Interim Results

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

                          INTERIM FINANCIAL STATEMENT


CHAIRMAN'S STATEMENT


During the first 6 months of this year, Delling Group Plc has continued its twin
strategy of growth through acquisitions and organic growth centred on its core
offering of outsourcing services to marketing departments. New contracts of an
expected value of £4.5 million have been won during the period across all areas
of the business. Furthermore, three acquisitions have been completed in the same
period. Turnover in the first half of 2005 was £2.35m compared to the 2004
period performance of £2.17m.

Although sales have increased on the previous 9 month period we are disappointed
with the trading performance in this period. New sales contracts have taken
longer to reach their full potential than we expected, however we believe that
these contracts will reach their expected level by the end of the year. The
Board has also restructured the sales organisation of the Group to allow it to
source higher value sales, combined with which the Group Management has been
strengthened, which we are confident will benefit the Group in the coming
months.

Two acquisitions consisting of the core business of Unikum Professional Imaging
and Andre Worldwide Visual Communications in Oslo are included from 1st May
2005. The combined turnover in 2004 of these businesses was £1m with a pre-tax
profit of £0.1m. The acquisition of Full Bredde AS in Oslo that was announced in
June was completed on 1st of August 2005. Last year it had a turnover of £1.2m
with a pre-tax profit level of £0.12m.

The Group net loss of £1.60m reflects our investment in the Company to build an
infrastructure and organisation better equipped to manage considerably larger
volumes of business than at present. This investment has been necessary to
better negotiate and take on new outsourcing contracts. As new contracts are
coming on stream with an average gross profit margin of 55%, we anticipate that
the positive impact on profits will be considerable. In this connection it is
also important to emphasise that the group will only acquire profitable
companies with positive cash flows.

The group is looking at alternative options to fund its growth strategy to
include bank financing so as to take advantage of current low interest rates.
The Directors have reviewed budgets, projected cash flows and other relevant
information, and, on the basis of this review, are confident that the Group has
adequate resources for the foreseeable future.
Over the first half of 2005 considerable work has been undertaken to increase
both our sales prospect list as well as our acquisition prospect list - the
latter includes various targets within the UK. A number of negotiations in both
areas are ongoing and expected to generate results during the second half of
2005.

Despite the disappointing results and sales levels we look forward to the future
with utmost confidence.



Aksel Bratvedt
Executive chairman

1. CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                       6 months ended       9 months ended
                                         30 June 2005     31 December 2004
                                            unaudited              audited
                                                £'000                £'000

Turnover                                        2,354                2,173
Cost of sales                                  (1,099)                (795)

Gross profit                                    1,255                1,378

Administrative expenses                        (2,807)              (4,051)


Operating loss                                 (1,552)              (2,673)

Interest receivable                                 -                    2
Interest payable                                  (43)                (159)

Loss on ordinary activities before             (1,595)              (2,830)
taxation                            

Tax on loss on ordinary activities                  -                   33

Loss for period                                (1,595)              (2,797)
Dividends                                           -                    -

Retained loss for period                       (1,595)              (2,797)



Loss per share (pence)                          (2.38p)              (6.74p)



There are no recognised gains or losses for the current period other than as
stated above.


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

                                                2,682                1,024

Creditors: amounts falling due                (4,368)              (3,535)
within one
year

Net current liabilities                       (1,686)              (2,511)

Total assets less current                       1,740                1,083
liabilities

Creditors: amounts falling due                  (426)                (426)
after more than one year

Net assets                                      1,314                  657



Capital reserves

Called up share capital                           738                  597

Share premium account                           4,871                2,700

Statutory reserve                                   -                   60

Profit and loss account                       (4,295)              (2,700)



                                                1,314                  657
Shareholders' funds




3. CONSOLIDATED CASH FLOW STATEMENT

                                                    6 months    Period ended
                                                       ended              31
                                                30 June 2005   December 2004
                                                       £'000          £'000

                                                      
Net cash outflow from operating activities            (1,352)          (587)

Returns on investments and servicing of
finance
Interest paid                                            (43)          (159)
Interest received                                          -              2

Net cash outflow from returns on investments             (43)          (157)
and servicing of finance

Taxation                                                   -             33

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                -           (807)
Payments to acquire tangible fixed assets                 (7)          (148)
Net cash outflow for capital expenditure and              (7)          (955)
financial investment

Acquisition
Overdrafts acquired with subsidiaries                      -           (960)

Cash outflow before financing                         (1,402)        (2,626)

Financing
Net issue of equity share capital                      1,096          2,847

Net cash (outflow)/inflow                               (306)           221

Non-cash transaction
On the 15 June 2005 Delling Group plc issued 5,468,796 Ordinary Shares of 1p at
a price of 21p registered as unpaid.

4. NOTES TO THE INTERIM STATEMENT

4.1. Reconciliation of operating loss to net cash inflow from operating
activities

                                                 2005        2004


Operating loss                                 (1,595)     (2,673)
Amortisation                                       99         297
Depreciation                                       76          35
Increase in stocks                                (64)        (42)
Increase in debtors                              (725)       (415)
Increase in creditors                             857       2,211
Net cash outflow from operating activities     (1,352)       (587)

4.2 Reconciliation of net cash flow to movement in net (debt)/funds

                                              2005       2004

                                              £000       £000
(Decrease)/(increase) in cash in the period   (306)       221
Change in net debt

Net funds at start of period                   221          -

Net (debt)/funds at end of period              (85)       221

4.3 Analysis of changes in net (debt)/funds

                                               2005       2004

                                               £000       £000
Net cash:
Net debt as start of period                     221          -
Cash flows
Cash in hand and at bank                       (279)       284
Overdrafts                                      (27)       (63)

Net (debt)/funds                                (85)       221


4.4 Financial information and comparatives

The interim results for the six months ended 30 June 2005 are unaudited and do
not constitute accounts within the meaning of section 240 of the Companies Act
1985. The interim results have been drawn up using accounting policies and
presentation consistent with those applied in the audited accounts for the
period ended 31 December 2004.

The information in respect of the period ended 31 December 2004 has been
extracted from the audited statutory accounts which have been delivered to the
Registrar of Companies. The report of the auditors on those statutory accounts
was unqualified.

No comparative figures for 30 June 2004 are presented as the Company listed on
AIM on 14 October 2004, and therefore there was no requirement for interim
financial statements to be prepared for 30 June 2004.

4.5 Tax on loss on ordinary activities

The tax charge is based on the result for the six month period and represents:

                                      30 June      31 December
                                         2005             2004
                                        £'000            £'000

Current year - overseas tax                 -               33
credits


4.6 Dividends

No dividend is proposed.

4.8 Share capital

During the period Delling Group plc issued 5,468,796 Ordinary Shares of 1p at a
price of 21p. These shares are unpaid and the call is included in debt due in
more than one year.

4.7 Loss per share

The calculation of loss per share is based on the loss attributable to ordinary
shareholders divided by the weighted average number of shares in issue during
the period.

                                      30 June       31 December
                                         2005              2004
                                  Number '000       Number '000

Weighted average number of             66,899            41,472
shares


There is no dilution of earnings per share as a result of losses.

Copies of this report are available on the Company's website

www.dellinggroup.com

and to the public at the registered office of Delling Group plc at:

Golden Cross House
8 Duncannon Street
London WC2N 4JF




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