Trading Statement

Delling Group PLC
26 April 2007




For Release                         7:00 am                       27 April 2007




                           DELLING GROUP PLC (DLG.L)

                The AIM-listed marketing support services group


         Trading update for the year ended 31 December 2006 and Q1 2007


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 expects its final results for the year ended 31 December 2006
to be below market expectations, however it is pleased to report positive
earnings before interest and tax during the first quarter of 2007.


The Company expects to report a loss in the region of £5.5m, when the financial
statements are published in June 2007. This loss is a result of the product mix
not developing as expected combined with higher restructuring costs. The loss,
whilst disappointing, reflects the scale of investment, both in time and money,
of Delling's major acquisition programme during the period and of the
restructuring and integration work conducted in the last quarter of 2006 on
those acquisitions.


Of the expected loss for the year, the Swedish exhibition company Eckerud
Scandinavian Group AB ('Eckerud'), an acquisition announced on 22 August 2006
and forecast to make annual profits of £260,000 and create beneficial synergies
with the rest of the group has reported a loss for the three months since
acquisition in the region of £500,000. The loss has resulted due to what the
Directors believe to be both an overstated result for the first half 2006 and
less than expected turnover from Eckerud in the autumn. As a result of this, the
original terms of the acquisition are under renegotiation and the large
potential earn-out will be substantially reduced. Since the year end, Delling is
pleased to announce that in Q1 2007, Eckerud has reported profits before tax of
£140,000 as a result of successful increased sales efforts and changes in
management.


With the fourfold increase in the size of the group's turnover from £5m in 2005
to a present run-rate of more than £20m, the reporting systems and capacity of
our finance function in Scandinavia were found to be inadequate. In addition to
the lack of sufficient capacity in terms of personnel and competence, the group
was running 4 different accounting and management systems. The Board took action
to correct these problems and has, during the first months of 2007, thoroughly
reviewed the financial position of each of its businesses. In connection with
our review, the systems and staff competences have been significantly
strengthened by the hiring of new staff and the integration of reporting
systems.


The board is confident that the above review has generated an accurate picture
of the current position of each subsidiary company and that the Group now has
sufficient capacity in its finance function and financial reporting system going
forward. As a consequence, Delling believes that it will now be easier to
integrate future acquisitions as well as enabling the Group to produce financial
reports substantially earlier. Delling therefore expects the interim results for
the first six months of 2007 to be announced towards the end of July.


The group is starting to reap the rewards of the hard work put in during the
period and particularly during the last quarter of 2006. The Group currently has
a turnover run-rate of approximately £22 million giving it critical mass in
terms of covering its fixed costs and generating the economies of scale that a
company offering outsourcing services is dependant upon.


The Board is now concentrating on cost reductions and further integration and
Delling is pleased to report a profit before tax and interest for the first
quarter of 2007.


Commenting, Aksel Bratvedt, Executive Chairman of Delling Group, said:


'Whilst the loss for the year was disappointing, I believe that the hard work
undertaken across the group during the period, in terms of growing sales,
cutting costs and streamlining our acquisition and integration controls and
procedures, has been effective and the group's move into profit during the first
quarter of the new financial year is an encouraging indicator of this.'


'With group turnover now substantially increased and with an immediate focus on
reducing our cost base, I look forward to our being able to build on this Q1
profit and increasingly leverage upon tangible economies of scale to create a
profitable, dynamic business in what is a niche market'.


For further information please contact:



ENDS


Contact:
Delling Group Plc
Aksel Bratvedt, Chairman            Tel: [phone]
James Robinson, Finance Director    Tel: [phone]
www.dellinggroup.com


Adventis Financial PR
Tarquin Edwards/Chris Steele        Tel: [phone]

Seymour Pierce
Nicola Marrin                       Tel: [phone]






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