REG - On the Beach Group - Interim Results
Today 07:02
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RNS Number : 3494I On the Beach Group PLC 13 May 2025
13 May 2025
On the Beach Group plc
("On the Beach", "OTB", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025 ("H1 FY25")
Booked TTV up 13%, with strong volume growth of 11%, significantly ahead of
the market
Adjusted profit before tax up 23%
Expanded addressable market with 130 Cities now live and brand established in
Republic of Ireland
Group Financial & Operational Highlights
H1 25 H1 24((5)) H1 25 vs H1 24
Unaudited Unaudited Unaudited
£'m £'m %
Booked TTV ((1)) £640.7m £568.7 13%
Revenue ((2)) £64.2m £59.9m 7%
Adjusted revenue ((3)) £64.1m £57.1m 12%
Adjusted EBITDA ((4)) £12.0m £10.1m 19%
Adjusted profit before tax ((3)) £7.6m £6.2m 23%
Profit before tax £3.3m £2.8m 18%
Net Debt ((3)) (£29.5m) (£47.3m)
Cash in Trust £224.2m £195.9m
Dividends per share (interim) 1.0p 0.9p 11%
(1) Booked TTV ('TTV') is the Group total transaction value of holidays
booked in the period before cancellations and adjustments.
(2) Revenue in the prior year is stated inclusive of £2.8m of
exceptional income relating to the settlement of refunds for flights cancelled
during COVID-19.
(3) See glossary for reconciliation to nearest GAAP measure.
(4) EBITDA is profit before tax, exceptional items, share based
payments, depreciation and amortisation, see glossary for reconciliation to
nearest GAAP measure.
(5) The prior period is restated for the effect of operations that were
discontinued in the prior financial year.
Financial headlines
· TTV was +13%, demonstrating holidays from On the Beach are
resonating strongly with the UK consumer.
· The increase was driven by booking volumes of +11%, growing
significantly ahead of the package holiday market.((6))
· Adjusted EBITDA was +19%, reflecting continuing improvement in
margins and operational leverage.
· Adjusted profit before tax was +23% to £7.6m, (H1 24: £6.2m)
after net investment of £1.5m into marketing in the Republic of Ireland.
· Net debt reduced by £18m year on year, having also returned
c.£30m to shareholders via share buyback and dividends.
· Interim dividend of 1.0p per share declared in line with capital
allocation policy (+11% vs H1 24).
Strategic highlights
· Overall market seat supply remains strong heading into the summer
with over 70m seats from UK departure points to European destinations,
including an additional 5% airline capacity to beach leisure destinations YOY
and a further 3% to all European destinations.
· With H1 volumes +11%, On the Beach continues to grow
significantly ahead of the increase in market seat supply.
· The upgraded technology platform is enabling enhanced
differentiation of the product, with personalised perks now embedded in the
mobile app, enhancing engagement and stickiness.
· 130 Short Haul and Long Haul Cities are currently live and a
brand presence has been established in the Republic of Ireland, enabled
through transformational development in the technology platform, which has
more than doubled the size of the addressable market
· Results demonstrate further progress in the execution of strategy
to help people holiday better and more often.
Current trading and outlook
· H1 PBT growth of +23% is in line with expectations and stated
after the net £1.5m investment into the Republic of Ireland.
· Quarterly YTD booking momentum has been building, with volumes
+7% in Q1, +15% in Q2, and currently +18% in Q3 to date.
· Summer '25 forward order TTV is currently +14%, and on an upward
trajectory since the last trading update (+10% as at 25 Feb).
· Early-stage access to the two new expansion markets will
contribute to further growth in H2.
· As a result of these factors, and the continued execution of
strategy, another record year is expected.
· Board is confident in delivering FY25 profit in line with current
consensus expectations (Adjusted PBT £38.2m).
· On track to deliver medium term ambition of £2.5bn TTV, £100m
EBITDA and £85m PBT.
(6) ATOL data from the latest CAA renewal cycle in March 2025 reports a
3% YOY increase in total licensed forecast passenger volumes across the market
for the next 12 months.
Shaun Morton, Chief Executive of On the Beach Group plc, commented:
"I am very pleased to report another strong first half, in which the Group
achieved TTV growth of 13% and revenue growth of 12% year on year. This record
interim performance was driven by increased passenger bookings and reflects
the strength of the On the Beach holiday proposition.
"Ongoing investment in our proprietary technology platform has supported our
ambition to improve our customers' booking experience, enhance operational
efficiency and to build scale. Embedding perks into our app has resonated well
with customers, while transformational development to our platform have
facilitated our successful expansion into Ireland and City break packages,
offers which are scaling rapidly and being enjoyed by both new and existing
customers.
"Demand for holidays remains strong as our customers continue to prioritise
travel, and we are proud to have increased the breadth and quality of our
offer so that they can holiday better and more often. This trend is reflected
in our Summer '25 forward order TTV which is currently 14% ahead of last year.
Our trading momentum, coupled with the continued execution of our strategy,
means we are well placed to deliver our biggest summer to date and remain on
track with our medium term ambition."
Analyst & investor webinar
A webinar for sell-side analysts and investors will be held today at 10.30am,
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
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
Lia Bevan
About On the Beach
On the Beach Group plc is one of the UK's largest online package holiday
specialists, 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
Following another record year in FY24, momentum has continued into the first
half of FY25 and has further strengthened since our AGM trading update at the
end of February, demonstrating that customer demand for holidays from On the
Beach continues to buck wider UK consumer trends.
The Group has delivered TTV growth of +13% in the first half, including strong
volume growth of +11%, reflecting the strength of the On the Beach holiday
proposition.
Trading momentum has continued since the half year, with Q3 to date TTV growth
currently +18%. As a result of these factors and the continued execution of
our strategy, we expect On the Beach to deliver another record year, and the
Board is confident in delivering FY25 profit in line with current consensus
expectations.
Business model
On the Beach's asset light and low fixed cost operating model, with no
committed inventory to fill, naturally mitigates wider macro pressures
experienced across the broader sector, while allowing for competitive pricing
to capture share in a growing market.
Our well-invested technology enables us to serve billions of holiday
combinations to our customers every day.
Being asset light, we are independent of airlines and hotels, which means that
we have more capacity and flexibility than any standalone tour operator,
airline or hotel chain and can pivot or expand quickly dependent on demand and
opportunity.
Overall market seat supply remains strong heading into the summer with over
70m seats from UK departure points to European destinations, including an
additional 5% airline capacity to beach leisure destinations and a further 3%
to all European destinations compared to last summer.
ATOL data from the latest CAA renewal cycle in March 2025 reports a 3% YOY
increase in total licensed forecast passenger volumes across the market for
the next 12 months.
With OTB H1 volumes +11% and the summer forward order book +14%, On the Beach
continues to grow significantly ahead of both the growth in market seat supply
and the package holiday market.
Strategic progress
Our half year results demonstrate further progress in the execution of our
strategy to help people holiday better and more often.
We continue to develop our technology platform with the key objectives being
to improve our customers' booking experience, enhance operational efficiency
and significantly scale.
We are proactively implementing transformational change within our Technology
and Product teams to support with delivery against these key objectives.
Following on from the significant upgrades to our platform last year, H1 25
highlights include a new inventory data store optimised for accuracy and
performance, faster search technology with smarter filtering and discovery,
new customer-centric technology to drive repeat bookings, ongoing investment
in native app capabilities driving growing app engagement, and increased usage
of AI to drive business efficiency and productivity.
Ongoing development to our platform underpins everything we do strategically,
enabling growth in our core and expansion areas through delivery of the four
design principles of our strategy; Stickiness, Choice, Peace of mind, and
Scale and automation.
Stickiness
Consumers are shopping around as much as ever, so we are having to reacquire
them. Our strategy is therefore designed for stickiness: providing reasons for
more of our customers to engage with our brand all year round and not just
when booking their holiday.
We achieve this by offering value; providing flexible payment options,
compelling perks and by using our mobile app as an essential utility.
Customers who book via the app are generally more satisfied and are more
likely to rebook with us. The rebook rate is significantly higher in app than
web.
Our technology enables us to continue to differentiate from others through our
perks (fast track, lounge and mobile data), which give us a unique value
proposition and a communicable point of difference, helping strengthen our
brand, and broaden our appeal to new customers seeking premium holidays.
Perks are now available in the app, which is used to promote our perks and
vice versa, promoting further stickiness. Our perks, combined with the
successful partnership with Paddy McGuiness, have enabled us to effectively
maintain record levels of brand awareness and consideration. In H1 25, we
achieved our highest ever Top 3 Consideration and perk awareness score.
Choice
Our beach proposition competes for a small share of our customers' holiday
wallet, therefore we are designing for choice, increasing the share of holiday
wallet we compete for by adding other holiday options.
Investment in our technology has enabled us to expand into City break packages
from Q4 of our last financial year, with the offering scaling rapidly.
Existing customers indicated to us that they would book City breaks with us if
we sold them and this reflects our experience to date, with approximately 60%
of City bookings being existing customers. We are also attracting new
customers to the brand that haven't booked an OTB holiday previously, with 40%
of City bookings being new customers, with the potential to repeat with a
beach or City holiday in the future.
Whilst still early stage, key indicators are progressing well and we currently
have 130 Short Haul and Long Haul cities live.
Peace of mind
We are aware that consumers want choice, value and protection when booking a
package holiday, but they also want hiccup-free holidays. We are therefore
using our technology to design package holidays for peace of mind.
