REG - On the Beach Group - INTERIM RESULTS
16/05/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230516:nRSP4909Za&default-theme=true
RNS Number : 4909Z On the Beach Group PLC 16 May 2023
16 May 2023
On the Beach Group plc
("On the Beach", the "Company" or the "Group")
INTERIM RESULTS FOR SIX MONTHS ENDED 31 MARCH 2023
GROUP REVENUE +38%
CONTINUED MOMENTUM IN CORE AND EXPANSION AREAS, WELL POSITIONED FOR H2
Financial & Operational Highlights
H1 23 H1 22 H1 23 vs H1 22
Unaudited Unaudited Unaudited
£'m £'m %
Group booked TTV((1)) £495.0m £385.8m 28%
Group revenue £73.2m £52.9m 38%
Revenue as Agent((2)) £50.6m £39.7m 27%
Revenue as Principal((3)) £22.6m £13.2m 71%
Group gross profit £51.3m £39.0m 32%
Gross profit as Agent £48.9m £37.8m 29%
Gross profit as Principal £2.4m £1.2m 100%
Gross Profit after Marketing((4)) £24.2m £18.8m 29%
EBITDA ((5)) £4.1m £3.7m 11%
Group loss before tax (£6.0m) (£7.0m)
(1) Group booked TTV ('TTV') is the total transaction value of holidays
booked in the period before cancellations and adjustments.
(2) As an agent, revenue is accounted on a "booked" rather than
"travelled" basis (unlike tour operators and airlines) and the Group is
reporting H1 bookings taken between 1 October 2022 and 31 March 2023.
(3) As a principal, revenue is accounted on a "travelled" basis and
reported on a gross basis and the Group is reporting H1 bookings which
departed between 1 October 2022 and 31 March 2023.
(4) See glossary for reconciliation to nearest GAAP measure.
(5) EBITDA is profit before tax, exceptional costs, share based
payments, depreciation and amortisation.
Financial headlines
● Group Booked TTV for the period was £495m, +28% year-on-year ("YOY"),
resulting in Group Revenue of £73.2m, +38% YOY. This was driven by increases
in passenger bookings during the period as well as an increase in the average
value of holidays sold.
● Revenue growth was supported by investment in the brand and proposition with a
continuation of free holiday perks for customers and 'the most wonderful time
of the year' campaign.
● Investment in these areas was weighted to H1 which has enabled us to
capitalise on peak bookings and build momentum into H2.
● Group adjusted loss before tax was (£0.1m), (H1 22: £0.0m), and statutory
loss before tax was (£6.0m) (H1 22: (£7.0m)).
Trading dynamics
● The recovery of the travel sector post pandemic has continued, with the Group
experiencing a typical peak booking period in January.
● The premium((6)) segment continues to perform strongly with TTV growth in 5*
holidays of +17% YOY, and more than double pre pandemic levels.
● The Group continues to focus on growing this segment and we believe there is a
significant incremental revenue opportunity to be gained in the medium term by
attracting these customers to the brand
● Although volumes in the value((7)) segment have not yet recovered to
pre-pandemic levels given cost-of-living pressures, we have seen an
improvement this year with TTV growth on 3* holidays +46% YOY and volume
growth of +28% YOY
● Progress in growing our Long Haul proposition has continued with new scheduled
Long Haul airlines added in FY23 and further growth in existing and new
destinations planned in H2 23.
(6) Premium segment: Segment of the market with holidays typically sold
for more than £700pp. A proxy for the premium segment is the sale of OTB 5*
holidays.
(7) Value Segment: Segment of the market with holidays typically sold
for less than £700pp. A proxy for the value segment is the sale of OTB 3*
holidays.
Current trading and outlook
● Trading momentum has continued since 1 April 2023, and comparator periods will
start to soften as we annualise widespread airline and airport disruption
experienced during Summer 2022.
● We believe there is significant unsold bed and seat capacity in market
● We continue to see strength in late and long lead time bookings, and believe
that unsold bed and seat capacity should support greater strength in bookings
for peak / school summer holidays as these approach
● We are encouraged by the continued momentum in our expansion areas as well as
recent positive signs of recovery in our core value customer base
● The Group typically generates a greater profit in the second half of the year
and we are confident that the upfront investment into the brand and
proposition will ensure both top and bottom line growth in the second half of
the year
● On 31 March, OTB announced that Jon Wormald will be appointed as Group CFO on
30 June 2023, at which point the Group's previously announced CEO succession
plan will be enacted. On the same date, Shaun Morton, the Group's current CFO,
will replace Simon Cooper as CEO and Simon will transition into the role of
Founder Director NED.
Simon Cooper, Chief Executive of On the Beach Group plc, commented:
"I am pleased with the Group's strong performance in the first half,
delivering a record Group Booked TTV and Group revenue performance, up 28% and
38% respectively, driven by increases in both volume of bookings and the
average value of holidays sold. This was supported by our largest ever offline
marketing campaign, 'The most wonderful time of the year', which included
sponsorship of ITV's Masked Singer and the Magic Radio breakfast show. This
marketing effort also delivered the Group's highest ever top 3 brand
consideration score, despite a more aggressive competitive environment.
"The travel sector continues to recover post-pandemic and the Group has
experienced significant increases in demand for its holiday product,
particularly the Premium 5* offer. This segment represents a substantial
growth area and we continue to see a significant incremental revenue
opportunity to be gained in the medium term by attracting these customers to
the brand. Our Long Haul offer also continues to grow and we have added new
airlines and increased the number of destinations we can offer to our
customers.
"We continued to invest in our technology capabilities including a migration
to the cloud in H1 to allow greater speed of developments and increased
security. These investments will enable the Group to drive continued growth in
both the core business and the exciting expansion opportunities.
"In what will be my last Half-Year results as CEO before handing over the
reins to Shaun on 30 June, I am pleased with the Group's performance in the
first half and I am confident that the right building blocks are in place for
Shaun and the team to continue to deliver growth across the business and I
remain excited about both the near term and longer term opportunities for On
the Beach."
Analyst & investor webinar
A webinar for sell-side equity analysts and investors will be held today at
8.00am, the details of which can be obtained through FTI Consulting via
onthebeach@fticonsulting.com.
For further information:
On the Beach Group plc via FTI Consulting
Simon Cooper, Chief Executive Officer
Shaun Morton, Chief Financial Officer
FTI Consulting Tel: +44 (0)20 3727 1000
Alex Beagley onthebeach@fticonsulting.com
Fiona Walker
Sam Macpherson
Rafaella de Freitas
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.
Cautionary statement
This announcement may contain certain forward-looking statements with respect
to the financial condition, results, operations and businesses of the Company.
Forward looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as 'anticipates', 'aims', 'due',
'will', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans',
'targets', 'goal' or 'estimates'. These forward-looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that may or may not occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward-looking statements, including factors
outside the Company's control. The forward-looking statements reflect the
knowledge and information available at the date of preparation of this
announcement and will not be updated during the year. Nothing in this
announcement should be construed as a profit forecast.
This statement together with the interim financial statements and investor
presentation is available on www.onthebeachgroupplc.com
(http://www.onthebeachgroupplc.com/) .
Chief Executive's Review
Summary
Group Booked TTV in H1 was +28% ahead of the prior year, supported by volume
growth and an increase in average booking values.
For the first four months of the year to the end of January 2023, Group Booked
TTV was materially ahead of the equivalent period of the prior year as
reported in the AGM trading update on 27 January 2023. Trading in February and
March was set against much stronger comparatives which benefited from the
release of pent-up demand following the easing of travel restrictions at the
end of January 2022.
Drivers of Performance
Growth in H1 23 has been delivered from continued strong performance in the
Group's key expansion areas, underpinned by continued market recovery in 3*
holidays. Volumes at the value end of the market continue to lag market
recovery of holidays in the premium segment, relative to FY19.
The strategic actions the Group has taken to capture a greater share of
customers willing to spend more on their holiday, either by travelling
further, selecting a 5* hotel online, or booking a premium holiday through a
travel agent, have contributed to growth over the period.
On the Beach continues to take share in the premium segment from a relatively
low base and the Group believes there is a significant incremental revenue
opportunity from this area, which has shown greater resilience to
cost-of-living pressures, attracting customers that typically book earlier,
giving greater visibility and delivering higher margins.
In line with our strategy, offline marketing costs of £13.4m (H1 22 £8.3m)
were heavily weighted into H1 to capitalise on demand in the peak bookings
period and build momentum into H2. This contributed to the Group's highest
ever top three brand consideration score, despite a more aggressive
competitive environment as the travel market continues to recover.
Notwithstanding the upfront offline investment, total marketing costs as a
percentage of adjusted revenue for the OTB segment remain in line with the
prior period (53% in H1 23 vs 53% in H1 22).
