Direct Line Insurance Share Discussion Threads

[papalpower] 06/1/2006 12:40

06 January 2006

For Release 6 January 2006


DELLING GROUP PLC
The AIM-listed marketing services group

Re: Directorate

Delling Group PLC ('Delling' or 'the Company'), the AIM-listed marketing support
services group, announces that Michael Steven Hudgell has today resigned his
directorship of the Company as a result of a change in strategic direction.
Michael was appointed to build a replica of Delling Group in the UK based on
acquisitions, following the success in Delling's Scandinavian markets.

Following a strategic review of the Group in terms of its short to medium term
direction the Board of Delling has decided to change the focus of its expansion
strategy. In line with the announcement of 13 December 2005, the Group currently
has a range of exciting opportunities and prospects in Eastern Europe and
Scandinavia that it wants to pursue. The Board feels that the UK economy is
entering an uncertain phase and, its ability to identify potential UK
acquisition targets which might successfully see out any trading downturn,
without requiring financial support from the Group, is challenging.

Delling therefore intends to adopt a less aggressive entry into the UK market.
The company will expand on the back of its Scandinavian customer base and may
seek one or two acquisitions that will create immediate synergies with the
Group's existing customer base in Scandinavia.

The Board would like to thank Michael for his efforts and contribution to
Delling Group.

ENDS

Contact:
Delling Group Plc
Aksel Bratvedt, Chairman Tel: [phone]
James Robinson, Finance Director Tel: [phone]

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

[james t kirk] 06/1/2006 12:36

Well there's an RNS but not one we could have expected. It actually seems quite sensible to concentrate on the markets that they have succeeded in so far. Markets don't seem to agree though.

[papalpower] 06/1/2006 11:58

Its all very suspicious.

Why do DLG say unfounded and not say untrue ? in post 589.

To be unfounded is not a finite answer. I hope things are well and there are no problems (I am observing only as I was looking to buy in at 12p, but will hold off now pending some official figures on an official release now). They should really come out with a "no reason for the fall" RNS if they want to dispel the rumours once and for all.

[james t kirk] 06/1/2006 11:45

Clearly that wasn't the bottom yesterday.

[james t kirk] 05/1/2006 14:27

This is certainly looking like a good opportunity for me to get back into DLG. The market cap of £7.2m seems to very underate the potential here, but it's difficlut to tell if this has bottomed?

[ph1ts] 29/12/2005 17:04

Hi Rivaldo

I also emailed the company and received a similar reply.

"We have made contact with the bulletin Board and had the posts removed and we will also be reviewing all of our legal options regarding the posting of this information."

I was interested to hear that:

"During 2005 we have seen a number of unfounded attacks to our Group, all of which have been anonymous. These postings contain similar information to earlier attacks that has been sent to investors, customers and partners. The attacks are unfounded, have been dismissed by all recipients and have not affected any of our business in the slightest."

[james t kirk] 29/12/2005 15:52

I'm relieved too for all holders as it seemed very odd for those companies to suddenly be bankrupt. If it is all lies then I'm appalled at why they should be posted here because that's pure deceipt, and I'm glad the posts have been deleted.

[papalpower] 29/12/2005 15:20

Thanks rivaldo, I must admit when I read the mapale posts it sounded like an upset person with access to inside info if any of it were true. Yes they should not be posting it around if they were, but also the big "what if" it happens to have some truth in it.
I hope for DLG holders sakes there is no truth in it and it was just nasty false rumours for whatever reason. Best of luck on this one and for now I shall remain watching from the wings.

[rivaldo] 29/12/2005 15:16

Hi PP. Don't blame you for waiting! I should say "unfounded" was just one of their comments - I don't want to post the whole e-mail to respect the sender's privacy, but the definite impression given, and my take, is that there's been some sort of nasty campaign against DLG and the postings are untrue.

We'll soon see!

[papalpower] 29/12/2005 15:07

rivaldo, very interesting goings on. I have been watching this for some time, but not got in as its concerned me that even with a number of tips from different media sites, its gone down. I was potentially thinking there was something in mapales' posts, which may explain the weakness in spite of the tips and trading updates. Strange why Delling should be so strong in their action against the mapale posts, unfounded is also not the same as saying untrue.

Will keep watching for now and will wait for some reported figures at the next results to make judgement.

[rivaldo] 29/12/2005 14:56

Interesting :o)) I e-mailed Delling about mapale's posts. Suffice to say, DLG have replied to me that the info as posted was "unfounded" and a lot more besides! DLG have also ensured that ADVFN have removed the postings as you can see above...

Further to DLG's e-mail, they say "the easiest way of displaying the total inaccuracy of the accusations is to deliver results. Again we make reference to the announcements of 20 October and 13 December and are convinced that we are succeeding in our business and that this shortly will be obvious not just to us, but to the market as a whole."

I am very much looking forward to the upcoming results if they live up to the above.

[richardw] 28/12/2005 16:53

Removed By ADVFN

[richardw] 28/12/2005 10:00

removed By ADVFN

[richardw] 23/12/2005 15:59

Removed By ADVFN

[james t kirk] 23/12/2005 07:36

Where did you get that from?

[Abuse team] 23/12/2005 00:54

Post removed by ADVFN

[james t kirk] 22/12/2005 07:49

The last few days appears to have seen T10's closing, so this could be a good time to get in. I'm watching closely, but I'm wary of profit forecasts for next year which are almost identical to what they forecst for this year before the profit warning!

