TIDMTMO
RNS Number : 2515U
Time Out Group plc
28 March 2019
28 March 2019
Time Out Group plc
("Time Out", the "Company" or the "Group")
Results for the year ended 31 December 2018
A year of significant progress
Financial highlights
-- Group revenue: 10% year-on-year growth to GBP48.8m (2017:
GBP44.4m), driven by a combination of 5% underlying growth(1) and
the full year impact of 2017 acquisitions(2)
-- Group gross profit: strong growth of 30% (23% underlying),
driven by material improvements in gross margins to 66% (2017:
56%)
-- Time Out Market: revenue growth of 51% to GBP9.0m, with Time
Out Market Lisbon delivering strong EBITDA in the period of
GBP4.3m, up 95% year-on-year (2017: GBP2.2m)
-- Time Out Media: revenue growth of 4% to GBP39.8m (-3%
underlying), primarily driven by digital advertising growth of 23%
(12% underlying); offset by underlying reductions in Live (-40%)
and Print (-7%), impacted by the strategic decision to discontinue
certain low margin events and print publications
-- Adjusted EBITDA(3) : significantly reduced loss of GBP8.1m
(2017: GBP14.2m loss), in line with expectations and a GBP6.1m
(43%) improvement on prior year
-- Operating loss: loss of GBP11.5m (2017: GBP24.6m), including
the GBP4.5m gain on disposal of the investment in Flyt
-- Net debt: GBP4.8m at 31 December 2018, which includes
available cash of GBP24.3m and debt of GBP29.1m
-- Funding: New EUR10 million loan secured in March 2019,
supporting growth ambitions for Time Out Market
Operational highlights
-- Time Out Market division: strong momentum continues
o Continued success of Time Out Market Lisbon, with a record
3.9m visitors (2017: 3.6m)
o Five new markets on track to open in North America this year,
including Miami (opening in Q2), New York (Q2), Boston (Q2),
Chicago (Q3), as well as Time Out Market's first management
agreement in Montréal (Q4)
o Time Out Market London-Waterloo conditional lease agreement
(planned 2021 opening) and Prague management agreement (2022
opening) signed
-- Time Out Media division: significant improvement in economics
o Gross margin improvements - strong operational focus
throughout 2018, helping drive a 9% (absolute) improvement to 60%
(2017: 51%); key measures included the discontinuation of low
margin live events, prioritisation of organic traffic and
optimisation of US print frequency and distribution
o Overhead savings - delivery of significant efficiencies
throughout 2018 which will further benefit 2019
(1) Underlying measures are presented on a constant currency
basis and exclude any 2018 results from acquisitions(2) in the
period prior to the first anniversary of joining the Time Out
Group
(2) Acquisitions include the Australia franchisee (acquired June
2017) and the Spain franchisee (acquired September 2017), and the
addition of Hong Kong (in May 2017) and Singapore (in October
2017)
(3) Adjusted measures are stated before interest, taxation,
depreciation, amortisation, share based payments, share of
associate's loss and exceptional items
Commenting on the results, Julio Bruno, CEO of Time Out Group
plc, said:
"I am pleased to report that Time Out has achieved a number of
key milestones in the last twelve months. Our Media business
materially grew its digital advertising revenue, in a challenging
market, and its focus on the most profitable activities drove a
significant improvement in the economics of the division. The Group
published its award-winning content in 207 more cities in 2018,
bringing the total to 315. Time Out Market Lisbon was visited by
almost four million people, driving 95% growth in EBITDA to
GBP4.3m. As part of the roll out of the Time Out Market format,
four new locations have been announced, including two management
agreements, bringing the total number of contracted sites to
ten.
In light of the progress made in 2018, we are confident in the
outlook for the Group in the year ahead. 2019 will be a
transformative year as Time Out opens its doors to five new markets
in Miami, New York, Boston, Chicago and Montréal. By the end of the
year, Time Out will have markets totalling 185,000 sq ft with
almost 4,000 seats and offering food from 120 of some of the best
chefs in these cities. Most importantly, whether on our print,
digital or physical platforms, we will continue to focus on
curating the best of the city, helping our global audience go out
better."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
For further information, please contact:
Time Out Group plc Tel: +44 (0)207
813 3000
Julio Bruno, CEO
Adam Silver, CFO
Steven Tredget, Investor Relations Director
Liberum (Nominated Adviser and Broker) Tel: +44 (0)203
100 2222
Steve Pearce / Trystan Cullen
FTI Consulting LLP Tel: +44 (0)203
727 1000
Edward Bridges / Stephanie Ellis
Notes to editors
About Time Out Group plc
Time Out Group is a global media and entertainment business that
helps people make the most of the city. Its digital and physical
presence comprises websites, mobile, magazines, Live Events and
Time Out Market. Across these platforms Time Out distributes its
curated content around the best food, drink, music, theatre, art,
travel and entertainment across 315 cities and in 58 countries.
Time Out, 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 Statement
Overview
Time Out Group is a global media and entertainment business that
helps people explore and enjoy the best of the city through its two
business divisions, Time Out Media (previously reported as Time Out
Digital) and Time Out Market. Time Out Media's digital and physical
media proposition comprises websites, mobile, social media,
magazines and live events. Across these platforms, Time Out
distributes its high-quality content - written and curated by local
expert journalists - around the best food, drinks, culture, travel
and entertainment in 315 cities and 58 countries. Since its launch
in 1968, Time Out has become a global brand that advertisers and
consumers love and trust. Time Out Market is a food and cultural
market leveraging the Time Out brand to bring the best of the city
under one roof: its best chefs, drinks and cultural experiences -
based on editorial curation. The first Time Out Market opened in
Lisbon in 2014 and new openings are scheduled in 2019 in Miami, New
York, Boston, Chicago and Montréal, with a further pipeline of
other global locations.
Operational review
The following KPIs are used by the Group to assess its
performance against its objectives:
Operating KPIs 2018 2017 Change
--------- --------- ----------------
Traffic:
Global unique visitors -
monthly average 21.4m 22.6m (1.2)m (5)%
O&O(1) unique visitors -
monthly average 17.3m 16.7m 0.6m 4%
E-commerce (000s):
Time Out members(2) 3,297 2,840 457 16%
Transactions 355 403 (47) (12)%
Transactions (excluding
Live Events) 326 332 (6) (2)%
Premium Profiles:
Active listers 1,049 1,230 (181) (15)%
Time Out Market:
Total tenant turnover GBP33.5m GBP29.3m GBP4.2m 14%
Visitors 3.9m 3.6m 0.3m 8%
(1) O&O is the Time Out 'owned and operated' business.
Monthly average is calculated as a rolling 12-month average
(2) Members who have opted in and engaged with Time Out in the
last 12 months
Audience & traffic development
During the year, the Group achieved an average global monthly
audience reach of 144 million, 33% lower than prior year. This
decline was primarily the result of a Facebook algorithm change in
early 2018 which de-prioritised publishers' content, heavily
impacting many online content brands and driving Time Out's average
Facebook reach from 178 million in 2017 to 106 million in 2018.
Although this has affected Time Out's social media reach, the
average number of social media followers has increased by 16% to
15.6m and Time Out continues to grow other platforms, such as
Instagram, where average monthly video views have increased by 37%
and followers by 149%.
Despite this decline in overall social media reach, which only
accounts for 20% of Time Out website traffic, the Group grew
O&O unique visitors by 4% in the period. This is a clear
reflection of the attractiveness and excellent organic search
performance of Time Out's unique content, with SEO traffic
increasing 13% and now representing 70% of Time Out web traffic.
Lisbon web traffic grew particularly well (+45%), further
demonstrating the halo effect that Time Out Market has on Time Out
Media, the Group's media division.
To help grow audience through content, Time Out has
significantly increased the number of cities with expert local
curated content to 315 (2017: 108), with the creation and global
distribution of the DO list, EAT list and DRINK list. The results
of this initiative have been very encouraging with an incremental
one million visits per month. During 2018, the Group also launched
a Madrid magazine, as well as a Hong Kong magazine in traditional
Chinese, to complement the digital, mobile and social presence in
those cities.
Strong progress with the Group's CRM strategy was made during
the year, with opted-in members growing by 16% to 3.3 million,
despite the implementation of GDPR. A new CRM system has enabled
greater personalisation and targeting of communication with
material year-on-year improvements in all key metrics such as
delivery rates (from 80% to 98%), open rates (10.4% to 17.4%) and
click-through rates (0.8% to 1.4%). New placements have been
implemented on desktop and mobile to make email sign-up easier and
members continue to also be acquired through wifi sign-up in Time
Out Market Lisbon and the effective use of competitions.
Throughout the year, Time Out Group generated over 1,000 pieces
of press coverage globally across traditional and digital media.
This PR effort was focused on increasing awareness around what the
business stands for today, and activations included Time Out's 50th
anniversary and various Time Out Market PR announcements which
consistently drove positive sentiment ahead of the 2019 market
openings. In June 2018, Time Out won the International Media Brand
of the Year which was awarded by the Professional Publishers
Association (PPA), one of the UK's leading media bodies. The judges
chose Time Out for this prestigious award as it is a "genuinely
global brand" and because of its "incredible international reach
and growth".
Business performance
The performance of the Group is as follows:
Year ended Year ended
31 December 31 December Underlying
2018 2017 Change Change(1)
GBP'000 GBP'000 % %
------------- ------------- ------- -----------
Digital advertising 14,899 12,112 23% 12%
Premium Profiles 2,056 2,071 (1)% 0%
E-commerce 6,273 7,316 (14)% (15)%
-------------------------- ------------- ------------- ------- -----------
Affiliates & Offers 3,830 3,351 14% 14%
Live events 2,443 3,965 (38)% (40)%
-------------------------- ------------- ------------- ------- -----------
Digital revenue 23,228 21,499 8% 1%
Print 15,387 15,493 (1)% (7)%
International 1,164 1,401 (17)% (10)%
------------- -----------
Time Out Media 39,779 38,393 4% (3)%
Time Out Market 8,999 5,971 51% 49%
-------
Group revenue 48,778 44,364 10% 5%
------------- ------------- ------- -----------
Gross profit 32,046 24,655 30% 23%
------------- ------------- ------- -----------
Operating expenditure (40,163) (38,872) (3)% 2%
------------- ------------- ------- -----------
Adjusted EBITDA (8,117) (14,217) 43% 46%
------------- ------------- ------- -----------
Gross margin % 66% 56% 18%
-------------------------- ------------- ------------- -------
(1) Underlying measures are presented on a constant currency
basis and exclude any 2018 results from acquisitions(2) in the
period prior to the first anniversary of joining the Time Out
Group
(2) Acquisitions include the Australia franchisee (acquired June
2017) and the Spain franchisee (acquired September 2017), and the
addition of Hong Kong (in May 2017) and Singapore (in October
2017)
TIME OUT MEDIA
Digital advertising
Digital advertising revenue grew 23% year-on-year (12%
underlying) with the strongest growth coming from the UK (17%) and
Portugal (40%), the latter of which continues to gain from the halo
effect of Time Out Market. US digital advertising revenue grew 1%
in the year. The division continues to benefit from ongoing
technology investments, with ad viewability improving 28 percentage
points to an average of 73.5% in December 2018, load speeds
reducing by 38% by December 2018 and new video and programmatic
capabilities being launched.
The Group's global approach and proposition has continued to
reap rewards during the year and cross-platform creative solutions
remain an increasingly important driver of digital advertising
revenue with high-profile campaigns in the year for clients
including Facebook, Deliveroo, British Airways, Cadburys, Unilever,
TAP, Verizon, Samsung, Google, Apple and Netflix. One such example
is the Transport for London (TfL) partnership which ran for nine
months in 2018. As a London-centric advertiser, the Time Out
audience was an ideal fit for TfL. The campaign combined Time Out
editorial with high-impact digital and print formats to enable TfL
to transmit its message and shift awareness of TfL price variances
in off-peak times, and to change customer behaviour to increase
engagement with activities around London. Time Out also partnered
with Apple, helping the brand reach its global audience and
generate awareness of the free in-store "Today at Apple Classes".
Time Out was able to deliver on the international brief by serving
high-impact rich media takeovers in San Francisco, Chicago, New
York, London, Milan, Singapore, and Dubai. The Group's focus on
certain key sectors has also paid dividends with travel sector
advertising revenue doubling in the year.