On the Beach continues to invest in the proposition, which supports higher
searches for 5* hotels. Customers who enjoyed the lounge access perk last
summer are rebooking at approximately twice the rate as those who did not.
Alongside investments in proposition and brand, the Group has continued to
invest in technology and supply to support growth in core and expansion areas.
This includes improved flight connectivity and deeper relationships with our
supply partners with direct bookings in H1 23 at 91%.
Expansion areas
The strategic actions the Group continues to take to enhance its proposition
and access more premium hotels, positions it well to continue to outperform in
this segment. The Group estimates the segment is a similar size to the value
segment in terms of passengers, but approximately two and a half times larger
in absolute value, and the revenue margin opportunity on each individual
booking is equally greater.
The Group has continued to scale its Long-Haul offering. Scheduled air
connectivity continues to be added for new key carriers, improving the breadth
and depth of customer choice for both Westbound and Eastbound long haul
flying. Booked Long Haul TTV was 26% up vs a strong comparator in H1 22.
Following a year of disruption on the high street in 2022, the Group appointed
a new CEO at Classic to drive continued growth across the B2B businesses.
Booked B2B* TTV was +11% YoY.
The Group has partnerships with the majority of the of UK's travel agent and
homeworking groups and is a trusted brand in the B2B space, having won a
number of recent industry awards. Despite a sluggish high street recovery, the
B2B market is still relatively large, with online penetration lagging other
consumer verticals. Agents are increasingly risk-averse post-Covid, with a
trend away from tour operating and back to retailing. There is a significant
opportunity to increase share of business from agent partners.
*B2B: Classic Collection and Classic Package Holidays
Strategy for growth
On the Beach continues to target significant medium and long-term growth in
its core and adjacent markets by deploying a strategy based on the following
strategic pillars:
1. Invest in talent and technology
2. Become a brilliant digital brand
3. Optimise our direct and differentiated supply
4. Grow our share of B2B beach
5. Diversify into adjacent beach holiday markets
6. Champion customer centric change
Segmental performance
The Group organises its operations into four principal financial reporting
segments, being OTB (onthebeach.co.uk and sunshine.co.uk), International
(ebeach.se, ebeach.no and ebeach.dk), CCH (Classic Collection Holidays) and
CPH (Classic Package Holidays).
OTB Segment performance
H1 2023 H1 2022 vs
Bookings '000s 240.3 207.6 16%
Booked TTV £m 445.8 342.8 30%
H1 2023 H1 2022 vs
£m £m %
Revenue 47.8 36.8 30%
Adjusted Revenue* 48.5 36.7 32%
Online Marketing costs (12.5) (11.1)
Offline Marketing costs (13.4) (8.3)
Adjusted Revenue after marketing costs* 22.6 17.3 31%
Overheads (15.7) (11.7)
Depreciation and amortisation (4.3) (2.9)
Adjusted operating profit* 2.6 2.7
Exceptional adjustments (1.8) (0.9)
Share based payments (1.3) (3.2)
Amortisation of acq intangibles (2.3) (2.3)
Operating profit/(loss) (2.8) (3.7)
EBITDA* 6.9 5.6 23%
EBITDA % 14.3% 15.3%
*see glossary for reconciliation to nearest GAAP measure
Revenue increased by 30% to £47.8m (H1 22: £36.8m). The increase in revenue
was due to an increase in booking volumes and average booking values.
There has been an increasing trend for people to book package holidays (flight
+ hotel) rather than a single element (i.e. hotel or transfer only). Package
holiday bookings now represent 97% of all bookings travelling in Summer 2023
(2022: 95%).
The number of passengers booked on a Summer package holiday with OTB this year
is 11% ahead of 2022 and 8% ahead of 2019. The TTV of these bookings is £489m
which is 22% ahead of 2022 and 48% ahead of 2019.
Package holidays are less 'commoditised' than single element bookings, have a
lower cancellation rate and attract higher revenue per booking.
Total marketing costs at £25.9m represent 53% of adjusted revenue (H1 22:
53%). In line with strategy, offline marketing costs at £13.4m, (H1 22
£8.3m) were heavily weighted into H1 to capitalise on the peak bookings
period and build momentum into H2.
Online marketing costs were £12.5m (H1 22: £11.1m) and 26% of revenue (H1
22: 30%) during the period.
Adjusted Revenue after all marketing costs increased by 31% to £22.6m (H1 22:
£17.3m).
Operating leverage and overheads
H1 2023 H1 2022
Overheads % adjusted revenue* 32% 32%
Overheads % booked TTV* 4% 3%
*see glossary for reconciliation to nearest GAAP measure
Overheads have increased by £4.0m to £15.7m representing 32% of adjusted
revenue (H1 22: 32%) and 4% of TTV (H1 22: 3%).
The absolute increase in overheads results partly from increases in variable
costs, and in particular credit / debit card transaction costs. The balance of
the increase relates to technology costs resulting from a full cloud migration
project undertaken during the period and increased headcount in the customer
service teams.
The Group's overhead base has also been impacted by general inflationary
pressure as seen across the UK economy.
EBITDA for the period was £6.9m (H1 22: £5.6m). Refer to the Glossary for
reconciliation to the closet GAAP measure.
Classic Collection Holidays segment performance
H1 2023 H1 2022 Vs
Bookings '000s (booked) 4.9 4.2 17%
Bookings '000s (travelled) 3.1 1.9 63%
Booked TTV £'m 32.9 27.8 18%
H1 2023 H1 2022 Vs
£m £m %
Revenue 22.6 13.2 71%
Gross profit 2.4 1.2
Gross Profit after marketing costs 1.2 0.9 33%
Overheads (3.5) (2.6)
Depreciation and amortisation (0.2) (0.2)
Amortisation of acquired intangibles (0.5) (0.5)
Operating loss (3.0) (2.4)
EBITDA* (2.3) (1.7)
*see glossary for reconciliation to nearest GAAP measure
As a principal (rather than an agent), Classic accounts for revenue on a
"travelled" basis and reports revenue on a gross basis.
The travel environment in Winter 22 was significantly improved relative to the
previous year resulting in a 71% increase in Revenue.
Gross Profit after marketing costs increased by 33% to £1.2m, as marketing
costs during the period are designed to support new bookings and costs are
incurred prior to revenue being earned when these customers travel.
Andy Freeth was appointed as CEO in November 2022 and is focused on continuing
to develop a differentiated proposition for our customers.
The brand is as strong as it has ever been with our Travel Agent partners and
has continued to have lots of success with industry awards including most
recently at the Travel Gossip Awards where the business won Favourite Luxury
Operator, Favourite Supplier Call Centre and Favourite Trade Sales Team.
Classic Package Holidays segment performance
H1 2023 H1 2022 Vs
Bookings '000s 5.8 6.4 (8%)
Booked TTV £'m 13.0 13.7 (5%)
H1 2023 H1 2022 Vs
£'m £'m %
Revenue 2.5 2.7 (7%)
Gross profit 0.9 0.7 29%
Gross Profit after marketing costs 0.4 0.3
Overheads (0.8) (0.7)
Depreciation and amortisation - (0.1)
Operating loss (0.4) (0.5)
EBITDA* (0.4) (0.3)
*see glossary for reconciliation to nearest GAAP measure
CPH provides an online B2B platform that enables high street travel agents to
sell dynamically packaged holidays to their customers.
Revenue for the period declined by 7% to £2.5m (H1 22: £2.7m), however this
is at an improved gross margin resulting in a 29% increase in Gross Profit to
£0.9m.
As with CCH, bookings from High Street travel agents have recovered more
slowly than online, and high street footfall remains below pre-pandemic
levels.
EBITDA loss was (£0.4m), (H1 22: (£0.3m)). Operating losses were (£0.4m),
(H1 22: (£0.5m)).
Financing
On 7 December 2022, the Group refinanced its credit facilities with Lloyds
Bank and Natwest. This included cancelling all current facilities and entering
into a new facility for £60m expiring in December 2025.
The cash draw down on this facility at 31 March 2023 was £30m (31 March 2022:
nil).
Details of the current facility limits and maturity dates are as follows:
Facilities £m Issued Expiry Cash drawn at 31 March 2023
RCF - Lloyds Bank £30m Dec 2022 Dec 2025 £15m
RCF - NatWest £30m Dec 2022 Dec 2025 £15m
Total facility £60m £30m
Share based payments
The Group has an LTIP scheme in place which vests based on performance
criteria. In accordance with IFRS 2, the Group has recognised a non-cash
charge of £1.3m (H1 22: £3.2m).
The share-based payment charge represents a non-cash charge for the expected
cost of shares vesting under the Group's Long-Term Incentive Plan.
