Time Out Group seeks £8m to continue global expansion

Time Out Group is tapping shareholders for fresh capital to further pursue its global expansion, which saw the publisher and events organiser report sharply increased adjusted profits.
The Aim-listed company is looking to raise about £8 million by placing shares at 50p each, representing a 9.9 per cent premium to Tuesday’s closing price. The company’s two largest shareholders, Oakley Capital Investments and Lombard Odier Asset Management, have indicated their intention to participate in the fundraise, the company said.
The cash it generates will be used to “fund capital investment in connection with opening two new potential markets in London and New York,” the group said, alongside accelerating its media technology investments.
The company scrapped plans to launch one of its food markets in London’s Waterloo three years ago due to the pandemic. However, it is now in talks with the Crown Estate to open at 10 Piccadilly, a Grade II-listed site on Piccadilly Circus, according to Estates Gazette, the property publication.
Time Out Group now runs nine food markets in cities including Lisbon, New York, Miami and Montreal. It opened two of them in the financial year that ended June 30, in Cape Town and Porto. It opened a further market in Barcelona in July. It also plans to open markets in Bahrain, Osaka and Budapest.
The company is aiming to grow its portfolio of markets to a minimum of 16 by 2027, which it believes will generate more than 20 million transactions per year.
Like-for-like revenues in its markets division rose 4 per cent last year, boosting adjusted profits 87 per cent to £12 million.
Time Out, which ceased the publication of its print magazine in 2022, said its media division recorded an 8 per cent rise in revenues to £35.9 million, driven by digital sales growth and live events.
With growth in both divisions, the group reported overall like-for-like revenue growth of 7 per cent, helping adjusted profits more than double to £12.4 million. On a pre-tax basis, losses stood at £8.5 million, significantly lower than the £25 million loss made a year earlier.
“The Time Out brand is a critical contributor to the success of both media and markets, and rather than view these businesses as two separate units, we believe there is substantial potential to increase the synergies between the two,” Chris Ohlund, its chief executive, said.
The shares were up 2½p, or 5.5 per cent, at 48p at close on Wednesday.