The development of the Group's programmatic capabilities across
all markets was a key priority in 2018, with revenue growing 31%
year-on-year. The most significant technology improvement was the
implementation of 'header bidding', using Prebid open source
technology. Once in place, this enabled the media sales team to
expand the number of exchange partners Time Out works with
(including programmatic video advertising) and to create a robust
bidding environment for in-page inventory that has driven CPM
increases.
Print advertising
Global print revenue of GBP15.4 million was slightly down
year-on-year by 1% (-7% underlying) but was impacted by the
strategic decision to reduce the frequency of some US print
publications, as outlined below. The UK had a strong year, growing
magazine revenue by 2% in a sector which is estimated to have
declined by 8%(1) ; this is further evidence of the quality and
authority of the brand in its 50(th) year, as well as the desirable
audience that Time Out continues to reach. Key drivers were strong
sales of cover wraps and successful Kids, Property and Travel
supplements during the year.
US print performance has been more challenging, with revenue
down 36% year-on-year. This has been heavily impacted by
significant changes throughout the US sales organisation,
challenging market conditions (US print sector declined 17%(2) )
and the strategic decisions to reduce the frequency of the New York
magazine to fortnightly and discontinue low margin publications in
smaller cities such as Austin and Philadelphia.
During the year, new magazines were launched in Madrid and Hong
Kong, and there has been growing demand for custom print solutions
from clients across all markets, especially Tourism Boards.
Combined with the aforementioned changes to US frequency,
decisive action has been taken during the year to deliver
efficiencies in print, paper and distribution, with gross margin
improvements achieved in the second half of the year which are
expected to continue into 2019.
Source: (1) Group M, This Year Next Year, Dec 2018; (2) Magna
Advertising Forecasts (Winter 2018 update), Dec 2018
E-commerce (including Live)
Affiliate & Offers revenue grew 14% year-on-year despite
transaction volumes falling 2%, the latter of which was a direct
result of the decision to cut spend on traffic acquisition and to
focus on higher margin organic traffic. This strong revenue growth
was driven by higher value Offers - primarily the roll-out of
restaurant boxes, which increased from five, in Lisbon and London
in 2017, to 14 (including new boxes in Spain and New York). Due to
the above, Affiliates & Offers gross margins materially
increased year-on-year from 18% to 52%.
Overall e-commerce (including Live) revenue declined 14%
year-on-year, and transaction volumes by 12%, but this was entirely
driven by Live events (38% year-on-year revenue decline) and the
direct result of the strategic decision to discontinue low margin
events, focusing instead on larger, sponsor-led events or those
forming part of a (typically cross-platform) creative solution. An
example in the year of such a campaign was an integrated
partnership for Deliveroo, combining inspiring content about the
best of London's food scene with digital and print media exposure
promoting four unique Food Battles. From Battle of the Burger to
Fried Chicken Prize Fight, over 1,000 paying customers attended
each event to try superb cuisine cooked by top vendors, with one
winner crowned at the end of each event.
Premium Profiles
Active listers fell 15% year-on-year, impacted by a combination
of London high street conditions (with restaurants and bars facing
budgetary constraints) and staff changes within the sales team. In
spite of this decline, revenue held up well (-1% year-on-year)
reflecting the increasing average order values of new listers
(through bundling of subscriptions and add-on advertising
solutions), a focus on upselling to existing listers and the
relatively low order values of listers which have churned during
the period.
International franchises
Revenue from international franchises decreased 17%
year-on-year. This was impacted by Australia, Spain, Hong Kong and
Singapore franchises becoming O&O markets in 2017, with
underlying revenues down 10% year-on-year. Despite this decline,
this business line continues to make a material contribution to
Time Out Media given the limited associated costs.
TIME OUT MARKET
The Time Out Market strategy comprises two business models,
Owned & Operated (e.g. Time Out Market Lisbon) and Management
Agreements (e.g. Time Out Market Montréal). Under both models, Time
Out Market will take responsibility for the design, curation,
branding and day-to-day operational management of the market, with
the market primarily generating revenue from a share of food
turnover and bar sales. Under a management agreement, however, the
real estate partner funds all capital and operational expenditure
and, in return, the Group will receive a pre-development fee and,
once the market is trading, a share of revenue and profit of that
market (subject to a minimum guaranteed fee). While the profit
potential is therefore lower under a management agreement, it
enables Time Out to scale the Time Out Market concept and expand
the brand, with no capital requirement, especially into territories
where Time Out does not currently have a material presence.
2018 has been a year of significant progress for the Time Out
Market division on all fronts. Time Out Market Lisbon had another
outstanding year of trading, with a record 3.9 million visitors
helping drive growth in total tenant turnover by 14%. Along with
the successful implementation of improved contract terms with
tenants, this has enabled Time Out Market Lisbon to deliver 48%
revenue growth and EBITDA of GBP4.3m (+95%).
In addition to the highly successful Lisbon market, the Group is
on track to launch five new markets in North America in 2019 with
unparalleled chef line-ups and exceptional PR coverage.
-- Miami - Scheduled to open in Q2 2019. Just off Miami South
Beach's Lincoln Road, at 1601 Drexel Avenue, Time Out Market Miami
offers 18 kitchens, three bars, a demo kitchen and an art space
across 18,200 sq ft, accommodating 320 seats indoors and 120
outdoors. The fully signed line-up features some of Miami's most
celebrated chefs including James Beard Award-winner Norman van
Aken; Top Chef Season 13 winner Jeremy Ford; Antonio Bachour, one
of the world's greatest pastry chefs; Suzy Batlle with her
legendary creamery Azucar and Chef of the Year nominee Michael
Beltran.
-- New York - Scheduled to open in Q2 2019. Located in DUMBO,
Brooklyn at 55 Water Street, Time Out Market New York will occupy
two floors of the historic Empire Stores. The original site has
been extended, with additional riverside access space secured. A
rooftop will offer impressive views of the Brooklyn Bridge and
lower Manhattan skyline. Across 21,000 sq ft, there will be 21
kitchens, three bars and a performance stage, accommodating 630
seats indoors and outdoors. The chef line-up is almost complete and
includes Nur, Chef Ivy Stark, pizza legend Juliana's, Reserve Cut
(with a fully Kosher concept) and internationally-renowned Clinton
St. Baking Company & Restaurant.
