Vela Technologies Regulatory News (VELA)

20 Jan 2005 07:00

Deal Group Media PLC20 January 2005 Press Release 20 January 2005 Deal Group Media plc Trading update Deal Group Media plc, the full service online marketing group, which comprisesthe newly rebranded operating company dgm, provides the following trading updateas it enters its close period. Trading conditions for the year ended 31 December 2004 continued to be verystrong and the Board expects the Preliminary Results to be in line with theuplifted market expectations as stated in the second quarter of 2004. Trading for the last quarter reflected a growing demand among Christmas shoppersto buy online with Group turnover increasing to £4.45 million for Q4 2004representing 232 per cent. of the equivalent period for 2003. The internet advertising sector experienced strong growth during 2004 and nowaccounts for 3.4% of ad spend in the UK (Interactive Advertising Bureau/ PwC).Industry analysts maintain a positive outlook for the sector, fuelled by risingonline penetration through the growth of Broadband, and increased demand foradvertising with a visible return on investment. Against this background, the Group's performance has outstripped that of thesector, increasing its market share by offering a broader sales mix. This hasbeen achieved by focusing on client retention, taking advantage of cross-sellingopportunities, and new client acquisitions. Recent wins include Oxfam, StandardLife Healthcare, Alliance & Leicester and ING Direct. During the final quarter of 2004, the Group undertook a major restructuring inorder to provide future scalability. There have been a number of key seniormanagement appointments across all disciplines, a reorganisation of the salesand account management functions, and products have been structured into threedistinctive branded offerings: dgmPerformance, dgmSearchLab and dgmAdNetwork.Additionally, the Group has embarked upon a business continuity programme toprovide a more robust technology infrastructure in line with its growingbusiness levels. As stated at the time of the Interim Results, the Board continues to look forpotential earnings enhancing acquisitions and will update shareholders of anydevelopments. Adrian Moss, Chief Executive of Deal Group Media plc, said: "Our performance inthe last year has been in line with market and internal expectations. Thesetargets have been achieved by improving the Group's sales mix, thereby creatinga number of cross-selling opportunities, and through the acquisition of newclients. "The recent restructuring has been undertaken in anticipation of further futuregrowth and our rebranded products mark a step change in the presentation andmarketing of our services. We look forward to reporting our Preliminary Resultsin mid-March." For further information, please contact: Enquiries: Deal Group Media plc Adrian Moss, Chief Executive Officer / Jonathan Lines, Marketing Director Tel: +44 (0) 20 7691 1880 Durlacher Limited Richard Swindells Tel: +44 (0) 20 7459 3600 Media enquiries: Abchurch Communications Ariane Comstive Tel: +44 (0) 20 7398 7700 ariane.comstive@abchurch-group.com www.abchurch-group.com - Ends - This information is provided by RNS The company news service from the London Stock Exchange