31st Aug 2006 07:01
Delling Group PLC31 August 2006 For Release 7:00 am 31 August 2006 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Acquisition of print company in Sweden Establishment of an office in Stavanger, Norway 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 Printcenter i Linkoping AB("Printcenter"), a privately owned Swedish large format print company, withcompletion scheduled for 30 September 2006. The consideration payable is approximately £0.37 million in cash, equivalent toapproximately 5 times Printcenter's expected pre-tax profit for the year ended31 August 2006. Annual turnover was approximately £1 million, representinggrowth of 30% on the previous period. It is hoped that sales growth which wasexpected to be maintained at this level during 2007 should now outperformfollowing integration of Printcenter with the Delling Group. The payment of theconsideration will be funded through the financing package announced on 22August 2006. Printcenter is a highly specialised producer of large format printed productswith customers such as Securitas, Saab and Swedish retailer JC Brothers. Thesimilar activities of Delling's existing Norwegian and Swedish businesses willbe moved to Printcenter's offices in Linkoping, Sweden's fourth largest city,with the aim of developing Printcenter into a leading Scandinavian producer ofsuch products. The Board of Delling expects the acquisition of Printcenter to be earningsenhancing with sales anticipated to increase following cross selling ofDelling's broader offering to Printcenter's customers. The owner of Printcenter,who will be staying on after the acquisition, has over 35 years experience inthe printing industry having restructured production processes at a number ofcompanies. His expertise, coupled with scale efficiencies generated fromconcentrating Delling's large format print work in one location should increasemargins. Further, Delling is in the process of establishing an office in Stavanger,Norway. An experienced manager with strong customer relationships has been hiredto develop the business. Stavanger is the hub of one of Europe's leadingoffshore oil and gas clusters. Delling will offer its full marketing supportservices to companies in this Western Coast area, which is currentlyexperiencing strong economic growth driven by offshore activities in the NorthSea. The office is expected to be profitable from its first month of operation. Commenting, on the acquisition, Aksel Bratvedt, Executive Chairman of DellingGroup, said: "I am pleased to conclude another acquisition. On the back of our substantialpipeline of profitable targets, we intend to maintain the current rate ofacquisitions over the coming months. Printcenter increases Delling's expertisewithin a specialised area of printing, and will allow the Group to reduce coststhrough a rationalisation to one location. This acquisition together with our strong organic growth moves Delling closer toour stated aim of being the largest marketing support services company inScandinavia." For further information please contact: ENDS 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 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 80 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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