30th Jul 2007 07:00
Delling Group PLC30 July 2007 For Release 7:00am 30 July 2007 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Acquisition of Company in Sweden Delling Group PLC ("Delling" or the "Company"), the only listed marketingsupport services group on AIM whose principal assets are in Scandinavia,announces that it has exchanged contracts to acquire the business ofDekorateljen AB ("Ateljen"), a privately owned company, with completionscheduled for 1 September 2007, for a cash consideration of approximately £0.2million. Ateljen has an annual turnover of approximately £0.5 million. The consideration payable of approximately £0.2 million is equivalent toapproximately 4 times Ateljen's average pre-tax profit over its last 3 financialyears. 60 % of the consideration will be paid on completion and 40 % will bepaid 14 months after completion subject to certain agreed targets. Ateljens's employees will be integrated into Delling's main office in Stockholm,and will be a part of the exhibition business area. The integration will createcost benefits and synergies from September 2007. The customer base of Ateljenincludes some of the leading trade unions in Sweden. The Directors believe thatthere is a great potential for further developing Ateljens customer base. Theacquisition is also expected to help to improve our ability to support furtherstrong growth with our existing and new customers. Commenting, Aksel Bratvedt, Executive Chairman, Delling Group, said: "Thisin-fill acquisition fits into our business and should have a positive impact onour revenues going forward. We continue to increase market share in this sector.We are now steadily seeing the positive effects on the growing economy inScandinavia and at the same time taking a larger market share. As we now are ina period where our main focus is to improve our margins we intend only to dosmall fill-in acquisitions which are expected to rapidly improve our margins andenable us to reduce costs .As previously announced I firmly believe that thiswork will now begin to have a substantial impact on our overall performance." For further information please contact: Delling Group PlcAksel Bratvedt, Chairman Tel: 020 7484 5663www.dellinggroup.com Adventis Financial PRTarquin Edwards / Chris Steele Tel: 020 7034 4758 / 9 Seymour PierceNicola Marrin Tel: 020 7107 8000 Notes to Editors Delling Group is a leading supplier of marketing support services for marketingand communication departments throughout The Nordic countries. Delling manages all fields of graphic support in many different forms andformats including trade fairs, exhibitions and interactive digital solutions forthe 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 bothmarketing and information departments. However, its major strength is that theGroup can deliver complete turnkey solutions, tailor-made for its customers'every need. Delling also offers outsourcing solutions that can substantiallysave costs and improve efficiency. The Group's major activities are today concentrated in the Norwegian and Swedishmarkets, however, it is quickly expanding into other Nordic areas, as well ashaving customers and production facilities in Eastern Europe. It also has wellrespected suppliers as far a field as China and Thailand. Delling Group has today 130 employees. It is rapidly developing its organisationby focusing on supplying its customers with the quality they demand, deliveredon time at the right price. Central to its philosophy lies the fact that itscustomers will obtain greater effects and efficiency for every pound they investin marketing and information. The Group has strong growth, both through furtherdevelopment of existing clients and establishment of many new relationships,together with acquiring companies that enhance and further develop our businessconcept. Delling's goal is within the course of the next two years, through bothsatisfied customers and recommendations, to be the largest and most profitablecompany in the field of marketing support services within the Nordic countries,and a significant player within Eastern Europe. In October 2004 it was the firstScandinavian business to be listed on the Alternative Investment Market, theLondon Stock Exchange's international market for smaller growing companies. Thishas given Delling the access it needs to capital funds needed to maintain andstrengthen the further development of the Group. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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