30 March 2023

 

Time Out Group plc

("Time Out," the "Company" or the "Group")

Unaudited results for the six months ended 31 December 2022

Continued momentum post pandemic delivers positive Group Adjusted EBITDA

 

Time Out Group plc (AIM: TMO), the global media and hospitality business, today announces its unaudited results for the six months ended 31 December 2022. 

 

Commenting on the results, Chris Ohlund, CEO of Time Out Group plc, said:

 

"We are encouraged by the momentum and progress we have seen across the business, continuing to deliver positive Group Adjusted EBITDA and improved margins, positioning Time Out Group for further profitable growth. We have built out an experienced management team across the Group to continue our momentum.

 

"Our digital-first multi-platform strategy has resulted in Time Out Media exceeding our expectations across key areas such as audience growth, higher-margin digital advertising and higher-value bespoke campaigns - in a performance founded on Time Out's content which inspires and enables people to experience the best of the city all of which continues to attract leading brands advertising with us. The same mission is at the heart of Time Out Market, which continues to successfully build its following and offering - giving us further confidence in our unique proposition, which we are bringing to more cities around the world. Since October 2022, we have signed four new agreements, increasing our pipeline to eight new sites, with more in advanced negotiations as landlords recognise Time Out Market's ability to turn a property into a destination. As part of our ongoing expansion, our focus remains on signing Management Agreements, which generate a recurring earnings stream, without the need for the Company to fund capex."

Financial highlights

●   Gross revenue increased by 68% to £53.8m (2021: £32.0m) and net revenue⁽¹⁾ by 60% to £39.5m (2021: £24.7m)

●   Gross profit increased 61% to £31.8m (2021: £19.7m)

●   Group Adjusted EBITDA⁽²⁾ increased to £2.4m (2021: £0.8m loss) with both divisions positive

●   Group operating loss reduced to £6.8m (2021: £8.5m loss)

●   Cash of £5.3m at 31 December 2022 (2021: £8.5m) and borrowings of £31.3m (2021: £20.3m), resulted in Adjusted net debt⁽³⁾ of £26.0m (2021: £11.9). Reported net debt was £52.7m (2021: £34.6m) including £26.7m (2021: £22.7m) of IFRS 16 lease liabilities

●   Refinancing completed in November 2022 with a new four-year term loan facility of €35.0m; €5.8m of the facility remains undrawn and the agreement allows an extension to €47.5m by mutual consent

 

Operational highlights

●   Time Out Market: continued revenue growth and accelerated signing of new Management Agreements

o First reporting period of uninterrupted trading with net revenue growth of 78% to £21.2m (2021: £11.9m)

o Growing portfolio includes 15 open and contracted sites with Cape Town, Vancouver and Riyadh Management Agreements signed in the period, Barcelona lease agreement signed post period end and a strong pipeline of locations in advanced negotiations

o Construction under way in both the Porto and Cape Town sites, which are set to open towards the end of calendar 2023

●   Time Out Media: exceeding management expectations with digital-first strategy driving benefits

o 65% growth in digital revenue following the completed transition from print to a digital-first strategy

o Success in higher-margin digital advertising space and with higher-value bespoke campaigns including unique 'digi-physical' advertising propositions combining the power of Time Out Media and Time Out Market

o Strong relationships with an expanding advertising client base in both existing and new sectors

 

Outlook 

The progress made in calendar year 2022 was the beginning of the Time Out rebuild; the reopening of Markets which barely had an opportunity to establish themselves after opening in 2019, the ability to continue signing new Markets again, the full transition of Media from print to digital and the leveraging of the complete Time Out platform to create high value marketing solutions. Whilst the Board remains cautious in light of current economic uncertainty, due to the actions taken, we expect to gain significant further traction in the year ahead as we continue to grow momentum. We are encouraged by Time Out Media's progress with further revenue growth expected in the second half as advertisers seek access to our large global dynamic audience, in a positive brand-safe environment. Whilst the Time Out Market portfolio of 15 existing and future Time Out Markets includes eight Management Agreements which, once all open and with a term of at least 10 years, will deliver a recurring minimum earnings stream contributing c.£13m to EBITDA every year. Given current interest levels from landlords, we are confident of signing further Management Agreements over the short and medium term.

