Direct Line Insurance Share Discussion Threads

[pomp circumstance] 07/6/2005 11:37

thank you!~

And that why anyone selling now need their heads testing!!!

[james t kirk] 07/6/2005 11:36

Theres Depicta and Depicta Fame, the latter representing the 2 ½ months turnover in 2004's figures. 2005 turnover could be calculated as follows:

Depicta Fame representing 2 ½ 24% of turnover = c£521,520. A full year would therefore be £2.5m.

Remaining Depicta, Azzets and Butler revenue from last year multiplied to a full year = £2.2m

New acquisitions add £1m and so that's £3.5m.

New business through Depicta is £3.7m and Butler 800k totalling £4.5m.

So on this basis, without any new contracts, we could be looking at 2005 revenue of £10.2m a near 500% increase on 2004.

[pomp circumstance] 07/6/2005 11:18

Good point JT!

I think we must do some more extrapolation of this too!

"Depicta and Depicta Fame are the drivers of the
business, accounting for over 90% of current sales revenue.

The results are based on 9 months of operations at Depicta, Azzets and Butler
Systems and 21/2 months of operations at, Depicta Fame.
"

[james t kirk] 07/6/2005 11:11

Dean I don't agree about cash. The figure is at 31 May, not at year end, so presume this is now.

[pomp circumstance] 07/6/2005 10:07

well thats even better then, i really dont undestand the mark down by the MMs and then the selling too!!

[deanforester] 07/6/2005 10:03

Regarding cash, look at the bottom of the RNS and Post Balance Sheet actions.

The money from the last placing is additional to the end-year cash balance.

[james t kirk] 07/6/2005 09:19

Yes agree totally, the small investor always gets the sh*t end of the stick.

It's almost certainly a buy, as that price has been closest to mid for weeks. There does still appear to be an overhang but with shares so tightly held, it can't be a big overhang.

[james t kirk] 07/6/2005 09:12

A little flurry of delayed buys going through now.

[pomp circumstance] 07/6/2005 08:49

CGT? We dont have CGT in Holland!! :)) Just a wealth tax, 30% of 4% of increase in your assets each year!!

[rivaldo] 07/6/2005 08:45

Results are ahead of forecast, which always looks good. Someone mentioned the cash, but remember DLG raised £1.3m in February 2005.

The loss before tax is £2.8m, but it sounds like around £1m of that is one-off due to the Azzets restructuring and £0.4m is due to the Butler start-up costs.

With £4.5m of contracts in the first 5 months of 2005 hopefully revenues will be flowing in.

Prospects do look bright, and news flow should be healthy in quality and quantity over the coming months. DLG is superficially a bit jam tomorrow at the moment, but the interims to 30th June may well show a decent profit. The amount of activity indicates they're running pretty fast - hopefully they're able to walk before they run and don't let control of the business slip.

Happy to hold as an AIM stock for a while - this could be a multibagger on 10% CGT in 2 years' time.

[james t kirk] 07/6/2005 08:18

SCAP have moved back up, so it's 2v1, with WINS holding it back.

[james t kirk] 07/6/2005 08:11

NMS is 3000, so anything over 12000 will be delayed by an hour. You can sell 100k online, so things looking good for a blue end of day.

[pomp circumstance] 07/6/2005 08:07

The spread seems to be 19.25 - 20.45

Just had another 20k at 20.45, no showing yet!

[karlmarsh] 07/6/2005 08:05

3 trades already, it looks like we have an interesting day ahead. I don't think there will be many sellers based on those results. We really haven't attracted the pack of traders (thank god!!)

[pomp circumstance] 07/6/2005 08:01

i cant believe the MMS havant market these up!!

[pomp circumstance] 07/6/2005 07:53

28p next stop!

[james t kirk] 07/6/2005 07:52

It's early days yet, a few buys could change their position considerably.

[zinco] 07/6/2005 07:50

LOL...i knew they'd do this.....let's see where the share price one month from now...30/35 is my guess.....;-))))

[stacks] 07/6/2005 07:37

Not too shabby... cash is a little low, but figures from beginning of 05 would suggest there should not be any more cash calls. Exception may be to support further aquisitions.
This all looks very promising for the future and I will be adding today..

