Half year trading update

Delling Group PLC
12 July 2006


For Release                             7:00am                   12 July 2006



                            DELLING GROUP PLC (DLG/L)
                    The AIM-listed marketing services group

                            Half year trading update

Delling Group PLC ('Delling' or 'the Company'), the AIM-listed marketing support
services company, is delighted to present a positive update on performance for
the six months ended 30 June 2006, with further contract gains from global
brands across the Scandinavian markets.

Trading

The first six months have seen the Company continue to grow its group revenue in
line with historically achieved rates. Delling has announced outsourcing
contracts with McDonald's and Northface in Norway, and the Bristol-Myers Squibb
group across the Nordic region. These three contracts should add £1.5m to group
turnover on an annualised basis.

It is significant that two of these contracts were won by Delling in Norway, and
the directors believe that this demonstrates the success of creating the Delling
concept in Oslo, achieved by acquisitions and successful integration. The
Company also believes the win of the Bristol-Myers Squibb contract signals a new
phase of Delling's growth as the Company continues its proven ability to deliver
across a large geographical area.

Delling has continued its work in Poland and the Baltics and now has a fully
operational supply chain in place for the sourcing of high quality low cost
printing, and the Company is starting to feel the benefits of this, particularly
for large volume print jobs. Delling has grown its trading presence in Poland
and the Baltics, winning contracts for services at three airports in the region.

The Company has also seen substantial interest in screen media in both Norway
and Sweden and has installed a number of pilot projects. The pilot projects have
progressed well and have all been fully installed. The Company is confident that
larger contracts will be won on the back of the successful testing in the second
half of the year. Several new screen installations have been won, most notably
at Riga and Krakow international airports.

Delling has also seen a large proportion of its sales fulfilled in the first
half through further outsourcing to partners where it operates more as a project
manager. Such sales are lower margin than internally fulfilled orders and
Delling is susceptible to such changes in product mix until it reaches a larger
size. Overall gross margins are therefore slightly lower in the first six months
compared to previous periods, although the directors expect this to reverse as
the product mix reverts to its more usual levels in the second six months.

Acquisitions

Delling acquired n3prenor AB in January 2006 and this company has fulfilled the
expectations of the Company in delivering profits and positive cashflow and
Delling expects to pay an earn-out on this transaction, although the amount is
not yet finalised. Delling has begun to target the customer base of n3prenor and
although only small jobs have been won so far the Company is building a
reputation and hopes for larger contracts in the near future.

The acquisition of n3prenor also allowed the Company to realise some synergies
in the Stockholm office and reduce the staffing where roles were duplicated.

Delling continues to actively seek further acquisition targets and hopes to
complete further acquisitions in the second half of its financial year.

Financing

An important step was taken by the Company in concluding the recent placing. The
£4.7m of funds raised will allow Delling to strengthen its balance sheet and
negotiate with suppliers on more favourable terms. The balance sheet
strengthening should allow the Company access to bank financing with which to
pursue its acquisition programme, whilst stronger negotiating power should
improve margins.

Announcement of interim results

The detailed interim results will be announced on 18 September 2006.

Aksel Bratvedt, Executive Chairman of Delling Group commented:

'The first six months of 2006 have been exciting for the Company and positioned
it very strongly for the future. Not only have we continued to win outsourcing
contracts from large well known brands, but we have completed a placing to help
the Company to pursue its objectives. Our strategy includes taking advantage of
consolidation within the fragmented industry sector in Scandinavia in which it
operates. We have a number of potential acquisition targets and with our
continuing growth I look forward to a further successful six months.'


ENDS

For further information please contact:

Contact:
Delling Group Plc
Aksel Bratvedt, Executive Chairman                   Tel [phone]
James Robinson, Finance Director                     Tel [phone]

Adventis Financial PR
Tarquin Edwards                                      Tel: [phone]
Peter Binns                                          Tel: [phone]




                      This information is provided by RNS
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