REG-Asia Digital Hldngs Interim Results - Part 2

Released: 14/09/2009

  
Part 2 : For preceding part double-click [nRn1N9686Y]  
                                                                                                                                
                                £'000       £'000          £'000     £'000                     £'000                   £'000    
                                                                                                                                
  External revenue                                                                                                              
  DGM                           5,548       1,930          -         -                         -                       7,478    
  AKTIV                         -           910            -         -                         -                       910      
  OTHER                         -           188            -         -                         -                       188      
                                5,548       3,028          -         -                         -                       8,576    
                                                                                                                                
  Segment result                                                                                                                
  DGM                           347         (42)                     (385)                                             (80)     
  AKTIV                         -           198                      (145)                                             53       
  OTHER                         -           (105)          54        (12)                      (742)                   (805)    
                                347         51             54        (542)                     (742)                   (832)    
                                                                                                                                
  Amortisation                                                                                                         (137)    
  Depreciation                                                                                                         (49)     
  Share based payment                                                                                                  (22)     
  Interest                                                                                                             (40)     
  Share of loss of associates                                                                                          (4)      
  Tax                                                                                                                  -        
                                                                                                                                
  Total Loss for the period                                                                                            (1,084)  
  
  
 
  Six months to 30 June 2008    Australia   Asia Pacific   *Other   Operating Central Costs   Holding Company Costs   Total  
                                £'000       £'000          £'000    £'000                     £'000                   £'000  
                                                                                                                             
  External revenue                                                                                                           
  DGM                           5,426       627            -        -                         -                       6,053  
  AKTIV                         -           303            -        -                         -                       303    
  OTHER                         -           153            185      -                         -                       338    
                                5,426       1,083          185      -                         -                       6,694  
                                                                                                                             
  Segment result                                                                                                             
  DGM                           708         (104)          -        (366)                     -                       238    
  AKTIV                         -           (39)           -        (78)                      -                       (117)  
  OTHER                         -           (3)            (58)     (12)                      (465)                   (538)  
                                708         (146)          (58)     (456)                     (465)                   (417)  
                                                                                                                             
  Amortisation                                                                                                        (137)  
  Depreciation                                                                                                        (61)   
  Share based payment                                                                                                 (160)  
  Interest                                                                                                            5      
  Share of loss of associates                                                                                         (49)   
  Tax                                                                                                                 -      
                                                                                                                             
  Total Loss for the period                                                                                           (819)  
  
  
4    REVENUE AND SEGMENTAL INFORMATION (Continued)  
  
 
  Year to 31 December 2008      Australia   Asia Pacific   *Other   Operating Central Costs   **Holding Company Costs   Total    
                                £'000       £'000          £'000    £'000                     £'000                     £'000    
                                                                                                                                 
  External revenue                                                                                                               
  DGM                           11,391      1882           -        -                         -                         13,273   
  AKTIV                         -           895            -        -                         -                         895      
  OTHER                         -           163            369      -                         -                         532      
                                11,391      2,940          369      -                         -                         14,700   
                                                                                                                                 
  Segment result                                                                                                                 
  DGM                           1,060       (147)          -        (768)                     -                         145      
  AKTIV                         -           59             -        (156)                     -                         (97)     
  OTHER                         -           (91)           (368)    (25)                      (1,396)                   (1,880)  
                                1,060       (179)          (368)    (949)                     (1,396)                   (1,832)  
                                                                                                                                 
  Amortisation                                                                                                          (274)    
  Depreciation                                                                                                          (148)    
  Share based payment                                                                                                   (179)    
  Interest                                                                                                              (21)     
  Share of loss of associates                                                                                           (343)    
  Tax                                                                                                                   (41)     
                                                                                                                                 
  Total Loss for the year                                                                                               (2,838)  
  
  
* This relates to discontinued operations  
  
** Holding Company Costs for the year ended 31 December 2008 includes £727,000 
in leasehold and other provisions   
  
5    SEASONAL FLUCTUATIONS  
  
The business of Asia Digital Holdings Plc is subject to seasonal fluctuations, 
with stronger demand for services in the second half of the year.  
  
6    LOSS PER SHARE  
  
The calculation for the basic loss per share is based upon the loss attributable 
to ordinary shareholders divided by the weighted average number of shares in 
issue during the period.  
  