-- Boston - Scheduled to open in Q2 2019. Time Out Market Boston
will be in the 401 Park Drive building at the heart of the Fenway
neighbourhood, home to city's highest concentration of cultural
institutions, nightlife, shopping, universities and colleges, as
well as Fenway Park, home to the Boston Red Sox - all attracting
millions of visitors to the area each year. It will showcase 15
kitchens, two bars, a demo kitchen and a retail shop across 25,500
sq ft, accommodating 500 seats indoors and 136 seats outdoors. The
inaugural line-up of noted chefs includes James Beard Award winners
Tony Maws, Michael Schlow and Tim & Nancy Cushman.
-- Chicago - Scheduled to open in Q3 2019 with construction well
underway. Located at 916 W Fulton Market - at the centre of the
Fulton Market District - the 50,000 sq ft space will feature 18
kitchens, three bars, a demo kitchen and retail area across three
floors, accommodating 600 seats indoors and 140 outdoors. Time Out
Market Chicago will house an event venue, a viewing and
entertainment platform with bleacher seating and a rooftop bar. The
first notable and award-winning chefs to join the line-up were
announced in March 2019 and include Brian Fisher of
Michelin-starred Entente, Bill Kim and Zoe Schor.
-- Montréal - Scheduled to open in Q4 2019. In May 2018, the
Group entered into the first Time Out Market management agreement
in Montréal, partnering with global real estate company Ivanhoé
Cambridge. Located in the Centre Eaton de Montréal, on
Sainte-Catherine Street downtown, Time Out Market Montréal will
showcase 17 top chefs and restaurateurs. Across 40,000 sq ft, there
will also be two bars, a demo kitchen, cooking academy, retail shop
and cultural stage, accommodating 550 seats. Under the management
agreement, Time Out Market will take primary responsibility for
branding, curation and day-to-day management, in return for a share
of revenue and profit (subject to a minimum guaranteed management
fee). This requires no capital expenditure by the Group.
Beyond 2019, the schedule of planned openings, including a mix
of owned & operated and management contracts, is very strong
until 2022.
-- London (Waterloo) - In December 2018, the Board signed a
lease agreement for a new Time Out Market in London-Waterloo. Based
in the popular South Bank, it will anchor the new retail and
leisure development in the former Waterloo Eurostar Terminal.
Expected to open in 2021, it will occupy 32,500 sq. ft over two
floors and accommodate 17 kitchens and 518 seats.
-- Porto - Project plans were submitted to UNESCO for approval
in February 2018. In early 2019, a further submission of
information was delivered to UNESCO which is now pending
approval.
-- London (Spitalfields) - With the support of the landlord, the
Group has completed design amendments with the formal application
due to be submitted in Q2 2019. The potential opening, from late
2020 onwards, is subject to the usual planning and licensing
approvals.
-- Prague - In Q4 2018, the Group entered into its second
management agreement, partnering with Crestyl Group. With opening
expected in early 2022, Time Out Market Prague will be located at
the heart of the historic city centre near the famous Wenceslas
Square, the city's main retail and cultural centre.
The Time Out Market division incurred central costs of GBP2.5m
(2017: GBP1.8m), in addition to pre-opening costs of GBP0.8m (2017:
GBP0.2m) in respect of new markets.
The Group continues to consider proposals for new locations in
other cities around the world, including a strong interest in
management agreements, often in cities where Time Out has limited
or no presence, reinforcing the strength of Time Out's global
brand. Given these agreements require no capital investment, they
are expected to form an important part of the portfolio mix as Time
Out Market is rolled out over the coming years.
Financial performance
Revenue
Reported Group revenue for the year has increased by 10% from
GBP44.4m to GBP48.8m through a combination of organic growth and
the acquisition of Time Out franchise partners in Australia and
Spain, and the additions of Singapore and Hong Kong. Underlying
growth was GBP2.0m (a 5% year-on-year increase).
Gross margin
As detailed above, a clear focus of the Group over the year was
to improve gross margins, which helped drive a 30% increase in
gross profit. The overall gross margin of the Group improved by ten
percentage points to 66%. This was predominantly driven by a
curtailment of lower margin live events and print publications,
improvements to print operations and the prioritisation of organic
traffic. In addition, the gross margin in Time Out Market increased
by three percentage points to 89% driven by the implementation of
improved contract terms with the chefs and restaurateurs in the
Lisbon market.
Operating expenditure
Group operating expenditure before exceptional costs, share
based payments, depreciation, amortisation and the share of
associate income was GBP40.2m (2017: GBP38.9m). Of this increase,
GBP2.6m relates to incremental operating costs of acquired
businesses. Time Out Media underlying operating costs decreased by
GBP2.5m (a 7% saving). Time Out Market operating costs increased by
GBP1.7m driven by the set-up costs associated with the global
roll-out of new markets and the growth in the Lisbon market.
Adjusted corporate costs of GBP1.6m (2017: GBP1.9m) include the
costs of the central management team and related costs of
administering the listed entity. The annual saving is due to
non-recurring costs following the 2016 IPO and lower executive
remuneration.
Adjusted EBITDA
Adjusted EBITDA represents the profit or loss before interest,
taxation, depreciation, amortisation, share based payments, share
of associate's loss and exceptional items.
Adjusted EBITDA loss was GBP8.1m (2017: GBP14.2m loss), a
significant year-on-year improvement of GBP6.1m driven by higher
gross margins, underlying reductions in the overhead cost base and
the continuing growth of Time Out Market. This is further reflected
by a loss of GBP1.7m in the second half compared to the H1 loss of
GBP6.4m reported in the 2018 interim statement.
Time Out Media delivered an EBITDA loss of GBP7.9m (2017:
GBP12.5m loss), with a 40% underlying improvement of GBP4.9m.
Time Out Market Lisbon delivered an adjusted EBITDA of GBP4.3m
(2017: GBP2.2 million). After the costs of the central team and
pre-opening costs relating to the 2019 market openings, the Time
Out Market division delivered adjusted EBITDA of GBP1.3m (2017:
GBP0.2m).
Exceptional items
The net exceptional gain of GBP3.1m (2017: GBP3.2m loss )
principally relates to the GBP4.5m profit on disposal of the
Group's investment in Flyt Limited, partially offset by staff
restructuring costs of GBP0.8m (2017: GBP1.8m) and a GBP0.6m (2017:
GBP0.6m) non-cash charge relating to the revaluation of the option
over the minority interest in Time Out Market Lisbon.
Prior year exceptional costs also included GBP0.5m related to
acquisitions and GBP0.2m of office relocation costs.
