Direct Line Insurance Share Discussion Threads

[james t kirk] 10/10/2005 11:47

I'm not sure when this will become value again. At 12p to buy it's probably not far away, but once bitten and all that...

[pomp circumstance] 07/10/2005 16:55

a major shareholder obviously dont agree ;)

[richtea120] 07/10/2005 15:40

rhps always knocks them on the head when it starts to make his portfolio bad i can never understand why he has such impact on share prices .none of his great buys have ever done me any good. I think in 6 to 8 months these will show some good results

[pomp circumstance] 07/10/2005 08:13

As much as i like Delling, I need my money for elsewhere and Media stocks have taken a battering. Im not gonna watch the penny boys chip away, so Im out of here for a while!!

[james t kirk] 07/10/2005 08:11

No suprise there then, build it up then knock it back down - good old RHPS..

[alexacj] 06/10/2005 19:20

Hello all.....I don't hold but thought any holders may be interested to know that RHPS has just issued a sell note on these....so expect a fall in the share price IMO!

[glasshalfull] 01/10/2005 23:53

Hi

As a courtesy I have posted the latest Growth Equities review on Delling, dated 1/10/05, in which they convey their disappointment over the interims but retain DLG as a Buy.
I am surprised by this response as the adjusted figures differ quite considerably from the previous forecasts.

My own stance has not changed and I still wish all remaining holders the best of luck.

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It has been a bad month for Delling. On 15th July it served up a confident AGM statement. Yet on September 28th it published results for the six months to June 30th which were below our forecasts - and those of its house broker - and resulted in a significant reduction in full year and calendar 2006 forecasts. We do not believe that the business is fundamentally unattractive but Delling will not be winning any prizes for its City communications skills. Its shares have suffered as a result. We initiated coverage of AIM listed Delling at 23.5p in April and the stock now trades at an all-time low of 14.75p. We have reduced our forecasts for both 2005 and 2006 significantly.

Scandinavian based and with a Scandinavian management team, Delling was established (as Depicta) in 1998 but changed its name to Delling and embarked on its current strategy of aggressive bolt-on acquisitions to complement its own organic growth in March 2004. It listed on AIM in the Autumn of that year.

Delling is a market support services company - it provides out sourced services to the marketing department "back offices" of companies predominantly operating in Scandinavia. It is a pioneer in the application of the latest IT technology in the creation and efficient management of new and developing marketing channels. It has an impressive client list of over 300 companies including such giants as Statoil, Norsk Hydro and SAS. It has used AIM wisely, raising 2.2 million pounds and making three, largely paper funded bolt-on acquisitions.

The financials for calendar 2004 were pretty irrelevant since they largely related to stockmarket pre-history. But for what it is worth, sales of 2.2 million pounds were head of forecasts and the loss of 2.5 million was in line. What that pre-tax loss masks is that the company actually made a gross profit of 1.37 million pounds implying that it does not need that dramatic a ramp-up in sales to cover the high central overhead and take the company into profitability.

However the interim results - a loss of 1.6 million pounds on sales barely ahead of last year at 2.35 million pounds - indicate that the take-up of new business has been far slower than expected. Margins on new business remain high, at c55%, but its advent has been delayed. The company still has adequate cash resources.

We have reduced our 2005 sales forecast from 10.5 million pounds to 6.5 million pounds and having been expecting a pre-tax profit of 1.45 million pounds we now expect a loss of 2.2 million pounds. For 2006 we have cut our sales forecast from 15.5 million pounds to 13.5 million pounds and our pre-tax estimate from 2.5 million pounds to 1.5 million pounds which equates to 2.2p of earnings. On a 2006 PE of just under 7 and now valued at just 72% of 2006 forecast sales our stance remains " buy ."

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Regards
GHF

[rivaldo] 29/9/2005 15:42

Well well - buying seems to have materialised and the price is recovering. Maybe people are focusing on what's to come in H2 rather than the past?

[caecilius] 29/9/2005 08:11

Count myself lucky to have gotten 15 for mine this morning having missed the news. Seems like most on here have gone.

[silverfern] 29/9/2005 08:05

I've sold - I don't like businesses that are not open or efficient. For what it's worth, I'm in FIF, CHR, DAN and IDH and many others - but if you like small caps with a bit of get up and go, there's plenty out there. I've got up and I'm gone :). GOod luck and naturally DYOR

[jessica5] 28/9/2005 20:45

Shares in Delling Group* slid 3p to 16.25p after the marketing services group posted lower than expected interim results. In the 6-month period to June 30th, turnover was 2.35 million pounds compared with the 2004 period performance of 2.17 million pounds and pre-tax losses narrowed to 1.595 million pounds from 2.830 million pounds. This was below expectations. Seymour Pierce had pencilled in revenues of 3 million pounds and a loss of 1 million pounds. The broker also cut its full-year revenue forecast to 5.5 million pounds from 10.5 million pounds because it said that the indication in the statement was that the pick-up in revenues from contracts won in the first quarter of the year was taking longer than anticipated. It said it now saw full-year losses of 2.7 million pounds compared with its previous expectations of a 1.5-million-pound profit. The broker downgraded its stance on the shares to "underperform" from "buy."

