REG - On the Beach Group - 2024 Pre-Close Trading Update

On Beach groupAnnouncement

25/09/2024 07:00

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RNS Number : 4984F  On the Beach Group PLC  25 September 2024

25 September 2024

On the Beach Group plc

("On the Beach", "OTB" or the "Group")

2024 Pre-Close Trading Update

On the Beach Group plc (LSE: OTB.L) today provides an update on trading for
its financial year ending 30 September 2024 ("FY24"), in advance of announcing
its preliminary results on 3 December 2024.

Group trading update

 -          Record TTV(1) of £1.2bn, representing an increase of 15% on last year,
            underpinned by Summer 24 year-on-year volume growth of 13%.
 -          Transformational partnership agreement signed with Ryanair, enhancing
            operational efficiency and unlocking further strategic growth opportunities.
 -          Strong control over total cost base with significant improvement in operating
            leverage.
 -          Adjusted PBT in line with market expectations(2), despite incurring
            significant one-off costs related to the Ryanair integration.
 -          OTB exits the year debt free and with a strong cash position of c.£95m,
            providing significant balance sheet flexibility.
 -          Following the reintroduction of an interim dividend, as announced at interim
            results in May, the Board expects to recommend a final dividend in line with
            its stated capital allocation policy.

 

Shaun Morton, Chief Executive of On the Beach, commented:

"Summer 24 has set a new record for On the Beach and our full year performance
represents the third consecutive year of revenue growth while delivering
improved operating leverage resulting in significant EBITDA and PBT growth. We
executed on a number of strategic initiatives during the year, including the
successful integration with Ryanair, the launch of selling package holidays in
Ireland and continued enhancements to our platform capabilities. We did this
through a period of flight price inflation and subsequent deflation,
highlighting the benefits of On the Beach's asset light, low fixed cost
operating model, delivering the best value for money to our customers
reflected in our volume growth this year.

The considerable progress made over the last twelve months has set us up for
further success in FY25. Looking ahead, Winter 24 volumes are currently 34%
ahead of the prior year, with customers seeking winter sun and enjoying our
Long-Haul destination packages. Notwithstanding that it remains in its early
stages, bookings for Summer 25 are very encouraging and we look forward to
providing further detail at our preliminary results in December."

(1) Group total transaction value ("TTV") of holidays booked in the period
before cancellations and amendments.

(2) Consensus FY24 Adjusted PBT, per the Group's corporate website, of
£31.0m.

 

For further information:

 

 On the Beach Group plc                  via FTI Consulting

 Shaun Morton, Chief Executive Officer

 Jon Wormald, Chief Financial Officer

 FTI Consulting                          Tel: +44 (0)20 3727 1000

 Alex Beagley                            onthebeach@fticonsulting.com

 Harriet Jackson

 Hannah Butler

 

About On the Beach

 

On the Beach Group plc is one of the UK's largest online beach holidays
retailers, with significant opportunities for growth. Its innovative
technology, low-cost base and strong customer-value proposition provides a
structural challenge to legacy tour operators and online travel agents, as it
continues disrupting the online retail of beach holidays. Its model is
customer-centric, asset light, profitable and cash generative.

 

 

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