 

(1)     Net revenue is calculated as gross revenue less the concessionaires' share of revenue. See note 4 to the condensed consolidated statements.

(2)     Adjusted EBITDA is operating loss stated before interest, taxation, depreciation, amortisation, share-based payments, exceptional items and profit/(loss) on the disposal of fixed assets. This is a non-GAAP alternative performance measure ("APM") that management uses to aid understanding of the underlying business performance. See note 4 for reconciliation to statutory numbers.

(3)     Adjusted net cash/(debt) excludes lease-related liabilities under IFRS 16. This is an APM. See note 7 to the condensed financial statements for a reconciliation to statutory numbers.

 

 

For further information, please contact:
Time Out Group plc	Tel: +44 (0)207 813 3000
Chris Ohlund, CEO
Patrick Foley, CFO
Steven Tredget, Investor Relations Director
Liberum (Nominated Adviser and Broker)	Tel: +44 (0)203 100 2222
Andrew Godber / Clayton Bush / Edward Thomas
FTI Consulting LLP	Tel: +44 (0)203 727 1000
Edward Bridges / Stephanie Ellis / Fiona Walker

 

 

Notes to editors

 

About Time Out Group

Time Out Group is a global media and hospitality business that inspires and enables people to experience the best of the city through its two divisions - Time Out Media and Time Out Market. Time Out launched in London in 1968 to help people discover the exciting new urban cultures that had started up all over the city - today it is the only global brand dedicated to city life. Expert journalists curate and create content about the best things to Do, See and Eat across 333 cities in 59 countries and across a unique multi-platform model spanning both digital and physical channels. Time Out Market is the world's first editorially curated food and cultural market, bringing a city's best chefs, restaurateurs and unique cultural experiences together under one roof. The portfolio includes seven open Markets, several new locations with expected opening dates in 2023 and beyond, in addition to a pipeline of further locations in advanced discussions. Time Out Group PLC, listed on AIM, is headquartered in the United Kingdom.

 

 

 

FORWARD-LOOKING STATEMENTS 

This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, the impact of competitive pricing, volatility in stock markets or in the price of the Group's shares, financial risk management and the impact of general business and global economic conditions. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of Time Out Group Plc and the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Time Out Group Plc's or the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document. 

 

 

 

Chief Executive's Review

 

Group overview

 

Financial summary

	Unaudited 6 months to 31 December 2022	Unaudited 6 months to 31 December 2021	Change
	£'000	£'000	%
Market	21,154	11,867	78%
Media	18,353	12,836	43%
Group net revenue(1)	39,507	24,703	60%
Gross profit	31,752	19,694	68%
Gross margin %(2)	80%	80%	-
Divisional Adjusted operating expenses(3)	(28,205)	(19,423)	45%
Divisional Adjusted EBITDA(3)	3,547	271
Market	1,455	(619)	335%
Media	2,092	890	135%
Corporate costs	(1,172)	(1,120)	5%
Group Adjusted EBITDA(3)	2,375	(849)	380%

(1)   Net revenue is calculated as gross revenue less the concessionaires' share of revenue. See note 4.

(2)   Gross margin calculated as gross profit as a percentage of net revenue.

(3)   Adjusted measures are stated before interest, taxation, depreciation, amortisation, share-based payments, exceptional items and profit/(loss) on the disposal of fixed assets. These are APMs that management uses to aid understanding of the underlying business performance. See note 4 for reconciliation to statutory numbers.

 

The first half of the financial year - the first reporting period of uninterrupted trading since 2019 - saw the Group make a substantial and sustained post pandemic recovery and progress across both business divisions. Following the relaunch of the Markets and their restored curation in full year 2022, this period has seen further operational improvements, increased footfall and continued revenue growth in this division while the Media business reaped the benefits from its full transition from print to digital and winning big ticket, high-profile campaigns.

 

The Group's net revenue increased by 60% to £39.5m (2021: £24.7m), albeit from a comparative period that was still impacted by Covid-19 restrictions. Gross margin was maintained at 80%. Operating expenses continue to be constantly reviewed as we remain focused on profitable growth. These combined to produce an improvement in the Divisional Adjusted EBITDA of £3.5m (2021: £0.3m) and resulted in a positive Group Adjusted EBITDA of £2.4m (2021: £0.8m Group Adjusted EBITDA loss).