[pomp circumstance] 07/6/2005 07:19

I think they will raise money at some point as I was told the london appointements was to enable the top boys to get around the city and sell delling to the city!

[james t kirk] 07/6/2005 07:13

Turnover this year will certainly be several times 2004's. We will need in excess of £10m to achieve the £1.5m profit that the brokers have forecast, and with £4.5m banked in the first quarter, I guess we're well on the way.

[pomp circumstance] 07/6/2005 07:08

FANTASTIC RESULTS and as i told you last week, the UK office has been strengthened and a finaince guy bought in!

This company is going places!!


Financial highlights:

* Turnover #2.17m (#1.8m turnover was forecast by the Company's broker,
Seymour Pierce Limited).

* Pre-tax loss #2.77m (#3.5m pre-tax loss was forecast by the Company's
broker, Seymour Pierce Limited).

* Contracts with a revenue of #4.5m per annum were gained in the first
quarter of 2005.

* Two acquisitions were made in April 2005, providing approximately #1m of
annual turnover and #100k of annual operating profit, for consideration
equivalent to one times pre-tax profit, contributing from 1 May 2005.

* Cash, including credit facilities, of #0.8m as at 31 May.

* Mobile marketing established as a new Group service.

* Substantial pipeline of acquisitions and sales prospects.

* Board strengthened by appointments of a Finance Director and a Director
of UK sales and marketing.

[james t kirk] 07/6/2005 07:07

Well 2004 results considerably better than forecasts, but I'm not excited by the forward looking statements. I'm also slightly concerned about cash, although we still have 800k as of right now, so we should go profitable any minute.

[zinco] 07/6/2005 07:05

RNS Number:2188N
Delling Group PLC
07 June 2005


DELLING GROUP PLC
FINAL RESULTS YEAR ENDING 31 DECEMBER 2004
Loss Lower than Originally Forecast by Company's Broker

Delling Group Plc ("Delling Group" or "the Company"), the marketing services
group, announces its final results for the period ending 31st December 2004, its
maiden full year results since flotation on AIM last October. The Group is AIM
listed and incorporated in the UK but its principal activities are located in
the Nordic region.

It is a pioneer in the application of the latest IT technology that provides
outsourced services of digital and other printing materials to the marketing
department 'back offices' of companies, predominantly operating in Scandinavia.
Software developed by Azzet, a subsidiary of the the Company, assists in the
automation of processes of marketing departments. Another subsidiary of the
Company, Butler Systems, provides a turnkey concept in plasma screens in
shopping centres.

Customers in the Nordic region include Nokia, Statoil, Sony Eriksson, McDonalds
Norway and Compass Group Sweden. Subsidiaries comprise Depicta, Depicta Fame,
Azzets and Butler Systems. Depicta and Depicta Fame are the drivers of the
business, accounting for over 90% of current sales revenue.

The results are based on 9 months of operations at Depicta, Azzets and Butler
Systems and 21/2 months of operations at, Depicta Fame.

Financial highlights:

* Turnover #2.17m (#1.8m turnover was forecast by the Company's broker,
Seymour Pierce Limited).

* Pre-tax loss #2.77m (#3.5m pre-tax loss was forecast by the Company's
broker, Seymour Pierce Limited).

* Contracts with a revenue of #4.5m per annum were gained in the first
quarter of 2005.

* Two acquisitions were made in April 2005, providing approximately #1m of
annual turnover and #100k of annual operating profit, for consideration
equivalent to one times pre-tax profit, contributing from 1 May 2005.

* Cash, including credit facilities, of #0.8m as at 31 May.

* Mobile marketing established as a new Group service.

* Substantial pipeline of acquisitions and sales prospects.

* Board strengthened by appointments of a Finance Director and a Director
of UK sales and marketing.



Commenting, David Kruck, Chairman, said:

"Delling Group is well positioned to take advantage of opportunities in the
market place, to build itself into a substantial international business in the
marketing support services sector in Northern Europe. We believe that the
current financial year has the potential for strong growth in the market
segments in which we operate, with a turn around to profitability expected in
2005/2006."