Share based payments
The value of these options at issuance has been amortised over
the time to vesting of the option. There were 9.7m options
outstanding at year end (2017: 10.9m).
Operating loss
The operating loss for the year was GBP11.5m (2017: GBP24.6m)
including depreciation of GBP1.1m (2017: GBP1.1m) and amortisation
of intangible assets of GBP4.6m (2017: GBP4.4m).
The amortisation of intangible assets included GBP2.2m (2017:
GBP2.3m) relating to acquired intangible assets. Other intangible
asset amortisation, primarily amortisation of software both
acquired and internally developed, was GBP2.3m (2017: GBP2.1m).
Net finance costs
Net finance costs in 2018 of GBP2.5m (2017: GBP0.8m) comprise
interest on debt, the foreign exchange loss on financial assets and
the amortisation of deferred financing costs.
Foreign exchange
The revenue and costs of Group entities reporting in dollars
have been consolidated in these financial statements at an average
exchange rate of $1.34 (2017: $1.29). The operations reporting in
euros have been consolidated at a rate of EUR1.13 (2017:
EUR1.14).
Associates
The Group disposed of its 37.8% shareholding in Flyt Limited on
21 December 2018. Flyt is a mobile technology platform providing
solutions for ordering and payment within the hospitality sector.
The investment was accounted for as an associate up to the date of
disposal. Group's share of Flyt's loss for the year was GBP1.2m
(2017: GBP1.0m) and is included as 'Share of associate's loss' on
the income statement. The profit on the disposal was GBP4.5m and is
included within exceptional items for the year.
Cash flow
2018 2017
GBP'000 GBP'000
--------- ---------
Adjusted EBITDA (8,117) (14,217)
Movement in working capital (3,169) (3,725)
Other movements 219 92
--------- ---------
Cash used in operations (11,067) (17,942)
Exceptional cash flows (823) (2,877)
Capital expenditure (17,906) (4,386)
Operating cash flow (29,795) (25,205)
Net interest paid (1,147) (389)
Tax (paid)/received (228) 3
Free cash flow (31,171) (25,591)
Advance of new borrowings 20,000 7,809
Repayment of borrowings (3,044) (1,169)
Proceeds from the disposal of investment 9,470 -
Repayment of finance leases - (59)
Costs relating to share issue - (5)
Acquisition of non-controlling interest - (196)
Acquisitions of subsidiaries, net of cash - (470)
Movement in cash and cash equivalents (4,746) (19,681)
--------- ---------
Operating cash flow
The cash used in operations before exceptional costs was
GBP11.1m (2017: GBP17.9m) including a net working capital outflow
of GBP3.2m (2017: GBP3.7m).
The capital expenditure cash outflow of GBP17.9m (2017: GBP4.4m)
includes GBP15.0m (2017: GBP1.5m) in respect of the development of
new Time Out Market locations and GBP2.9m (2017: GBP2.5m) of
capitalised software development costs relating to the teams
working on the website and digital platforms.
Net cash and borrowings
At 31 December At 31 December
2018 2017
GBP'000 GBP'000
Cash and cash equivalents 24,347 28,746
Borrowings (29,110) (9,398)
--------------- ---------------
Net (debt)/ cash (4,763) 19,348
=============== ===============
Cash and cash equivalents represent available cash balances of
GBP18.1m and GBP6.3m held in escrow accounts to meet the near-term
capital expenditure requirements of Time Out Market in Boston and
Miami.
The Group has a GBP20.0m term loan facility agreement with
Oakley Capital Investments Limited ("OCI"). The initial facility
was for a period of 19 months expiring on 31 October 2019 and had
an interest rate of between 10% to 15% depending on amounts drawn.
During the year, the facility was converted into a Loan Note
agreement, with an extended term to 31 October 2020. In return for
granting security over certain assets, the previous interest rate
mechanism was also replaced with a flat rate of 12%. At year end,
the full facility has been drawn with the proceeds used to fund
future Time Out Market developments.
Furthermore, the option over an additional debt facility of
GBP18.0m remains available should the Board deem it in the best
interests of the Group and its shareholders.
In March 2019, Time Out Market increased its current loan from
Incus Capital Advisors, S.L. by an additional EUR10.0m, principally
on the same economic terms as the EUR9.0m loan secured in November
2017.
Outlook
The significant progress made in 2018 is expected to continue in
2019 with Time Out Market opening five new markets and Lisbon
delivering strong EBITDA growth. The economics of Time Out Media
will continue to improve as a result of the Group's strong focus on
digital advertising growth, gross margin improvements and overhead
efficiencies.
Management remains confident in the trading outlook for the year
ahead.
Julio Bruno
Group Chief Executive Officer
28 March 2019
Consolidated Income statement
Year ended 31 December 2018
Year ended Year ended
31 December 31 December
Note 2018 2017
------------- -------------
GBP'000 GBP'000
Revenue 5 48,778 44,364
Cost of sales 5 (16,732) (19,709)
------------- -------------
Gross profit 32,046 24,655
Administrative expenses (43,480) (49,293)
------------- -------------
Operating loss (11,434) (24,638)
Finance income 76 72
Finance costs (2,616) (825)
Share of associate's loss and gain
on investment (1,198) (954)
------------- -------------
Loss before income tax (15,172) (26,345)
Income tax credit (317) 325
------------- -------------
Loss for the year (15,489) (26,020)
------------- -------------
Loss for the year attributable to:
Owners of the parent (14,630) (25,048)
Non-controlling interests (859) (972)
(15,489) (26,020)
------------- -------------
Loss per share:
Basic and diluted loss per share (pence) 7 10.9 19.0
All amounts relate to continuing operations.
