Deal Group Media PLC
21 November 2005
Press Release 21 November 2005
Deal Group Media plc
Trading Update
Following a thorough review of the Group's operations, the Board expects that
the profit before tax (excluding amortisation) for the year ending 31 December
2005 is likely to be £800,000.
Two issues will have a material impact on the Results to 31 December 2005
following the trading update of 23 September 2005.
Delays to the full implementation of DGM Pro, the Group's new proprietary
tracking technology, will result in the Group incurring one-off additional
programming and technology costs of £275,000. As a result of this there will be
an additional reduction in profit across the business amounting to £100,000.
The second issue relates specifically to two current customers which are
temporarily unable to implement technology changes on their websites to allow
planned campaigns to run before the New Year. This will result in a loss to the
business of £225,000.
The Group expects that efficiency gains related to DGM Pro will be seen in the
second half of 2006.
The Group remains operationally profitable, cash generative, and positioned in a
high growth sector.
For further information, please contact:
Abchurch Communications
Julian Bosdet / Charles Jack Tel: +44 (0) 20 7398 7700
charlie.jack@abchurch-group.com www.abchurch-group.com
Panmure Gordon & Co.
Grant Harrison Tel: +44 (0) 20 7459 3600
- Ends -
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