Taxation
The Group tax credit of £1.2m (H1 22: £1.5m) represents an effective rate of
20% (H1 22: 21%) which is higher than the standard UK rate of 19% (H1 22: 19%)
due to differences between rates applied to current and deferred tax.
During the period, a Corporation Tax rebate of £0.4m was received and no
payments on account have been made due to the loss making position of the
Group.
Cash flow
£m H1 2023 H1 2022 FY22
(Loss)/profit before tax (6.0) (7.0) 2.1
Depreciation and amortization 7.3 6.0 12.8
Net finance (income) / costs (0.3) 0.5 0.5
Share based payments 1.3 3.2 4.7
Movement in working capital (80.5) (36.8) 1.3
Corporation tax 0.4 0.6 0.5
Cash generated from operating activities (77.8) (33.5) 21.9
Other cash flows
Capital expenditure net of proceeds - (0.6) (1.3)
Capitalised development expenditure (6.8) (4.3) (10.6)
Capitalised intangible assets (0.1) - (0.5)
Net finance income / (costs) 0.4 (0.5) (0.3)
Payment of lease liabilities (0.6) (0.3) (0.7)
RCF drawdowns 30.0 - -
Total net cash flows (54.9) (39.2) 8.5
Opening cash balance 64.5 56.0 56.0
Closing cash at bank 9.6 16.8 64.5
Closing trust balance 137.2 99.1 69.4
The cash flow profile of the Group is seasonal with approximately 50% of
customers travelling in the period June to August and therefore in a normal
year the cash flows (excluding any cash held in the Trust) experience a trough
prior to June and a peak following this.
Operating cashflows of £77.8m represents investments made by the Group in to
online and offline marketing as well as the working capital required to fund
the customer deposits scheme.
Customer payments made to OTB in advance of travel are deposited in the Trust
account. During the period, the Trust account balance has increased from
£69.4m to £137.2m, which will unwind as customers travel over the summer
months.
Dividend
The Board has not declared an interim dividend (H1 2022: nil).
Simon Cooper Shaun Morton
CEO
CFO
16 May 2023 16 May 2023
On the Beach Group Plc
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MARCH 2023
CONDENSED CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 31 March 2023
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
Note £'m £'m £'m
unaudited unaudited audited
Revenue 3,4 73.2 52.9 144.1
Cost of sales (21.9) (13.9) (48.5)
Gross profit 51.3 39.0 95.6
Administrative expenses 5 (57.6) (45.5) (93.0)
Group operating (loss)/profit (6.3) (6.5) 2.6
Finance costs (0.6) (0.5) (0.8)
Finance income 0.9 - 0.3
Net finance income/(costs) 0.3 (0.5) (0.5)
(Loss)/profit before taxation (6.0) (7.0) 2.1
Taxation 6 1.2 1.5 (0.5)
(Loss)/profit for the period (4.8) (5.5) 1.6
Other comprehensive income:
Net (loss)/gain on cash flow hedges (0.8) - 0.6
Net gain on fair value hedges 0.5 - -
Total comprehensive (loss)/profit for the period (5.1) (5.5) 2.2
Attributable to:
Equity holders of the parent (5.1) (5.5) 2.2
Basic and diluted earnings per share attributable to the equity shareholders
of the Company:
Basic (loss)/profit per share 7 (2.9p) (3.3p) 0.9p
Diluted (loss)/profit per share 7 (2.9p) (3.3p) 0.9p
Adjusted basic (loss)/profit per share * 7 (0.1p) 0.1p 6.3p
Adjusted diluted (loss)/profit per share * 7 (0.1p) 0.1p 6.3p
Adjusted profit measure *
Adjusted (loss)/profit before tax (before amortisation of acquired 5 (0.1) - 14.1
intangibles, exceptional & non underlying costs and share based payments)
*
* This is a non GAAP measure, refer to notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2023
At 31 March 2023 At 31 March 2022 At 30 September 2022
£'m £'m £'m
Assets Note unaudited unaudited audited
Non-current assets
Intangible assets 8 75.0 73.3 74.3
Property, plant and equipment 9 8.0 9.5 9.1
Deferred tax 4.6 5.1 3.4
Other assets 0.3 - 0.6
Total non-current assets 87.9 87.9 87.4
Current assets
Trade and other receivables 10 264.7 224.2 122.4
Derivative financial instruments 13 - - 3.2
Corporation tax receivable - 0.2 -
Trust account 12 137.2 99.1 69.4
Cash at bank 9.6 16.8 64.5
Total current assets 411.5 340.3 259.5
Total assets 499.4 428.2 346.9
Equity
Share capital 1.7 1.7 1.7
Share premium 89.6 89.6 89.6
Retained earnings 190.7 185.3 194.5
Capital contribution reserve 0.5 0.5 0.5
Merger reserve (129.5) (129.5) (129.5)
Total equity 153.0 147.6 156.8
Non-current liabilities
Trade and other payables 11 2.4 3.3 3.0
Total non-current liabilities 2.4 3.3 3.0
Current liabilities
Trade and other payables 11 311.8 273.8 186.6
Corporation tax payable 0.6 - 0.2
Loans and overdrafts 13 30.0 - -
Provisions 11 0.6 3.1 0.3
Derivative financial instruments 13 1.0 0.4 -
Total current liabilities 344.0 277.3 187.1
Total liabilities 346.4 280.6 190.1
Total equity and liabilities 499.4 428.2 346.9
Shaun Morton
Chief Financial Officer
16 May 2023
On the Beach Group plc. Reg no 09736592
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 31 March 2023
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
Note £'m £'m £'m
(Loss)/profit before taxation (6.0) (7.0) 2.1
Adjustments for:
Depreciation 5 1.1 0.9 2.0
Amortisation of intangible assets 5 6.2 5.1 10.8
Finance costs 0.6 0.5 0.8
Finance income (0.9) - (0.3)
Share based payments 1.3 3.2 4.7
2.3 2.7 20.1
Changes in working capital:
(Increase)/decrease in trade and other receivables 10 (138.8) (129.3) (29.6)
Increase/(decrease) in trade and other payables 11 126.1 152.6 61.3
(Increase)/decrease in trust account (67.8) (60.1) (30.4)
(80.5) (36.8) 1.3
Cash flows from operating activities
Cash generated from operating activities (78.2) (34.1) 21.4
Tax received/(outflow) 0.4 0.6 0.5
Net cash (outflow)/inflow from operating activities (77.8) (33.5) 21.9
Cash flows from investing activities
Purchase of property, plant and equipment 9 - (0.6) (1.3)
Purchase of intangible assets 8 (0.1) - (0.5)
Development expenditure 8 (6.8) (4.3) (10.6)
Interest received 0.9 - 0.3
Net cash outflow from investing activities (6.0) (4.9) (12.1)
Cash flows from financing activities
Proceeds from borrowings 13 30.0 - -
Interest paid on borrowings (0.5) (0.4) (0.6)
Interest paid on lease liabilities - (0.1) -
Payment of lease liabilities (0.6) (0.3) (0.7)
Net cash inflow/(outflow) from financing activities 28.9 (0.8) (1.3)
Net (decrease)/increase in cash at bank and in hand (54.9) (39.2) 8.5
Cash at bank and in hand at beginning of period 64.5 56.0 56.0
Cash at bank and in hand at end of period 9.6 16.8 64.5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 March 2023
Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the 6 months ended 31 March 2023 £'m £'m £'m £'m £'m £'m
Balance at 30 September 2022 1.7 89.6 (129.5) 0.5 194.5 156.8
Share based payment charges including tax - - - - 1.3 1.3
Total comprehensive loss for the period - - - - (5.1) (5.1)
Balance at 31 March 2023 (unaudited) 1.7 89.6 (129.5) 0.5 190.7 153.0
Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the 6 months ended 31 March 2022 £'m £'m £'m £'m £'m £'m
Balance at 30 September 2021 1.7 89.6 (129.5) 0.5 187.6 149.9
Share based payment charges - - - - 3.2 3.2
Total comprehensive loss for the period - - - - (5.5) (5.5)
Balance at 31 March 2022 (unaudited) 1.7 89.6 (129.5) 0.5 185.3 147.6
Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the year ended 30 September 2022 £'m £'m £'m £'m £'m £'m
Balance at 30 September 2021 1.7 89.6 (129.5) 0.5 187.6 149.9
Share based charge including tax - - - - 4.7 4.7
Total comprehensive income for the year - - - - 2.2 2.2
Balance at 30 September 2022 1.7 89.6 (129.5) 0.5 194.5 156.8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 March 2023
1 General Information
The interim condensed consolidated financial statements of On the Beach Group
plc and its subsidiaries (collectively, the Group) for the six months ended 31
March 2023 were authorised for issue in accordance with a resolution of the
directors on 16 May 2023.
