Travelex Topco Limited and its subsidiaries (the “New Travelex Group”) have reported financial results for the first half of 2021.
For H1 2021, Travelex reported an EBITDA loss of £39.7 million (£18.7m loss in Q2) as travel restrictions eased marginally. Revenue was £54.9 million for H1 2021 (21% of 2019), 45% lower than the result reported for the same period in 2020.
Travelex says cost focus continues to be prominent, with fixed cost saving of £355 million across two years as further rent negotiations concluded during the second quarter of 2021.
Further funding of £25 million was received on June 1, 2021 through the issuing of new money notes.
The H1 2021 results showed a loss for the period to 30 June of £39.7 million, which is £7.9 million higher than indicated by Travelex for this period in the outlook published in February 2021. If the rate of recovery is as gradual as anticipated, this will lead to a full year EBITDA position lower than the revised forecast issued on 14 May 2021.
In light of continuing travel market disruption and the uncertainty regarding public policy decisions relating to the COVID-19 pandemic, the company considers that, for the time being, future projections regarding its business and financial performance are inherently unreliable in current market conditions.
Accordingly, the financial forecast published on 14 May 2021 will not be updated for the time being, and should not be relied on, Travelex says.
Travelex is in discussion with its major shareholders on the funding outlook for the remainder of the year and expectations for next year, and a further update will be provided in September.
The UK retail business as run through Travelex Foreign Coin Services Limited (TFCS) was acquired from Travelex Limited (in administration). The transaction closed on June 17, 2021.
Having exercised the option to purchase the OFC European businesses within the Netherlands, Germany and Switzerland (subject to regulatory approvals, where required), the New Travelex Group is progressing the necessary legal, regulatory and related deliverables to conclude the acquisitions. Processes to winddown the remaining OFC entities (including NAM) continue as planned.
All 2019 statutory accounts for subsidiaries within the New Travelex Group have now completed with the closing of the TFCS acquisition by Travelex TopCo Limited in June 2021 being the final milestone for the TFCS entity.
The 2020 audit of Travelex TopCo Limited is underway. Since the issue of the Q1 financial results, a change in approach to the consolidation of Day Z companies has been effected in the financial statements of Travelex TopCo Limited.
The Board has initiated a Cyber Improvement Plan to address legacy vulnerabilities, which is in progress and being monitored through the Audit and Risk Committee.