13th Dec 2005 07:00
Delling Group PLC13 December 2005 For Release 7.00am 13 December 2005 DELLING GROUP PLC The AIM-listed marketing services group Trading update Delling Group PLC ("Delling" or "the Company"), the AIM listed marketing supportservices group, announces that it sees increased trading potential in a numberof the rapidly expanding markets in Eastern Europe, most notably in Poland andthe Baltic region, on the back of substantially lower employment and overallbusiness costs. Accordingly, the Company will seek to place an increasedemphasis on this region for its outsourcing and new business requirements. After building up quality control systems and staff this autumn, the firstcustomer orders were placed in December, under our new initiative to provide lowcost and high quality graphical material sourced from Eastern Europe, into theNordic area and at a later stage, into the British market. The benefits of thisinitiative have already been felt with the Company increasing margins as it isable to source printing at a substantially lower cost than the current marketrate in Scandinavia; a more significant impact is expected during 2006. The staff located in the Stockholm office include a Polish speaking printspecialist. These staffing investments are essential to meet our customers'requirement for quality, timely and secure delivery. It is expected that thisquality assured sourcing of print also would give us a significant advantage ingetting new major customers in Western Europe. Delling has previously sourced print from Eastern Europe; however, this new morestructured approach with quality assurance and Polish-speaking staff has createda significantly improved platform for the Delling concept to expand. Aksel Bradvedt, Executive Chairman of Delling Group, commented:"We are delighted to announce this positive development, and look to build onthe increased margins already experienced. Further expansion and exploitation ofthese markets is likely since a number of our existing clients are looking toincrease their operations into Eastern Europe to take advantage of these sameeconomies. Since we already have customers in the region, this more structuredstrategy to extend our expertise into a new territory is both low risk and costeffective." ENDS Contact:Delling Group PlcAksel Bratvedt, Chairman Tel: 020 7484 5663James Robinson, Finance Director Tel: 020 7484 5663 Binns & Co PR LtdTarquin Edwards/Peter Binns Tel: 020 7786 9600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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