In H1 25 we launched Price Drop Protection (PDP). If the price of a customer's
holiday drops between booking and up to 60 days before departure, they can
claim the difference back as a credit towards their next holiday.
PDP gives our customers the peace of mind that they are getting the best
possible deal on their holiday, whilst encouraging them to keep visiting our
app, also promoting engagement and stickiness.
OTB customer satisfaction scores are continuing to improve as we leverage the
benefits of our upgraded technology and Ryanair partnership agreement. Our
customer service is increasingly automated and efficient, which is resulting
in fewer inbounds to the contact centre and increasing NPS.
Scale and automation
Finally, we have significant opportunities to expand our customer base,
therefore we are designing for scale.
Upgrades to our technology platform enable expansion into new markets.
International expansion commenced in H2 24 through the sale of package
holidays from the Republic of Ireland (ROI). We have now established a brand
presence in the ROI. Our offline campaign in H1 25 has been supported by Paddy
McGuiness, doubling spontaneous awareness of OTB as a package beach holiday
firm.
Ongoing investment in the ROI is progressing to plan, with c.£3m net cost
expected in FY25 and our experience has laid the foundations for potential
further international expansion.
Medium term outlook
Upgrades to our technology platform have enabled us to increase the size of
our addressable market. Building on our expansion into premium and long-haul
markets, adding Ireland and Cities more than doubles our addressable market
once more, with the opportunity to expand into new markets remaining open to
us, but not critical to achieving our medium-term ambition of doubling sales.
Our strategic progress and results in H1 25 represent another step on our
journey to achieving that ambition.
Segmental performance
Following the reorganisation of the B2B segment in the prior year, the Group
now organises its operations into two principal financial reporting segments,
being OTB (onthebeach.co.uk, onthebeach.ie and sunshine.co.uk) and B2B
(Classic Collection).
OTB Segment performance
H1 2025 H1 2024 vs
Bookings '000s 303.6 276.4 10%
Booked TTV £m 611.7 551.4 11%
H1 2025 H1 2024 vs
£m £m %
Revenue ((1)) 59.4 56.3 6%
Adjusted Revenue* 59.3 53.6 11%
Adjusted gross profit* 57.4 52.6 9%
Online Marketing costs (16.3) (15.4)
Offline Marketing costs (9.8) (10.5)
Gross profit after marketing costs* 31.3 26.7 17%
Overheads (18.5) (17.0)
Depreciation and amortization (6.5) (5.8)
Adjusted operating profit* 6.3 3.9 62%
Exceptional items (0.9) (0.5)
Share based payments (1.9) (1.6)
Amortisation of acquired intangibles (1.1) (1.1)
Operating profit 2.4 0.7
Adjusted EBITDA* 12.8 9.7 32%
Adjusted EBITDA % 21.6% 18.0%
*see glossary for reconciliation to nearest GAAP measure
((1)) Revenue in the prior year is stated inclusive of £2.7m of exceptional
income relating to the settlement of refunds for flights cancelled during
COVID-19.
Adjusted Revenue increased by 11% to £59.3m (H1 24: £53.6m). The increase in
revenue was due to volume growth of 10%, with ABV's up 1% reflecting low
single digit inflation and the mix impact of our growth into City breaks.
Growth has been achieved across all hotel star ratings, reflecting the broad
appeal of OTB's brand.
Total marketing costs at £26.1m represent 44% of adjusted revenue (H1 24:
48%). This increased effectiveness has been enabled by tech development in H1.
Offline marketing costs at £9.8m (H1 24 £10.5m) reflect a strategic intent
to retain a presence for longer, whilst online costs were £16.3m (H1 24:
£15.4m).
Following the launch of onthebeach.ie in Q4 FY24 we have invested to build a
brand presence and test online penetration.
Adjusted gross profit after marketing costs increased by 17% to £31.3m (H1
24: £26.7m).
Operating leverage and overheads
H1 2025 H1 2024
Overheads % adjusted revenue* 31.2% 31.7%
Overheads % booked TTV* 3.0% 3.1%
*see glossary for reconciliation to nearest GAAP measure
Overheads have increased by £1.5m to £18.5m representing 31.2% of adjusted
revenue (H1 24: 31.7%) and 3.0% of TTV (H1 24: 3.1%).
The absolute increase in overheads within the B2C segment is due to continued
investment into colleague pay, with OTB continuing to pay the real living
wage.
Overall growth in overheads remains well behind the rate of bookings growth,
demonstrating management's commitment to improved operational efficiency
alongside our investment into talent, both of which will support the delivery
of our medium term targets.
Adjusted EBITDA for the period was £12.8m (H1 24: £9.7m), up 32%.
B2B segment performance
H1 2025 H1 2024 Vs
Bookings '000s 10.1 7.4 36%
Booked TTV £'m 29.0 17.3 68%
H1 2025 H1 2024
£'m £'m
Revenue 4.8 3.6
Adjusted revenue* 4.8 3.5
Adjusted gross profit* 1.5 1.4
Gross Profit after marketing costs* 0.9 1.3
Overheads (1.7) (0.9)
Depreciation and amortization (0.1) -
Adjusted operating (loss)/profit* (0.9) 0.4
Exceptional items - 0.1
Share based payments (0.1) -
Amortisation of acquired intangibles (0.3) (0.3)
Operating (loss)/profit (1.3) 0.2
Adjusted EBITDA* (0.8) 0.4
*see glossary for reconciliation to nearest GAAP measure
Following the restructure in the prior year, the B2B segment represents the
operations of Classic Collection. The prior year results have been restated to
exclude the discontinued operations.
Despite a challenging high street market, Classic Collection has made solid
progress with growth in bookings of 36% in H1. Overheads have increased YoY as
a result of the transfer of activity following the restructure. Management
remain focused on operational efficiency in H2.
Further strategic developments at the end of H1, including improved customer
access to Ryanair flight inventory and the launch of Classic Collection in
Ireland, give us confidence that the segment can return to profitability in
H2.
Exceptional items
Exceptional items on a Group basis include £1.0m of costs offset by £0.1m of
income in respect of refunds received from airlines. Costs of £1.0m relate to
restructuring costs (£0.6m), legal and professional costs (£0.2m) and
commission and stamp duty arising on the repurchase of shares (£0.2m).
Financing
In December 2023 an option was exercised to extend the expiry date of the
revolving credit facility to December 2026. This was further extended until
December 2027 in December 2024.
In January 2024, an option was exercised to extend the facility by £25m in
order to provide additional working capital headroom for continued growth,
effective until July 2025. In May 2025 this additional facility was made
permanent with the total facility of £85m now being in place until December
2027.
The cash draw down on this facility at 31 March 2025 was £40m (31 March 2024:
£55m).
Details of the current facility limits and maturity dates with are as follows:
Facilities £m Issued Expiry Drawn at 31 March 2025
RCF - Lloyds Bank £42.5m Dec 2022 Dec 2027 £20m
RCF - NatWest £42.5m Dec 2022 Dec 2027 £20m
Total facility £85m £40m
Share based payments
The Group has a number of Long-Term Incentive Plan ('LTIP') schemes in place
which vest subject to continued employment and in some cases performance
targets. In accordance with IFRS 2, the Group has recognised a non-cash
charge of £2.0m (H1 24: £1.6m).
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 charge of £0.7m (H1 24: £0.1m) represents an effective rate of
24% (H1 24: 25%) which is less than the standard UK rate of 25% (H1 24: in
line with the standard UK rate of 25%).
During the period, a Corporation Tax payment of £1.9m was made in respect of
the current year and a payment of £0.9m was made in respect of the prior
year.
Cash flow
£m H1 2025 H1 2024 FY24
Profit before tax from continuing operations 3.3 2.8 26.5
Loss before tax from discontinued operations 0.4 (2.2) (7.2)
Depreciation and amortization 8.0 7.3 15.1
Net finance income (2.2) (2.1) (5.3)
(Profit)/loss on disposal of property, plant & equipment (0.7) - 0.6
Net loss on disposal of intangible assets - - 0.2
Loss on discontinued operations - - 4.6
Share based payments 2.0 1.6 2.3
Movement in working capital (104.1) (124.2) (4.3)
Corporation tax paid (2.8) (2.1) (3.9)
Net cash (outflow) / inflow from operating activities (96.1) (118.9) 28.6
Other cash flows
Proceeds from disposal of assets 2.6 - -
Purchase of property, plant & equipment (0.1) - -
Capitalised development expenditure (5.2) (5.5) (10.2)
Capitalised intangible assets - - (0.1)
Net finance income 2.3 2.2 5.4
Payment of lease liabilities (0.9) (0.9) (1.8)
Equity dividends paid (3.3) - (1.5)
Share buyback (25.0) - -
RCF drawdowns 40.0 55.0 -
Total net cash flows (85.7) (68.1) 20.4
Opening cash balance 96.2 75.8 75.8
Closing cash at bank 10.5 7.7 96.2
Closing trust balance 224.2 195.9 139.5
Operating cash outflows of £96.1m represent investments made by the Group
into online and offline marketing as well as the working capital required to
fund our low deposit proposition. The reduction in working capital required
YoY is due to one off benefits arising from the Ryanair partnership
agreement.
Cash at bank less RCF drawdowns has improved by £17.8m YoY, highlighting the
cash generative nature of OTB's business model, despite the return to
shareholders of approximately £30m through share buyback and dividends paid.
