16th Oct 2006 07:00
Delling Group PLC16 October 2006 For Release 7:00 am 16 October 2006 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Acquisition of Scandinavian Exhibition Group AB ("SEG") Highlights: o Third largest expo company in Sweden; o SEG turnover for the year ended 30 June 2006 of £3.5 million; o Will become largest provider of exhibition services in Scandinavia; o Consideration payable of £1.18 million; o Substantial synergy & cost benefits expected. 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 Scandinavian ExhibitionGroup AB (SEG), a privately owned and profitable exhibition company with officesand operations across Scandinavia. Completion is scheduled for 15 December 2006. SEG, which generally trades under the name Sandberg Expo, had annual turnover of£3.5 million in the year ended 30 June 2006, a gross profit margin of 54 percent. SEG has offices in Stockholm, Gavle and Gothenburg in Sweden. This acquisition follows Delling's earlier acquisition on 22 August 2006 ofEckerud Scandinavia AB, the largest exhibition company in Sweden. Together withDelling's exhibition business in Norway, the SEG acquisition will positionDelling as by far the largest provider of exhibition services in Scandinavia.The Board of Delling sees considerable synergy and cost benefit opportunitiesfrom the integration of Eckerud and SEG's operations, such as reducing duplicateproduction facilities and logistical systems and leveraging off the benefits ofincreased purchasing power. The consideration payable is approximately £1.18 million, which is equivalent toapproximately 5 times SEG's expected pre-tax profit for its present financialyear. The consideration will consist of £0.44 million in cash and £0.37 millionin shares at the average price over the last 5 trading days prior to thecompletion day and a guaranteed deferred payment of £0.37 million in cash as of1 July 2007. As previously announced, Delling continues to explore a number of other possibleacquisitions in the other core areas of marketing services included in Delling'sintegrated marketing support services concept. This may or may not lead to moreacquisitions in the coming months. Commenting, on the acquisition, Aksel Bratvedt, Executive Chairman of DellingGroup, said: "This acquisition of SEG demonstrates that we continue to be on track with ourplan to build an integrated marketing support service company with more than£100 million in sales within the next few years. With this acquisition and inaddition to our strong organic growth, our planned milestone of entering 2007Company with an annualized turnover of £20-25 million, is within reach. Thiswill also strongly support our work in getting a substantially increased profitmargin. Though still focusing on maintaining strong growth, both organically and throughacquisitions, we are now placing increased emphasis on improving our profitmargins so that Delling would derive the maximum benefit for the whole of 2007." ENDS For further information please contact: Contact: Delling Group PlcAksel Bratvedt, Chairman Tel: 020 7484 5663James Robinson, Finance Director Tel: 020 7484 5664www.dellinggroup.com---------------------- Adventis Financial PRTarquin Edwards/Peter Binns Tel: 020 7034 4758/020 7034 4760 Kreab ASBrynjulf Freberg Tel: +47 9066 3646 Notes to Editors Scandinavian Exhibition Group AB generally trading under the name Sandberg Expo. Scandinavian Exhibition Group has 22 employees and offices in Stockholm, Gavleand Gothenburg in Sweden. The company has an excellent customer base withcompanies such as Sandvik, Hewlett Packard, Assa Abloy and Telia Sonera. 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 110 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 AIM market, the London StockExchange's international market for smaller growing companies This has givenDelling the access it needs to capital funds needed to maintain and strengthenthe 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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