Ocean Outdoor in talks with lenders as Covid-19 restrictions intensify
Digital advertising firm Ocean Outdoor is in talks with lenders as the impact of social distancing measures amid the coronavirus outbreak shrinks demand for advertising.
The group said it had taken a series of steps to protect staff and shield business “from a rapid deterioration in media and advertising spend” during the coronavirus outbreak.
The group said it has no material debt, a strong balance sheet with net cash of approximately £20m, but is in discussions with lenders to further bolster its liquidity position.
Ocean Outdoor has cut all discretionary spend, reduced employee hours, and introduced other cash conservation measures. The firm said it is constantly monitoring its cash flow but the situation is too uncertain to comment on an outlook for the year.
Given the uncertainty and rapidly moving nature of the situation, Ocean Outdoor said it will not provide forecasts for the year but “previously published market expectations are no longer applicable.”
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Last month the firm posted a 13.5 per cent increase in group revenue to £141.3m as its acquisition strategy and expansion came to fruition.
Ocean’s Netherlands and UK businesses are reducing the staff working week effective from 1 April, as well as introducing voluntary unpaid leave in some areas.
In a statement, the advertising firm said: “Given the nature of its business and the speed at which it can react and deliver campaigns, when clients resume normal levels of advertising, the business is structured to bounce back quickly.”
Chief executive Tim Bleakley said: “While restrictions on the movement of people have directly impacted our sector, equally, this crisis has highlighted the importance of the out of home medium the world over.”
“Outdoor is the place where people want to spend most of their time, so as soon as the restrictions are lifted, our medium is ready to take the lead by inspiring people to get back out there and rebuild.”
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