During the period, the Trust account balance has increased from £195.9m to
£224.2m, which will unwind as customers travel over the summer months.
Dividend
In view of the current full year outlook and the Board's continued confidence
in the Group's prospects, it has decided to declare an interim dividend of
1.0p per share, up 11% on the prior year (H1 24: 0.9p per share). The dividend
will be paid on 27 June 2025 to shareholders on the register at 30 May 2025.
The full year payout ratio is expected to be 25% of FY25 profit after tax, in
line with the Group's capital allocation policy.
Shaun Morton Jon Wormald
CEO
CFO
13 May 2025 13 May 2025
PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a
material impact on the Group's performance over the remainder of the financial
year and may cause actual results to differ materially from expectations.
The Board continues to monitor all principal risks, which remain broadly
unchanged since the 2024 Annual Report. Key areas include demand volatility,
reputational risk, regulatory change, and operational scalability.
Recent geopolitical and fiscal developments have introduced additional
macroeconomic uncertainty but holidays continue to be viewed by many consumers
as essential. Recent high-profile cyber incidents affecting some UK retailers
have highlighted the growing importance of cyber resilience across the sector.
The Group maintains robust cybersecurity protocols and continues to invest in
risk mitigation.
Save for the matters outlined above, the directors confirm there have been no
material changes to the Group's principal risks and uncertainties since the
publication of the 2024 Annual Report. Further detail can be found on pages 55
to 58 of the report, available at www.onthebeachgroupplc.com
(https://www.onthebeachgroupplc.com/) .
On the Beach Group Plc
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MARCH 2025
CONDENSED CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 31 March 2025
Restated*
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
Note £'m £'m £'m
unaudited unaudited audited
Revenue 3,4 64.2 59.9 128.2
Cost of sales (3.3) (2.2) (4.8)
Expected credit losses 12 (1.9) (1.0) (1.7)
Gross profit 59.0 56.7 121.7
Administrative expenses 5 (57.9) (55.8) (100.5)
Group operating profit 4 1.1 0.9 21.2
Finance costs (0.8) (0.4) (2.4)
Finance income 3.0 2.3 7.7
Net finance income 2.2 1.9 5.3
Profit before taxation 3.3 2.8 26.5
Taxation 6 (0.7) (0.1) (6.3)
Profit for the period from continuing operations 2.6 2.7 20.2
Profit/(loss) from discontinued operations 0.4 (2.2) (7.2)
Profit for the period 3.0 0.5 13.0
Other comprehensive income:
Net gain/(loss) on fair value hedges 1.2 (0.2) 0.4
Total comprehensive income for the period 4.2 0.3 13.4
Attributable to equity holders of the parent
Profit from continuing operations 2.6 2.7 20.2
Profit/(loss) from discontinued operations 0.4 (2.2) (7.2)
Other comprehensive income/(loss) 1.2 (0.2) 0.4
Total comprehensive income for the period 4.2 0.3 13.4
Basic and diluted earnings per share from continuing operations attributable
to the equity shareholders of the Company:
Basic earnings per share 8 1.6p 1.6p 12.1p
Diluted earnings per share 8 1.6p 1.6p 11.9p
Adjusted basic earnings per share ** 8 3.7p 3.1p 14.1p
Adjusted diluted earnings per share ** 8 3.6p 3.1p 13.9p
Basic and diluted earnings per share from total operations attributable to the
equity shareholders of the Company:
Basic earnings per 1.8p 0.3p 7.8p
share
8
Diluted earnings per 1.8p 0.3p 7.7p
share
8
Adjusted profit measure **
Adjusted profit before tax (before amortisation of acquired intangibles, 7.6 6.2 31.0
exceptional items and share based payments)
**
5
* The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
**This is a non GAAP measure, refer to notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2025
Restated* At 30 September
At 31 March 2025 At 31 March 2024 2024
Assets £'m £'m £'m
Note
unaudited unaudited audited
Non-current assets
Intangible 64.4 73.2 66.2
assets
9
Property, plant and 2.7 7.0 3.6
equipment
10
Deferred - 2.7 -
tax
11
Trust 0.4 - 0.4
Account
14
Total non-current assets 67.5 82.9 70.2
Current assets
Trade and other 357.1 333.9 188.4
receivables
12
Derivative financial - 0.1 -
instruments
15
Trust 223.8 195.9 139.1
account
14
Corporation tax receivable 1.1 0.5 -
Cash at bank 10.5 7.7 96.2
Total current assets 592.5 538.1 423.7
Assets held for sale - - 2.0
Total assets 660.0 621.0 495.9
Equity
Share capital 1.6 1.7 1.7
Share premium 64.7 89.6 89.6
Retained earnings 222.8 207.9 220.2
Capital contribution reserve 0.5 0.5 0.5
Merger reserve (129.5) (129.5) (129.5)
Treasury shares - - -
Total equity 160.1 170.2 182.5
Non-current liabilities
Loans and 40.0 55.0 -
overdrafts
15
Trade and other 1.4 1.4 2.1
payables
13
Deferred 0.3 - 0.4
tax
11
Total non-current liabilities 41.7 56.4 2.5
Current liabilities
Corporation tax payable - - 0.9
Trade and other 455.5 389.1 304.3
payables
13
Provisions 0.7 1.9 0.4
13
Derivative financial 2.0 3.4 5.3
instruments
15
Total current liabilities 458.2 394.4 310.9
Total liabilities 499.9 450.8 313.4
Total equity and liabilities 660.0 621.0 495.9
* The period ending 31 March 2024 is restated for the amendments made to IAS 1
(see note 2.6).
Jon Wormald
Chief Financial Officer
13 May 2025
On the Beach Group plc. Reg no 09736592
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 31 March 2025
Restated*
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
Note £'m £'m £'m
Profit/(Loss) before taxation
From continuing operations 3.3 2.8 26.5
From discontinued operations 0.4 (2.2) (7.2)
Adjustments for:
Depreciation 10 1.0 1.3 2.1
Amortisation of intangible assets 9 7.0 6.0 13.0
Finance costs 0.8 0.4 2.4
Finance income (3.0) (2.5) (7.7)
Loss on goodwill for discontinued operations - - 4.6
Loss on disposal of intangible assets - - 0.2
(Profit)/loss on disposal of property, plant and equipment (0.7) - 0.6
Share-based payments 2.0 1.6 2.3
Impact of unrealised foreign exchange differences - - (1.7)
10.8 7.4 35.1
Changes in working capital:
(Increase)/decrease in trade and other receivables 12 (168.7) (168.2) (22.3)
Increase in trade and other payables 13 149.2 131.3 48.9
(Increase) in trust account (84.6) (87.3) (30.9)
(104.1) (124.2) (4.3)
Cash flows from operating activities
Cash generated from operating activities (93.3) (116.8) 30.8
Tax paid (2.8) (2.1) (3.9)
Net cash (outflow)/inflow from operating activities (96.1) (118.9) 26.9
Cash flows from investing activities
Purchase of property, plant and equipment 10 (0.1) - -
Proceeds from disposal of assets 2.6 - -
Purchase of intangible assets 9 - - (0.1)
Development expenditure 9 (5.2) (5.5) (10.2)
Interest received 3.0 2.5 7.7
Net cash inflow/(outflow) from investing activities 0.3 (3.0) (2.6)
Cash flows from financing activities
Proceeds from borrowings 15 40.0 55.0 -
Equity dividends paid (3.3) - (1.5)
Interest paid on borrowings (0.7) (0.3) (2.3)
Payment of lease liabilities (0.9) (0.9) (1.8)
Share buyback (25.0) - -
Net cash inflow/(outflow) from financing activities 10.1 53.8 (5.6)
Impact of unrealised foreign exchange gains - - 1.7
Net (decrease)/increase in cash at bank and in hand (85.7) (68.1) 18.7
Cash at bank and in hand at beginning of period 96.2 75.8 75.8
Cash at bank and in hand at end of period 10.5 7.7 96.2
* The period ending 31 March 2024 is restated for the effects of the operations (see note 7).
discontinued
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 March 2025
Treasury Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
shares
For the 6 months ended 31 March 2025 £'m £'m £'m £'m £'m £'m £'m
Balance at 30 September 2024 - 1.7 89.6 (129.5) 0.5 220.2 182.5
Share based payment charges including tax - - - - - 1.7 1.7
Dividends - - - - - (3.3) (3.3)
Buyback of shares (25.0) - - - - - (25.0)
Cancellation of treasury shares 25.0 (0.1) (24.9) - - - -
Other comprehensive income for the period - - - - - 4.2 4.2
Balance at 31 March 2025 (unaudited) - 1.6 64.7 (129.5) 0.5 222.8 160.1
Treasury shares Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the 6 months ended 31 March 2024 £'m £'m £'m £'m £'m £'m £'m
Balance at 30 September 2023 - 1.7 89.6 (129.5) 0.5 205.9 168.2
Share based payment charges including tax - - - - - 1.7 1.7
Net loss on fair value hedges - - - - - (0.2) (0.2)
Total comprehensive loss for the period - - - - - 0.5 0.5
Balance at 31 March 2024 (unaudited) - 1.7 89.6 (129.5) 0.5 207.9 170.2
Treasury shares Share Capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the year ended 30 September 2024 £'m £'m £'m £'m £'m £'m £'m
Balance at 30 September 2023 - 1.7 89.6 (129.5) 0.5 205.9 168.2
Share based payment charges including tax - - - - - 2.4 2.4
Dividends - - - - - (1.5) (1.5)
Total comprehensive income for the year - - - - - 13.4 13.4
Balance at 30 September 2024 - 1.7 89.6 (129.5) 0.5 220.2 182.5
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 March 2025
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 2025 were authorised for issue in accordance with a resolution of the
directors on 12 May 2025.
