Maiden plans flotation in 1996

BYLN:

The management buy-out team of poster contractor Maiden Outdoor plans to float the company on the stock exchange in 1996, after an 88 per cent boost in profits last year and the acceleration of its debt repayment schedule.

Maiden increased pre-tax profits from 2.3m in 1993 to 4.3m in 1994, the first full year under the management buy-out team. Turnover increased by 22 per cent to 29.4m, compared with industry growth of 15 per cent last year.

Chief executive Ron Zeghibe attributes the company’s growth to a strategy of marketing its added values services and its premium priced poster packages.

“The profits are a measure of our success in keeping tight control of the details of the company’s operations,” he says.

Zeghibe also reveals that the company has accelerated loan repayments to backers, which contractually will give the management team an increased equity stake in the company. The company expects the flotation to result in market capitalisation of about 80m.

“If you want to get in and out and make a quick buck you sell the company privately. When you float, the management team is part of the package,” he says.