Acquisition
Delling Group PLC
31 August 2006
For Release 7:00 am 31 August 2006
DELLING GROUP PLC (DLG.L)
The AIM-listed marketing support services group
Acquisition of print company in Sweden
Establishment of an office in Stavanger, Norway
Delling Group PLC ('Delling' or the 'Company'), the only listed marketing
support services group on AIM whose principal assets are in Scandinavia,
announces that it has exchanged contracts to acquire Printcenter i Linkoping AB
('Printcenter'), a privately owned Swedish large format print company, with
completion scheduled for 30 September 2006.
The consideration payable is approximately £0.37 million in cash, equivalent to
approximately 5 times Printcenter's expected pre-tax profit for the year ended
31 August 2006. Annual turnover was approximately £1 million, representing
growth of 30% on the previous period. It is hoped that sales growth which was
expected to be maintained at this level during 2007 should now outperform
following integration of Printcenter with the Delling Group. The payment of the
consideration will be funded through the financing package announced on 22
August 2006.
Printcenter is a highly specialised producer of large format printed products
with customers such as Securitas, Saab and Swedish retailer JC Brothers. The
similar activities of Delling's existing Norwegian and Swedish businesses will
be moved to Printcenter's offices in Linkoping, Sweden's fourth largest city,
with the aim of developing Printcenter into a leading Scandinavian producer of
such products.
The Board of Delling expects the acquisition of Printcenter to be earnings
enhancing with sales anticipated to increase following cross selling of
Delling's broader offering to Printcenter's customers. The owner of Printcenter,
who will be staying on after the acquisition, has over 35 years experience in
the printing industry having restructured production processes at a number of
companies. His expertise, coupled with scale efficiencies generated from
concentrating Delling's large format print work in one location should increase
margins.
Further, Delling is in the process of establishing an office in Stavanger,
Norway. An experienced manager with strong customer relationships has been hired
to develop the business. Stavanger is the hub of one of Europe's leading
offshore oil and gas clusters. Delling will offer its full marketing support
services to companies in this Western Coast area, which is currently
experiencing strong economic growth driven by offshore activities in the North
Sea. The office is expected to be profitable from its first month of operation.
Commenting, on the acquisition, Aksel Bratvedt, Executive Chairman of Delling
Group, said:
'I am pleased to conclude another acquisition. On the back of our substantial
pipeline of profitable targets, we intend to maintain the current rate of
acquisitions over the coming months. Printcenter increases Delling's expertise
within a specialised area of printing, and will allow the Group to reduce costs
through a rationalisation to one location.
This acquisition together with our strong organic growth moves Delling closer to
our stated aim of being the largest marketing support services company in
Scandinavia.'
For further information please contact:
ENDS
Contact:
Delling Group Plc
Aksel Bratvedt, Chairman Tel: 020 7484 5663
James Robinson, Finance Director Tel: 020 7484 5664
www.dellinggroup.com
Adventis Financial PR
Tarquin Edwards/Peter Binns Tel: 020 7034 4758/020 7034 4760
Kreab AS
Brynjulf Freberg Tel: +47 9066 3646
Notes to Editors
Delling Group is a leading supplier of marketing support services for marketing
and communication departments throughout The Nordic countries.
Delling manages all fields of graphic support in many different forms and
formats including trade fairs, exhibitions and interactive digital solutions for
the web, mobile telephone marketing solutions, motion media for flat screens,
plasma or LCD.
It also supplies IT solutions which support and increase the efficiency of both
marketing and information departments. However, its major strength is that the
Group can deliver complete turnkey solutions, tailor-made for its customers'
every need. Delling also offers outsourcing solutions that can substantially
save costs and improve efficiency.
The Group's major activities are today concentrated in the Norwegian and Swedish
markets, however, it is quickly expanding into other Nordic areas, as well as
having customers and production facilities in Eastern Europe. It also has well
respected suppliers as far a field as China and Thailand.
Delling Group has today 80 employees. It is rapidly developing its organisation
by focusing on supplying its customers with the quality they demand, delivered
on time at the right price. Central to its philosophy lies the fact that its
customers will obtain greater effects and efficiency for every pound they invest
in marketing and information. The Group has strong growth, both through further
development of existing clients and establishment of many new relationships,
together with acquiring companies that enhance and further develop our business
concept.
Delling's goal is within the course of the next two years, through both
satisfied customers and recommendations, to be the largest and most profitable
company in the field of marketing support services within the Nordic countries,
and a significant player within Eastern Europe In October 2004 it was the first
Scandinavian business to be listed on the Alternative Investment Market, the
London Stock Exchange's international market for smaller growing companies This
has given Delling the access it needs to capital funds needed to maintain and
strengthen the further development of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange