City welcomes Maiden placing The Investment Column
The placing will raise pounds 17.9m to repay debts of pounds 37m incurred when chief executive Ron Zeghibe bought out venture capital partners Morgan Grenfell Development Capital last year. Directors will retain about 60 per cent of the equity after the flotation
On one level, Maiden is benefiting from scarcity value. Shares in More O'Ferrall, the only other quoted operator in the sector, have advanced in leaps and bounds on the back of strong growth in UK outdoor-advertising spend, which last year grew by up to 9 per cent. The industry forecasts similar advances this year.
A consolidation of the sector, which last year saw Maiden buy British Transport Advertising for pounds 1.8m, has led to fewer and more professional players in the sector. Site illuminations, the steady growth in roadside traffic and better audience measurement techniques have also helped. And the increased fragmentation of the television, magazine and radio markets means poster sites could become the only medium capable of delivering mass audiences to advertisers.
How much all this is worth to investors is anybody's guess. More O'Ferrall, the market leader in the UK, stands on a forward PE of almost 18 times and should command a higher rating thanks to a good track record of organic growth and lower debt levels. Shares in Maiden are tightly priced at 15 times future earnings, but they should still go at a decent premium.
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Professional big game hunter Ian Gibson crushed to death by elephant during hunt
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
Migrants crossing the Mediterranean: Pope Francis joins calls for EU action on boat refugees
Yemen crisis: Meet the child soldiers who have forsaken books for Kalashnikovs
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Isis in Afghanistan: Group claims responsibility for Jalalabad suicide bombing that killed 35
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...