Strategic report / Direct Investments
OCI’s Direct Investments
The Board continues to work with the Investment Adviser towards the value maximisation and realisation of OCI’s Direct Investments in both North Sails and Time Out.
North Sails
North Sails delivered a strong performance through December 2025, reporting revenue and EBITDA growth of 6% and 9% respectively versus prior year. This growth was driven by continued outperformance within the Carbon Technology division, with strong activity across premium segments. 2025 has also represented a transitional year for the Apparel division, resulting in a clearer operational focus and initiatives in place to support sustainable, profitable growth going forward.
As previously reported, in 2024 a portion of OCI’s preferred equity in North Sails was converted into ordinary equity. Post-conversion, OCI retains $81 million in preferred equity (including accrued interest), which carries a 5% coupon effective from 1 January 2025. Additionally, OCI retains $148 million in ordinary equity and continues to hold a warrant over 2% of North Sails CV’s interest in North Sails, which will mature on 30 June 2026. OCI also retains a $78 million indirect interest in North Sails through its equity in North Sails CV.
Time Out
As noted at the half year, OCI continues to monitor Time Out’s performance to inform its strategy for future value realisation. Following three consecutive years of improving EBITDA, in FY25 the media industry experienced a number of challenges which resulted in a lower EBITDA for the business. While its Markets division delivered growth in 2025 with further expansion expected via a strong pipeline of potential new openings, including in Vancouver and Abu Dhabi in 2026, its Media division acted as a drag on performance, resulting in group operating losses. However, Time Out completed a strategic review of this division, identifying and implementing operational enhancements, aimed at returning the division to EBITDA profitability in the first half of 2026.
In December, OCI participated in an equity placing by Time Out, alongside other major institutional shareholders, which included an extension package on OCI’s loan to the company that significantly increased the interest rate payable. The Board is actively pushing for a solution to maximise value and believes participating in the placing and extending the terms of OCI’s loan will help to preserve the value of OCI’s investment in Time Out.