News blog
Asia Digital Holdings
- BY: Andrew Hore |
- POSTED: 26/09/2010 |
A shortage of cash has forced Asia Digital Holdings to sell its Australian online advertising business.
ASX-listed Comtel Corporation is paying A$7.75m for the Australian operations, which have a book value of A$8.4m. The final payment of A$1m (£607,000) will be paid 13 months after completion. This is the most mature part of the group and is the reason why the group broke even at the EBITDA level in the first half of 2010.
The deal will leave Asia Digital with £1.7m in the bank - not including the deferred consideration. At 0.35p a share, Asia Digital is valued at £2.52m. Asia Digital plans to pay back one-half of the £500,000 convertible loan, and accrued interest, from John Porter. The company’s net asset value will be £1.3m.
Annualised sales of the continuing operations will be around £6m. The loss will be more than £1m. This means that some of the cash will cover the operating cash outflow. The rest will be used to set up a business in Shanghai.
Asia Digital’s interim revenues rose by 60% to £13.7m. This was due to a combination of a sharp recovery in Australia and growth in Asia Pacific, which contributed £3.47m. Second half trading is normally stronger than the first half trading.
Asia Digital is in the process of switching to a new technology platform.
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