ENDS

Contact:

Delling Group Plc
Aksel Bradvelt, Chief Executive Officer 020 7010 8210
James Robinson, Finance Director 020 7010 8210
Geir Lolleng, Chief Operating Officer 020 7010 8210

Binns & Co PR Ltd
Peter Binns 020 7786 9600
Hannah Sloane 020 7153 1480



DELLING GROUP PLC
ANNUAL REPORT
CHAIRMAN'S STATEMENT

The last year has been an exciting year for Delling Group. From the creation of
the Group in March 2004, with the acquisition of the three companies based in
Stockholm by Delling Group Plc to the listing on Aim in October 2004, followed
by the acquisition of Depicta Fame, based in Oslo. The past 12 months have also
been geared towards building up the Group organisation and creating a basis for
the expansion of the Group.

Our strategy is to grow through acquisitions and organic growth centered on our
core offering. The space that the Group operates in is highly fragmented, with a
large number of smaller potential acquisition candidates. The outsourcing of
marketing material production is a growing market with significant potential.
The new digital channels such as screen advertising and mobile marketing are
expanding markets. The Group has positioned itself well within the different
segments during the year. A number of contract wins, such as those with HP
Sweden, Beijer and Compass Group have created a solid base within our business
areas for expansion during this year. Furthermore, the successful acquisition of
Depicta Fame in Oslo has provided a template for the Group of how to implement
its acquisition strategy.

The flotation on AIM has enhanced the profile of the Group, increasing its
credibility in acquiring larger outsourcing contracts, created an alternative
settlement structure for acquisitions and finally provided access to additional
funding to support our expansion strategy.

At the end of last year the Group entered into an agreement with Briscan AB, a
small technology development company in Sweden, that has developed a technology
for interactive marketing over mobile phones. The agreement has led to the
establishment of a mobile marketing unit within Delling Group, which offers
additional exciting potential.

I would like to thank our staff for all their hard work over the last year. The
competence level within the Group has been substantially enhanced through a
number of new employees hired during the year. It is our belief that the present
organisation will enable us to continue the rapid expansion that we have
planned.

Looking forward to the current financial year, we believe that the market
segments we are operating in have the potential for strong growth. This is based
on the increasing demands on marketing departments to become more efficient and
to get more out of their marketing spend, as well as the trend towards the use
of other marketing channels such as mobile marketing and screen advertising. I
believe that we are well on our way to realising our vision of becoming a major
force in Northern Europe in the marketing support services area and we will
continue to work very hard towards achieving this objective during 2005.


David Krucik
Chairman.



DELLING GROUP
ANNUAL REPORT
CHIEF EXECUTIVE'S REVIEW


Introduction

Delling Group has made significant progress since March 2004 with the listing on
AIM as well as the development of the organisation, the pipeline of sales
prospects, and potential acquisitions. The Group is well positioned to take
advantage of the opportunities in the market segments it operates in as well as
fulfilling its expansion plans during 2005.

Financial Results

The financial results are mainly based on 9 months of operations, as three of
the operating companies were acquired by Delling Group Plc on 31 March 2004.
Furthermore, the results also include 21/2 months of contribution from Depicta
Fame in Oslo. Of the total turnover of # 2.173 million last year, 71% is from
Depicta (the media production company), 24% from Depicta Fame (media production
company), 4% is from Azzets (IT solutions for the marketing department) and 1%
from Butler Systems (turnkey concept for screen advertising).

Of the pre-tax loss of # 2.83 million, 66% was attributed to Azzets. As
mentioned below, the company was restructured at the end of the year, of which
at least 50% of the costs are non-recurring. Approximately 14% of the pre-tax
loss is attributable to the start up costs of Butler Systems. Approximately 25%
of the pre-tax loss is attributable to Depicta, with the build-up of the sales
organisation in Depicta representing the main component.