 

Time Out Market trading overview

 

	Unaudited 6 months to 31 December 2022	Unaudited 6 months to 31 December 2021	Change
	£'000	£'000	%
Owned operations	19,061	10,429	83%
Management fees	2,093	1,438	46%
Net revenue	21,154	11,867	78%
Gross profit	17,393	9,882	76%
Gross margin %	82%	83%	(1)%
Adjusted operating expenditure (trading)(2)	(11,290)	(8,210)	38%
Trading EBITDA(1)	6,103	1,672	265%
Market central costs	(4,648)	(2,291)	103%
Adjusted EBITDA(2)	1,455	(619)	335%

(1)   Trading EBITDA represents the Adjusted EBITDA from owned and operated markets post opening, Management Agreement fees, and the development fees relating to Management Agreements. It is presented before pre-opening costs of new markets and other central costs of the Market business.

(2)   Adjusted measures are stated before interest, taxation, depreciation, amortisation, share-based payments, exceptional items and profit/(loss) on the disposal of fixed assets. These are APMs that management uses to aid understanding of the underlying business performance. See note 4 for reconciliation to statutory numbers.

 

Time Out Market net revenue increased significantly and by 78% to £21.2m (2021: £11.9m) generating an Adjusted EBITDA of £1.5m (2021: £0.6m Adjusted EBITDA loss) in the first reporting period of uninterrupted trading and with the comparative period still impacted by some restrictions. Operating expenses continue to be managed and improvements, as well as commercial initiatives to optimise margins, are being implemented to further drive profitability. Central costs increased to further strengthen the Time Out Market team's focus on driving growth in our existing Markets and accelerating our global expansion including sourcing new locations and preparing several upcoming openings.

 

Time Out Market is a food and cultural market that brings the best of the city together under one roof - as such, we regularly update our curated mix and continue to attract high calibre chefs and restaurateurs. New concessions in the period include in Lisbon O Frade, a MICHELIN Bib Gourmand; in New York foodie favourites Bark, Dough Doughnuts and La Bella Ferrara; and Time Out Market Chicago launched its first standalone fine dining concept, Valhalla, with award-winning Chef Stephen Gillanders to outstanding reviews.

 

Alongside the culinary curation, each Market offers cultural and seasonal activations to drive differentiation and footfall. Examples include Time Out Market Dubai and New York revealing murals by local artists; Football World Cup viewings across all sites, Time Out Market Chicago's Oktoberfest and a Formula 1 event with driver Nico Hülkenberg at Time Out Market Dubai. For the first time, a coordinated approach to events across all locations for the holiday season was implemented and an enhanced corporate and group events strategy helped drive further revenues.

 

In line with our strategy, Time Out Market's ongoing global expansion is focused on Management Agreements under which the Group receives a share of revenues and profits (subject to a guaranteed fee) but does not contribute to the capital cost of the site. To accelerate the rate of new signings, we have evolved our commercial formats allowing us to target more opportunities and the internal development team - also supported by external real estate partners - is engaging with an increasing pool of landlords and developers interested in Time Out Market proposition. This was underlined in November 2022, when Time Out Market was recognised as Hospitality Operator of the Year at the Global RLI Awards.

 

Alongside seven existing Markets, we have eight contracted sites and a strong pipeline of locations in advanced negotiations. Between October 2022 and January 2023, four new agreements were signed: Time Out Market Cape Town (Management Agreement with V&A Waterfront Holdings Ltd); Time Out Market Vancouver (Management Agreement with QuadReal Property Group and Westbank); Time Out Market Riyadh (Management Agreement with Diriyah Gate Development Authority); and in January 2023 we entered into a lease agreement with Klépierre Real Estate España S.L.U., a member of the Klépierre Group, to open Time Out Market Barcelona. While the ongoing expansion is focused on Management Agreements, Time Out Market Barcelona is a lease agreement and as a result will be an Owned & Operated Market, with Time Out receiving 100% of site profits. The majority of the construction capex will be covered by a contribution from the landlord, as well as a sponsorship provided by beer brand Estrella Damm.