[rivaldo] 14/12/2005 12:20

Nice bits of coverage in the Mail, Express and other market reports this morning. Given the previous surprise it might take another trading statement or results in early 2006 to move DLG back up - which means a decent stake can be built up in the meantime.

[rivaldo] 13/12/2005 09:24

I prefer to actually read what the RNS says rather than make glib comments :o))

"The benefits of this initiative have already been felt with the Company increasing margins as it is able to source printing at a substantially lower cost than the current market rate in Scandinavia; a more significant impact is expected during 2006."

Words like "substantially" and "significant" are the relevant ones here.

Growth Equities said this the other day:

"We expect calendar 2005 sales of 6.5 million pounds and a pre-tax loss of 2.2 million pounds. For 2006 we expect sales of 13.5 million pounds and a pre-tax profit of 1.5 million pounds which equates to 2.2p of earnings. At 12.25p on a 2006 PE of 5.4 and valued at just 60% of 2006 forecast sales our stance remains " buy ."

Assuming forecasts are met, the 2006 P/E of 5.4 could now have reduced to 4 or so.

DLG is one to tuck away at its current low imo and wait for a year or two to reap the rewards of the AIM tax rules. On such a low P/E it could be a three or four bagger, whilst the downside would seem to be minimal, especially given the incredibly positive 20th October trading update.

[silverfern] 13/12/2005 08:04

well as trading updates go, saving a couple of quid on printing costs and having a wish to do more business in eastern europe isn't exactly going to se the City alight.

[keifer derrin] 13/12/2005 07:22

let's hope for some movement today?




Delling Group PLC
13 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 support
services group, announces that it sees increased trading potential in a number
of the rapidly expanding markets in Eastern Europe, most notably in Poland and
the Baltic region, on the back of substantially lower employment and overall
business costs. Accordingly, the Company will seek to place an increased
emphasis on this region for its outsourcing and new business requirements.

After building up quality control systems and staff this autumn, the first
customer orders were placed in December, under our new initiative to provide low
cost and high quality graphical material sourced from Eastern Europe, into the
Nordic area and at a later stage, into the British market. The benefits of this
initiative have already been felt with the Company increasing margins as it is
able to source printing at a substantially lower cost than the current market
rate in Scandinavia; a more significant impact is expected during 2006.

The staff located in the Stockholm office include a Polish speaking print
specialist. These staffing investments are essential to meet our customers'
requirement for quality, timely and secure delivery. It is expected that this
quality assured sourcing of print also would give us a significant advantage in
getting new major customers in Western Europe.

Delling has previously sourced print from Eastern Europe; however, this new more
structured approach with quality assurance and Polish-speaking staff has created
a 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 on
the increased margins already experienced. Further expansion and exploitation of
these markets is likely since a number of our existing clients are looking to
increase their operations into Eastern Europe to take advantage of these same
economies. Since we already have customers in the region, this more structured
strategy to extend our expertise into a new territory is both low risk and cost
effective.'

ENDS

Contact:
Delling Group Plc
Aksel Bratvedt, Chairman Tel: [phone]
James Robinson, Finance Director Tel: [phone]

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






This information is provided by RNS
The company news service from the London Stock Exchange

[stacks] 12/12/2005 15:40

rivaldo... thanks for that.. for some reason I had it my head that last results were end of year!!... would suspect that will take place around Easter time...


Hold a few of these now and will be adding over the next two months... unlikely to sky rocket but don't think they have too much downside. PE for 2006/7 still looks attractive compared to other companies and tie up with large player like lucent could help push iTAG. Lucent looking at more ways of generating revenue for Tier1 customers through IMS solutions.. this would seem to fit nicely into thier program. Plus you never know how the clever little men at Bell labs may be able to improve the iTAG SW/conncept if they are allowed...

[rivaldo] 11/12/2005 10:43

Keep up stacks, the interims came out on 28th September :o)) Here they are:



Growth Equities have e-mailed out their 11th December update on DLG - I like the bit about understanding that "trading remains strong":

"November was that rarity - a month without a trading statement from Delling. After September's sales alert and the upbeat trading statement that followed in October, the company has been silent. However, we understand that trading remains strong - as indicated in the second of the two Autumn statements.

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.
Key Data
EPIC DLG
Share Price 12.25p
Spread 12 - 12.5p
NMS 3000
Market Cap. 8.1 million pounds
12 Month Range 12.25 - 24.5p
Market AIM
Website www.dellinggroup.com
Sector Services
Contact Aksel Bratvedt
0207 010 8210

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. The October trading statement stated that 20 new customer wins since August had pushed sales ahead sharply.

Our estimates were higher than those of the house broker and hence we have not altered them since the October trading statement. We expect calendar 2005 sales of 6.5 million pounds and a pre-tax loss of 2.2 million pounds. For 2006 we expect sales of 13.5 million pounds and a pre-tax profit of 1.5 million pounds which equates to 2.2p of earnings. At 12.25p on a 2006 PE of 5.4 and valued at just 60% of 2006 forecast sales our stance remains " buy .""

[stacks] 05/12/2005 17:10

Bit of movement here.... anyone know when interims are?

[james t kirk] 02/12/2005 18:41

I sold my last lot at a loss at 16p and glad I did. A tip sheet always has a short term benefit but most of those that bought today will probably end up selling next week at a 10% loss. If it was a tip sheet - I'm just speculating as volume is unusually high.