11th Jun 2007 07:02
Delling Group PLC11 June 2007 For Release 7:00 am 11 June 2007 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Progress re: Integration and Cost Reduction Delling Group PLC ("Delling" or the "Company"), the only listed marketingsupport services group on AIM whose principal assets are in Scandinavia, ispleased to announce considerable progress in the successful integration of itsbusinesses within the Exhibition arena, which accounts for around 40 per cent.of Delling's turnover. Delling's previously acquired businesses, Eckerud Scandinavian Group AB(acquired 22/08/06) and Sandberg Expo (acquired 01/01/07), have been merged intoone company, which now trades now under the name Delling Expo with internalproduction now located at a single site north of Stockholm. Delling Expo willnow have a single management structure and one integrated accounting system, thecombination of which, Delling believes will have a much stronger force in themarket place and will enable the Company to service the largest internationalcompanies. Group production policy is for approximately 50 per cent. of volume to beproduced internally and 50 per cent. externally, the latter sourced primarilyfrom Eastern Europe. Integration and ensuing synergies have made it possible forDelling to gradually reduce staff. Six employees were made redundant in 2007.Lease costs should also be reduced significantly going forward. The combinedeffect of Delling's integration and cost reduction programme within itsexhibition division are expected to see a significant reduction in thedivision's cost base, with only minimal impact on the top line. Dellingbelieves the cost savings will be in the region of 5 per cent., which willgradually materialise during this year. A further cost cutting exercise willfollow as far as production in Eastern Europe is concerned, which should givebenefit in 2008. Delling's focus going forward is to strengthen further its turnover in thisdivision by harnessing, co-ordinating and extracting synergies as far as itssales effort is concerned. Delling has already experienced the positive effectof the synergy effects between the motion media and expo arenas, and the groupis seeing a similar effect between our outsourcing business and the exhibitionspace. Commenting, Geir Lolleng, Chief Executive Officer of Delling Group, said: "The hard work undertaken over the last nine months by Delling Group has createda leading provider of exhibition stands and related material within Scandinavia.I am confident that following this integration and cost reduction programme, incombination with the talent and excellent work from our area management andstaff, Delling will make continued good progress during the rest of the year inthe further profitable expansion of its business." 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 Seymour PierceNicola Marrin Tel: 020 7107 8000 Adventis Financial PRTarquin Edwards Tel: 020 7034 4758 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 100 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 AIM, the London Stock Exchange'sinternational market for smaller growing companies. This has given Delling theaccess it needs to capital funds needed to maintain and strengthen the furtherdevelopment of the Group. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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