 

The current opening pipeline of eight new Markets includes:

●     Porto (Owned & Operated) - calendar 2023 (construction under way)

●     Cape Town (Management Agreement) - calendar 2023 (construction under way)

●     Barcelona (Owned & Operated) - calendar 2024

●     Vancouver (Management Agreement) - calendar 2024

●     Abu Dhabi (Management Agreement) - calendar 2025

●     Prague (Management Agreement) - calendar 2025

●     Osaka (Management Agreement) - calendar 2025

●     Riyadh (Management Agreement) - calendar 2027

 

In February 2023, we confirmed that we will not proceed with the development of a Time Out Market at 106 Commercial Street in London. Although recommended for approval by planning officers, the Tower Hamlets Development Committee chose to defer its decision on our application in 2022 after a process which had already taken several years. With an expectation of the process being drawn out by further delays we have decided to no longer proceed with our application but focus our resources on other opportunities.

 

Time Out Media trading overview

 

	Unaudited 6 months to December 2022	Unaudited 6 months to December 2021	Change
	£'000	£'000	%
Digital advertising	14,685	8,894	65%
Print	554	1,673	(67)%
Live events	499	539	(7)%
Local Marketing Solutions	743	485	53%
Advertising sales	16,481	11,591	42%
Affiliates & offers	1,337	1,245	33%
Franchises	535	239	124%
Net revenue	18,353	12,836	43%
Gross profit	14,359	9,812	46%
Gross margin %	78%	76%	2%
Adjusted operating expenditure(1)	(12,267)	(8,922)	37%
Adjusted EBITDA(1)	2,092	890	135%

(1)     Adjusted measures are stated before interest, taxation, depreciation, amortisation, share-based payments, exceptional items and profit/(loss) on the disposal of fixed assets. These are APMs that management use to aid understanding of the underlying business performance. See note 4 for reconciliation to statutory numbers.

 

Time Out Media trading saw significant growth with net revenue up 43% to £18.4m (2021: £12.8m) generating Adjusted EBITDA of £2.1m (2021: £0.9m). Digital revenue grew by 65% to £14.7m (2021: £8.9m) in what were the first six months of Time Out being digital-only in the UK and in which we continued our digital growth in North America as well as in other regions. This demonstrates a successful replacement of print with digital revenue as part of our digital-first multi-platform strategy which also led to improved gross margin of 78% (2021: 76%). With the last regular Time Out London print magazine published in June 2022, almost all of the 333 Time Out cities in which we cover content are now fully digital with print issues only in Barcelona (monthly), Madrid and Lisbon (quarterly) and in a few cities within our franchise network. We continue to closely manage our operating expenditure with the 37% increase representing investment in people with the appropriate skills to drive our digital and video product offerings.

 

This digital-first strategy has positioned the Media division to increasingly tap into higher-value campaigns from leading brands and the higher-margin growing digital advertising space. We continue to believe that our brand-safe content environment is increasingly attractive to major brands. As a result, we have been able to take advantage of post-pandemic advertising spend - something we first achieved in our North America business, followed recently in our revitalised UK business and this is now gathering pace across other regions too.

 

The Media division globally - including franchises - is now led by Stacy Bettman who was appointed Time Out Media CEO in March 2023, reporting to Group CEO Chris Ohlund. Her appointment follows her success in leading the North American business from loss making in 2019 to EBITDA of £3.7m in the period.

 

The recent progress has been founded on successfully offering bespoke - and therefore higher-value - advertising solutions to premium global brands and informs the direction of the division going forward. Rooted in our unique content, the client campaigns we delivered spanned multiple digital channels including website, social media, video, newsletters as well as live events which we increasingly host at Time Out Markets to add 'in real life' campaign elements. This combined power of Time Out Media (high-quality content) plus Time Out Market (real-life experiences) proves to be a differentiator that no other media brand can offer, giving us pricing authority for these types of "digi-physical" campaigns.

 

Furthermore, strong relationships with both direct and agency partners enabled us to attract more clients in existing and new sectors. We delivered campaigns - in some cases repeatedly or as part of long-term partnerships - for clients including drinks brands Bacardi, Glen Grant and Pernod Ricard; travel, transport and mobility brands such as P&O Cruises, TAP Portugal and FreeNow; Mastercard, Nickelodeon as well as in new sectors such as cosmetics (Maybelline New York) and gaming (DraftKings).

 

Time Out's global monthly brand audience⁽¹⁾ grew to 73.1m (2021: 71.6m) and we achieved several milestones in reach, engagement and creativity. We reimagined the way we share content on social media, unveiled new video formats, launched new email formats, expanded our national footprints which enhanced our proposition for advertisers and in September 2022 delivered the third biggest growth of all UK news publishers⁽²⁾.

