,123 in the year ended April 2011, the introduction of an interim dividend and a cash balance of £217,000. Buy.

* Funds managed by a subsidiary of Rivington Street Holdings, the ultimate owner of this website, own shares in One Media Publishing.