The answer to that I believe is...

Its going cheap at the moment and there looks to be considerable upside from its present price of circa 10p. Ive had it on the watchlist for the last 6 months and it continues to do deal after deal but nobody notices .

Plenty more room for acqusitions aswell which will see growth booming.

The company is valued at less than 15 million. By the financial year 2007/8 sales will be 40 million and profits after tax at least 4 million I reckon.

House broker Seymour Pierce have the following forecasts on the company but these I beleive will be smashed.....

To 31-Dec-06 EPS 1.00p P/E 10.0 PEG n/a EPS Growth n/a
To 31-Dec-07 EPS 1.50p P/E 6.7 PEG 0.1 EPS Growth +50%

If the present momentum in the markets goes forward this company on fundies should at least double within a year.

Heres a bit of background on the companys operations......

Delling Group is a leading supplier of marketing support services for marketing
and communication departments throughout The Nordic countries.


Delling manages all fields of graphic support in many different forms and
formats including trade fairs, exhibitions and interactive digital solutions for
the 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 both
marketing and information departments. However, its major strength is that the
Group can deliver complete turnkey solutions, tailor-made for its customers'
every need. Delling also offers outsourcing solutions that can substantially
save costs and improve efficiency.


The Group's major activities are today concentrated in the Norwegian and Swedish
markets, however, it is quickly expanding into other Nordic areas, as well as
having customers and production facilities in Eastern Europe. It also has well
respected suppliers as far afield as China and Thailand.


Delling Group has today 80 employees. It is rapidly developing its organisation
by focusing on supplying its customers with the quality they demand, delivered
on time at the right price. Central to its philosophy lies the fact that its
customers will obtain greater effects and efficiency for every pound they invest
in marketing and information. The Group has strong growth, both through further
development of existing clients and establishment of many new relationships,
together with acquiring companies that enhance and further develop our business
concept.


Delling's goal is within the course of the next two years, through both
satisfied customers and recommendations, to be the largest and most profitable
company in the field of marketing support services within the Nordic countries,
and a significant player within Eastern Europe. In October 2004, Delling was the
first Scandinavian business to be listed on the Alternative Investment Market
('AIM'), the London Stock Exchange's international market for smaller growing
companies. This has given Delling access to capital funds for the further
development of the Group.



DYOR.

Its very dissapointing Maders and totaly unexpected but you tend to find some accountants in situations like this scrating around at the bottom of the barrel and trying to make things look better.

They always arise again in the future so Im not taking any chances.

This Company appears to have tried to run before it was in a strong enough in all departments to do so. They have not had the necessary experience in place before embarking on the acquisition trail. The Board say that this situation has been remedied. The recent change of strategy in order to concentrate on the Scandinavian market, although costly, is probably appropriate for a company of its size and is where it seems to be winning more business. Although my purchase was untimely, it was only a toe in the water . Hopefully, this experience will have gingered the Board up since they still have their own investment at stake. This small Company is doing business with the likes of Telia Sonera, Statoil and Norsk Hydro. It has been successful at gaining the business but took its eye off the ball on the admin & expense side. I will run with the shares for now as there is incentive for the Board to turn things around.

I also sold out last week on profit warning, I broke a few rules when I brought into Delling, but I always sell on a profit warning. Will find a better investment elsewhere.

spitfire, so how is your better investment going? any chance to let me know? Thanks

Good question, I'm still sitting on the money at the moment, I have a few company's that I'm keeping a close eye on. One is Oakdene Homes (okd), this is fairly tempting but not sure if the timing is best to enter the property sector.

At the moment trying to keep a cash balance in case of any correction, which I could then take advantage of.

Notice of Results & Contract Gain


'New contract framing agreement with Ericsson in the exhibition arena'


Delling Group PLC ('Delling'), the only listed marketing support services group
on AIM whose principal assets are in Scandinavia, advises that it will be
announcing its preliminary results on Monday, 25 June.


Delling also anounces that its subsidiary, Eckerud, the leading exhibitions
company in Sweden in terms of sales, which manufactures and designs stands for
trade shows, briefing centres and point of sale locations, has entered into a
new framing agreement with Ericsson, the global Swedish telecom group. This
agreement will set new contract parameters as far as design, production and
management activity in the exhibition arena are concerned, with an estimated
contract size of 1.0 million per annum.


The new agreement also includes the provision by Delling of exhibition-related
services to the joint venture Sony Ericsson, the mobile phone company.


The contract commenced on 1 March 2007 for one year, and will be renewed
automatically for a further year, if the contract is not terminated at the end
of year one. This further agreement follows on from Eckerud's successful
delivery to Ericsson of exhibition services for the major 3GSM exhibition in
Barcelona in February this year. Eriksson's exhibition material continues to be
stored in Eckerud's warehouse.



Commenting, Geir Lolleng, Chief Executive of Delling, said:


'This contract win has been high on our agenda and it is therefore extremely
satisfying that we have managed to streamline and further develop our
relationship and business with this important global customer. As a result, we
are excited by the considerable future potential to market a broader range of
our services to Ericsson within the marketing support services arena'.


Guscavalier comment: Following a difficult spell, nice to see some better news. Pleasing to see that this contract was won after other work carried out for the same customer, thus enhancing the relationship. No further bad news has been mentioned following the profit warning and if this remains so when prelims are announced on 27th June, we may see an element of sp recovery. sp up 0.5p today at 7.75p.

Delling makes 'considerable progress' in exhibition businesses integration
AFX


LONDON (Thomson Financial) - Marketing support services company Delling Group PLC said it is making considerable progress in integrating its business within the exhibition arena, which accounts for 40 pct of its revenues, and that it sees significantly lower lease costs going forward.

The AIM-listed company said its previously acquired businesses, Eckerud Scandinavian Group AB and Sandberg Expo, have been merged into one company and will now trade under the name Delling Expo, within the exhibition arena.

Delling Expo will now have a single management structure and one integrated accounting system. The company expects a significant reduction in the division's cost base due to the combined effect of the integration and the cost reduction programme.

Delling expects cost savings of about 5 pct, which will gradually materialise during this year. A further cost cutting exercise will follow in Eastern Europe production, which should give benefit in 2008, the company said.

Well, it's moved into profit after that stuttering period of consolidation. Could be an interesting year - still have these tucked away at a loss but looking to see a good return soon.

yes, this company is in a recovering preiod from loss, looking good and will see profit soon.

swseun
They are already reporting a move to profit today - turning around last year's losses and their problems of integrating their acquisitions. Their problems are all history now but the share price needs to catch up - I expect some press take up of this in the near future - even if it is the mickey mouse tip sheets.

Watch this space, an undiscovered little "boring" stock IMHO.

This will go bust soon.