Progress Report
Delling Group PLC
23 October 2007
For Release 7:00 am 23 October 2007
DELLING GROUP PLC (DLG/L)
The AIM-listed Marketing Support Services Group
Progress re: Integration and Cost Reduction
Delling Group PLC ('Delling' or the 'Company'), the only listed marketing
support services group on AIM whose principal assets are in Scandinavia, is
pleased to announce considerable progress in the turn-around of its only
loss-making subsidiary and in Delling's further development of its customer
base.
Delling announced in its interim results on 10 September 2007 that the Company
is currently focussed on both integrating its sales efforts and improving
organic growth in turnover, along with implementing enhanced efficiency and cost
cutting activities throughout the organisation. Delling also advised that out
of its 4 subsidiaries, only one subsidiary was still in loss during the period
and that whilst this subsidiary accounted for 15% of Group turnover, it
accounted for all of the loss, thereby reducing the impact of the profitable
performance of other companies in the Group.
Delling is pleased to announce that the turn-around of this business is
progressing according to plan and that the subsidiary has seen a pleasing
increase in its gross profit margins, along with a reduction in its fixed costs.
Our profitable Exhibition business, Delling Expo, that accounts for
approximately 40 per cent. of Delling's turnover, has seen a similar improvement
in margins and a reduction in fixed costs, in line with managements initiatives
to improve synergies and economies of scale.
At the same time, the Company is pleased to announce a number of new client
wins, in addition to securing additional business from existing clients. These
clients include: Nike, ABB, Mitsubishi Electric, The Warner Group ( a major
Scandinavian wide clothing retailer), Stokke Furniture, Stockholmsmassan,
Citroen cars, Telenor and Assa Abloy.
Commenting, Geir Lolleng, Chief Executive Officer of Delling Group, said:
'I am delighted with the development so far this autumn, as far as our profit
improvement plan is progressing, where our focus on reducing fixed costs and on
improving margins has been paying off. This progress, in combination with
excellent sales development within our most profitable areas, bodes well for the
future. Our focus in the coming months is to continue this work according to our
plans.'
ENDS
Contact:
Delling Group Plc
Geir Lolleng, CEO Tel: 020 7484 5663
www.dellinggroup.com
Seymour Pierce
Nicola Marrin Tel: 020 7107 8000
Adventis Financial PR 020 7034 4758/4759
Tarquin Edwards/Chris Steele Tel: 07879 458 364 / 07979 604 687
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 150 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 AIM, 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