On the Beach Group plc (the Company) is a public limited company, incorporated
and domiciled in the United Kingdom, whose shares are listed on the London
Stock Exchange. The registered office is located at Aeroworks, 5 Adair Street,
Manchester, M1 2NQ.
2 Significant accounting policies
2.1 Basis of preparation
The interim condensed consolidated financial statements for the six months
ended 31 March 2023 have been prepared in accordance with UK adopted IAS 34
Interim Financial Reporting. The interim condensed consolidated financial
statements do not constitute statutory financial statements as defined in
section 435 of the Companies Act 2006 and therefore do not include all the
information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group's annual financial statements as
at 30 September 2022. No audit or review opinion has been provided by a
statutory auditor on these interim statements.
The financial information for the preceding year is based on the statutory
financial statements for the year ended 30 September 2022. These financial
statements, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies. These financial statements did not
require a statement under either section 498(2) or section 498(3) of the
Companies Act 2006.
2.2 Accounting policies
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 30
September 2022.
2.3 Going concern
The Group covers its daily working capital requirements by means of cash and a
£60m Revolving Credit Facility ("RCF") expiring December 2025. The amount
drawn down in cash at 31 March 2023 was £30m, leaving £30m available. (31
March 2022 £nil, 30 September 2022 £nil).
As at 31 March 2023 cash (excluding cash held in trust which is ringfenced and
not factored into the going concern assessment) was £9.6m (31 March 2022 cash
of £16.8m, 30 September 2022 cash of £64.5m).
Cash received from customers for bookings that have not yet travelled is held
in a ring fenced trust account and is not withdrawn until the customer returns
from their holiday. Cash held in trust at 31 March 2023 was £137.2m (31 March
2022: £99.1m, 30 September 2022: £69.4m)
The Directors have assessed a going concern period through to September 2024
and have modelled a number of scenarios considering factors such as airline
and hotelier resilience, cost of living, inflation, interest rates and
customer behaviour / demand. The Group has performed an assessment of the
impact of climate risk, as part of the Director's assessment of the Group's
ability to continue as a going concern. Further details of the group's
assessment is provided within the Principal risks and uncertainties section of
the Annual Report for the year ending 30 September 2022. The directors do not
consider that the principal risks and uncertainties have changed since the
publication of the Annual Report for the year ended 30 September 2022. These
risks and how the Group seeks to mitigate these risks are set out on pages 38
-51 of the 2022 Annual Report and Accounts. The Directors have modelled a
reasonably possible downside scenario to sensitise the base case. In this
scenario the Directors have assessed the impact to cash and revenue in an
environment where bookings are 40% lower than pre-pandemic levels, although
profitability would be affected, the Group would be able to continue
operating.
The Directors have considered possible levels of customer default in light of
the cost of living crisis. At the date of reporting default levels remain low.
The Directors remain confident that the business has adequate controls and
processes in place to recover outstanding balances from customers.
Given the assumptions above, the mitigating actions available and within the
Group's control, the Directors remain confident that the Group continue to
operate in an agile way adapting to any travel disruption. Therefore, it is
considered appropriate to continue to adopt the going concern basis in
preparing these financial statements.
2.4 Critical accounting estimates and judgements
In preparing these interim financial statements, management has made
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates. The judgements
and estimates applied are the same as those in the annual financial
statements.
a) Critical accounting estimates
Recoverability of airline debtor
In relation to flights cancelled during the financial year, the Group has
considered the recoverability of amounts paid to all airlines in lieu of
flights which have been cancelled which as at 31 March 2023 is a receivable
balance of £1.6m - see note 10.
The Group has a legal right to a refund; the airline has an obligation to
refund in the event that the flight is cancelled. Where an airline is not
forthcoming with a refund owed the Group exercises its chargeback rights are
as governed by the card scheme rules. The Group has a right to make a
chargeback when: (i) the merchant (airline) was unable or unwilling to provide
the purchased services; or (ii) the cardholder is entitled to a refund under
the merchant's cancellation policy. Alternatively, the Group may take legal
action if required. Where a flight has been cancelled, the Group has
recognised a net receivable for the expected recoverable amount in accordance
with the considerations above. Management have calculated the provision for
airline refunds owed based on factors such as age, flight supplier and payment
method. If the group was to increase the provision by 5 percentage points
(ppts) this would have resulted in an increase of £0.2m in the airline
receivable of £1.6m.
b) Critical accounting judgements
Capitalised website development costs
Determining the amounts to be capitalised involves judgement and is dependent
upon the nature of the related development; namely whether it is capital (as
relating to the enhancement of the website) or expenditure (as relating to the
ongoing maintenance of the website) in nature. In order to capitalise a
project, the key judgement management have made is in determining the
project's ability to produce future economic benefits. The amount capitalised
has increased as we focus on developing our apps and website to improve
capabilities and remain competitive.
Revenue from contracts with customers
The Group applied the following key judgements on the agent vs principal
status of each segment as well as the number of performance objections in
each.
Performance obligations
Revenue in the OTB, International and CPH segments is recognised based on
there being a single performance obligation at the point of booking. This is
to arrange and facilitate the customer entering into individual contracts with
principal suppliers providing holiday related services including flights,
hotels and transfers. For the OTB, International and CPH segments, there is
not a significant integration service and responsibility for providing the
services remains with the principal suppliers.
Under IFRS 15 for revenue in the CCH segment, a package holiday constitutes
the delivery of one distinct performance obligation which includes flights,
accommodation, transfers and other holiday-related services. In formulating
this conclusion, management has determined that it provides a significant
integration service to collate all of the elements within a customer's
specification to produce one integrated package holiday. Management has
further analysed the recognition profile and concluded that under IFRS 15,
revenue and corresponding cost of sales should be recognised over the period a
customer is on holiday.
Agent vs Principal
Determining whether an entity is acting as a principal or as an agent requires
judgement and has a significant effect on the timing and amount (gross or net
basis) of revenue by the Group. As an agent, revenue is recognised at the
point of booking on a net basis. As a principal, revenue is recognised on a
gross basis over the duration of the holiday.
In accordance with IFRS 15, revenue for the OTB, International and CPH
segments is recognised as an agent on the basis that the performance
obligation is to arrange for another entity to provide the goods or services.
This assessment has given consideration that there is no inventory risk and
limited discretion in establishing prices. Revenue in the CCH segment is
recognised as a principal on the basis that CCH have the primary
responsibility for fulfilling the package holiday for the customer.
2.5 New standards, amendments and interpretations
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 30 September 2022. The Group has not early adopted any other
standard, interpretation or amendment that has been issued but is not yet
effective.
Several amendments and interpretations apply for the first time for periods
beginning after 1 January 2022, but do not have an impact on the interim
condensed consolidated financial statements of the Group.
3 Revenue
Set out below is the disaggregation of the Group's revenue from contracts with
customers:
For the 6 months ended 31 March 2023
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Booked TTV* 445.8 3.3 32.9 13.0 495.0
Revenue
Revenue as agent 48.5 0.3 - 2.5 51.3
Revenue as principal - - 22.6 - 22.6
Total Revenue before exceptional items 48.5 0.3 22.6 2.5 73.9
Fair value FX losses (0.7) - - - (0.7)
Total Revenue 47.8 0.3 22.6 2.5 73.2
For the 6 months ended 31 March 2022
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Booked TTV* 342.8 1.5 27.8 13.7 385.8
Revenue before exceptional items
Revenue as agent 36.7 0.2 - 2.8 39.7
Revenue as principal - - 13.2 - 13.2
Total Revenue before exceptional items 36.7 0.2 13.2 2.8 52.9
Exceptional items** 0.1 - - (0.1) -
Total Revenue 36.8 0.2 13.2 2.7 52.9
For the year ended 30 September 2022
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Booked TTV* 762.7 6.7 55.6 31.1 856.1
Revenue before exceptional items
Revenue as agent 86.9 0.7 - 6.2 93.8
Revenue as principal - - 50.5 - 50.5
Total Revenue before exceptional items 86.9 0.7 50.5 6.2 144.3
Exceptional items** (0.6) - - (0.4) (1.0)
Fair value FX gains 0.8 - - - 0.8
Total Revenue 87.1 0.7 50.5 5.8 144.1
*The total transaction value of holidays booked during the period, before
cancellations and amendments.
** Exceptional items in the year ended 30 September 2022 relates to the impact
of Covid-19 in the year and travel disruption arising following the removal of
travel restrictions. Exceptional items in the period ended 31 March 2022
relate to the impact of Covid-19.
4 Segmental report
The management team considers the reportable segments to be ''OTB'',
"International", ''CCH'' and "CPH". All segment revenue, operating profit
assets and liabilities are attributable to the Group from its principal
activities.
OTB, International and CPH recognise revenue as agent on a net basis. CCH
recognises revenue as a principal on a gross basis.
6 months ended 31 March 2023
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Revenue before exceptional items 48.5 0.3 22.6 2.5 73.9
Fair value FX losses (0.7) - - - (0.7)
Revenue 47.8 0.3 22.6 2.5 73.2
EBITDA 6.9 (0.1) (2.3) (0.4) 4.1
Share based payments (1.3) - - - (1.3)
Exceptional costs (1.1) - - - (1.1)
Fair value FX losses (0.7) (0.7)
EBITDA after share based payments and exceptional items 3.8 (0.1) (2.3) (0.4) 1.0
Depreciation and amortisation (6.6) - (0.7) - (7.3)
Group operating loss (2.8) (0.1) (3.0) (0.4) (6.3)
Finance costs (0.6)
Finance income 0.9
Loss before taxation (6.0)
Non-current assets
Goodwill 31.6 - 4.6 4.0 40.2
Other intangible assets 28.6 - 6.1 0.1 34.8
Property, plant and equipment 5.4 - 2.6 - 8.0
6 months ended 31 March 2022
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Revenue
Revenue before exceptional items 36.7 0.2 13.2 2.8 52.9
Exceptional cancellations* 0.1 - - (0.1) -
Total revenue 36.8 0.2 13.2 2.7 52.9
EBITDA 5.6 0.1 (1.7) (0.3) 3.7
Share based payments (3.2) - - - (3.2)
Exceptional costs (0.9) - - (0.1) (1.0)
EBITDA after share based payments and exceptional items 1.5 0.1 (1.7) (0.4) (0.5)
Depreciation and amortisation (5.2) - (0.7) (0.1) (6.0)
Group operating (loss)/profit (3.7) 0.1 (2.4) (0.5) (6.5)
Finance costs (0.5)
Finance income -
Loss before taxation (7.0)
Non-current assets
Goodwill 31.6 - 4.6 4.0 40.2
Other intangible assets 25.7 0.1 7.2 0.1 33.1
Property, plant and equipment 6.4 - 3.1 - 9.5
Year ended 30 September 2022
OTB Int'l CCH CPH Total
£'m £'m £'m £'m £'m
Revenue
Revenue before exceptional items 86.9 0.7 50.5 6.2 144.3
Exceptional cancellations* (0.6) - - (0.4) (1.0)
Fair Value FX gains 0.8 - - - 0.8
Total Revenue 87.1 0.7 50.5 5.8 144.1
EBITDA 22.1 - (0.1) (0.1) 21.9
Share based payments (4.7) - - - (4.7)
Exceptional items (1.9) - (0.3) (0.4) (2.6)
Fair value FX gains 0.8 - - - 0.8
EBITDA after share based payments and exceptional items 16.3 - (0.4) (0.5) 15.4
Depreciation and amortisation (11.1) (0.1) (1.4) (0.2) (12.8)
Group operating profit/(loss) 5.2 (0.1) (1.8) (0.7) 2.6
Finance costs (0.8)
Finance income 0.3
Loss before taxation 2.1
Non-current assets
Goodwill 31.6 - 4.6 4.0 40.2
Other intangible assets 27.4 - 6.6 0.1 34.1
Property, plant and equipment 6.3 - 2.8 - 9.1
* Exceptional cancellations in the year ended 30 September 2022 relates to the
impact of Covid-19 in the year and travel disruption arising following the
removal of travel restrictions. Exceptional cancellations in the period ended
31 March 2022 relate to the impact of Covid-19.
5 Operating profit
a) Operating expenses
Expenses by nature including exceptional items and impairment charges:
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited audited
£'m £'m £'m
Marketing 26.5 19.3 38.7
Depreciation 1.1 0.9 2.0
Staff costs (including share based payments) 13.7 11.9 28.0
IT hosting, licences & support 3.2 2.1 4.5
Office expenses 0.5 0.4 0.7
Credit / debit card charges 1.5 0.9 3.2
Insurance 1.1 0.5 1.6
Professional Services 0.4 0.4 0.9
Other 2.3 3.0 1.3
Administrative expenses before exceptional cost and amortisation of intangible 50.3 39.4 80.9
assets
Exceptional costs 1.1 1.0 1.3
Amortisation of intangible assets 6.2 5.1 10.8
Exceptional items and amortisation of intangible assets 7.3 6.1 12.1
Administrative expenses 57.6 45.5 93.0
b) Exceptional items
Total exceptional items in the 6 months ended 31 March 2023 of £1.1m.
Exceptional operating costs of £1.1m include £0.6m legal and professional
fees and £0.5m of restructuring costs.
Exceptional operating costs in the 6 months ended 31 March 2022 consist of
legal and professional fees of £1.0m.
The total exceptional items in the year ended 30 September 2022 of £1.8m
includes £2.6m due to the impact of travel disruption offset by £0.8m of
fair value FX gains. The impact of travel disruption represents £4.7m cost of
Covid-19 and supplier disruption to trading in the period which has been
offset by the release of £4.6m of provisions from the previous year, and
legal and professional fees of £2.5m incurred in the year.
c) Adjusted profit/(loss) before tax
Management measures the overall performance of the Group by reference to
Adjusted (loss)/profit before tax, a non-GAAP measure as it gives a meaningful
year on year comparison of the Group's performance:
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
£'m £'m £'m
(Loss)/profit before taxation (6.0) (7.0) 2.1
Fair value FX losses/(gains) 0.7 - (0.8)
Impact of exceptional cancellations * - - 2.6
Other exceptional operating costs 1.1 1.0 -
Total exceptional items 1.8 1.0 1.8
Amortisation of acquired intangibles** 2.8 2.8 5.5
Share based payments charge*** 1.3 3.2 4.7
Adjusted (loss)/profit before tax (0.1) - 14.1
* These charges relate to cost of the supplier and travel disruptions from the
travel restrictions experienced over the Covid-19 pandemic.
**These charges relate to amortisation of brand, website technology and
customer relationships recognised on the acquisition of subsidiaries and are
added back as they are inherently linked to historical acquisitions of
businesses.
***The share based payment charge represents the expected cost of shares
vesting under the Group's Long Term Incentive Plan. The share based payment
charge has decreased to £1.3m (HY22: £3.2m). The charge in HY22 included a
£1.9m catch up charge following the Remuneration Committee approving the
introduction of an underpin/minimum award on 21 December 2021.
6 Taxation
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
£m £m £m
Current tax on loss for the period - - 0.4
Adjustments in respect of prior period - - -
Total current tax - - 0.4
Deferred tax on losses for the period
Origination and reversal of temporary differences (1.2) (1.5) 0.3
Adjustments in respect of prior period - - (0.2)
Total deferred tax (1.2) (1.5) 0.1
Total tax (credit)/charge (1.2) (1.5) 0.5
The differences between the total taxation shown above and the amount
calculated by applying the standard UK corporation taxation rate to the profit
before taxation on continuing operating are as follows.
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
£m £m £m
(Loss)/profit on ordinary activities before tax (6.0) (7.0) 2.1
(Loss)/profit on ordinary activities multiplied by the rate of corporation tax (1.1) (1.3) 0.4
in the UK of 19% (2022: 19%)
Effects of:
Impact of difference in current and deferred tax rates (0.1) (0.2) (0.5)
Adjustments in respect of prior years - - (0.2)
Expenses not deductible - - 0.8
Total taxation (credit)/charge (1.2) (1.5) 0.5
The tax charge for the year is based on the effective rate of UK corporation
tax for the period of 20% (2022: 21%). An increase in the UK corporation rate
from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May
2021. The deferred tax assets and liabilities have been calculated based on
these rates.
Deferred tax assets are recognised for tax losses carried forward only to the
extent that realisation of the related tax benefit is probable, deferred tax
assets are reviewed at each reporting date to assess the probability that
sufficient taxable profit will be available to allow all or part of deferred
tax asset to be utilised. All available evidence was considered including
approved budgets, forecasts and analysis of historical operating results.
These forecasts are consistent with those prepared and used internally for
business planning and impairment purposes. The Group determined that there
would be sufficient taxable income generated to realise the benefit of the
deferred tax assets and no reasonably possible change to key assumptions would
result in a material reduction in forecast headroom of tax profits.
7 Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to
equity holders of On the Beach Group plc by the weighted average number of
ordinary shares issued during the year.
Adjusted earnings per share figures are calculated by dividing adjusted
earnings after tax for the year by the weighted average number of shares.
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
Basic EPS
(Loss)/profit after tax for the period (£'m) (4.8) (5.5) 1.6
Basic weighted average number of Ordinary Shares (m) 166.4 165.7 165.9
Earnings per share (in pence per share) (2.9p) (3.3p) 0.9p
Diluted EPS
(Loss)/profit after tax for the period (£'m) (4.8) (5.5) 1.6
Weighted average number of Ordinary Shares (m) 166.4 165.7 166.7
Earnings per share (in pence per share) (2.9p) (3.3p) 0.9p
There was no difference in the weighted average number of shares used for the
calculation of basic and diluted loss per share as the effect of all
potentially dilutive shares outstanding was anti-dilutive.
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
Adjusted basic (loss)/earnings per share
Adjusted (loss)/earnings after tax (£'m) (0.1) 0.1 10.5
Weighted average number of Ordinary Shares (m) 166.4 165.7 165.9
Earnings per share (in pence per share) (0.1p) 0.1p 6.3p
Adjusted diluted (loss)/earnings per share
Adjusted (loss)/earnings after tax (£'m) (0.1) 0.1 10.5
Weighted average number of Ordinary Shares (m) 166.4 166.5 166.7
Earnings per share (in pence per share) (0.1p) 0.1p 6.3p
Adjusted (loss)/earnings after tax is calculated using the tax rate of 20% (31
March 22: 19%, 30 September 22: 25%) on the basis that this is the Group's
effective tax rate:
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended 30 September 2022
unaudited unaudited audited
£'m £'m £'m
(Loss)/profit for the year after taxation (4.8) (5.5) 1.6
Adjustments net of tax of 20% (31 March 2022: 19%, 30 September 2022: 25%)
Impact of exceptional cancellations - - 1.9
Fair value FX losses/(gains) 0.6 - (0.6)
Other exceptional costs 0.9 0.8 -
Amortisation of acquired intangibles 2.2 2.2 4.1
Share based payment charges* 1.0 2.6 3.5
Adjusted (loss)/earnings after tax (0.1) 0.1 10.5
* The share based payment charges are in relation to options which are not yet
exercisable.
8 Intangible assets
Brand Goodwill Website & development Costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2022 35.9 40.2 31.2 22.8 2.1 4.4 136.6
Additions - - 6.9 - - - 6.9
At 31 March 2023 35.9 40.2 38.1 22.8 2.1 4.4 143.5
Accumulated amortisation
At 1 October 2022 19.9 - 18.6 20.8 1.7 1.3 62.3
Charge for the year 1.2 - 3.5 1.2 0.2 0.1 6.2
At 31 March 2023 21.1 - 22.1 22.0 1.9 1.4 68.5
Net book amount
At 31 March 2023 (unaudited) 14.8 40.2 16.0 0.8 0.2 3.0 75.0
Brand Goodwill Website & development Costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2021 35.9 40.2 20.2 22.8 2.1 4.4 125.6
Additions - - 4.3 - - - 4.3
At 31 March 2022 35.9 40.2 24.5 22.8 2.1 4.4 129.9
Accumulated amortisation
At 1 October 2021 17.5 - 13.3 18.4 1.3 1.0 51.5
Charge for the year 1.2 - 2.4 1.2 0.2 0.1 5.1
At 31 March 2022 18.7 - 15.7 19.6 1.5 1.1 56.6
Net book amount
At 31 March 2022 (unaudited) 17.2 40.2 8.8 3.2 0.6 3.3 73.3
Brand Goodwill Website & development Costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2021 35.9 40.2 20.2 22.8 2.1 4.4 125.6
Additions - - 11.0 - - - 11.0
At 30 September 2022 35.9 40.2 31.2 22.8 2.1 4.4 136.6
Accumulated amortisation
At 1 October 2021 17.5 - 13.3 18.4 1.3 1.0 51.5
Charge for the year 2.4 - 5.3 2.4 0.4 0.3 10.8
At 30 September 2022 19.9 - 18.6 20.8 1.7 1.3 62.3
Net book amount
At 30 September 2022 (audited) 16.0 40.2 12.6 2.0 0.4 3.1 74.3
The Group capitalise development projects where they satisfy the requirements
for capitalisation in accordance with the accounting standard and expense
projects that relate to the operations and ongoing maintenance.
Brand
The brand intangibles assets consist of three brands which were separately
identified as intangibles on the acquisition of the respective businesses. The
carrying amount of the brand intangible assets:
Brand Remaining amortisation period Acquisition At 31 March 2023 At 31 March 2022 At 30 September 2022
unaudited unaudited audited
£'m £'m £'m
On the Beach 4 years On the Beach Travel Limited 11.2 13.1 12.1
Sunshine.co.uk 4 years Sunshine.co.uk Limited 0.6 0.7 0.7
Classic Collection 5 years Classic Collection Limited 3.0 3.4 3.2
14.8 17.2 16.0
9 Tangible assets
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2022 2.3 5.1 7.4 14.8
Additions - - - -
At 31 March 2023 2.3 5.1 7.4 14.8
Accumulated Depreciation £'m £'m £'m £'m
At 1 October 2022 0.2 1.7 3.8 5.7
Charge for the Year - 0.4 0.7 1.1
At 31 March 2023 0.2 2.1 4.5 6.8
Net book amount
At 31 March 2023 (unaudited) 2.1 3.0 2.9 8.0
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2021 2.3 3.6 7.1 13.0
Additions - 1.5 0.6 2.1
At 31 March 2022 2.3 5.1 7.7 15.1
Accumulated Depreciation £'m £'m £'m £'m
At 1 October 2021 0.1 1.1 3.5 4.7
Charge for the Year - - 0.9 0.9
At 31 March 2022 0.1 1.1 4.4 5.6
Net book amount
At 31 March 2022 (unaudited) 2.2 4.0 3.3 9.5
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2021 2.3 3.6 7.1 13.0
Additions - 1.5 1.3 2.8
Disposals - - (1.0) (1.0)
At 30 September 2022 2.3 5.1 7.4 14.8
Accumulated Depreciation £'m £'m £'m £'m
At 1 October 2021 0.1 1.1 3.5 4.7
Charge for the Year 0.1 0.6 1.3 2.0
Disposals - (1.0) (1.0)
At 30 September 2022 0.2 1.7 3.8 5.7
Net book amount
At 30 September 2022 (audited) 2.3 2.5 3.6 9.1
10 Trade and other receivables
At 31 March 2023 At 31 March 2022 At 30 September 2022
unaudited unaudited audited
Amounts falling due within one year: £'m £'m £'m
Trade receivables - net 225.9 200.8 100.8
Other receivables and prepayments 38.8 23.4 21.6
Total trade and other receivables 264.7 224.2 122.4
For the 6 months ending 31 March 2023, other receivables includes £1.6m
receivable in respect of amounts due from airlines as a result of exceptional
supplier cancellations. Other receivables and prepayments includes £19.8m of
advanced payments to suppliers and £4.3m receivable in relation to value
added tax.
For the 6 months ending 31 March 2022, other receivables includes £1.4m
receivable in respect of amounts due from airlines as a result of exceptional
COVID-19 cancellations. Other receivables and prepayments includes £10.7m of
advanced payments to suppliers.
For the year ended 30 September 2022 , other receivables includes £2.8m
receivable in respect of amounts due from airlines as a result of exceptional
Covid-19 cancellations. Other receivables and prepayments includes £5.3m of
advanced payments to suppliers, £3.9m of rebates due from suppliers and
£2.2m receivable in relation to value added tax. The expected credit losses
in respect to these balances is not material. Prepayments greater than one
year are £0.6m.
11 Trade, other payables and provisions
At 31 March 2023 At 31 March 2022 At 30 September 2022
unaudited unaudited audited
£'m £'m £'m
Non-current liabilities
Lease liabilities 2.4 3.3 3.0
Current liabilities
Trade payables 277.8 242.7 158.3
Accruals 33.0 30.2 27.4
Lease liabilities 1.0 0.9 0.9
Provisions 0.6 3.1 0.3
Total trade, other payables and provisions 314.8 280.2 189.9
Trade payables
For the 6 months ended 31 March 2023, trade payables includes £0.1m in
respect of refunds owed to customers (6 months ended 31 March 2022: £0.3m;
year ended 30 September 2022: £0.2m), with the related receivable from the
airlines recognised in trade receivables. Where the refunds are not received
from the airline the Group has a legally enforceable right to offset the
recognised amounts. The Group has presented the figures gross due to no option
to settle on a net basis or realise the asset and settle the liability
simultaneously.
Provisions
For the period ended 31 March 2023 a provision of £0.6m has been recognised
in respect of expected future cancellations for supplier and customer
cancellations on the forward order book for future departures. The Group
expect this provision to be utilised over the next year. The provision is
based on pre-pandemic trends and best estimate of future expectation, there is
inherent uncertainty in terms of the level and timing of future cancellations
which will depend on various factors including potential further supplier
disruption.