[pomp circumstance] 28/9/2005 20:40

Just seen my post when they made an acquisition valueing their own shares at 30p!!

Looks like they also made Growth Equities look stupid



Pomp Circumstance - 19 Apr'05 - 08:18 - 144 of 532 edit

The shares havent been placed at 130 have they? They have just said we
will give you cash or assumed debt AND the other for the other 50k we
will give you some many shares, but the we value our shares at 30p!
So noone has actually parted with 50k at 30p, the guy selling his co
might feel the part hes getting shares for is only worth 25k so hes
getting shares at 15p really!!


Tole - 7 Sep'05 - 19:14 - 474 of 532


The Monthly Company and Market Round-Up (Part 1) from GE&CR on UK-AnaIyst.com

Delling Group

We initiated coverage of AIM listed Delling at 23.5p in April and though
the shares have slipped back to 19.25p the company has actually beaten both
our forecasts and also those of its house broker (Seymour Pierce) and at a
trading level it continues to prosper. At present it is in a closed season
ahead of interims in late September and we understand that the share price
has been depressed by some small scale selling by one institutional investor
(RAB Capital).

Scandinavian based and with a Scandinavian management team, Delling was
established (as Depicta) in 1998 but changed its name to Delling and
embarked on its current strategy of aggressive bolt-on acquisitions to
complement its strong organic growth in March 2004. It listed on AIM
in the Autumn of that year.

Delling is a market support services company - it provides out sourced
services to the marketing department "back offices" of companies predominantly
operating in Scandinavia. It is a pioneer in the application of the latest
IT technology in the creation and efficient management of new and developing
marketing channels. It has an impressive client list of over 300 companies
including such giants as Statoil, Norsk Hydro and SAS. It has used AIM wisely,
raising 2.2 million pounds and making three, largely paper funded bolt-on
acquisitions.

The financials for calendar 2004 were pretty irrelevant since they largely
related to stockmarket pre-history. But for what it is worth, sales of 2.2
million pounds were head of forecasts and the loss of 2.5 million was in
line. What that pre-tax loss masks is that the company actually made a
gross profit of 1.37 million pounds implying that it does not need that
dramatic a ramp-up in sales to cover the high central overhead and take
the company into profitability. All the indications are that Delling
(which still has net cash of almost three quarters of a million pounds)
is already delivering on that potential. The company served up an upbeat
and confident AGM statement on July 15th in which it talked of winning
more contracts in Scandinavia and in Eastern Europe with "respected
companies." Interim results at the end of September should confirm that
everything is on track to, at least, meet current market expectations.

We estimate that in the current year sales will race ahead to 10.5 million
pounds which should translate into a pre-tax profit of 1.45 million pounds
and earnings per share of 2p. In 2006 sales should hit 15.5 million pounds,
pre-tax profits should increase to 2.5 million pounds and - despite a
rising tax charge - earnings should hit 2.7p. At the current share price
Delling trades on 9.6 times 2005 earnings falling to just 7 times 2006
earnings which for a growth stock with net cash is too low a rating. The
company has recently restructured senior management in a way that will
allow the new Executive Chairman (Aksel Bratvedt) more time to spend on
communicating with the City. LOL!!!! This is a positive move. Our stance remains "buy."

[pomp circumstance] 28/9/2005 20:24

I wonder if share price knew this as they didnt upgrade their forecast for 2006 after the results were better than expected in June for 2004



6th June 2005 - Seymour Pierce update -"Delling has announced final results for the year to December 2004 which showed revenues of £2.2m against our forecast of £1.8m, and pre-tax losses before goodwill amortisation of £2.5m compared to our pre goodwill forecast of £3.2m. This period marked the creation of the group with the acquisition and rationalisation of four businesses which then floated on AIM in September 2004. Our forecasts for 2005 and 2006 remain unchanged.

[james t kirk] 28/9/2005 20:13

Glasshalfull, that some ups my feelings completely - all that promise and nothing delivered - yet.

Someone's dumped 200k at 14p after hours so tomorrow is bound to open lower and the mm's will close the books on any sellers. I'm lucky to sell today.

I should have taken greater notice of the 40k dump this morning and sold then...

[glasshalfull] 28/9/2005 19:58

Hi

Didn't have too much time earlier hence my initial take on these results were summed up in just two words.

Well, I sold out completely within 30 seconds of the results announcement, my initial impression was so far removed from that indicated by my research and contact with the company that I was in no mind to give the benefit of the doubt. Especially with the shoddy release of them today at 4pm and the PR company informing me that the delay wasn't "down to the numbers".

A hit of £1.5k but you'll be glad to here Rivaldo that part proceeds have found their way to Compel and Bond Int (as well as Servicepower - SVR - for anybody interested in researching).

I had great hopes for this company and on re reading the statement there are a lot of promising developments which would indicate that shares may well stabilise around this level and provide a basis for future growth.
I just don't see much upward movement until they actually deliver, so an investment here IMO is dead money until a trading update/results indicate that they are making the profits forecasted. Also the downside is also greater IMO.