On the Beach Group plc 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 Basis of preparation and changes to the Group's
accounting policies
2.1 Basis of preparation
The interim condensed consolidated financial statements for the six months
ended 31 March 2025 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 2024. 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 2024. 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 2024.
2.3 Going concern
The Group covers its daily working capital requirements by means of cash and
Revolving Credit Facility ('RCF'). Currently, the Group has access to an £85m
facility, which is set to expire in December 2027 following extensions to the
expiry date. The Group extended the original £60m facility by £25m,
initially until July 2025, but in May 2025 agreed that the increased facility
would run until the expiry date in December 2027. The RCF has financial
covenants in place which are tested quarterly.
As at 31 March 2025 Group cash (excluding cash held in trust which is
ringfenced and not factored into the going concern assessment) was £10.5m (31
March 2024: £7.7m, 30 September 2024: £96.2m). As at 31 March 2025, the
current value withdrawn from the RCF is £40.0m (31 March 2024: £55.0m, 30
September 2024: £nil)
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, or the booking is cancelled or refunded. All withdrawals
from the Trust account are approved by our Trustees and the Civil Aviation
Authority. Cash held in trust at 31 March 2025 was £224.2m (31 March 2024:
£195.9m, 30 September 2024: £139.5m).
The Directors have assessed a going concern period through to 30 September
2026 and have modelled a number of scenarios considering factors such as
airline resilience, cost of living, inflation, interest rates and customer
behaviour/ demand. The Group has performed and 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. Detail of the Group's assessment of the impact of
climate risk is provided within the 'Here for the planet' section of the
Group's Annual Report for the year ended 30 September 2024.
The Directors have modelled a reasonably possible downside scenario to
sensitise the base case as a result of major airline failure. In this scenario
the Directors have assessed the impact to cash and revenue in an environment
where bookings are 100% lower than forecasted for 3 months followed by a 50%
reduction for the remaining going concern period, although profitability would
be affected, the Group would be able to continue operating.
In addition, the Directors have modelled sensitivity analysis on a reverse
stress test that models an increase in bookings, to assess the potential
impact on bank facilities. They have also performed a stress test with a
remote possibility. Although in each of these scenarios profitability would be
affected, through mitigating actions, the Group would be able to continue
operating.
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 continued 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
The Group's accounting policies have been set by management. The application
of these accounting policies to specific scenarios requires reasonable
estimates and assumptions to be made concerning the future. These are
continually evaluated based on historical experience and expectations of
future events. The resulting accounting estimates will, by definition, seldom
equal the related actual results. Under IFRS estimates or judgements are
considered critical where they involve a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities from
period to period. This may be because the estimate or judgement involves
matters which are highly uncertain or because different estimation methods or
assumptions could reasonably have been used.
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. For the period ending
31 March 2025, the proportion of development costs that have been capitalised
is in line with prior year as the development team are focusing on key
strategic development objectives. Management have assessed each project to
determine whether the project is technically feasible, intended to be
completed and used, whether there is available resources to complete it and
whether there is probable economic benefits from each project.
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 obligations in
each.
Performance obligations
Revenue in the OTB and Classic Collection segments is recognised based on
there being a single performance obligation as 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 and Classic Collection segments, there is
not a significant integration service and responsibility for providing the
services remains with the principal suppliers.
The Group has concluded that under IFRS 15 for revenue in the former 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
assessed 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.
Following the cessation of operations for Classic Collection Holidays on 30
September 2024, all principal revenue for the year is recognised within
discontinued operations, see note 7 for more details.
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 and Classic Collection
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.
Discontinued operations
On 11 March 2024, the Board made the decision to cease the Classic Collection
Holidays operation and to not attempt to sell the business. Management
determined that on abandonment of Classic Collection Holidays on 30 September
2024, the operation has been presented as a discontinued operation due to the
different nature of cash flows expected to arise and revenue expected to be
recognised from the cessation of the Classic Collection Holidays operation. By
presenting Classic Collection Holidays as a discontinued operation, Management
believes that the presentation of the Income Statement is more aligned to the
ongoing and anticipated recurring cash flows and revenue recognised by the
business in the restructured operating model.
The following factors were considered to classify the operation as
discontinued:
• Key dates of decisions and actions taken in relation to abandoning
the operation including the redundancy of staff, vacating the property from
which the operation was ran and subsequently putting the property up for sale.
• The distinction between the two Classic Package and Classic
Collection CGU's in terms of location, operating teams and expected
cashflows.
As noted above Classic Collection Holidays was classified as discontinued
operations as there was no future expected cashflows, the goodwill of £4.6m
was written off in the year ending 30 September 2024.
Critical accounting estimates Expected Credit Losses
The Group's estimation of credit risk relating to customer repayments of debt
is inherently uncertain and subject to a degree of judgement.
The ECL provision is calculated using historical default rates from the last
year which is compared to forecasted revenue projections to calculate an
expected liability. Prior year is considered to be a suitable period to use
for estimation as this more accurately reflects current events. These results
are adjusted for the expected effect of cost of living, as well as inflation.
The calculation is updated at each reporting date. The origination,
measurement and release of material judgmental adjustments are subject to
further analysis and challenge through the Group's accounting judgement review
process before ultimate being presented to the Group's Audit Committee.
Estimation uncertainty arises on the forecasted bookings, effects of the cost
of living and inflation adjustments. These estimations are subject to
challenge by the Board of Directors, as well as the audit committee to ensure
that they most accurately reflect the available information.
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 2024. The Group has not early adopted any other
standard, interpretation or amendment that has been issued but is not yet
effective.
There is one new amended standard or interpretation that became effective for
periods beginning after 1 January 2024 which had a material impact upon the
values or disclosures in the condensed consolidated interim financial
information. This relates to the classification of liabilities as current or
non-current (IAS 1) as a result of the amendments issued in IAS 1 which has
led to a prior year adjustment for the period ended 30 March 2024. See note
2.6 for further details.
A number of new standards and amendments to standards are effective for annual
periods beginning after 1 January 2024; the following amended standards have
been implemented, however, they have not had a significant impact on the
Group's consolidated financial statements:
• Amendment to IFRS 16 - Leases on sale and leaseback
• Amendment to IAS 7 and IFRS 7 - Supplier finance
Standards issued but not yet effective
Certain new financial reporting standards, amendments and interpretations have
been published that are not mandatory for the 30 September 2025 reporting
period, and have not been early adopted by the Group. The Group is currently
assessing the impact of the following standards, amendments and
interpretations:
• Amendments to IAS 21 - Lack of Exchangeability
• Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of
Financial Instruments
• Annual Improvements to IFRS Accounting Standards-Volume 11
• IFRS 18 - Presentation and Disclosure in Financial Statements
• IFRS 19 - Subsidiaries without Public Accountability: Disclosures
• Contracts referencing Nature-dependent Electricity: Amendments to IFRS 9
and IFRS 7
2.6 Prior period restatement
These consolidated interim financial statements include a prior half year
period restatement in relation to the presentation and classification of the
RCF facility in accordance with IAS 1 amendments (effective for periods
beginning after 1 January 2024). This saw the RCF facility reclassified from
current liabilities to non-current. The adjustment reduces current liabilities
by £55.0m and increases non- current liabilities by £55.0m as at 31 March
2024. This has had no impact on the income statement or statement of cash
flows. Please see note 15 for more details.
The prior half year period is also restated for the discontinuation of Classic
Collection Holidays Limited, which was effective from 30 September 2024. This
has impacted the income statement and statement of cash flows, please see note
7 for more details. This has had no impact on the statement of financial
position.
3 Revenue
Set out below is the disaggregation of the Group's revenue from contracts with
customers:
6 months ended 31 March 2025
OTB Classic Collection Total
£'m £'m £'m
Booked TTV* 611.7 29.0 640.7
Total Revenue before exceptional items 59.3 4.8 64.1
Exceptional recoveries** 0.1 - 0.1
Total Revenue 59.4 4.8 64.2
6 months ended 31 March 2024***
OTB Classic Collection Total
£'m £'m £'m
Booked TTV* 551.4 17.3 568.7
Total Revenue before exceptional items 53.6 3.5 57.1
Exceptional recoveries** 2.7 0.1 2.8
Total Revenue 56.3 3.6 59.9
For the year ended 30 September 2024
OTB Classic Collection Total
£'m £'m £'m
Booked TTV* 1,124.2 40.6 1,164.8
Total Revenue before exceptional items 114.6 8.8 123.4
Exceptional recoveries** 4.6 0.2 4.8
Total Revenue 119.2 9.0 128.2
*The total transaction value of holidays booked during the period, before
cancellations and amendments. See the glossary for the reconciliation to GAAP
measure.
**Exceptional recoveries for the period ended 31 March 2025 relate to refunds
from airlines for cancelled flights during COVID-19. Previously, exceptional
cancellations related to these flights were provided for, which have now been
released.
*** The results for the period ended 31 March 2024 has been restated to
exclude the results of the discontinued operation included in that period
(note 7).
Details of receivables arising from contracts with customers are set out in
note 12.
