Delling Group PLC
13 December 2005
For Release 7.00am 13 December 2005
DELLING GROUP PLC
The AIM-listed marketing services group
Trading update
Delling Group PLC ('Delling' or 'the Company'), the AIM listed marketing support
services group, announces that it sees increased trading potential in a number
of the rapidly expanding markets in Eastern Europe, most notably in Poland and
the Baltic region, on the back of substantially lower employment and overall
business costs. Accordingly, the Company will seek to place an increased
emphasis on this region for its outsourcing and new business requirements.
After building up quality control systems and staff this autumn, the first
customer orders were placed in December, under our new initiative to provide low
cost and high quality graphical material sourced from Eastern Europe, into the
Nordic area and at a later stage, into the British market. The benefits of this
initiative have already been felt with the Company increasing margins as it is
able to source printing at a substantially lower cost than the current market
rate in Scandinavia; a more significant impact is expected during 2006.
The staff located in the Stockholm office include a Polish speaking print
specialist. These staffing investments are essential to meet our customers'
requirement for quality, timely and secure delivery. It is expected that this
quality assured sourcing of print also would give us a significant advantage in
getting new major customers in Western Europe.
Delling has previously sourced print from Eastern Europe; however, this new more
structured approach with quality assurance and Polish-speaking staff has created
a significantly improved platform for the Delling concept to expand.
Aksel Bradvedt, Executive Chairman of Delling Group, commented:
'We are delighted to announce this positive development, and look to build on
the increased margins already experienced. Further expansion and exploitation of
these markets is likely since a number of our existing clients are looking to
increase their operations into Eastern Europe to take advantage of these same
economies. Since we already have customers in the region, this more structured
strategy to extend our expertise into a new territory is both low risk and cost
effective.'
ENDS
Contact:
Delling Group Plc
Aksel Bratvedt, Chairman Tel: 020 7484 5663
James Robinson, Finance Director Tel: 020 7484 5663
Binns & Co PR Ltd
Tarquin Edwards/Peter Binns Tel: 020 7786 9600
This information is provided by RNS
The company news service from the London Stock Exchange
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