Integration & Cost Reduction
Delling Group PLC
24 April 2008
For Release 7:00 am 24 April 2008
DELLING GROUP PLC (DLG.L)
'The AIM listed Marketing Support Services Group'
Progress re: Integration and Cost Reduction
Delling Group PLC ('Delling' or the 'Group'), the only listed marketing support
services group on AIM, whose principal assets are in Scandinavia, is pleased to
announce that during the first quarter of 2008 it has completed the integration
and rationalisation of three separate business divisions, namely Exhibition
Design, Motion Media and Marketing Support Services, into one marketing support
services organisation, with its own legal identity both in Sweden and Norway
(the 'Marketing Support Division'). The effect of this streamlining initiative
into a single marketing support services organisation is expected to be
positive, both on sales generation and cost reduction.
Delling's sales force within the Exhibition design business has started to sell
the integrated marketing support services concept into its customer base. To
increase and co-ordinate sales and provide focus within the Marketing Support
Division, a function for integrated Marketing Support Sales has been established
and is now run by a senior Exhibition design sales director. As an indication of
the potential effect this initiative could have, the division's first sales
meeting led to the sale of a project worth £200,000 for a major global
electronics manufacturer.
On the cost side, the head count has been reduced by 20 employees over the last
three months. This is a direct consequence of Delling integrating a number of
acquired companies, across all parts of the Group. This reduction constitutes
around 15% of the total workforce of the Group. The effect of these cost savings
is expected to materialise fully in the second quarter of 2008. The Delling
Board believes the Group will now be able to secure improved terms with
subcontractors by coordinating and aggregating together its purchasing
requirements. Delling also expect to benefit from better coordination and
management of its cash across the Group.
Commenting, Geir Lolleng, CEO, Delling Group, said:
'We are in the process of finalising the integration of four of the companies
which we acquired over the past year and a half and are seeing a significant
positive impact of this policy on both our sales and costs. This is particularly
encouraging, especially as sales have increased over the last three months
despite the distraction of the integration process itself'.
'As we have advised previously, we will continue to concentrate on organic
growth and improving our performance in the coming months, to take advantage of
Delling Group's size in its market place along with the recent and improved
greater efficiency throughout the organisation.'
For further information please contact:
Delling Group Plc www.dellinggroup.com
Geir Lolleng, CEO Tel: +46 7652 76024
Adventis Financial PR
Tarquin Edwards Tel: 020 7034 4758/07879 458 364
Nabarro Wells & Co Limited - Nominated Advisor
Hugh Oram Tel: 020 7634 4700
City Capital Corporation Limited - Broker
David Kent Tel: 020 7583 5800
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 120 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