RedHot Media is a group of advertising and media companies. Much of its activity is as a media broker, purchasing advertising space on behalf of its clients but extending the traditional broker role to encompass the many new opportunities presented by online and mobile applications and social networks. Based in Malaysia, the company operates a media bartering system called AxChange and is now expanding its presence across China and other parts of Asia.
With a market capital of 42.6 million Sterling Pound (equivalent to approximately 225 million Ringgit), RedHot was identified by a leading financial magazine in the UK in the beginning of the year and ranked Number 7 for its performance out of the 26 companies that listed in AIM 2008. As of end January 2009, RedHot's share price showed a 44% growth, closing at 118 pence in Sterling Pound.
For the financial year ended Dec 31, 2010, it recorded a net profit of RM9.2 million, up 102% from RM4.53 million in 2009. Revenue rose 69% to RM44.29 million from RM26.18 million. Earnings per share rose to 25.32 sen from 12.45 sen.
UHY Hacker Young, UK, successfully brought RedHot Media to London's Alternative Investment Market (AIM), with a capitalisation on Initial Public Offering (IPO) of £29.6 million (USD 39.5 million).
Acting as Reporting Accountants, the London team provided:
- True and fair opinion on the financial information in the admission document
- Long form (due diligence) report on the issuer
- Report and opinion on adequacy of working capital
- Report and opinion on adequacy of financial reporting procedures.
Working together, the London team structured and oversaw the required fieldwork, which was carried out in Malaysia by UHY's Audit & Assurance team. Since the AIM listing, UHY Hacker Young has been engaged as auditors for the AIM-listed company and local audits for RedHot Media have been carried out by UHY in Malaysia and also by UHY's member firm in China.
UHY was selected by RedHot Media because it is able to provide expertise in London for taking clients to an AIM listing while provide local representation in Malaysia.
The client also valued having a UHY director, Dato' John Lim, overseeing the engagement. John, who is Malaysian but based in London, was able to communicate and interact effectively with RedHot Media personnel in the local language and as he knows local customs, their communication synergy was excellent.
WORKING WITH UHY
RedHot Media's CEO, Cheong Chia Chieh, said "We were pleased to have the opportunity to develop a close working relationship with Dato' John Lim who has been our main link in the international audit assignment and our principal point of communication on significant issues."