 

A key element of bringing Time Out's "best of the city" content to life across digital channels is a continued investment in the production of our own videos, which is a media our audience increasingly engages with. We use these videos across TikTok, our fastest growing social channel, and Instagram where we more than doubled video views. As we produce more original Time Out videos, we have upgraded our onsite video capabilities via a partnership with JW Player. This enables us to use our videos across our own website (not only across social media) and to leverage our video content strategy in line with client demands, both in terms of direct and programmatic revenue.

 

 

(1) Global brand audience is the estimated monthly average in the period including all Owned & Operated cities and franchises. It includes print circulation and unique website visitors (Owned & Operated), unique social users (as reported by Facebook and Instagram with social followers on other platforms used as a proxy for unique users), social followers (for other social media platforms), opted-in members and Market visitors.

(2) Source: Press Gazette using data from © Ipsos, Ipsos iris, 1-30 September 2022

 

 

 

Financial Review

 

	Unaudited 6 months to December 2022	Unaudited 6 months to December 2021	Change
	£'000	£'000	%
Gross revenue	53,801	32,049	68%
Concessionaire share	(14,294)	(7,346)	95%
Net revenue	39,507	24,703	60%
Gross profit	31,752	19,694	61%
Gross margin	80%	80%
Administrative expenses	(38,561)	(28,202)	45%
Operating loss	(6,809)	(8,508)	(20)%
Operating loss	(6,809)	(8,508)	(20)%
Depreciation & amortisation
- Intangible assets	1,126	1,378	(18)%
- Property, plant and equipment	3,679	3,275	12%
- Right-of-use assets	1,046	908	15%
Loss on disposal of fixed assets	2	-	-
Share-based payments	1,029	450	129%
Exceptional items	2,302	1,648	40%
Adjusted EBITDA(1)	2,375	(849)	380%
Finance income	11	501	(98)%
Finance costs	(5,704)	(2,465)	131%
Loss before tax	(12,502)	(10,472)	19%

(1)     Adjusted EBITDA is operating loss stated before interest, taxation, depreciation, amortisation, share-based payments, exceptional items and profit/(loss) on the disposal of fixed assets. This is an APM that management uses to aid understanding of the underlying business performance. See note 4 for reconciliation to statutory numbers.

 

Group gross revenue for the period increased by 68% to £53.8m (2021: £32.0m) driven by the uninterrupted trading across all Time Out Markets and the successful delivery of Time Out Media's print to digital strategy.  This allowed the gross margin as a percentage of net revenue to be maintained at 80%.  Despite this, the current trading environment is being buffeted by the challenges of cost inflation, political uncertainty and rising interest rates.

 

Adjusted Group operating expenses (excluding corporate costs, depreciation, amortisation, share-based payments and exceptional items) increased by £8.8m to £28.2m (2021: £19.4m) reflecting the increased activity in the period. In line with many companies, the macro challenges mentioned above led us to a review of all ongoing operating costs.  This resulted in the deferral of some initiatives (Metaverse) and some staff redundancies. Optimisation of our cost base is an on-going exercise and may result in further changes over the second half of the year. The benefits of these changes will be fully realised in the next financial year. Corporate costs of £1.2m are largely in line with the previous period.

 

Group Adjusted EBITDA⁽¹⁾ improved to £2.4m (2021: £0.8m Group Adjusted EBITDA loss).

 

The net exceptional costs of £2.3m (2021: £1.6m) includes staff redundancy costs £(1.3m) and the write-off of capitalised costs relating to Time Out Market Spitalfields which we have exited of (£1.0m).

 

Net finance costs of £5.7m (2021: £2.0m) primarily relates to interest on debt of £2.5m (2021: £0.9m) and lease liabilities of £1.6m (2021: £1.1m). In addition, it includes a charge of £1.6m in respect of fair value of share warrants granted to lenders following the new loan arrangements concluded in November 2022.

 

The depreciation charge of £4.7m increased by £0.6m (2021: £4.1m).  The amortisation of intangible assets of £1.1m decreased by £0.3m (2021: £1.4m).  The share-based payments charge of £1.0m increased by £0.5m (2021: £0.5m) as a result in new grants in the period.

