MALLETT - 229p I like niche businesses and this is a fine example. Mallett's are specialist antique dealers of exceptional and unique decorative and fine arts and antiques, operating principally out of two sites - New Bond Street, London and Madison Avenue in New York.

The company announced its results for the year ended December 31, 2005 and reported a profit of £2.01m, just below market expectations of £2.3m. The company has maintained its dividend, and yields just over four per cent. In reporting its results, the company said that the trading environment remained difficult and New York was slower than anticipated. However, Mallett appears to be addressing the issue by sending Henry Neville to spearhead the drive for more sales.

In 2005, Mallett tried to enfranchise its long leasehold interest in Bourdon House and acquire the freehold but this was dismissed by the Court of Appeal. Bourdon House is effectively the company's warehouse, and is on the books' at around £3m. Had it been permitted to acquire the freehold, Bourdon House would have been redeveloped and sits within a residential area. The management is reviewing the future of Bourdon House with the likelihood that it will be sold.

Estimates of its value are wide-ranging - anything from £8m to £15m. Assuming a sale is achieved, the company will consider a return of capital to shareholders. Mallett is a very well run operation, and with the likely sale of Bourdon House and the payment of proceeds to shareholders, leads us to believe it is a BUY.

TEN ALPS - 65p I have to admit that the name of this company attracted my curiosity in the first instance but on examining the business, it became even more interesting. Ten Alps produces a wide range of TV programmes, mostly in the factual genre, it has a leading role in the specialist Teachers' TV channel, and publishes around 300 specialist magazines and other publications.

The company was founded in 1999 by Alex Connock, Bob Geldof and Des Shaw who, between them, own 20.58 per cent of the shares in issue. Brian Walden, the political commentator, is the company's chairman.

Last week, the company acquired McMillan-Scott Limited to enhance its development of public sector internet and digital TV beyond its existing interest in Teachers' TV. McMillan Scott's titles cover almost every segment of the public sector - education, medical, transport, defence etc .

Ten Alps is funding the acquisition through bank debt. It has also placed 7m shares at 65p with institutional and other investors, the net proceeds of which will be applied towards reducing the bank debt. This is another niche business, with some celebrity interest, and one to tuck away. BUY.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.