Vela Technologies Regulatory News (VELA)

21 Jan 2008 07:01

Deal Group Media PLC21 January 2008 Press Release 21 January 2008 Deal Group Media plc ("DGM" or "the Group") DGM wins contract with Citibank Asia Trading update Deal Group Media plc (AIM: DGM), an independent online marketing group, todayannounces that it has won a contract to become the only approved digital mediaagency for Citibank Asia's credit card business line. The contract encompassesdigital media planning and buying strategy in addition to execution, and is thefirst client for the Group's new business unit, Deploy Digital, "Deploy". Deploy will support Citibank's' online customer acquisition strategy which istargeting 10% of all new credit card customers to be delivered through theInternet. A key component of remuneration is delivery of agreed objectives,which ties in with the Groups performance based delivery ethos. Adrian Moss, Chief Executive of DGM, said: "This is the first contract with amajor brand we have won in Asia where we are working as a more complete digitalmedia agency in addition to our existing business units. We have a proven trackrecord of delivering customers to clients and are very excited about theprospects of this contract. The Group is currently in discussions with othermajor brands in Asia to provide a similar offering." Trading update Following the recent disposal of a majority stake of the UK business to IscoTechnical Services Ltd ("ITS") for £1.5 million, the Group can provide thefollowing update: £1 million from the proceeds of the sale were received before the financial yearend of 31 December 2007 with a further £500,000 due to be received no later than31 January 2008. This cash inflow satisfies the Groups working capital and current investmentplans. In addition, the transaction has created two important drivers of cost savingsfor the Group. First, technology costs have been materially reduced and have ineffect been outsourced. Secondly, due to the refocus on Asia, UK-based centralcosts have also been significantly reduced, the benefits of which will accrueover 2008. Results for 2007, as previously stated, are expected to be in line with theBoard's earlier announcements showing a reduced post-tax loss relative to thatexperienced in 2006, before account is taken of the impact of the recent UKdisposal. Unaudited 2007 trading results demonstrate good underlying growth in overseasoperations. The UK based business showed a profitable contribution for theperiod although at deteriorating levels relative to prior periods. Adrian Moss commented: "The Group can now focus purely on the Asia Pacificregion and the benefits of this can already be seen. Customer concentrationcontinues to be reduced and a number of new clients have been added across allthe territories DGM operates in. We remain confident that the Group will returnto positive cash flow in H1 2008 and that DGM will return to a profitableposition during 2008." -Ends- For further information, please contact: Deal Group Media plcAdrian Moss, CEO Evolution Securities LimitedTom Price, Corporate Finance Tel: +44 (0) 20 7071 4300Jeremy Ellis, Corporate Finance www.uk.evosecurities.comAbchurch CommunicationsAriane Comstive/Franziska Boehnke Tel: +44 (0) 20 7398 7700franziska.boehnke@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange