Holiday rental platform Travel Chapter to list on AIM

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Travel Chapter Holding PLC said it plans to float on the Alternative Investment Market (AIM) of the London Stock Exchange in mid-November.


Travel Chapter operates the online holiday rental platform holidaycottages.co.uk and has a nationwide portfolio of over 8,000 high quality properties, making it the third-largest holiday rental agency in the UK.


After a sharp fall in the 2020 caused by the COVID-19 pandemic, the UK self-catering holiday market is expected to rebound in 2021 with a 54% increase in market value and to grow at an average of 6% to 7% a year, Travel Chapter said, adding that it believes it is well placed to benefit from growth in the market.


It also sees opportunities for expanding into related complementary areas of the domestic holidays market, such as camping, glamping and alternative accommodation types, such as treehouses or yurts, as well as experiences and partnerships.


The group said its main income streams are commission income, which accounted for 75% of revenue in 2020, and booking fee income, which made up 20% of revenue.


Revenue and adjusted EBITDA showed a compound annual growth rate of 35% and 50% respectively between 2018 and F2020, before accounting for COVID-19 related exceptionals.


“Travel Chapter intends to continue to leverage its quality-led proposition, scalable platform, strong market position and increasing brand awareness to capitalise on the structural long term growth opportunities in the post-COVID-19 UK holiday rental market and to continue to grow its platform,” the company said.


“In particular, Travel Chapter will focus on driving organic growth in its portfolio of quality properties, supplemented with selective acquisitions which meet the group’s strict criteria.”


Jayne McClure, chief executive officer of Travel Chapter, commented: “We are delighted to announce our intention to IPO on AIM. This marks the exciting next stage of the Travel Chapter journey as a leading online platform for UK holiday rentals. We have witnessed long term and robust structural tailwinds in domestic tourism in the UK and believe that these are set to continue. Our sector-leading booking platform, owner relationships, customer service and quality-focused property portfolio means we are well placed to continue to grow market share in a fragmented market, both organically and through selective acquisitions.”


GCA Altium Ltd is acting as lead financial adviser and nominated adviser, while Numis Securities Ltd is acting as sole broker and bookrunner in connection with the placing.

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