Outdoor advertising specialist, Maiden Group plc, has issued a pre-close trading statement, for the year to 31 December 2004, revealing a strong financial performance for the company during 2004, despite under performing in their outdoor billboard division.
The quality of the Group’s retail division (mall and supermarkets) improved last year, and despite a 25% reduction in the number of sites, sales grew significantly, reflecting premium pricing and higher occupancy. The termination of Maiden’s Somerfield-Kwiksave contract resulted in improved margins and profitability in the Group’s retail division.
Excellent progress was made in the company’s rail division, with 89% of the total rail universe in terms of revenue being re-won, including Network Rail and all the largest train operating companies. Despite the rail re-tendering process carried out by Maiden in 2004, which took up a considerable amount of management time, rail advertising grew strongly in the period ending 31 December 2004.
In addition the financial position of the Group was strengthened by the renewal of banking facilities more suitable to Maiden.
Elsewhere, the company saw its billboard advertising division performing below initial expectations, reflecting the lull in the UK outdoor market during December. Rail rental sales were affected by the timing of several of the tender processes in relation to contract start dates, with some of the new contracts not being signed until two or three months after the official contract commencement.
These two issues had a knock on affect on the performance of the Group as a whole, however Maiden expect to enjoy pre-tax profit of at least £7 million, a £1.7 million increase on the £5.3 million it made in the previous year.
The current year looks strong for Maiden; January has shown clear improvement over December with sale at least 13% ahead of last year’s strong January performance. Retail and rail sales are reported to be moving ahead well and the Group predicts a rebound in the billboard market following the difficult trading at the end of 2004.
Forward bookings into February also look strong and, at the end of the third week of January, the Group’s booked first quarter sales are already 93% ahead of last year’s first quarter outturn.
Maiden will announce its preliminary results on 31 March.
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