KADA Kada Tech

TIDMKADA

RNS Number : 8309P

Kada Technology Holdings

30 October 2012

Kada Technology Holdings Limited

("Kada" or the "Group")

Trading Update

Kada Technology Holdings Limited (AIM: KADA), the China-based provider of components and devices for the IT industry and consumer electronics, announces an update on its current trading.

Kada continues to generate strong revenues despite the slower rates of growth in the Chinese economy. In spite of this the Group's distributorship business has held firm and sales from this division are expected to be substantially ahead of market forecasts.

However, the Group has not been immune to the impact of the slowdown in the Chinese consumer electronics industry and the trend toward tablet computers. Accordingly, Kada has not generated the sales from the higher-margin solutions business that it had anticipated. Orders from this side of the business have proved unpredictable and certain purchases that the board had hoped would be generated have failed to materialise. It is therefore now unlikely that the solutions business will have the anticipated impact on the Group's financial performance for the current year. In addition, for the aforementioned reasons collection of trade debtors remains challenging but continues to be a key focus for the management team.

As announced on 27 September 2012, sales from the Group's taxi media business are expected to remain small for the rest of the financial year.

Therefore, despite anticipating increased overall revenues for the current financial year, the Group's profit before tax is likely to remain broadly similar to last year. The Group continues to allocate resources to research and development in the solutions business in order to increase overall margins.

For further information:

 
     Kada Technology Holdings Limited 
     Paul He Xuebo, Chief Executive Officer       Tel: +44 (0) 20 7398 
                                                                  7719 
     Lee Kheng Yam, Chief Financial Officer            www.kada-ir.com 
 
 
     finnCap Limited 
     Geoff Nash / Christopher Raggett       Tel: +44 (0) 20 7220 
                                                            0500 
                                                 www.finncap.com 
 

Media enquiries:

 
     Abchurch Communications Limited 
     Henry Harrison-Topham / Joanne Shears / Jamie         Tel: +44 (0) 20 7398 
      Hooper                                                               7719 
     joanne.shears@abchurch-group.com                    www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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