Issue of Equity
Delling Group PLC
14 December 2007
For Immediate Release 14 December 2007
DELLING GROUP PLC (DLG.L)
The AIM-listed marketing support services group
Re: £2.1 million Placing
Delling Group PLC ('Delling' or 'the Company'), the AIM-listed integrated
marketing support services company, announces that it has raised £2.1 million
before expenses by way of a placing of 34,652,900 new Ordinary Shares ('Placing
Shares') at a price of 6 pence per Ordinary Share (the 'Placing').
Bjart Dysthe, who is already a substantial shareholder in the Company, will
subscribe 16,666,667 Placing Shares in the Placing. Following completion of the
Placing, Mr Dysthe will hold 53,190,444 shares in the Company representing 26.3
per cent. of the issued voting share capital.
Additionally the pension fund of Tine, the Scandinavian dairy products group,
will subscribe 5,583,333 Placing Shares in the Placing. Following completion of
the Placing, the pension fund will hold 18,833,333 shares in the Company,
representing 9.3 per cent. of the issued voting share capital. These shares are
held in the name of MP Pensjon.
The Company is also in advanced discussions regarding the issuance of £750,000
of loan notes. The negotiations are expected to be concluded shortly at which
point a further announcement will be made.
The net proceeds of the Placing will be used to strengthen the balance sheet and
to improve the Delling Group's working capital position, which should allow it
to obtain better terms of trade with its suppliers. The Directors believe that
improving the terms of trade, coupled with the bulk purchasing power that the
Group enjoys by virtue of its size, together with reducing supplier debt
interest, will contribute positively to the Group's profit improvement plan that
has been implemented throughout 2007.
Application has been made for the admission of the Placing Shares to trading on
AIM. The Placing Shares will rank pari passu in all respects with the existing
Ordinary Shares in the Company and trading of the Placing Shares is expected to
commence on 20th December 2007.
The total number of Ordinary Shares in issue following the Placing will be
202,104,606.
Aksel Bratvedt, Executive Chairman of Delling Group commented:
'I am pleased that the Group has been able to raise finance in what is currently
a very challenging market, which indicates the strength of the Group and our
business concept.
The funds raised will strengthen the balance sheet and should yield tangible
results in terms of reducing the supplier interest charge and obtaining more
favourable pricing and terms of trade from our suppliers, and I look forward to
seeing those benefits in 2008.'
Contact:
Delling Group Plc
Aksel Bratvedt, Executive Chairman Tel: 0207 484 5663
James Robinson, CFO Tel: 0207 484 5664
Geir Lolleng, CEO Tel: +46765276024
www.dellinggroup.com
Adventis Financial PR
Tarquin Edwards Tel: 020 7034 4758/07879 458 364
Nabarro Wells & Co Limited - Nominated Advisor
Hugh Oram Tel: 020 7710 7400
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 currently has 130 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 is growing strongly,
both through development of existing clients and the establishment of many new
relationships, together with acquiring companies that enhance and further
develop its business concept.
Delling's goal is within the course of the next two years, through both
satisfied customers and recommendations, to be the largest 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.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange