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Time Out Group PLC on Thursday said it had secured £8 million in funding to support the business, which did not meet its annual financial targets. The London-based media and hospitality company posted a pretax loss of £58.8 million in the year that ended June 30, widened from £9.4 million a year earlier. Revenue fell to £73.2 million from the £103.1 figure reported in financial 2024. However, following a change to the company’s accounting policy, it has restated 2024 revenue as £78.7 million. According to Time Out, the change did not impact gross profit. An impairment charge of £35.1 million damaged the bottom line in financial 2025, with no impairment booked the previous year. This comprised a £25.4 million impairment on Time Out Market, the company’s dining and leisure business, and a £9.6 million charge attributed to the Media business, after the company determined the latter to be £8.5 million below carrying value, based on forecasts of future earnings. Time Out cited ‘underperformance relative to budget’ as an issue in Media and at certain Market locations, specifically Barcelona, Chicago and Boston. Still, Time Out stressed the ‘strong fundamentals and sustainable cash generation’ of its markets. Rather than goodwill, charges related to Markets were on right-of-use assets and on property, plant and equipment. Market revenue rose 9.1% to £46.7 million from £42.8 million on-year, with the accounting change applied retrospectively. Media sales declined 26% to £26.6 million from £35.9 million. The Market division’s adjusted earnings before interest, tax, depreciation and amortisation fell to £10.7 million in financial 2025 from £12.0 million on-year. Media swung to an adjusted Ebitda loss of £1.0 million from a £5.3 million profit the year prior. Time Out noted ‘an ongoing continuing structural shift in consumer channel preference, from text-based websites toward video, particularly via social media, as well as AI search impacting web traffic.’ Having reviewed the Media branch, the company aims to return to adjusted Ebitda profit in the first half of financial 2026. The goal is to boost revenue in its largest UK and US units by ‘increasing video output on social media/YouTube, whilst also increasing the output of higher-engagement best-of-the-city content,’ Time Out said. It expects about £3 million in annualised proforma savings from operational expenditure cuts since June. Net debt totalled £86.3 million at the end of June, compared with £73.4 million on-year. Time Out plans to open at least six markets by the end of 2028, with management deals already signed for venues in Vancouver, Abu Dhabi, Riyadh and Prague. ‘Whilst our financial performance was below our internal targets, Time Out continues to be trusted and relevant as we inspire and enable growing numbers of people every month to experience the best of the city. We are confident that actions taken are swift and appropriate and we remain focused on executing our growth strategy,’ said Chief Executive Chris Ohlund. Also on Thursday, Time Out said it is carrying out a £8 million fundraise with £3.6 million to go towards technology and £4.4 million to cover ‘restructuring costs’, which the company expects to result in yearly savings of £3.5 million. This includes a share placing and a retail offer, both priced at 8.0 pence per share, which is roughly 30% lower than its 11.5p closing price on Wednesday. Time Out shares were down 23% to 8.80 pence around noon on Thursday in London. The stock is down 83% over the past year. Taking part in the placings are Time Out’s three largest shareholders. There is a conditional placing of 62.3 million shares to raise £5.1 million, through which Lombard Odier Asset Management Europe and Oakley Capital Ltd will take up 29.4 million and 4.4 million shares respectively. Oakley Capital Investments Ltd has committed to 2.3 million shares, and any leftover conditional placing shares, not taken up by other investors. The conditional placing is being carried out via accelerated bookbuild, with Panmure Liberum Ltd as nominated adviser and sole bookrunner. Time Out directors Chris Ohlund and Matt Pritchard intend to subscribe for a combined £120,000 in shares. In addition, there is a firm placing of 35.7 million shares, for gross proceeds of £2.9 million. Oakley Capital Investments Ltd has committed to take up all firm placing shares, which are expected to be admitted to trading on December 22. Time Out also has agreed a debt to equity conversion deal with Oakley Capital Ltd, which will see £4.9 million in outstanding debt converted to approximately 63.0 million new shares. The conditional placing, retail offer and conversion require shareholder approval, with a general meeting expected on or around January 6. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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