Strategic report / Direct Investments
OCI’s Direct Investments
Direct Investments are not part of OCI’s ongoing investment strategy. The Board continues to work with the Investment Adviser to simplify and maximise the value of OCI’s remaining Direct Investments in North Sails and Time Out, with the objective of reducing direct exposure and ultimately realising value for shareholders when appropriate.
North Sails
North Sails delivered a strong performance through June 2026, reporting LTM revenue and EBITDA growth of 4% and 5% respectively versus prior period. This growth was supported by continued strong performance in the core Sailmaking division and outperformance in the Masts division, with good activity across premium segments. Within Consumer, Actionsports continued to perform positively, while Apparel made progress against its strategic and operational priorities, including the continued internationalisation of the business. Overall, the Consumer division delivered year-on-year growth and improved profitability.
The Group expects to deliver continued positive growth versus the prior year across both revenue and EBITDA for the full year.
OCI holds £62 million of preferred equity (including accrued interest), carrying a 5% coupon effective from 1 January 2025, and £118 million of ordinary equity. Additionally, at period-end, OCI held a warrant over 2% of North Sails CV's interest in North Sails, which had matured but remained unexercised, and was valued at £3 million (30 June 2025: £nil), resulting in a total fair value of OCI’s ordinary equity, including the warrant, of £121 million.
The warrant was exercised following the period-end. OCI also retains a £55 million indirect interest in North Sails through its equity in North Sails CV. As at period-end, OCI's total exposure to North Sails was £238 million.
Time Out
OCI continues to monitor Time Out's performance to inform its strategy for future value realisation. Time Out delivered further operational and strategic progress during its year ended 30 June 2026. While group revenue was broadly stable at approximately £72 million (FY 2025: £73 million), revenue from continuing operations increased 11% to £61 million (FY 2025: £55 million). Continuing Media revenue increased 17% to £21 million (FY 2025: £18 million) and the division returned to adjusted EBITDA profitability, supported by sales growth, improved client retention, new business wins and the successful delivery of a cost efficiency programme.
Continuing Markets revenue increased 8% to £40 million (FY 2025: £37 million), with three new Markets opening during the year in Budapest, New York Union Square and Vancouver, taking the operational portfolio to 13 locations (FY 2025: 10 locations). At year end, a further five Markets were in development, including the first agreements under Time Out's capital-light Market franchise model in India and Brazil. Following the year end, Time Out also secured a flagship London Market at Piccadilly Circus, increasing the development pipeline to six locations.
In December 2025, OCI participated in an £8 million equity placing by Time Out alongside other major shareholders, which completed in January 2026. As part of the wider financing, OCI agreed to extend the repayment date of its loan note to 30 June 2027 at an increased interest margin.
The Board is actively pushing for a solution to maximise value and believes that supporting the placing and extending the terms of OCI's loan will help to preserve the value of OCI's investment in Time Out.