4 Segmental report
The management team considers the reportable segments to be ''OTB'' and
"Classic Collection". All segment revenue, operating profit, assets and
liabilities are attributable to the Group from its principal activities.
OTB and Classic Collection recognise revenue as agent on a net basis.
The Group's Chief Operating Decision Maker ("CODM") is its executive board and
they monitor the performance of these operating segments as well as deciding
on the allocation of resources to them based on divisional level financial
reports. Segmental performance is monitored using adjusted segment operating
results.
In the year ending 30 September 2024, Classic Collection Holidays Limited
discontinued its website, vacated the property used for operations, and made a
number of redundancies, transferring all remaining assets to Classic Package
Holidays Limited. Classic Package Holidays Limited was considered to be a
single operating segment following this transfer. Classic Package Holidays
Limited has since been renamed Classic Collection Holdings Limited, and is
referred to throughout as "Classic Collection". For further details on the
discontinued operations see note 7.
6 months ended 31 March 2025
OTB Classic
Collection Total
£'m
£'m £'m
Revenue 59.4 4.8 64.2
Exceptional recoveries* (0.1) - (0.1)
Adjusted Revenue 59.3 4.8 64.1
Expected credit losses (1.9) - (1.9)
Cost of sales - (3.3) (3.3)
Adjusted gross profit 57.4 1.5 58.9
Marketing (24.9) (0.5) (25.4)
Staff costs (11.4) (1.1) (12.5)
Other administrative expenses (8.3) (0.7) (9.0)
Adjusted EBITDA 12.8 (0.8) 12.0
Share based payment charge (1.9) (0.1) (2.0)
Exceptional items (0.9) - (0.9)
EBITDA 10.0 (0.9) 9.1
Depreciation and amortisation (7.6) (0.4) (8.0)
Group operating profit/(loss) 2.4 (1.3) 1.1
Finance costs (0.8)
Finance income 3.0
Profit before taxation 3.3
Non-current assets
Goodwill*** 31.6 4.0 35.6
Other intangible assets 23.8 4.9 28.7
Property, plant and equipment 2.7 - 2.7
6 months ended 31 March 2024**
OTB Classic
Collection Total
£'m
£'m £'m
Revenue 56.3 3.6 59.9
Exceptional recoveries* (2.7) (0.1) (2.8)
Adjusted Revenue 53.6 3.5 57.1
Cost of sales - (2.2) (2.2)
Expected Credit losses (1.0) - (1.0)
Adjusted Gross Profit 52.6 1.3 53.9
Marketing (24.6) (0.2) (24.8)
Staff costs (excluding share based payments) (11.3) (0.3) (11.6)
Other administrative expenses (7.0) (0.4) (7.4)
Adjusted EBITDA 9.7 0.4 10.1
Share based payment charge (1.6) - (1.6)
Exceptional items (0.5) 0.1 (0.4)
EBITDA 7.6 0.5 8.1
Depreciation and amortisation (6.9) (0.3) (7.2)
Group operating profit 0.7 0.2 0.9
Finance costs (0.4)
Finance income 2.3
Profit before taxation 2.8
Non-current assets
Goodwill*** 31.6 4.0 35.6
Other intangible assets*** 27.5 5.5 33.0
Property, plant and equipment**** 4.6 - 7.0
For the year ended 30 September 2024
OTB Classic Collection Total
£'m £'m £'m
Revenue 119.2 9.0 128.2
Exceptional recoveries* (4.6) (0.2) (4.8)
Adjusted Revenue 114.6 8.8 123.4
Cost of sales - (4.8) (4.8)
Expected Credit losses (1.7) - (1.7)
Adjusted Gross Profit 112.9 4.0 116.9
Marketing (40.0) (0.1) (40.1)
Staff costs (excluding share based payments) (20.9) (0.7) (21.6)
Other administrative expenses (15.7) (1.5) (17.2)
Adjusted EBITDA 36.3 1.7 38.0
Share based charge (2.2) (0.1) (2.3)
Exceptional items 0.4 0.2 0.6
EBITDA 34.5 1.8 36.3
Depreciation and amortisation (14.4) (0.7) (15.1)
Group operating profit 20.1 1.1 21.2
Finance costs (2.4)
Finance income 7.7
Profit before taxation 26.5
Non-current assets
Goodwill*** 31.6 4.0 35.6
Other intangible assets*** 25.5 5.1 30.5
Property, plant and equipment 3.6 - 3.6
*Exceptional recoveries relate to refunds from airlines for cancelled flights
during COVID-19. Previously, exceptional cancellations related to these
flights were provided for against, which have now been released.
** The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
*** Classic Collection Holidays (CCH) ceased operations on 30 September 2024,
and as a result the acquired goodwill of £4.6m was impaired, see note 7 for
further details. Acquired other intangible assets previously recognised in
under the discontinued operations have been recognised in Classic Collection,
as these relate to continuing operations, see note 9 for details.
**** Classic Collection Holidays (CCH) ceased operations on 30 September 2024,
transferring all remaining assets to Classic Collection Holdings Limited.
Included within this was the freehold property owned by CCH, which was made
available for sale following the transfer of assets and has since been sold.
See note 7 for further details.
5 Operating profit
a) Operating expenses
Expenses by nature including exceptional items and impairment charges:
Operating expenses 6 months ended 31 6 months ended 31 Year ended 30
Expenses by nature including exceptional items and impairment charges
March 2025 March 2024 September 2024
unaudited unaudited audited
£'m £'m £'m
Marketing 25.4 24.8 40.1
Depreciation 1.0 1.1 2.1
Staff costs (including share based payments) 14.6 13.2 23.9
IT hosting, licences & support 3.4 3.3 5.8
Office expenses 0.4 0.3 0.6
Credit/ debit card charges 2.2 1.7 4.8
Insurance 1.1 0.9 1.9
Professional Services 0.4 0.3 0.9
Other 1.5 1.0 3.5
Administrative expenses before exceptional items & amortisation of 50.0 46.6 83.3
intangible assets
Exceptional items 1.0 3.2 4.2
Amortisation of intangible assets 6.9 6.0 13.0
Exceptional items and amorisation of intangible assets 7.9 9.2 17.2
Administrative expenses 57.9 55.8 100.5
b) Exceptional items
Total exceptional items in the 6 months ended 31 March 2025 of £0.9m,
consists of exceptional income of £0.1m for refunds received from airlines
that had previously been provided for and exceptional operating costs of
£1.0m. Exceptional operating costs include £0.2m legal and professional fees
relating to litigation during the period, £0.6m of restructuring costs and
£0.2m of commission and stamp duty arising on the repurchase of shares (see
note 17 for further details).
Total exceptional items in the 6 months ended 31 March 2024 of £0.4m,
consists of exceptional income of £2.8m for refunds received from airlines
that had previously been provided for and exceptional operating costs of
£3.2m. Exceptional operating costs include £2.9m legal and professional fees
relating to litigation during the period and £0.3m of restructuring costs.
Exceptional items in the year ended 30 September 2024 of £4.2m represents
£3.9m of non-trade legal and professional fees relating to litigation and
£0.3m of restructuring costs which derive from events or transactions that
fall outside of the normal activities of the Group.
c) Adjusted profit before tax
Management measures the overall performance of the Group by reference to
Adjusted profit before tax, a non-GAAP measure as it gives a meaningful year
on year comparison of the Group's performance:
Restated*
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
£'m £'m £'m
Profit before taxation 3.3 2.8 26.5
Exceptional income (0.1) (2.8) (4.8)
Other exceptional operating costs 1.0 3.2 4.2
Amortisation of acquired intangibles** 1.4 1.4 2.8
Share based payments charge*** 2.0 1.6 2.3
Adjusted profit before tax 7.6 6.2 31.0
* The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
**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 increased to £2.0m (31 March 2024: £1.6m, 30 September 2024:
£2.3m).
6 Taxation 6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
£m £m £m
Current tax on profit for the period 0.8 0.2 3.3
Adjustments in respect of prior period - - (0.1)
Total current tax 0.8 0.2 3.2
Deferred tax on losses for the period
Origination and reversal of temporary differences (0.1) (0.1) 3.3
Adjustments in respect of prior period - - (0.2)
Total deferred tax (0.1) (0.1) 3.1
Total tax charge 0.7 0.1 6.3
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 operations are as follows.
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
£m £m £m
Profit on ordinary activities before tax 3.3 2.8 26.5
Profit on ordinary activities multiplied by the rate of corporation tax in the 0.8 0.7 6.6
UK of 25% (31 March 2024: 25%, 30 September 24: 25%)
Effects of:
Impact of difference in effective rate and standard rate of corporation tax 0.2 (0.1) -
Utilisation of losses from discontinued operations - (0.5)
-
Adjustments in respect of prior years - - (0.3)
Expenses not deductible (0.3) - -
Total tax charge 0.7 0.1 6.3
The effective rate of tax of 23.9% has been calculated using the full year
projections and has been applied to profit before exceptional items for the
period ending 31 March 2025. The standard rate of corporation tax of 25% (31
March 2024: 25%, 30 September 2024: 25%) for the full year has been applied to
the exceptional items in the period ending 31 March 2025.
