Trading Update

RNS Number : 5030Y

Asia Digital Holdings PLC

23 December 2010

 



Press Release

23 December 2010

Asia Digital Holdings Plc

("ADH" or the "Company")

Trading Update

Asia Digital Holdings plc (AIM: ADH.L), an independent online marketing group (the "Group"), today announces the following update.

Post the disposal of DGM Australia in September 2010, historically the Group's largest and most profitable operation, the Company is pleased to announce it has received the second tranche of consideration in respect of the sale amounting to AU$1,657,674 (approx. £1,000,000). This leaves a final deferred payment of up to AU$1,000,000 (approx. £600,000) which is expected to be paid before November 2011.

The Group's Board is now in the process of implementing its revised business plan to take advantage of the significant opportunities it is seeing in China. Measures to reduce overheads have been taken and further cost saving measures are being reviewed to ensure all costs are appropriate to support the Company as it pursues its objectives for the coming year. The Group has rationalised its holding company support team and will shortly complete the move to a more cost effective technology platform for the Group's affiliate business, the core of its DGM operation - its business focussed on delivering leads and sales for advertisers on a delivery based pricing model.

The Group also announces that it has repaid the convertible loan note issued on 26 May 2009 to River Don Limited, a company controlled by John Porter, the Group's former Chairman.  The note carried a 15% coupon payable with principal on redemption or repayment.  The repayment was £617,534 and the settlement in full has eliminated the potential dilution of issuing up to 100 million shares had the loan note been fully converted.  This settlement eliminates all Group debt and gives an annualised interest saving of £75,000. 

Following the receipt of the AU$1,657,674 and the repayment of the note as described above the Group retained cash at bank of £625,798 as at 21 December 2010.

Adrian Moss, Chief Executive, commented:  "The Group is seeing a positive response from its initial activity in China with DGM already securing some performance-related orders for the first few months of 2011 and AKTIV well received by the local offices of Global agency media planning operations. In the largest digital advertising region, in terms of spend and internet users, we have the potential to be a very successful operation.  The clearing of all of our debt, and the cost savings measures taken enhance our chances of delivering shareholder value and are appropriate given the size of the Group's business following the disposal of DGM Australia. I look forward to providing further updates of our progress in achieving our stated objectives in due course."

- Ends -

For further information, please contact:

Asia Digital Holdings plc
Adrian Moss, Chief Executive	Tel: [phone]
	www.adhplc.asia

Northland Capital Partners Limited
Gavin Burnell / Rod Venables	Tel:  [phone]
Katie Shelton (Corporate Broking)	www.northlandcp.co.uk

Abchurch Communications
Nick Probert / Claire Dickinson	Tel: [phone]
[e-mail]	www.abchurch-group.com

 

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