Outdoor group Maiden has issued a profits warning, blaming the
"extraordinary effect of the tragic events of 11 September on an already
weakening world advertising market".
The news came as a shock to investors and Maiden's share price
immediately tumbled 13 per cent to a three-year low.
Despite an 8.4 per cent increase in first-half sales to £41.2m,
first-half profits were flat and Maiden warned that the full-year profit
would be somewhere between £14m and last year's record figure of
£19.7m.
Maiden took comfort from the fact it outperformed the outdoor market as
a whole, which grew by only 3 per cent in the first half of this year.
However, it said margins had been hit by an increasing trend towards
short-notice bookings with lower yields. Uncertainty surrounding the
timing of this year's general election had also impacted negatively on
profit margins.
Maiden CEO Ron Zeghibe warned conditions would be even tougher in the
second half of the year.
Last week, rival outdoor outfit JC Decaux revealed its first-half sales
were up 10.7 per cent, although half of this growth came from
acquisitions. Decaux's first-half profits rose 1.9 per cent.
Separately, Maiden has installed a second LED screen at Waterloo
station.
Maiden donated the perpetual-motion poster to the NSPCC for its "Full
Stop" campaign to end cruelty to children. The NSPCC's ad ran for 24
hours on 28 September.
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