Business
Trading Statement
Trading Statement.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 3699L Asia Digital Holdings PLC 29 July 2011 \n \n\n \n\n\n\n\nPress Release \n\n\n29 July 2011\n\n\n\n\n \nAsia Digital Holdings Plc\n(\"ADH\" or the \"Company\")\n \nPre-Close Trading Update\n \nAsia Digital Holdings plc (AIM: ADH.L), the independent, Asia focused, online marketing group, today gives a trading update ahead of its interim results which will be released on Monday 19 September 2011. \n \nTrading Update\n \nWe are pleased to report that our continuing operations show material improvement in H1 2011 against H1 2010, delivering a significant reduction in trading loss. \n \nAs noted in our final results announcement for 2010, in April we saw deterioration in trading in the second half of that year. Within the first half of 2011 we have discontinued the AKTIV business, successfully reversed the trend in the DGM Singapore operation and seen improvements in the DGM India operation. \n \nProgress in China has been slow but positive and we have seen the start of sales with campaigns executed for several high-profile brands such as Dell, Benefit Cosmetics, Marie-Claire, and Meritus Mandarin, with a number of additional brand campaigns under discussion. \n \nIn addition, previously executed cost saving measures have gone a long way to mitigate the loss of contribution from the sale of the Australian business last year. \n \n\nTrading Prospects\n \nWhilst moderate growth is expected to continue in India and South East Asia, the Company believes the largest growth opportunity will be in China. \nWith 485 million Internet users (Source: CINIC 7/11) and an e-commerce space that is expected to grow from $79 billion in 2010 (Analysis International 4/11) to between $159 billion (Forrester 1/11) and $311 billion by 2015 (Credit Suisse 1/11), the potential of this market is one that global retail brands not currently present in China will find difficult to ignore. \nOur experience in delivering e-commerce for this type of client, on a performance pricing model, is well suited to the opportunity. There is, however, a steep learning curve and from a purely trading perspective we have had a slow start in China, retaining only a skeleton team to date and servicing an evolving but small client base. \...