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 Discontinued operations
On 11 March 2024, the Board made the decision to cease the Classic Collection
Holidays operation and to not attempt to sell the business. In that year,
Classic Collection Holidays Limited discontinued its website, vacated the
property used for operations, and made a number of redundancies, transferring
all remaining assets to Classic Package Holidays. Upon transfer, operations
have been streamlined for Classic Collection Holidays and Classic Package
Holidays to operate under a single CGU, "Classic Collection". The comparative
figures have been restated to show separately the results of the discontinued
operation included in that period. The "CCH" segment is no longer presented in
the segment note.
After a review of IFRS 5 (Non-current Assets Held for Sale and Discontinued
Operations) management believe that the discontinuation of Classic Collection
Holidays operations merits disclosure for the following reasons:
• The Classic Collection Holidays operation represented a separate
major line of business, treated by management as an operating segment and was
reported separately within the CFO report and segmental reporting. Classic
Collection Holidays provided personalised holiday packages on a principal
basis with dedicated teams responsible for the fulfilment, sales and
marketing. Classic Collection Holidays was treated by management as a separate
operating segment to Classic Package Holidays due to the terms that bookings
are made under and operational differences in fulfilling the bookings.
• The property used for the CGU's operation was vacated on 13 May 2024
and was put up for sale on 22 July 2024. The majority of the contact centre
team were made redundant on the 13 May 2024, with the remaining 57 members of
staff transferred to Classic Package Holidays from 1st July 2024. The property
was sold in December 2024.
• The Classic Collection Holidays website was switched off on 11 June
2024, no new bookings were made under Classic Collection Holidays' terms or on
the Classic Collection Holidays booking system after this date, and the
Contact Centre responsible for fulfilling the bookings for the Classic
Collection Holidays CGU was closed on 30 June 2024.
• On sale to Classic Package Holidays, all forward order bookings were
transferred and followed a re-booking process under Classic Package Holidays'
terms, as such Classic Collection Holidays will no longer be an identifiable
CGU or operating segment and a single CGU will be in place for Classic Package
Holidays.
• Whilst the re-booking process commenced, any bookings that remained
on a principal basis were fulfilled by Classic Package Holidays and its
contact centre, due to the bookings being on a principal basis and originally
booked under the Classic Collection Holidays terms, these bookings have been
included within the discontinued operations. The re-book process was completed
by the 30 September 2024 and at this point the Classic Collection Holidays
operation was classified as discontinued.
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
£'m £'m £'m
Profit/(loss) for the year from discontinued operations
Revenue
0.4 20.9 46.6
Cost of sales (0.3) (18.8) (41.4)
Gross profit 0.1 2.1 5.2
Administrative expenses (0.3) (4.1) (7.8)
Disposal of property held for sale 0.6 - -
Impairment of Goodwill - - (4.6)
Profit/(loss) before tax 0.4 (2.2) (7.2)
Tax - - -
Profit/(loss) from discontinued operations 0.4 (2.2) (7.2)
Earnings per share
Basic EPS 0.2p (1.3p) (4.3p)
Diluted EPS 0.2p (1.3p) (4.3p)
Cash flows from discontinued operations
Net cash flows from operating activities
(0.2) (0.3) (2.4)
Net cash flows from investing activities 2.6 0.1 0.2
Net cash flows from discontinued operations 2.4 (0.2) (2.2)
No impact on cash flows from financing activities.
Disposal of discontinued operations
There was no loss on disposal, there are no assets relating to discontinued
operations held for sale at 31 March 2025 or thereafter. Saxon House was a
property held for sale at 30 September 2024, which has since been disposed.
The profit on disposal has been recognised through discontinued operations.
8 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.
Restated*
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
Basic EPS for continuing operations unaudited unaudited audited
Profit after tax for the period (£'m) 2.6 2.7 20.2
Basic weighted average number of Ordinary Shares (m) 163.8 166.8 166.9
Earnings per share (in pence per share) 1.6p 1.6p 12.1p
Basic EPS for total operations
Profit after tax for the period (£'m) 3.0 0.5 13.0
Basic weighted average number of Ordinary Shares (m) 163.8 166.8 166.9
Earnings per share (in pence per share) 1.8p 0.3p 7.8p
Diluted EPS for continuing operations
Profit after tax for the period (£'m) 2.6 2.7 20.2
Weighted average number of Ordinary Shares (m) 168.6 168.9 169.8
Earnings per share (in pence per share) 1.6p 1.6p 11.9p
Diluted EPS for total operations
Profit after tax for the period (£'m) 3.0 0.5 13.0
Weighted average number of Ordinary Shares (m) 168.6 168.9 169.8
Earnings per share (in pence per share) 1.8p 0.3p 7.7p
* The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
Adjusted basic earnings per share
Adjusted earnings after tax (£'m) 6.1 5.2 23.6
Weighted average number of Ordinary Shares (m) 163.8 166.8 166.9
Earnings per share (in pence per share) 3.7p 3.1p 14.1p
Adjusted diluted earnings per share
Adjusted earnings after tax (£'m) 6.1 5.2 23.6
Weighted average number of Ordinary Shares (m) 168.6 168.9 169.8
Earnings per share (in pence per share) 3.6p 3.1p 13.9p
* The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
Adjusted earnings after tax is calculated using the tax rate of 25% (31 March
24: 25%, 30 September 24: 25%) on the basis that this is the Group's effective
tax rate:
Restated*
6 months ended 31 6 months ended 31 Year ended 30
March 2025 March 2024 September 2024
unaudited unaudited audited
£'m £'m £'m
Profit for the year after taxation 3.0 2.7 20.2
Adjustments net of tax of 25% (31 March 2024:
25%, 30 September 2024: 25%) (0.1) (2.1) (3.6)
Exceptional recoveries
Other exceptional costs 0.8 2.4 3.2
Amortisation of acquired intangibles 1.0 1.0 2.1
Share based payment charges* 1.4 1.2 1.7
Adjusted earnings after tax 6.1 5.2 23.6
* The share based payment charges are in relation to options which are not yet
exercisable.
** The period ending 31 March 2024 is restated for the effects of the
discontinued operations (see note 7).
9 Intangible assets
Brand Goodwill Website & Website Customer
development technology relationships Agent
relationships Total
Costs
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2024 35.9 35.6 52.6 22.8 2.1 4.4 153.4
Additions - - 5.2 - - - 5.2
At 31 March 2025 35.9 35.6 57.8 22.8 2.1 4.4 158.6
Accumulated amortisation
At 1 October 2024 24.9 - 35.5 22.8 2.1 1.9 87.2
Charge for the year 1.3 - 5.6 - - 0.1 7.0
At 31 March 2025 26.2 - 41.1 22.8 2.1 2.0 94.2
Net book amount
At 31 March 2025 (unaudited) 9.7 35.6 16.7 - - 2.4 64.4
Brand Goodwill Website & Website Customer
development technology relationships Agent
relationships Total
Costs
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2023 35.9 40.2 42.7 22.8 2.1 4.4 148.1
Additions - - 5.5 - - - 5.5
At 31 March 2024 35.9 40.2 48.2 22.8 2.1 4.4 153.6
Accumulated amortisation
At 1 October 2023 22.4 - 25.5 22.8 2.1 1.6 74.4
Charge for the year 1.2 - 4.7 - - 0.1 6.0
At 31 March 2024 23.6 - 30.2 22.8 2.1 1.7 80.4
Net book amount
At 31 March 2024 (unaudited) 12.3 40.2 18.0 - - 2.7 73.2
Brand Goodwill Website & Website Customer
development technology relationships Agent
relationships Total
Costs
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2023 35.9 40.2 42.7 22.8 2.1 4.4 148.1
Additions - - 10.3 - - - 10.3
Disposals - - (0.4) - - - (0.4)
Impairment (note 7) - (4.6) - - - - (4.6)
At 30 September 2024 35.9 35.6 52.6 22.8 2.1 4.4 153.4
Accumulated amortisation
At 1 October 2023 22.4 - 25.5 22.8 2.1 1.6 74.4
Charge for the year 2.5 - 10.2 - - 0.3 13.0
Disposals - - (0.2) - - - (0.2)
At 30 September 2024 24.9 - 35.5 22.8 2.1 1.9 87.2
Net book amount
At 30 September 2024 (audited) 11.0 35.6 17.1 - - 2.5 66.2
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 are as follows:
Brand Remaining At 30 September
Brand useful At 31 March 2025 At 31 March 2024 2024
economic life Acquisition
unaudited unaudited audited
£'m £'m £'m
On the Beach 3.5 On the Beach Travel Limited 6.9 9.0 7.9
Sunshine.co.uk 3.5 Sunshine.co.uk Limited 0.4 0.5 0.5
Classic Collection 8.5 Classic Collection Limited 2.4 2.8 2.6
9.7 12.3 11.0
Tangible assets
10
Right of use asset £'m
Head Office IT equipment Freehold Property Total
Cost £'m £'m £'m £'m
At 1 October 2024 4.5 2.5 - 5.3 12.3
Additions - - - 0.1 0.1
At 31 March 2025 4.5 2.5 - 5.4 12.4
Accumulated Depreciation £'m £'m £'m £'m £'m
At 1 October 2024 2.5 2.0 - 4.2 8.7
Charge for the Year 0.3 0.4 - 0.3 1.0
At 31 March 2025 2.8 2.4 - 4.5 9.7
Net book amount
At 31 March 2025 (unaudited) 1.7 0.1 - 0.9 2.7
Right of use asset
Head Office IT equipment Freehold Property Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m £'m
At 1 October 2023 4.5 2.5 2.3 6.1 15.4
Disposals - - - (0.1) (0.1)
At 31 March 2024 4.5 2.5 2.3 6.0 15.3
Accumulated Depreciation £'m £'m £'m £'m £'m
At 1 October 2023 2.0 1.1 0.3 3.7 7.1
Charge for the Year 0.3 0.5 - 0.5 1.3
Disposals - - - (0.1) (0.1)
At 31 March 2024 2.3 1.6 0.3 4.1 8.3
Net book amount
At 31 March 2024 (unaudited) 2.2 0.9 2.0 1.9 7.0
Head Office IT equipment Freehold Property Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m £'m
At 1 October 2023 4.5 2.5 2.3 6.1 15.4
Additions - - - - -
Disposals - - - (0.8) (0.8)
Assets held for sale - - (2.3) - (2.3)
At 30 September 2024 4.5 2.5 - 5.3 12.3
Accumulated Depreciation £'m £'m £'m £'m £'m
At 1 October 2023 2.0 1.1 0.3 3.7 7.1
Charge for the Year 0.5 0.9 - 0.7 2.1
Disposals - - - (0.2) (0.2)
Assets held for sale - - (0.3) - (0.3)
At 30 September 2024 2.5 2.0 - 4.2 8.7
Net book amount
At 30 September 2024 (audited) 2.0 0.5 - 1.1 3.6
The depreciation expense of £1.0m for the period ended 31 March 2025 (31
March 2024: £1.3m, 30 September 2024: £2.1m) has been recognised within
administrative expenses.
