Business
Trading Update
Trading Update.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 5269H Asia Digital Holdings PLC 31 May 2011 \n \n\n \n \n\n\n\n\nPress Release\n\n\n31 May 2011\n\n\n\n\n \nAsia Digital Holdings Plc\n(\"ADH\" or the \"Company\")\n \nReceipt of Consideration from Disposal of DGM Australia\nDisposal of the AKTIV business\nTrading Update\n \nAsia Digital Holdings plc (AIM: ADH.L), an independent online marketing group (the \"Group\"), is pleased to give the following trading update. \n \nReceipt of Third Tranche of Deferred Consideration\n \nThe Company confirms that it has now satisfied all contractual requirements from its disposal of the DGM operation in Australia following which it has received the third tranche of consideration amounting to AU$500,000 (c.£325,000).\n \nFrom this third tranche of consideration certain expenses have been deducted at source, or will be settled imminently, leading to a net receipt of AU$295,000 or (c.£192,000), marginally more than announced in the Preliminary Results on 5 April 2011.\n \nIn satisfying the residual contractual requirements the Company anticipates receiving the last deferred payment of an additional AU$500,000 (c.£325,000), in November 2011. The net cash expected from the final deferred consideration payment due in November is AU$428,000 (c.£278,000).\n \nDisposal of AKTIV\nAs announced in the Preliminary Results of the Group on 5 April 2011, the Board has undertaken a strategic review of the AKTIV business. AKTIV is a digital advertising sales house that represents media owners, selling their advertising space to global agencies and offering its customers administrative and commercial economies of scale. As this business had not delivered the expected upturn in trade through the first quarter of 2011, the Company has agreed to the existing AKTIV management team taking over that business in exchange for them taking over all related running costs with effect from the start of the second quarter. \n \nAKTIV represented 20% of Group continuing revenues in 2010, and retained 20% of Group operational staff during 2010. However, the business did not deliver consistent profitability through the last quarter of 2010 and in the first quarter of 2011 the AKTIV business made a loss of £91,000. \n \nThe decision to dispose of the AKTIV business has made a positiv...