In a trading statement issued this morning, Maiden said that first-half revenues and margins had been hit by the challenging conditions and that although billings were up for the first six months, it would post an operating loss.
The company's shares were hit by the news, falling by almost 5% to 180.18p when the market opened this morning. The statement is in stark contrast to what Maiden had reported in March, when the company said that prospects for the outdoor market this year looked strong and that it expected full-year profit to rise by 27% to £7m.
As well as the weak ad market, Maiden blamed Network Rail's delay in awarding its £350m roadside billboards contract for the loss. Maiden scooped the entire contract in May, leaving rival outdoor company JCDecaux with none of the work.
On a brighter note, Maiden, headed by chief executive Ron Zeghibe, said that trading conditions during the traditionally quiet summer months are showing signs of improvement over last year.
Prices have improved since the middle of July and Maiden said that it was beginning to see the benefits of a strategic development plan implemented following the award of the Network Rail contract.
However, it sounded a note of caution, saying: "While recent trading has been encouraging, it is too early to be confident of the likely outcome for the year as a whole."
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