Asia Digital Holdings (LON:ADH) (ADH, 0.58p, £4.15m) Interims to 30 June 2010, for the independent online marketing group, are in line with our expectations. The group has made excellent progress. A 60% increase in revenues to £13.7m (H109: £8.6m) combined with a 42% reduction in central costs has driven pre-tax losses to reduce to £0.12m (H109: £1.1m). The revenue growth has been largely driven by continued improvement in the Group's Australia and New Zealand operations alongside consistent positive contribution achieved in Asia. The market for online advertising is growing rapidly in Australia, New Zealand, China and India and we believe Asia Digital is well positioned to capitalise on this trend. We expect the group to break-even at PBT levels at the end of the current financial year. Net cash stood at £0.326m (FY09: £1.1m). The share price has risen by over 100% since our recent Speculative Buy recommendation. We reiterate our SPECULATIVE BUY recommendation.  

Colefax Group (LON:CFX) (CFX, 175.0p, £25.61m), the designers and distributer furnishing fabrics and wallpaper reports a positive AGM statement. Trading in the first 4 months to 31 August saw l-f-l sales in the core fabrics division increase by 10% in the US< 20% in the UK and 13% in Europe – a good performance, albeit from a low base. Uncertainty surrounding the trading outlook remains. We believe UK household finances will suffer a backdrop of squeezed disposable income, stubbornly high inflation and ongoing public sector spending cuts in the UK. There is a risk demand in the UK could soften.  The US market, is showing a slow but steady improvement in trading. The market forecasts PBT for FY 2011 to decline to £3.97m, EPS of 17.98p and DPS of 3.5p. The stock is trading on 9.7x 2011 earnings with a yield of 2% and 7.6x 2012 earnings. The share price has risen by 14% since our speculative buy recommendation and now has exceeded our target price of 168p. We retain our target price and therefore adjust our recommendation to a HOLD.    

KBC Advanced Technology (KBC, 44.5p, £24.61m) Interims to June 2010 saw revenues decline modestly to £25.6m (£27.1m) while underlying PBT fell more markedly to £1.41m (£2.44m) giving EPS of 1.6p (2.8p) with a 0.55p (0.45p) DPS . The group saw net cash fall…

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