For the 6 months ended 31 March 2022, the £3.1m provision consists of £2.8m
refund liability in respect of expected future cancellations in relation to
Covid 19 pandemic and £0.3m recognised for specific suppliers.
For the year ended 30 September 2022 a provision of £0.3m has been recognised
in respect of expected future cancellations for supplier and customer
cancellations on the forward order book for future departures. The Group
expect this provision to be utilised over the next year. The provision is
based on pre-pandemic trends and best estimate of future expectation, there is
inherent uncertainty in terms of the level and timing of future cancellations
which will depend on various factors including potential further supplier
disruption.
12 Trust Account
Trust accounts are restricted cash held separately and only accessible once
the Trust rules are met as approved by the Trustees and the Civil Aviation
Authority, this is at the point the customer has travelled or the booking is
cancelled and refunded.
13 Financial instruments
At the balance sheet date the Group held the following:
FV Level At 31 March 2023 At 31 March 2022 At 30 September 2022
Financial assets £'m £'m £'m
Derivative financial assets designated as hedging instruments
Forward exchange contracts 2 - - 3.2
Financial assets at amortised cost
Trade and other receivables 1 244.9 213.5 116.9
Trust account 1 137.2 99.1 69.4
Cash at bank 1 9.6 16.8 64.5
Total financial assets 391.7 340.1 254.0
Financial liabilities
Derivatives designated as hedging instruments
Forward exchange contracts 2 (1.0) (0.4) -
Financial liabilities at amortised cost
Trade and other payables 1 (314.2) (277.2) (189.6)
Provisions 1 (0.6) (3.1) (0.3)
Revolving credit facility 1 (30.0) - -
Total financial liabilities (345.8) (280.7) (189.9)
a) Measurement of fair values
The table below analyses financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
(i) Level 1: quoted prices (unadjusted) in
active markets for identical assets or liabilities
(ii) Level 2: inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices)
(iii) Level 3: inputs for the asset or
liability that are not based on observable market data (unobservable inputs)
At 31 March 2023 At 31 March 2022 At 30 September 2022
£'m £'m £'m
Forward Contracts (1.0) (0.4) 3.2
The forward contracts have been fair valued at 31 March 2023 with reference to
forward exchange rates that are quoted in an active market, with the resulting
value discounted back to present value.
b) Financial risk management
The Group's principal financial liabilities, other than derivatives, comprise
revolving credit facility, provisions and trade and other payables. The main
purpose of these financial liabilities is to finance the Group's operations.
The Group's principal financial assets include trade receivables, and cash at
bank that derive directly from its operations.
In the course of its business the Group is exposed to market risk (including
foreign exchange risk and interest rate risk), credit risk, liquidity risk and
technology risk. The Group's overall risk management strategy is to minimise
potential adverse effects on the financial performance and net assets of the
Group. These policies are set and reviewed by senior finance management and
all significant financing transactions are authorised by the Board of
Directors.
The Group's key financial market risks are in relation to foreign currency
rates. The majority of the Group's purchases are sourced from outside the
United Kingdom and as such the Group is exposed to the fluctuation in exchange
rates (currencies are principally Sterling, US Dollar, Euro and Swedish
Krona). The Group places forward cover on the foreign currency exposure of its
purchases.
Derivatives are valued using present value calculations. The valuation methods
incorporate various inputs including the foreign exchange spot and forward
rates, yield curves of the respective currencies and currency basis spreads
between the respective currencies.
Revolving credit facility
On 7 December 2022, the Group refinanced its credit facilities with Lloyds and
NatWest. This included cancelling its previous facilities of £75m with Lloyds
Bank and entering into a new facility for £60m expiring in December 2025. The
purpose of the facility is to meet the day to day working capital requirements
of the Group. At the point of refinancing there was nothing drawn down.
The total facility is £60m and has two elements as follows:
· £30m facility with Lloyds
· £30m facility with Natwest
The interest rate payable is equal to SONIA plus a margin. The margin
contained within the facility is dependent on net leverage ratio and the rate
per annum ranges from 2.00% to 2.75% for the facility or any unpaid sum.
The terms of the facility prior to 7 December 2022 included the following key
financial covenants:
(i) that the ratio of adjusted EBITDA to net finance charges in respect
of any relevant period shall not be less than 5:1;
(ii) that the ratio of total net debt to adjusted EBITDA shall not exceed
2:1
The terms of the new facility following 7 December 2022 include the following
covenants:
(i) the ratio of adjusted EBITDA to net finance charges in respect of any
relevant period shall not be less than 5:1; and
(ii) the ratio of total net debt to adjusted EBITDA shall not exceed 2.5:1.
The Group did not breach the covenants during the period.
The RCF is available for other credit uses including currency hedging
liabilities and corporate credit cards. At 31 March 2023, the liabilities
recognised in trade and other payables for the other credit uses was £30.0m,
leaving £30.0m of the Lloyds/Natwest facility available for use. Card
facilities with other providers remain available for use. The amount drawn
down in cash at 31 March 2023 was £30m (At March 2022 £nil, and September
2022 £nil).
14 Related party transactions
No related party transactions have been entered into during the period.
PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a
material impact on the Company's performance over the remaining six months of
the financial year and could cause actual results to differ materially from
expected and historical results.
The directors do not consider that the principal risks and uncertainties have
changed in any material respect since the publication of the Annual Report for
the year ended 30 September 2022. These risks and how the Company seeks to
mitigate these risks are set out on pages 38 -51 of the 2022 Annual Report and
Accounts which can be found at www.onthebeachgroupplc.com.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the interim report in accordance
with applicable law and regulations. The Directors confirm that the condensed
consolidated interim financial information has been prepared in accordance
with International Accounting Standard 34 ('Interim Financial Reporting') as
adopted by the European Union.
The interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules paragraphs 4.2.7 R and 4.2.8
R, namely:
· an indication of important events that have occurred during the
six months ended 31 March 2023 and their impact on the condensed set of
financial information, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· material related-party transactions during the six months ended
31 March 2023 and any material changes in the related-party transactions
described in the Annual report and Accounts 2022. The Directors of the Company
are listed in the Annual Report and Accounts 2022.
A list of current Directors is also maintained on the Company's website:
(http://onthebeachgroupplc.com/) (http://onthebeachgroupplc.com/)
http://onthebeachgroupplc.com. (http://onthebeachgroupplc.com/)
The interim report was approved by the Board of Directors and authorised for
issue on 16 May 2023 and signed on its behalf by:
Shaun Morton - CFO
16 May 2023
GLOSSARY
APM Definition Reconciliation to closest GAAP measure
EBITDA EBITDA is based on Group operating (loss)/profit before depreciation, EBITDA (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
amortisation, impact of exceptional items and the non-cash cost of the share
based payment schemes.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees, fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19. These costs / income are excluded by virtue of their size and in
order to reflect management's view of the performance of the Segment.
Group operating (loss)/profit (6.3) (6.5) 2.6
Depreciation and amortisation 4.5 3.2 7.3
Amortisation of acquired intangibles 2.8 2.8 5.5
EBITDA after share based payments and exceptional items 1.0 (0.5) 15.4
Exceptional items 1.8 1.0 1.8
Share based payments 1.3 3.2 4.7
Group EBITDA 4.1 3.7 21.9
Adjusted EPS Adjusted basic EPS is calculated on the weighted average number of ordinary Adjusted loss after tax (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
shares in issue, using the adjusted profit after tax.
Adjusted earnings after tax is based on (loss)/profit after tax adjusted for
amortisation of acquired intangibles, share-based payments and exceptional
items.
Amortisation of acquired intangibles are linked to the historical acquisitions
of businesses.
Share-based payments represents the non-cash costs which fluctuates year on
year.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees, fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19.
These costs / income are excluded by virtue of their size and in order to
reflect management's view of the performance of the Group and allow
comparability to prior years.
(Loss)/profit for the period (4.8) (5.5) 1.6
Share based payments (net of tax) 1.0 2.6 3.5
Impact of exceptional items (net of tax) 1.5 0.8 1.3
Amortisation of acquired intangibles (net of tax) 2.2 2.2 4.1
Adjusted (loss)/profit after tax (0.1) 0.1 10.5
Basic weighted average number of Ordinary Shares (m) 166.4 165.7 165.9
Adjusted EPS (p) (0.1) 0.1 6.3
Adjusted (loss)/profit before tax Adjusted (loss)/profit before tax is based on loss before tax adjusted for Adjusted loss before tax (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
amortisation of acquired intangibles, share based payments and exceptional
items.
Amortisation of acquired intangibles are linked to the historical acquisitions
of businesses.
Share based payments represents the non-cash costs which fluctuates year on
year.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees, fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19.