 

These non-cash costs results in a reporting operating loss of was £6.8m (2021: £8.5m).

 

Cash and debt

		Unaudited 31 December 2022 £'000	Audited 30 June 2022 £'000	Unaudited 31 December 2021 £'000
Cash and cash equivalents		5,344	4,849	8,459
Borrowings		(31,362)	(21,978)	(20,328)
Adjusted net debt		(26,018)	(17,129)	(11,869)
IFRS 16 Lease liabilities		(26,712)	(27,420)	(22,698)
Net cash debt		(52,730)	(44,549)	(34,567)

 

Cash and cash equivalents decreased by £0.5m since 30 June 2022 to £5.3m. This was driven primarily by the Group Adjusted EBITDA of £2.4m (2021: £0.8m Group Adjusted EBITDA loss), exceptional costs cash outflow of £1.3m (2021: £1.6m), net working capital outflow of £0.3m (2021: £2.9m outflow), capital expenditure of £1.6m (2021: £1.9m), net cash inflow following refinancing of the Incus Capital facility of £6.2m (2021: £3.7m outflow), taxation payments of £0.3m and the repayment of lease liabilities of £2.8m (2021: £4.0m).

 

Capital expenditure of £1.3m principally comprises £0.6m investment in the construction of Time Out Market Porto and £0.5m invested by Media in on-going technology development costs.  In addition, £1.4m was used to fund the cash collateral required to secure a new facility to fund the remaining Time Out Market Porto construction.

 

The Incus Capital Finance facility of £20.9m was fully repaid on 30 November 2022.

 

On 24 August, the Group agreed an unsecured loan facility of up to £8.0 million with Oakley Capital Investments Limited ("OCI"). The drawn balance on this facility as 30 November 2022 of £5.2m has been converted to a loan note ("OCI Loan Note") and extended to 31 December 2023. Interest will be charged at a 90 day average SONIA rate plus 10% per annum, with an arrangement fee of 2% and an exit premium.

 

On 24 November 2022, the Group agreed a new €35.0m secured four-year term loan facility with Crestline Europe LLP ("Crestline facility") was used to refinance the Incus Capital Facility. The facility has a term of four years, with the right to settle in full after two years. Interest may be capitalised or paid in cash, at the election of the Company, during the first year at a rate of 9.5% plus 3-month EURIBOR and from the second year onwards interest will be paid in cash at a rate of 8.5% plus 3-month EURIBOR. There will separately be an exit premium payable upon full repayment of the facility, calculated by reference to the principal amount drawn. The facility is subject to quarterly financial covenants based on minimum liquidity levels (quarterly testing commencing on 31 March 2023) and target leverage ratio (quarterly testing commencing on 30 June 2023).

 

The Company has also executed an equity warrant instrument and agreed to issue 11,400,423 equity warrants on 30 November 2022 and a further 2,264,468 at full drawdown of the Loan Note Facility (in total representing approximately 3.6% of its fully diluted share capital) to the Crestline subscribers. The five-year equity warrants, which have customary anti-dilution protections, have an exercise price of 39 pence per ordinary share.

 

 

Going concern

The financial statements have been prepared under the going concern basis of accounting as the Directors have a reasonable expectation that the Group and Company will continue in operational existence and be able to settle their liabilities as they fall due for the foreseeable future, being a period of not less than one year from the date of approval of the condensed financial statements ("forecast period"). In making this determination, the Directors have considered the financial position of the Group, projections of its future performance and the financing facilities that are in place.

 

As set out earlier, the Group has successfully refinanced the Incus Capital loan facility which was fully settled on 30 November. €5.8m of the new €35.0m Crestline facility remains undrawn and the agreement allows for the facility to be extended to €47.5m by mutual consent.  All related covenant tests are expected to be met over the forecast period.

 

The Board is satisfied that the Group will be able to operate within the level of its current debt and financial covenants and will have sufficient liquidity to meet its financial obligations as they fall due for a period of at least 12 months from the date of signing these financial statements. For this reason, the Group and Company continue to adopt the going concern basis in preparing its financial statements.

