Ocean Outdoor: Strategic Review & Trading Update
Ocean Outdoor Limited
Announcement of Strategic Review and Trading Update
Ocean Outdoor Limited (“Ocean” or the “Company” and together with its subsidiaries, the “Group”) today announces that the Board has initiated a process to evaluate potential strategic and financial alternatives to maximise shareholder value.
The Board and management believe that Ocean is undervalued and that there is meaningful upside potential from the current share price, which has continued to face technical trading challenges unrelated to Ocean’s strong business fundamentals and intrinsic value. The Company, operating with a purpose driven mission, has consistently executed clear organic and inorganic growth strategies and acquired seven premium digital assets since 2018. As a result, Ocean is now emerging from the pandemic in a position of strength with net cash on its balance sheet and as a pure-play digital asset, with a differentiated technology offering, that is well positioned to benefit from the significant recovery in OOH advertising that is underway.
For the benefit of our shareholders and the broader investment community, Ocean is hereby issuing 2021 guidance for the first time since the onset of the pandemic. While forecasting has been challenging given the uncertain environment, the Board and management expect full year 2021 revenues to be between £115m and £120m (equal to 33% – 39% growth from 2020, respectively) with a number of months in H2 2021 already exceeding 2019 levels, and with Adjusted EBITDA anticipated to exceed £16m. Ocean remains very well placed to take advantage of the post pandemic recovery continuing into 2022 with revenues and EBITDA on track to exceed 2019 levels. The Board of Ocean plans to provide formal 2022 guidance at the appropriate time.
The Board and management team welcome input from all shareholders throughout the strategic and financial review process. There can be no assurance that the review process will result in any transaction, or any assurance as to its outcome or timing.
In the interview below, CEO Tim Bleakley outlines the Group’s business and how the Group used the lockdown period to promote small businesses and other worthy causes.
