Travelex announces that it has successfully concluded the raising of £15 million of additional funding following the issuance of an additional number of new money notes (in a face value amount of approximately £16 million) by the Company and the connected issuance of ordinary shares in Travelex Topco Limited, which are stapled to the Additional New Money Notes.

The Additional New Money Notes have the same terms and conditions and ISIN (XS2248458049) as the existing new money notes. An application will shortly be made for the Additional New Money Notes to be admitted to trading on the Vienna MTF (as operated by the Vienna Stock Exchange).

Donald Muir, Chief Executive, commented:

“I am delighted to announce that the recent capital raise has completed, securing an additional £15 million of funding for the business. This is great news for Travelex, providing further working capital to meet the rising demand as international travel continues to recover over the balance of 2021.

The additional issuance of new money notes was fully subscribed by our noteholders/ shareholders; demonstrating their continued support for the business. Both Travelex and the travel industry are moving in a positive direction and although H1 was more difficult than we had forecasted, more recently we have seen the start of significant positive momentum in business performance”.

Let’s recall that Travelex’s H121 revenue stalled at 10-20% of 2019 levels in most key territories, driving a monthly average operating loss of (£7m) per month. Ongoing investment in IT and the costs of operational restructuring meant that overall average cash burn in H121 was (£9m) a month.

As travel volumes have recovered over the Western Hemisphere, operating losses have fallen to (£4.4m) in July and (£2.9m) in August, however at a trading level, the business was breakeven for the first time since 2019 in August with £1m in EBITDA despite the pressure from APAC. Most geographies are breakeven at between 20-30% of 2019 revenue levels before any overhead allocations, reflecting the focus on driving the far- reaching cost reduction programmes.