DIGITAL advertising firm Ocean Outdoor is in talks with lenders as the impact of social distancing measures amid the coronavirus outbreak has begun to shrink demand for advertising.

The group said yesterday it had taken a series of steps to protect staff and shield itself "from a rapid deterioration in media and advertising spend".

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.

However it added that "previously published market expectations are no longer applicable".

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 it expects to "bounce back quickly" once the peak passes.

(c) 2020 City A.M., source Newspaper