Consolidated Statement of Other Comprehensive Income
Year ended 31 December 2018
Year ended Year ended
31 December 31 December
2018 2017
------------- -------------
GBP'000 GBP'000
Loss for the year (15,489) (26,020)
Other comprehensive income:
Items that may be subsequently reclassified
to the profit or loss:
Currency translation differences 3,042 (3,151)
Other comprehensive income for the year,
net of tax 3,042 (3,151)
Total comprehensive expense for the year (12,447) (29,171)
------------- -------------
Total comprehensive expense for the year
attributable to:
Owners of the parent (11,734) (28,169)
Non-controlling interests (713) (1,002)
(12,447) (29,171)
------------- -------------
Consolidated Statement of Financial Position
At 31 December 2018
31 December 31 December
Note 2018 2017
------------ ------------
GBP'000 GBP'000
Assets
Fixed Assets and Investments
Intangible assets - Goodwill 8 51,703 50,057
Intangible assets - Other 17,735 19,044
Property, plant and equipment 25,716 8,834
Investment in associate - 6,199
Trade and other receivables - non current 5,154 958
100,308 85,092
------------ ------------
Current assets
Inventories 376 276
Trade and other receivables 15,118 14,602
Cash and bank balances 9 24,347 29,839
39,841 44,717
------------ ------------
Total assets 140,149 129,809
------------ ------------
Liabilities
Current liabilities
Trade and other payables (20,352) (17,839)
Provisions - (67)
Borrowings 10 (1,106) (1,220)
(21,458) (19,126)
------------ ------------
Non-current liabilities
Trade and other payables (1,451) (2,291)
Deferred tax liability (2,357) (2,623)
Borrowings 10 (28,004) (8,178)
(31,812) (13,092)
------------ ------------
Total liabilities (53,270) (32,218)
------------ ------------
Net assets 86,879 97,591
------------ ------------
Equity
Called up share capital 135 133
Share premium 106,937 106,042
Translation reserve 8,941 6,045
Capital redemption reserve 1,105 1,105
Retained earnings/ (accumulated losses) (28,288) (14,496)
Total parent shareholders' equity 88,830 98,829
------------ ------------
Non-controlling interest (1,951) (1,238)
Total equity 86,879 97,591
------------ ------------
Consolidated Statement of Changes in Equity
Year ended 31 December 2018
Called Retained
up Capital earnings/ Total parent Non-
Share Share Translation Redemption (Accumulated Shareholders' Controlling Total
Note capital premium reserve reserve losses) equity interest equity
-------- -------- ------------ ----------- ------------- -------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 December
2016 131 103,071 9,166 1,105 9,025 122,498 (236) 122,262
Changes in
equity
Loss for the year - - - - (25,048) (25,048) (972) (26,020)
Other comprehensive
income - - (3,121) - - (3,121) (30) (3,151)
Total comprehensive
income - - (3,121) - (25,048) (28,169) (1,002) (29,171)
Share-based payments - - - - 1,527 1,527 - 1,527
Issue of shares for
acquisitions 2 2,971 - - - 2,973 - 2,973
Balance at 31 December
2017 133 106,042 6,045 1,105 (14,496) 98,829 (1,238) 97,591
Changes in
equity
Loss for the year - - - - (14,630) (14,630) (859) (15,489)
Other comprehensive
income - - 2,896 - - 2,896 146 3,042
Total comprehensive
income - - 2,896 - (14,630) (11,734) (713) (12,447)
Share-based payments - - - - 838 838 - 838
Issue of shares for
acquisitions 2 895 - - - 897 - 897
-------- -------- ------------ ----------- ------------- -------------- ------------ ---------
Balance at 31 December
2018 135 106,937 8,941 1,105 (28,288) 88,830 (1,951) 86,879
-------- -------- ------------ ----------- ------------- -------------- ------------ ---------
Consolidated Statement of Cash Flows
Year ended Year ended
31 December 31 December
Note 2018 2017
------------- -------------
GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations 11 (11,817) (20,819)
Interest paid (1,223) (459)
Tax credits received (228) 3
Net cash used in operating activities (13,268) (21,275)
Cash flows from investing activities
Purchase of property, plant and equipment (14,989) (1,954)
Purchase of intangible assets (2,917) (2,432)
Interest received 76 70
Proceeds from sale of investments 9,470 -
Acquisition of subsidiaries, net of
cash acquired - (470)
Net cash used in investing activities (8,360) (4,786)
Cash flows from financing activities
Advance of new borrowings 20,000 7,809
Repayment of borrowings (3,044) (1,169)
Costs relating to share issue - (5)
Repayment of finance leases (74) (59)
Acquisition of minority interest - (196)
Cash to restricted cash - (1,093)
Net cash from financing activities 16,882 5,287
Increase in cash and cash equivalents (4,746) (20,774)
Cash and cash equivalents at beginning
of year 28,746 50,082
Effect of foreign exchange rate change 347 (562)
Cash and cash equivalents at end of
year 24,347 28,746
------------- -------------
Notes to the Accounts
Year ended 31 December 2018
1. Basis of Preparation
The financial information in this preliminary announcement has
been extracted from the Group audited financial statements for the
year ended 31 December 2018 and does not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. The Group financial statements and this preliminary
announcement were approved by the Board of Directors on 27 March
2018.
The auditors have reported on the Group's financial statements
for the years ended 31 December 2018 and 31 December 2017 under
s495 of the Companies Act 2006. The Auditors' reports are
unqualified and do not contain a statement under section 498(2) or
(3) of the Companies Act 2006. The Group's statutory financial
statements for the year ended 31 December 2017 have been filed with
the Registrar of Companies and those for the year ended 31 December
2018 will be filed following the Company's Annual General
Meeting.
The Group's financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRSs') and IFRS Interpretations Committee ('IFRS IC') as adopted
and endorsed by the European Union and have been prepared under the
historical cost convention.
The same accounting policies, presentation and computation
methods are followed in this preliminary announcement as in the
preparation of the Group financial statements. The accounting
policies have been applied consistently by the Group year-on-year,
except as described below:
-- IFRS 15, 'Revenue from contracts with customers' was
implemented on 1 January 2018. There was no impact on the group on
implementation;
-- IFRS 9, 'Financial Instruments' was implemented on 1 January
2018. Except for disclosure related changes, there was no impact on
the group on implementation.
2. Going concern
The Directors confirm they have a reasonable expectation that
the Company and Group has adequate resources to continue in
operation for the foreseeable future and at least 12 months from
the date of signing the Group and Company financial statements and
consider it appropriate to adopt the going concern basis of
accounting in preparing the Group and Company financial
statements.
This confirmation is made having considered its current
financial position, latest trading forecasts and the capital
expenditure requirements of the growing Time Out Market business.
The Directors have subjected the forecasts to sensitivity analysis
and considered the options available to mitigate any downside
risks. The Group's available cash at 31 December 2018 was GBP24.3m,
comprising GBP18.1m cash at bank and GBP6.2m in escrow at available
for use towards Time Out Market construction costs. The Group also
has the option over an undrawn debt facility of GBP18.0m. In
addition, the Group secured additional funding of EUR10.0m in March
2019.