* During the year ended 30 September 2024, Classic Collection Holdings Limited
discontinued its website, vacated the property used for operations, and made a
number of redundancies, transferring all remaining assets to Classic Package
Holidays Limited. Included within this is the freehold property owned by CCH,
which was made available for sale following the transfer of assets. The
property has since been sold, with the gain on sale recognised through the
income statement. There is no impairment recognised to date.
11 Deferred tax
Deferred tax assets and liabilities are attributable to the following:
At 30 September
At 31 March 2025 At 31 March 2024 2024
unaudited unaudited audited
Intangible assets £'m £'m £'m
(3.1) (3.7) (3.3)
Property, plant and equipment 0.2 (0.1) 0.2
Share based payments 1.4 0.9 0.8
Losses and unused tax relief 1.2 5.6 1.9
Total deferred tax (liabilities)/assets (0.3) 2.7 (0.4)
The deferred tax asset includes an amount of £1.2m (31 March 2024: £5.6m, 30
September 2024: £1.9m) which relates to carried forward tax losses. 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 availability of sufficient
taxable temporary differences and the probability that sufficient taxable
profit will be available to allow all or part of deferred tax asset to be
utilised. 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.
12 Trade and other receivables
At 30 September
At 31 March 2025 At 31 March 2024 2024
Amounts falling due within one year: unaudited unaudited audited
£'m £'m £'m
Trade receivables - net 314.6 293.6 162.8
Other receivables and prepayments 39.4 37.3 23.1
Other taxes and social security 3.1 3.0 2.5
Total trade and other receivables 357.1 333.9 188.4
For the 6 months ending 31 March 2025, other receivables includes £4.9m
receivable in respect of amounts due from airlines as a result of supplier
cancellations (31 March 2024: £1.8m, 30 September 2024: £1.2m). Other
receivables and prepayments includes £21.5m of advanced payments to suppliers
(31 March 2024: £20.5m, 30 September 2024: £4.2m) and £3.6m of rebates due
from suppliers (31 March 2024: £8.0m, 30 September 2024: £4.5m).
Expected credit losses for trade receivables
Set out below is the movement in the allowance for expected credit losses of
trade receivables:
At 30 September
At 31 March 2025 At 31 March 2024 2024
unaudited unaudited audited
£'m £'m £'m
At October 1.2 1.0 1.0
Expected credit losses 1.9 1.0 1.7
Utilised in year (1.1) (0.7) (1.5)
Total allowance for expected credit losses 2.0 1.3 1.2
13 Trade, other payables and provisions
At 30 September
At 31 March 2025 At 31 March 2024 2024
unaudited unaudited audited
Non-current liabilities £'m £'m £'m
Lease liabilities 1.4 1.4 2.1
Current liabilities
Trade payables 431.7 361.5 281.0
Accruals and other payables 23.2 18.8 22.3
Contract liabilities - 6.5 0.3
Lease liabilities 0.6 2.3 0.7
Provisions 0.7 1.9 0.4
Total trade, other payables and provisions 457.6 392.4 306.8
Contract balances
The Group acts as principal when it is the primary party responsible for
providing the components that make up the customer's booking and it controls
the components before transferring to the customer. Revenue represents amounts
received or receivable for the sale of package holidays and other services
supplied to the customers. Revenue is recognised when the performance
obligation of delivering an integrated package holiday is satisfied, usually
over the duration of the holiday. Revenue is stated net of discounts, rebates,
refunds and value added tax.
A contract liability is recognised if a payment is received from a customer
before the Group delivers its performance obligations. Contract liabilities
are recognised as revenue when the Group delivers its performance obligations.
Provisions
For the period ended 31 March 2025 a provision of £0.7m has been recognised
in respect of expected future cancellations for supplier and customer
cancellations on the forward order book for future departures (31 March 2024:
£0.4m, 30 September 2024: £0.4m). The Group expect this provision to be
utilised over the next year. The provision is based on 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.
There are no additional provisions for legal costs associated with ongoing
litigation (31 March 2024: £1.5m, 30 September 2024: £nil)
14 Trust Account
Trust accounts are restricted cash held separately and only accessible once
the Trust rules are met as approved by our Trustees and the Civil Aviation
Authority, this is at the point the customer has travelled or the booking is
cancelled and refunded.
15 Financial instruments
At the balance sheet date the Group held the following: At 30 September
Financial assets At 31 March 2025 At 31 March 2024 2024
FV Level £'m £'m £'m
Derivative financial assets designated as hedging
instruments 2 - 0.1 -
Forward exchange contracts
Financial assets at amortised cost
Trade and other receivables 335.6 313.4 184.3
Cash at bank 10.5 7.7 96.2
Trust account 224.2 195.9 139.5
Total financial assets 570.3 517.1 420.0
Financial liabilities
Derivatives designated as hedging instruments
Forward exchange contracts 2 (1.9) (3.4) (5.2)
Interest rate swaps (0.1) - (0.1)
Financial liabilities at amortised cost
Trade payables (431.7) (361.5) (281.0)
Accruals and other payables (23.2) (18.8) (22.3)
Contract liabilities - (6.5) (0.3)
Lease liabilities (2.0) (3.7) (2.8)
Provisions (0.7) (1.9) (0.4)
Revolving credit facility (40.0) (55.0) -
Total financial liabilities (499.6) (450.8) (312.1)
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 30 September
FV Level At 31 March 2024 At 31 March 2023 2023
£'m £'m £'m
Forward contracts 2 (1.9) (3.3) (5.2)
Interest rate swaps 2 (0.1) - (0.1)
The forward contracts have been fair valued at 31 March 2025 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, cash at bank
and trust account 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 and Euro). 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
The Group entered into a £60m facility, which is set to expire in December
2027 following extensions to the expiry date. The Group also extended the
facility by £25m (£12.5m for each party, initially expiring July 2025). A
request was submitted in March 2025 to extend the expiry date of the £25m
accordion to December 2027, which was accepted on 1 May 2025. The RCF has
financial covenants in place which are tested quarterly.
The total facility is now £85m and has two elements as follows:
· £42.5m facility with Lloyds
· £42.5m 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 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 and period end.
The RCF is available for other credit uses including currency hedging
liabilities and corporate credit cards. At 31 March 2025, the liabilities
recognised in trade and other payables for the other credit uses was £12.0m,
leaving £73.0m of the facility available for use. Card facilities with other
providers remain available for use. The amount drawn down in cash at 31 March
2025 was £40m.
Due to amendments in the classifications of current and non-current
liabilities under IAS 1, which came into effect for accounting periods
starting after 1 January 2024, the RCF is now classified as a non-current
liability, and the prior year has been restated to reflect this. The RCF
currently meets all criteria under IAS 1 to be classified as a current
liability, as current drawdowns will be repaid in less than 12 months.
However, the amendment to IAS 1 has meant that all liabilities with covenant
dates of greater than 1 year after the end of the reporting period must be
presented as a non-current liability.
16 Related party transactions
During the year, the company provided a standard indemnity for lost share
certificate to its registrar received a corresponding indemnity from Simon
Cooper, a Non-Executive Director, in relation to the loss of a share
certificate. The transaction was not significant in the context of the
company's financial position and performance. No outstanding balances were due
at the end of the reporting period.
17 Share buyback and cancellation
During the period ended 31 March 2025, the Group repurchased and cancelled
10,906,616 shares with a nominal value of £0.01, for a total consideration of
£25.0m. The nominal value of £0.1m was deducted from share capital, with
£24.9m being deducted from share premium. No treasury shares remain within
equity at the period end.
18 Dividends paid
On 4 March 2025, the Group paid a dividend of 2.1p per share, totaling £3.3m
to shareholders. This dividend was declared on 3 December 2024 in respect of
the year ended 30 September 2024 and was paid from retained earnings.
On 13 May 2025, the Group declared an interim dividend of 1.0p per share
(FY24: 0.9p), totaling £1.5m to shareholders (FY24: £1.5m) in respect of the
period ended 31 March 2025. This dividend was not recognised as a liability at
the reporting date as it was declared after the end of the reporting period.
