Direct Line Regulatory News (DLG)

24 Apr 2008 07:01

Delling Group PLC24 April 2008 For Release 7:00 am 24 April 2008 DELLING GROUP PLC (DLG.L) 'The AIM listed Marketing Support Services Group' Progress re: Integration and Cost Reduction Delling Group PLC ("Delling" or the "Group"), the only listed marketing supportservices group on AIM, whose principal assets are in Scandinavia, is pleased toannounce that during the first quarter of 2008 it has completed the integrationand rationalisation of three separate business divisions, namely ExhibitionDesign, Motion Media and Marketing Support Services, into one marketing supportservices organisation, with its own legal identity both in Sweden and Norway(the "Marketing Support Division"). The effect of this streamlining initiativeinto a single marketing support services organisation is expected to bepositive, both on sales generation and cost reduction. Delling's sales force within the Exhibition design business has started to sellthe integrated marketing support services concept into its customer base. Toincrease and co-ordinate sales and provide focus within the Marketing SupportDivision, a function for integrated Marketing Support Sales has been establishedand is now run by a senior Exhibition design sales director. As an indication ofthe potential effect this initiative could have, the division's first salesmeeting led to the sale of a project worth £200,000 for a major globalelectronics manufacturer. On the cost side, the head count has been reduced by 20 employees over the lastthree months. This is a direct consequence of Delling integrating a number ofacquired companies, across all parts of the Group. This reduction constitutesaround 15% of the total workforce of the Group. The effect of these cost savingsis expected to materialise fully in the second quarter of 2008. The DellingBoard believes the Group will now be able to secure improved terms withsubcontractors by coordinating and aggregating together its purchasingrequirements. Delling also expect to benefit from better coordination andmanagement of its cash across the Group. Commenting, Geir Lolleng, CEO, Delling Group, said: "We are in the process of finalising the integration of four of the companieswhich we acquired over the past year and a half and are seeing a significantpositive impact of this policy on both our sales and costs. This is particularlyencouraging, especially as sales have increased over the last three monthsdespite the distraction of the integration process itself". "As we have advised previously, we will continue to concentrate on organicgrowth and improving our performance in the coming months, to take advantage ofDelling Group's size in its market place along with the recent and improvedgreater efficiency throughout the organisation." For further information please contact: Delling Group Plc www.dellinggroup.comGeir Lolleng, CEO Tel: +46 7652 76024 Adventis Financial PRTarquin Edwards Tel: 020 7034 4758/07879 458 364 Nabarro Wells & Co Limited - Nominated AdvisorHugh Oram Tel: 020 7634 4700 City Capital Corporation Limited - BrokerDavid Kent Tel: 020 7583 5800 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 120 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 Exchange