For these reasons, they continue to adopt the going concern
basis of accounting in preparing these financial statements.
3. Exchange rates
The significant exchange rates to UK Sterling for the Group are
as follows:
2018 2017
------------------ ------------------
Closing Average Closing Average
rate rate rate rate
-------- -------- -------- --------
US dollar 1.27 1.34 1.35 1.29
Euro 1.11 1.13 1.13 1.14
Hong Kong dollar 9.97 10.51 10.54 10.18
Singaporean dollar 1.74 1.81 1.80 1.80
Australian dollar 1.81 1.79 1.73 1.69
4. Segmental information
In accordance with IFRS 8, the Group's operating segments are
based on the figures reviewed by the Board, which represents the
chief operating decision maker. During the year a review was
undertaken as to how operations are monitored and resources are
allocated to achieve the Group's strategy. This review concluded
that the Digital, Print and International segments should be
combined. Therefore, the Group now comprises two operating
segments:
-- Time Out Media - this includes the sale of digital and print
advertising, local business listings ("Premium Profiles"), Live
Events tickets and sponsorship, commissions generated by online
bookings and transactions ("Affiliates & Offers"), and fees
from third party licensees.
-- Time Out Market - predominantly turnover related rent from
restaurants in the market and charges for service. It also includes
owned bar revenue and ancillary revenue including the Time Out
Store, Cooking Academy and studio rentals.
Year ended 31 December 2018
Time Out Time Out Corporate
Media Market Costs Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 39,779 8,999 - 48,778
Cost of sales (15,744) (988) - (16,732)
Gross profit 24,035 8,011 - 32,046
--------- --------- ---------- ---------
Administrative expenses (37,786) (8,633) 2,939 (43,480)
--------- --------- ----------
Operating loss (13,751) (622) 2,938 (11,434)
---------------------------------- --------- --------- ---------- ---------
Analysed as
Adjusted EBITDA loss (7,896) 1,374 (1,595) (8,117)
Share based payments (838) - (838)
Exceptional items (813) (514) 4,534 3,207
---------------------------------- --------- --------- ---------- ---------
EBITDA loss (9,547) 860 2,939 (5,748)
Depreciation of property, plant
and equipment (443) (626) - (1,069)
Amortisation of intangible
assets (3,758) (834) - (4,592)
Loss on disposal of fixed assets (3) (22) - (25)
---------------------------------- --------- --------- ---------- ---------
Operating loss (13,751) (622) 2,939 (11,434)
---------------------------------- --------- --------- ---------- ---------
Finance income 76
Finance costs (2,616)
Share of associate's loss (1,198)
Loss before income tax (15,172)
Income tax credit (317)
Loss for the year (15,489)
---------
Year ended 31 December 2017
Time Out Time Out Corporate
Media Market Costs Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 38,393 5,971 - 44,364
Cost of sales (18,877) (832) - (19,709)
Gross profit 19,516 5,139 - 24,655
--------- --------- ---------- ---------
Administrative expenses (39,862) (6,952) (2,479) (49,293)
--------- --------- ---------- ---------
Operating loss (20,346) (1,813) (2,479) (24,638)
---------------------------------- --------- --------- ---------- ---------
Analysed as
Adjusted EBITDA loss (12,523) 239 (1,933) (14,217)
Share based payments (1,527) - - (1,527)
Exceptional items (2,013) (596) (546) (3,155)
---------------------------------- --------- --------- ---------- ---------
EBITDA loss (16,063) (357) (2,479) (18,899)
Depreciation of property, plant
and equipment (537) (587) - (1,124)
Amortisation of intangible
assets (3,593) (827) - (4,420)
Loss on disposal of fixed assets (153) (42) - (195)
---------------------------------- --------- --------- ---------- ---------
Operating loss (20,346) (1,813) (2,479) (24,638)
---------------------------------- --------- --------- ---------- ---------
Finance income 72
Finance costs (825)
Share of associate's loss (954)
---------
Loss before income tax (26,345)
Income tax credit 325
---------
Loss for the year (26,020)
---------
Revenue is analysed geographically by origin as follows:
2018 2017
-------- --------
GBP'000 GBP'000
Europe 33,736 26,575
Americas 11,149 14,313
Rest of World 3,893 3,476
48,778 44,364
-------- --------
The Group earns its revenues by selling both goods and services.
These can be analysed as follows:
2018 2017
-------- --------
GBP'000 GBP'000
Print advertising and circulation 15,387 15,493
Digital advertising 14,899 12,112
Premium profiles 2,056 2,071
E-commerce 6,273 7,316
International 1,164 1,401
Market 8,999 5,971
48,778 44,364
-------- --------
There are no revenues from any single customer that exceed 10%
of the Group's revenues.
5. Exceptional items
Costs/(income) are analysed as follows:
2018 2017
-------- --------
GBP'000 GBP'000
Restructuring costs 802 1,787
Adjustment to deferred consideration (65) -
Fees relating to acquisitions in the year - 539
Advisory fees in relation to the IPO - 7
Fair value loss on minority interest 514 596
Gain on disposal of investment in associate (4,469) -
Office relocation costs 11 226
(3,207) 3,155
-------- --------
The 2018 restructuring costs include employee redundancy costs
as part of moving the business to a global model and is part of the
initiative started in 2017. The acquisition fees relate to final
fees in respect of prior year acquisitions. The office relocation
costs relate to additional work required after the company
relocated in November 2017. The fair value loss relates to the
minority interest held in Time Out Market. The profit on disposal
relates to the sale of shares on Flyt Limited, an associate
investment.
The 2017 restructuring costs include employee redundancy costs
incurred to as part of a plan to shift the business to a global
model. The acquisition fees are costs associated with the
acquisition of subsidiaries and associates in the period and
include a partial release of the provision made in 2016 for an
onerous lease.
6. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to Shareholders by the weighted average number of
shares during the year.
For diluted loss per share, the weighted average number of
shares in issue is adjusted to assume conversion for all dilutive
potential shares. All potential ordinary shares including options
and deferred shares are antidilutive as they would decrease the
loss per share, and are therefore not considered. Diluted loss per
share is equal to basic loss per share.