Reconciliation of the loss and weighted average number of shares used in the 
calculations are set out below:  
  
 
                                                                6 months       6 months       Year to       
                                                                to 30 Jun 09   to 30 Jun 08   to 31 Dec 08  
  Continuing operations                                                                                     
  Loss after tax and attributable to ordinary shareholders      (1,138)        (743)          (2,838)       
  (£'000)                                                                                                   
                                                                                                            
  Weighted average number of shares                             453,768,684    453,768,684    453,768,684   
                                                                                                            
  Basic and diluted earnings per share                          (0.25p)        (0.16p)        (0.62p)       
                                                                                                            
  Discontinued operations                                                                                   
  Profit/(Loss) after tax and attributable to ordinary          54             (76)           -             
  shareholders (£'000)                                                                                      
                                                                                                            
  Weighted average number of shares                             453,768,684    453,768,684    453,768,684   
                                                                                                            
  Basic and diluted earnings per share                          0.01p          (0.02p)        -             
                                                                                                            
  Total operations                                                                                          
  Loss after tax and attributable to ordinary shareholders      (1,084)        (819)          (2,838)       
  (£'000)                                                                                                   
                                                                                                            
  Weighted average number of shares                             453,768,684    453,768,684    453,768,684   
                                                                                                            
  Basic and diluted earnings per share                          (0.24p)        (0.18p)        (0.62p)       
                                                                                                            
  
  
In view of the loss for the period, options have no dilutive effect  
  
7    SHARE BASED PAYMENTS  
  
During the period 8,525,000 options (June 2008: 14,579,999) were issued at an 
average fair value of 0.35 pence per share (June 2008: 0.54 pence).  
  
The fair values of the options granted during the period ended 30 June 2009 were 
determined using the binomial valuation model. The value of the options has been 
adjusted for future dividends, assuming that they will be paid from 2013 at a 
yield of 3%.   
  
The model takes into account a volatility rate of 100% which has been derived 
from historical experience. A weighted average risk free interest rate of 2.4% 
has been applied. The share price at grant date was 0.60 pence and the weighted 
average exercise price was 1.43 pence per share.   
  
The options were granted in accordance with the Group's Enterprise Management 
Incentive Scheme. The options have lives of 10 years and vest in three equal 
tranches over the first three years of their lives provided the employees 
continue to work for group. The expected lives of the options used in 
application of the binomial model were 5 years for managerial staff and 4 years 
for non-managerial staff.   
  
The amount of employee remuneration expense for the 6 months ended 30 June 2009, 
in respect of unvested share options granted in this period and earlier periods, 
amounts to £21,665 (June 2008: £19,186).  
  
8    LEASE COMMITMENTS PROVISION  
  
There has been no movement in the period to 30 June 2009.   
  
9    RELATED PARTY TRANSACTIONS  
  
During the period the Group entered into the following related party 
transactions. All transactions were made on an arm's length basis:  
  
Howard Kennedy  
  
Keith Lassman, Non-Executive Director and shareholder, is a partner of Howard 
Kennedy, Solicitors. During the period, the Group paid £7,050 (2008: £3,590) in 
respect of legal services provided to the Group. The balance due to Howard 
Kennedy, Solicitors, at the period end was £21,772 (2008: £7,050)  
  
DC Storm Limited  
  
DC Storm Limited is an associated undertaking company. During the period the 
Group was charged £45,000 (2008: £75,000) in respect of software licensing 
provided to the Group. The balance due to DC Storm Limited at period end was 
£Nil (2008: £Nil).  
  
dealgroupmedia (UK) Limited  
  
dealgroupmedia (UK) Limited is an associated undertaking company. During the 
period the Group was charged £180,000 (2008: £180,000) in respect of technical 
services provided to the Group. The Group also charged office rental and 
software licensing of £75,640 (2008: £39,482) and £15,000 (2008: £15,000) 
respectively.  
  
Transactions involving major shareholder  
  
An amount of £500,000 was raised by way of a convertible loan note which carries 
a 15% coupon payable with principal on repayment. This has been issued to River 
Don Limited, a company controlled by John Porter, a major shareholder in the 
Group and also a director of an associated undertaking company.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
IR ILFSTARILLIA