During the year 15,785,713 shares were issued at 14p per share in the listing on
AIM in October 2004, raising the number of issued ordinary shares to 58,502,717.
The payment for the acquisition of Depicta Fame, at the same time, increased the
number of ordinary shares in issue by 1,190,476 to 59,693,193, which was the
number of ordinary shares in issue at the year end. The Group issued a further
8,666,667 new ordinary shares at 15p per share in February, raising
approximately # 1.3 million.

Business and operating review

In March 2004 three business areas were organised in separate Swedish companies:
Depicta, Azzets and Butler Systems were acquired by the newly established
Delling Group Plc.

Depicta produces marketing material (including videos, images, text) for
marketing departments. In 2004, the company increased its resources in the sales
area resulting in a substantial increase in its pipeline of sales prospects,
especially within outsourcing of production and production management. The
result of this work were the two major outsourcing contracts for HP and the
building materials retail chain Beijer in Sweden. These contracts have been
developed favourably during the first part of 2005 and the efforts from the
sales department have made the ground work for a number of potential outsourcing
contracts during 2005.

In Azzets, which develops and sells software solutions for marketing
departments, a strategic change was made in October. The company has developed a
digital asset management system that is leading edge in the market. A strategic
decision was made to sell the system to a software company and retain the rights
to continue to sell it to our customers. That process will be carried out in
2005. Therefore, the development department was given notice and made redundant.
The company is building up a portfolio of software solutions able to cater to
the total needs of marketing departments through partners. Gartner Group is
forecasting strong market growth in this area, which they call Market Resource
Management (MRM) in the coming years. Azzets is being developed to take
advantage of the growth opportunity.

Butler Systems sells a turnkey concept for screen advertising and, despite being
in a start-up period, last year won a number of contracts, including one with
Compass Group in Sweden. These contracts, and a number of sales prospects, are
the basis for the development of a profitable business in the current year.

Mobile marketing became a new business area at the end of the year. A
partnership was entered into with the mobile technology company Briscan AB. An
agreement for a free trial in a limited period on Ericsson's systems in Sweden
was granted. A number of pilot projects have been developed in the first months
of the new financial year. The technology allows a potential customer to
interact with the advertiser through a mobile phone. The response in the
marketing community has been very favourable. Delling Group has the exclusive
rights to market the concept worldwide.

The market

Delling Group is dependent on the development of the advertising market,
particularly in Scandinavia, where most of the business is presently located.
The advertising market in Sweden in particular has been gradually increasing
from a historic low point. That trend is expected to continue this year.
However, it is important to be aware that a major part of Delling Group's
service concept is based on making the processes in the marketing departments
more efficient by outsourcing production and production management and by using
software solutions that reduces costs and decreases time to market campaigns. In
the screen advertising area and the mobile marketing area the situation is
different. These markets are based on the speed of adaptation of these new
marketing tools. It might take a few years before these segments become mature,
however, as a leading edge marketing support services company Delling Group is
one of the companies that drive the developments in these segments, and is very
well placed to take advantage of this developing market.

Human resources

During the year the IT business Azzets was restructured as mentioned above. The
result was a reduction in staff by a total of 14 employees. The organisation in
the other parts of the business have been strengthened with complementary
competencies such as mobile marketing. The expansion has been mostly in the
sales function. On the management side, in the first half of this year, a
Finance Director has been appointed, as well as a Director in charge of running
and developing business in the UK.

Outlook

In the first five months of the new financial year, contracts worth a total of
#4.5 million have been announced, which includes every business area of the
Delling Group. This is due to the build up of the sales force and the sales
pipeline during 2004. We would expect this development to continue. We have also
announced two acquisitions so far this year, with a combined annual turnover of
#1 million with a pre-tax profit of #100,000. This is again due to the
acquisition pipeline that the company started to build upon last year and which
we are continuing to build this year. Acquisitions are a major part of our
expansion strategy and this development is expected to continue until the Group
reaches critical mass. A Director in charge of our business in the UK has been
appointed to build our business in the UK market.



Aksel Bratvedt
Chief Executive



Delling Group Plc

Group Profit and Loss Account

Period ended 31st December 2004


Group turnover 2
2,173
Cost of sales (795)

--------------------------
Gross profit 1,378

Administrative expenses