Rivaldo's post actually sums up my own feelings pretty much, the only difference being that I'll not be sticking it out with so many other companies delivering.

I wish all remaining holders the very best with their investment here - sincerely hope it rockets for you.
Can't see an occasion when I'll return, the management credibility is shot for me.


I'll no doubt bump into one or two of you on other threads.

Good luck
A very disappointed

GlassHALFEMPTY (tonight anyway I'm afraid)

[james t kirk] 28/9/2005 19:51

Late results today so not much time for a fall. I reckon it could lose another 10-20% tomorrow. Far too many promises when they haven't kept many so far.

I didn't have much time to decide to sell, but I don't regret it..

[keifer derrin] 28/9/2005 17:13

I dont like this bit

"Executive chairman Aksel Bratvedt said the group is now looking at
alternative options to fund its growth strategy to include bank financing so as
to take advantage of current low interest rates.
He said that, for now, the group has adequate resources."

1) Get themselves into more debt - not good as I see as they aren't making any money
2) and how much is adequate resources, because money is the bank is not a lot, see below

2. CONSOLIDATED BALANCE SHEET

As at As at
30 June 2005 31 December 2004
unaudited audited
#'000 #'000

Fixed assets
Intangible assets 2,821 2,920
Tangible assets 605 674

3,426 3,594

Current assets

Stocks 106 42

Debtors 1,423 698
Debtors due in more than one year 1,148 -
Cash at bank 5 284


but being the mug I am, I will see what happens, as long as it doesn't drop to much imho

sorry it doesnt show very well Cash at Bank is just 5,000 as I read it

[jessica5] 28/9/2005 16:45

JTK good luck fella,am staying just looks like a delay to me rather
than "lost" contracts..pomp have you still got an inside view here?...;-)


Delling confident about future despite 'disappointing' H1

LONDON (AFX) - Marketing services firm Delling Group PLC said it is
confident about the future despite "disappointing" results in the six months to
June 30 2005.
Pretax loss was 1.6 mln stg compared with a loss of 2.83 mln for the
comparative nine months period.
Turnover was 2.4 mln stg, compared with 2.2 mln.
The board said some 4.5 mln stg in new contracts struck in the first half
are anticipated to reach their expected level by the end of the year.
It also said a number of new sales prospects have been developed as well as
a pipeline of potential Scandinavian acquisition targets. A strong operational
base is now in place so that further sales will make good net profits, it said.
Executive chairman Aksel Bratvedt said the group is now looking at
alternative options to fund its growth strategy to include bank financing so as
to take advantage of current low interest rates.
He said that, for now, the group has adequate resources.
He also said a number of acquisition negotiations are ongoing and expected
to generate results during the second half of 2005.

[james t kirk] 28/9/2005 16:32

Christ I've bought some dogs recently, what a lousy set of results. All that promise and very little good news. I've sold out at a loss and moving on to pastures new.

So much for profit this year of £1.5m..

[jessica5] 28/9/2005 16:09

Glass why mate?..;-)

[jessica5] 28/9/2005 16:07

RNS Number:8985R Delling Group PLC 28 September 2005


Press Release 28 September 2005




DELLING GROUP PLC

The AIM-listed marketing services group




INTERIM RESULTS

for the six months ended 30 June 2005
Highlights
*#4.5m in new contracts which are anticipated to reach their expected


level by the end of the year.


*Two acquisitions in Norway were completed during the period of Andre


Worldwide Visual Communications and Unikum Professional Imaging - with

combined turnover in 2004 of #1m and a pretax profit margin of 10%. These

acquisitions joined the Group from 1st of May 2005.

*Further acquisition of Oslo-based Full Bredde AS completed in June. The

company is a subcontractor with strong customer base including Scandinavian

Blue Chips and multinationals and with a turnover last year of #1.2m and a

pretax profit of # 0.12m.


*A number of new sales prospects have been developed as well as a pipeline


of potential Scandinavian acquisition targets. Strong operational base in

place so that further sales will make good net profits.

*UK COO recruited, to accelerate pipeline of potential UK acquisition

targets. Group Financial Director also recruited.


*Installed a Vutek printing machine for Depicta Fame in Oslo to increase


sales offering

*Interactive mobile marketing solution launched at CeBit in March 2005.

*Implementation of first complete integrated solution (print, screen and

interactive marketing) for Telia Sonera.

Commenting, Aksel Bratvedt, Chairman, said:

"Despite slower than expected uptake in business we believe the Group is well placed for the future and look forward to it with confidence."


ENDS


Contact:

Delling Group Plc
Aksel Bradvelt, Chief Executive Officer Tel: [phone]
Geir Lolleng, Chief Operating Officer Tel: [phone]
James Robinson, Finance Director Tel: [phone]


Binns & Co PR Ltd
Peter Binns/Tarquin Edwards Tel: [phone]




DELLING GROUP PLC

[glasshalfull] 28/9/2005 16:04

Very disappointing.

[pomp circumstance] 28/9/2005 13:33

PR co wont now give a tile for results!! Still insist its nothing to do with the numbers!!


maybe theyve have received a bid!!

Arent Aegis going round buying anyting and everything marketing wise? Whilst being bid for themsleves of course!!