2018 2017
------------ ------------
Number Number
Weighted average number of ordinary shares
for the purpose of basic and diluted loss
per share 132,857,852 131,985,250
GBP'000 GBP'000
------------ ------------
Loss from continuing operations for the purpose
of loss per share 14,630 25,048
Pence Pence
Basic and diluted loss per share 10.9 19.0
7. Goodwill
2018 2017
------------- ------------
Cost GBP'000 GBP'000
At 1 January 50,057 49,230
Acquisitions - 2,998
Exchange differences 1,646 (2,171)
51,703 50,057
------------- ------------
The carrying value of the goodwill is analysed by business
segment as follows:
2018 2017
------------- ------------
GBP'000 GBP'000
Time Out Media 43,467 41,919
Time Out Market 8,236 8,138
51,703 50,057
------------- ------------
There were no impairment losses relating to goodwill at the end
of the year (2017: GBPnil).
Goodwill arises on the acquisition of subsidiaries and
represents the excess of the consideration transferred over the
Group's interest in net fair value of the net identifiable assets,
liabilities and contingent liabilities of the acquired. Goodwill
acquired in a business combination is allocated to each of the cash
generating units (CGUs) that is expected to benefit from the
synergies of the combination. In the prior year, the Group's CGUs
consisted of Print, Digital and Market. This represents the lowest
level within the entity at which the goodwill is monitored for
internal management purposes.
During the year, management has considered the way operations
are monitored and how resources are allocated to achieve the Group
strategy. This review concluded that the Digital and Print cash
generating units ("CGU") should be combined. Therefore, the CGUs of
the Group now comprise Time Out Media and Time Out Market.
Goodwill impairment reviews are undertaken annually or more
frequently if events or changes in circumstances indicate a
potential impairment. The carrying value of goodwill is compared to
the recoverable amount, which is the higher of value in use and the
fair value less costs of disposal. Any impairment is recognised
immediately as an expense and is not subsequently reversed.
The recoverable amount of each CGU has been determined based on
value in use calculations. These calculations use pre-tax cash flow
projections based on a detailed bottom up budget for the initial 12
month period. A further four years are forecast using relevant
growth rates and CGU specific operation and financial assumptions.
Cash flows beyond the five year period are extrapolated into
perpetuity using an estimated long term growth rate of 2%. The cash
flows are then discounted using a weighted average cost of capital
of 10%.
A range of sensitivities have been applied and there remains
significant headroom in both the Media and Markets CGUs when any
sensitivity, or combination of sensitives, is applied. A full
sensitivity analysis has not been disclosed as management believes
that any reasonable change in assumptions would not cause the
carrying value of the Time Out Media or Time Out Market CGUs to
exceed their recoverable amounts.
8. Cash and bank balances
2018 2017
-------- --------
GBP'000 GBP'000
Cash and cash equivalents 18,092 28,746
Restricted cash - Escrow 6,255 -
Restricted cash - Letters of credit and deposits - 1,093
-------- --------
24,347 29,839
-------- --------
Monies held in restricted accounts represent cash held by the
Group in accounts with conditions that restrict the use of these
monies by the Group and, as such, does not meet the definition of
cash and cash equivalents.
Escrow accounts relate to cash balances used to fund expected
Time Out Market construction costs.
Letters of credit and deposits relate to rent deposits paid in
respect of leased properties for Time Out Market locations. These
balances are disclosed within long term debtors as at 31 December
2018 and will be in all future periods.
9. Borrowings
2018 2017
-------- --------
GBP'000 GBP'000
Current:
Loan stock and loan notes - -
Sponsorship loans - 329
Bank loans 1,106 891
1,106 1,220
-------- --------
Non-current:
Loan stock and loan notes 20,779 -
Sponsorship loans - -
Bank loans 7,225 8,178
28,004 8,178
-------- --------
Borrowings repayable as follows:
2018 2017
-------- --------
GBP'000 GBP'000
Between nil and one year 1,106 1,220
Between one and two years 21,875 936
Between two and five years 5,949 6,887
Over five years 180 355
29,110 9,398
-------- --------
The Group has the following facilities:
-- A GBP20.0m term loan facility agreement with Oakley Capital
Investments Limited ("OCI"). The initial facility, which was agreed
in March 2018, was for a period of 19 months expiring on 31 October
2019 and had an interest rate of between 10% to 15% depending on
amounts drawn. In September 2018, the facility was converted into a
Loan Note agreement, with an extended term to 31 October 2020. In
return for granting security over certain Time Out trademarks and
domain name, the previous interest rate mechanism was also be
replaced with a flat rate of 12%. At year end, the full facility
has been drawn with the proceeds used fund future Time Out Market
developments;
-- A loan provided by a local Urban Development Fund as part of
the Joint European Support for Sustainable Investment in City Areas
(JESSICA) initiative of GBP1.1m (2017: GBP1.2m), charged at a rate
of the six-moth EURIBOR rate plus 1.75% repayable in instalments to
2024; and
-- A term loan facility of GBP6.9m at a rate of 11% above
EURIBOR, repayable in instalments annually through to November
2022;
-- A bank loan of GBP0.3m at a rate of EURIBOR plus 3% subject
of a minimum of 3% and a maximum of 4%, repayable in July 2021.
-- The option over an additional debt facility of GBP18.0m remains available to the Group.
10. Notes to the cash flow statement
Group reconciliation of loss before income tax to cash used in
operations
2018 2017
--------- ---------
GBP'000 GBP'000
Loss before income tax (15,172) (26,345)
Add back:
Net finance costs 2,540 753
Share based payments 838 1,527
Depreciation charges 1,069 1,124
Amortisation charges 4,592 4,420
Fair value loss on minority interest 514 626
(Gain)/loss on disposals of fixed assets (4,469) 195
Non-cash movements 242 (256)
Share of associate's loss 1,198 954
Increase in inventories (86) (51)
Increase in trade and other receivables (3,094) (2,230)
Decrease in trade and other payables 11 (1,536)
Cash used in operations (11,817) (20,819)
--------- ---------
11. Post balance sheet events
Borrowings
In March 2019, Time Out Market increased its current loan from
Incus Capital Advisors, S.L. by an additional EUR10.0m, principally
on the same economic terms as the EUR9.0m loan secured in November
2017.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UBAARKWAOUUR
(END) Dow Jones Newswires
March 28, 2019 03:02 ET (07:02 GMT)
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