 

Outlook

 

The progress made in calendar year 2022 was the beginning of the Time Out rebuild; the reopening of Markets which barely had an opportunity to establish themselves after opening in 2019, the ability to continue signing new Markets again, the full transition of Media from print to digital and the leveraging of the complete Time Out platform to create high value marketing solutions. Whilst the Board remains cautious in light of current economic uncertainty, due to the actions taken, we expect to gain significant further traction in the year ahead as we continue to grow momentum. We are encouraged by Time Out Media's progress with further revenue growth expected in the second half as advertisers seek access to our large global dynamic audience, in a positive brand-safe environment. Whilst the Time Out Market portfolio of 15 existing and future Time Out Markets includes eight Management Agreements which, once all open and with a term of at least 10 years, will deliver a recurring minimum earnings stream contributing c.£13m to EBITDA every year. Given current interest levels from landlords, we are confident of signing further Management Agreements over the short and medium term.

 

 

 

Chris Ohlund

Group Chief Executive

30 March 2023

 

 

 

Consolidated Income statement

6 months ended 31 December 2022

 

	Note	Unaudited 6 months ended 31 December 2022		Unaudited 6 months ended 31 December 2021		Audited Year ended 30 June 2022
		£'000		£'000		£'000
Gross revenue	1, 4	53,801		32,049		72,933
Cost of sales	4	(22,049)		(12,355)		(28,350)
Gross profit		31,752		19,694		44,583
Administrative expenses		(38,561)		(28,202)		(58,724)
Operating loss		(6,809)		(8,508)		(14,141)
Finance income		11		501		8
Finance costs		(5,704)		(2,465)		(5,329)
Loss before income tax	4	(12,502)		(10,472)		(19,462)
Income tax (charge)/credit		(518)		16		(97)
Loss for the period		(13,020)		(10,488)		(19,559)
Loss for the period attributable to:
Owners of the parent		(13,016)		(10,483)		(19,553)
Non-controlling interests		(4)		(5)		(6)
		(13,020)		(10,488)		(19,559)
Loss per share:
Basic and diluted loss per share (p)	6	3.9		3.1		5.9

 

 

 

Consolidated Statement of Other Comprehensive Income

6 months ended 31 December 2022

 

	Unaudited 6 months ended 31 December 2022		Unaudited 6 months ended 31 December 2021		Audited Year ended 30 June 2022
	£'000		£'000		£'000
Loss for the period	(13,020)		(10,488)		(19,559)
Other comprehensive income:
Items that may be subsequently reclassified to the profit or loss:
Currency translation differences	536		3,520		4,803
Other comprehensive income/(expense) for the period, net of tax	536		3,520		(4,803)
Total comprehensive expense for the period	(12,484)		(6,968)		(14,756)
Total comprehensive expense for the period attributable to:
Owners of the parent	(12,480)		(6,963)		(14,748)
Non-controlling interests	(4)		(5)		(8)
	(12,484)		(6,968)		(14,756)

 

 

 

Condensed Consolidated Statement of Financial Position

At 31 December 2022

 

	Note	Unaudited 31 December 2022		Audited 30 June 2022
		£'000		£'000
Assets
Non-current assets
Intangible assets - Goodwill		30,200		29,893
Intangible assets - Other		7,663		8,219
Property, plant and equipment		35,549		37,851
Right-of-use assets		19,692		20,490
Other receivables		1,773		3,554
		94,877		100,007
Current assets
Inventories		971		986
Trade and other receivables		19,300		14,906
Cash and cash equivalents	7	5,344		4,849
		25,615		20,741
Total assets		120,492		120,748
Liabilities
Current liabilities
Trade and other payables		(17,475)		(14,872)
Borrowings	7	(5,254)		(21,131)
Lease liabilities	7	(4,701)		(5,056)
		(27,430)		(41,059)
Non-current liabilities
Deferred tax liability		(1,079)		(1,158)
Borrowings	7	(24,500)		(847)
Warrants liabilities	7	(1,607)		-
Lease liabilities	7	(22,011)		(22,364)
		(49,197)		(24,369)
Total liabilities		(76,627)		(65,428)
Net assets		43,865		55,320
Equity
Called up share capital	9	336		336
Share premium		185,563		185,563
Translation reserve		8,398		7,862
Capital redemption reserve		1,105		1,105
Retained earnings / (losses)		(151,509)		(139,522)
Total parent shareholders' equity		43,893		55,344
Non-controlling interest		(28)		(24)
Total equity		43,865		55,320