These costs / income are excluded by virtue of their size and in order to
reflect management's view of the performance of the Segment and allow
comparability to prior years.
(Loss)/profit before tax (6.0) (7.0) 2.1
Amortisation of acquired intangibles 2.8 2.8 5.5
Share based payments 1.3 3.2 4.7
Exceptional items 1.8 1.0 1.8
Adjusted loss before tax (0.1) - 14.1
CCH booked TTV CCH booked TTV is a non-GAAP measure representing the cumulative total CCH booked TTV (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
transaction value of sales booked each month before cancellations and
adjustments.
* As a principal revenue is recognised on a travelled basis.
CCH revenue 22.6 13.2 50.5
Amendments 0.5 1.6 10.2
Booked in previous year and travelled in year* (14.7) (7.8) (13.7)
Bookings made but not yet travelled* 24.5 20.8 8.6
CCH TTV 32.9 27.8 55.6
CCH EBITDA CCH EBITDA is based on CCH operating loss before depreciation and CCH EBITDA (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
amortisation.
CCH operating loss (3.0) (2.4) (1.8)
Depreciation and amortisation 0.7 0.7 1.4
CCH EBITDA (2.3) (1.7) (0.4)
CCH gross profit after marketing costs CCH gross profit after marketing cost is gross profit after "CCH" online and CCH gross profit after marketing cost (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
offline marketing costs.
CCH gross profit 2.4 1.2 5.8
CCH marketing (1.2) (0.3) (1.0)
CCH gross profit after marketing costs 1.2 0.9 4.8
CPH gross profit after marketing costs CPH gross profit after marketing cost is gross profit after "CPH" online and Adjusted CPH gross profit after marketing cost (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
offline marketing costs.
CPH gross profit 0.9 0.7 2.0
Total CPH marketing (0.5) (0.4) (1.0)
Adjusted CPH gross profit after marketing costs 0.4 0.3 1.0
CPH booked TTV CPH booked TTV is a non-GAAP measure representing the cumulative total CPH booked TTV (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
transaction value of sales booked each month before cancellations and
adjustments.
* Costs relate to the gross costs for bookings made on an agent basis.
CPH revenue 2.5 2.7 5.8
Costs* and amendments 10.5 11.0 25.3
CPH booked TTV 13.0 13.7 31.1
CPH EBITDA CPH EBITDA is based on CPH operating loss before depreciation, amortisation Adjusted CPH EBITDA (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
and the impact of exceptional items.
These costs / income are excluded by virtue of their size and in order to
reflect management's view of the performance of the Segment.
CPH operating loss (0.4) (0.5) (0.7)
Depreciation and amortisation - 0.1 0.2
CPH EBITDA (0.4) (0.4) (0.5)
Exceptional items Exceptional items in the 6 months ended 31 March 2023 include legal and Exceptional items (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
professional fees Fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19.
These costs / income are excluded from various performance measures by virtue
of their size and in order to better reflect management's view of the
performance of the Group.
Fair value FX losses/(gains) 0.7 - (0.8)
Impact of Covid-19 and travel disruptions - - 2.6
Other exceptional costs 1.1 1.0 -
Exceptional items 1.8 1.0 1.8
Group booked TTV Group booked TTV is a non-GAAP measure representing the cumulative total Group booked TTV (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
transaction value of sales booked each month before cancellations and
adjustments.
* Bookings where revenue has been recognised on a travelled basis as a
principal.
** Costs relate to the gross costs for bookings made on an agent basis.
Group revenue 73.2 52.9 144.1
Costs** and amendments 412.0 319.9 717.1
Booked in previous year and travelled in year* (14.7) (7.8) (13.7)
Bookings made but not yet travelled* 24.5 20.8 8.6
Group booked TTV 495.0 385.8 856.1
Gross Profit after Marketing Group gross profit after marketing cost is gross profit before exceptional Group gross profit after marketing cost (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
items less Group online and offline marketing costs.
Group gross profit 51.3 39.0 95.6
Fair value FX losses/(gains) 0.7 - (0.8)
Impact of Covid-19 and travel disruptions - - 1.3
Group adjusted gross profit 52.0 39.0 96.1
Group online marketing costs (14.4) (11.8) (28.8)
Group offline marketing costs (13.4) (8.4) (12.4)
Total Group marketing (27.8) (20.2) (41.2)
Group gross profit after marketing costs 24.2 18.8 54.9
OTB EBITDA OTB EBITDA is based on OTB operating (loss)/profit before depreciation, OTB EBITDA (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
amortisation, impact of exceptional items and the non-cash cost of the share
based payment schemes.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees Fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19. These costs / income are excluded by virtue of their size and in
order to reflect management's view of the performance of the Segment.
OTB operating (loss)/profit (2.8) (3.7) 5.2
Depreciation and amortisation 4.3 2.9 6.7
Amortisation of acquired intangibles 2.3 2.3 4.4
OTB EBITDA after share based payments and exceptional items 3.8 1.5 16.3
Exceptional items 1.8 0.9 1.1
Share based payments 1.3 3.2 4.7
OTB EBITDA 6.9 5.6 22.1
OTB adjusted revenue after marketing costs OTB adjusted revenue after marketing cost is revenue after "OTB" online and Adjusted OTB revenue after marketing cost (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
offline marketing costs.
OTB revenue 47.8 36.8 87.1
Fair value FX losses/(gains) 0.7 - (0.8)
Impact of Covid-19 and travel disruptions - (0.1) 0.6
Adjusted OTB revenue 48.5 36.7 86.9
OTB online marketing costs (12.5) (11.1) (11.9)
OTB offline marketing costs (13.4) (8.3) (27.0)
Total OTB marketing (25.9) (19.4) (38.9)
Adjusted OTB revenue after marketing costs 22.6 17.3 48.0
Marketing costs as % of adjusted revenue 53% 53% 45%
OTB booked TTV OTB booked TTV is a non-GAAP measure representing the cumulative total OTB booked TTV (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
transaction value of sales booked each month before cancellations and
adjustments * Costs relate to the gross costs for bookings made on an agent
basis
OTB revenue 47.8 36.8 87.1
Costs* and amendments 398.0 306.0 675.6
OTB booked TTV 445.8 342.8 762.7
OTB exceptional items OTB exceptional items in the 6 months ended 31 March 2023 include legal and OTB exceptional items (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
professional fees, fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19.
These costs / income are excluded from various performance measures by virtue
of their size and in order to better reflect management's view of the
performance of the Group.
Fair value FX losses/(gains) 0.7 - (0.8)
Impact of Covid-19 and travel disruptions - - 1.9
Other exceptional costs 1.1 0.9 -
OTB exceptional items 1.8 0.9 1.1
OTB adjusted operating profit Adjusted OTB Operating profit is based on OTB operating (loss)/profit before Adjusted OTB operating profit (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
the impact of exceptional items, amortisation of acquired intangibles and the
non-cash cost of the share based payment schemes.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees Fair value FX losses and restructuring costs.
Exceptional items in the year ended 30 September 2022 relates to the impact of
Covid-19 in the year and travel disruption arising following the removal of
travel restrictions.
Exceptional items in the period ended 31 March 2022 relate to the impact of
Covid-19.
These costs / income are excluded by virtue of their size and in order to
reflect management's view of the performance of the Segment.
OTB operating (loss)/profit (2.8) (3.7) 5.2
Exceptional items 1.8 0.9 1.1
Share based payments 1.3 3.2 4.7
Amortisation of acquired intangibles 2.3 2.3 4.4
Adjusted OTB operating Profit 2.6 2.7 15.4
Overheads % revenue Overheads as a percentage of revenue is based on the OTB adjusted revenue Overheads % revenue (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
divided by the overheads for OTB. OTB overheads is the administrative expenses
excluding the depreciation and amortisation.
OTB adjusted revenue 48.5 36.7 86.9
Overheads (15.7) (11.7) (25.9)
Overheads % revenue 32% 32% 30%
Overheads % booked TTV Overheads as a percentage of TTV is based on the OTB booked TTV divided by the Overheads % revenue (£'m) 6 months ended 31 March 2023 6 months ended 31 March 2022 12 months ended 30 September 2022
overheads for OTB. OTB overheads is the administrative expenses excluding
marketing costs, depreciation and amortisation.
OTB booked TTV 445.8 342.8 762.7
Overheads (15.7) (11.7) (25.9)
Overheads % revenue 4% 3% 3%
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BELLFXELEBBDRecent news on On Beach group
See all newsREG - On the Beach Group - Total Voting Rights
AnnouncementREG - On the Beach Group - PDMR Notification
AnnouncementREG - On the Beach Group - Notice of Results
AnnouncementREG - On the Beach Group - PDMR Transaction
AnnouncementREG - On the Beach Group - PDMR Notification
Announcement