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 United Kingdom.
The interim management report includes a fair review of the information
required by the Disclosure Guidance 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 2025 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 2025 and any material changes in the related-party transactions
described in the Annual report and Accounts 2024. The Directors of the Company
are listed in the Annual Report and Accounts 2024.
A list of current Directors is also maintained on the Company's website:
http://onthebeachgroupplc.com. (http://onthebeachgroupplc.com/)
(http://onthebeachgroupplc.com/)
The interim report was approved by the Board of Directors and authorised for
issue on 13 May 2025 and signed on its behalf by:
Jon Wormald - CFO 13 May 2025
GLOSSARY
APM Definition Reconciliation to closest GAAP measure
Adjusted EBITDA Adjusted EBITDA is based on Group operating profit before depreciation, 6 months ended 31 6 months ended Year ended 30
amortisation, impact of exceptional items and the non-cash cost of the share Adjusted EBITDA (£'m) 31 March 2024 September 2024
March 2025
based payment schemes. Group operating 0.9 21.2
profit
1.1
Amortisation of acquired intangibles are linked to the historical acquisitions Depreciation and 7.2 15.1
of amortisation 8.0
businesses. Share-based payments represents the non-cash costs, which
fluctuates year on year.
Exceptional items derive from events or transactions that fall outside of the EBITDA 8.1 36.3
9.1
normal activities of the Group. See glossary explanation for exceptional items Exceptional 0.4 (0.6)
for items
0.9
further details. Share based 1.6 2.3
payments
2.0
Adjusted Group 10.1 38.0
EBITDA
12.0
Adjusted EPS Adjusted basic EPS is calculated on the weighted average number of ordinary
shares in issue, using the adjusted profit after tax. 6 months ended 31 6 months ended Year ended 30
Adjusted earnings after tax is based on profit after tax adjusted for
amortisation
of acquired intangibles, share-based payments and exceptional items. Adjusted profit after tax (£'m) March 2025 31 March 2024 September 2024
Amortisation of acquired intangibles are linked to the historical acquisitions Profit for the 2.7 20.2
of period
3.0
businesses. Share-based payments represents the non-cash costs, which Share based payments (net of tax) 1.2 1.7
1.4
fluctuates year on year. Exceptionals items (net of 0.3 (0.4)
tax) 0.7
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for exceptional items Amortisation of acquired intangibles
for
1.0 2.1
(net of
tax)
1.0
further details. Adjusted profit after 5.2 23.6
tax
6.1
Basic weighted average number of 163.8 166.8 166.9
These costs / income are excluded by virtue of their size and in order to Ordinary Shares (m)
reflect
management's view of the performance of the Group and allow comparability to Adjusted EPS 3.1 14.1
(p)
3.7
prior years.
Adjusted revenue Adjusted revenue is based on Group revenue, net of exceptional refunds Adjusted revenue (£'m) 6 months ended 31 March 2025 6 months ended 31 March 2024 Year ended 30 September 2024
received from airlines that had previously been provided for.
Revenue 64.2 59.9 128.2
Exceptional recoveries (0.1) (2.8) (4.8)
Adjusted revenue 64.1 57.1 123.4
Classic Collection booked TTV Classic Collection TTV is a non-GAAP measure representing the cumulative total Classic Collection booked TTV (£'m) 6 months ended 31 March 2025 6 months ended 31 March 2024 Year ended 30 September 2024
transaction value of sales booked each month before cancellations and
adjustments.
* Costs relate to the gross costs for bookings made on an agent basis.
Classic Collection revenue 4.8 3.6 9.0
Costs* and amendments 24.2 13.7 31.6
Classic Collection booked TTV 29.0 17.3 40.6
Classic Collection adjusted EBITDA Classic Collection adjusted EBITDA is based on Classic Collection operating
loss before
Depreciation, amortisation share based payment charges and exceptional items 6 months ended 31 6 months ended Year ended 30
Classic Collection EBITDA (£'m) March 2025 31 March 2024 September 2024
Classic Collection operating (loss)/profit (1.3) 0.2 1.1
Depreciation and amortisation 0.4 0.3 0.7
Classic Collection EBITDA (0.9) 0.5 1.8
Share based payment charges 0.1 - 0.1
Exceptional items - (0.1) (0.2)
Classic Collection adjusted EBITDA (0.8) 0.4 1.7
Classic Collection adjusted gross profit Classic Collection adjusted gross profit is based on Classic Collection gross 6 months ended 31 6 months ended Year ended 30
profit before the impact of exceptional items. Exceptional items consists of
restructuring and recoveries from airlines which derive from events or Classic Collection adjusted gross profit (£'m) March 2025 31 March 2024 September 2024
transactions that fall outside of the normal activities of the segment. 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.
Revenue 4.8 3.6 9.0
Cost of sales (3.3) (2.2) (4.8)
Classic Collection gross profit 1.5 1.4 4.2
Exceptional items - (0.1) (0.2)
Classic Collection adjusted gross profit 1.5 1.3 4.0
Classic Collection adjusted operating (loss)/profit Classic Collection adjusted operating profit is based on Classic Collection 6 months ended 31 6 months ended Year ended 30
operating profit before the impact of exceptional items, amortisation of
acquired intangibles and the non- cash cost of the share based payment Classic Collection adjusted operating (loss)/profit (£'m) March 2025 31 March 2024 September 2024
schemes.
Classic Collection operating (loss)/profit (1.3) 0.2 1.1
Share based payments 0.1 - 0.1
Amortisation of acquired intangibles 0.3 0.3 0.6
Exceptional items - (0.1) (0.2)
Classic Collection adjusted operating (loss)/profit (0.9) 0.4 1.6
Classic Collection gross profit after marketing costs Classic Collection gross profit after marketing cost is revenue adjusted for 6 months ended 31 6 months ended Year ended 30
exceptional items and expected credit losses after Classic Collection cost of
sales and marketing costs. Classic Collection gross profit after marketing costs (£'m) March 2025 31 March 2024 September 2024
Classic Collection adjusted gross profit 1.5 1.4 4.0
Marketing costs (0.6) (0.1) (0.2)
Classic Collection gross profit after marketing costs 0.9 1.3 3.8
Exceptional items Total exceptional items in the 6 months ended 31 March 2025 of £0.9m,
consists
of exceptional income of £0.1m for refunds received from airlines that had 6 months ended 31 6 months ended Year ended 30
previously been provided for and exceptional operating costs of £1.0m.
Exceptional items (£'m) March 2025 31 March 2024 September 2024
Exceptional operating costs include £0.2m legal and professional fees Exceptional recoveries (0.1) (2.8) (4.8)
relating to
litigation during the period, £0.6m of restructuring costs and £0.2m of Exceptional costs 1.0 3.2 4.2
commission and stamp duty arising on the repurchase of shares. Exceptional items 0.9 0.4 (0.6)
Total exceptional items in the 6 months ended 31 March 2024 of £0.4m,
consists
of exceptional income of £2.8m for refunds received from airlines that had
previously been provided for and exceptional operating costs of £3.2m.
Exceptional operating costs include £2.9m legal and professional fees and
£0.3m
of restructuring costs.
Exceptional items in the year ended 30 September 2024 of £4.2m represents
£3.9m of non-trade legal and professional fees relating to litigation and
£0.3m of
restructuring costs which derive from events or transactions that fall outside
of
the normal activities of the Group.
These costs / income are excluded from various performance measures by virtue
Group booked TTV
of their size and in order to better reflect management's view of the
performance of the Group.
Group TTV is a non-GAAP measure representing the cumulative total transaction Group booked TTV (£'m) 6 months ended 31 6 months ended Year ended 30
value of sales booked each month before cancellations and adjustments. March 2025 31 March 2024 September 2024
* Costs relate to the gross costs for bookings made on an agent basis. Group revenue 64.2 59.9 128.2
Costs* and amendments 576.5 508.8 1,036.7
Group booked TTV 640.7 568.7 1,164.9
Net Debt Net debt is the total amount of debt that exceeds the amount of total cash at Net debt (£'m) 6 months ended 31 6 months ended Year ended 30
bank.
March 2025 31 March 2024 September 2024
Cash at bank 10.5 7.7 96.2
Borrowings (40.0) (55.0) _
Net debt (29.5) (47.3) 96.2
Adjusted OTB EBITDA is based on OTB operating profit before depreciation,
amortisation, impact of exceptional items and the non-cash cost of the share
OTB adjusted EBITDA 6 months ended 31 6 months ended Year ended 30
Adjusted OTB EBITDA (£'m) March 2025 31 March 2024 September 2024
based payment schemes. OTB operating profit 2.4 0.7 20.1
Total exceptional items in the 6 months ended 31 March 2025 of £0.9m, Depreciation and amortisation 6.5 5.8 12.2
consists
of exceptional income of £0.1m for refunds received from airlines that had
previously been provided for and exceptional operating costs of £1.0m. Amortisation of acquired intangibles 1.1 1.1 2.2
Exceptional operating costs include £0.2m legal and professional fees OTB EBITDA 10.0 7.6 34.5
relating to
litigation during the period, £0.6m of restructuring costs and £0.2m of Exceptional items 0.9 0.5 (0.4)
commission and stamp duty arising on the repurchase of shares. Share based payments 1.9 1.6 2.2
Exceptional items derive from events or transactions that fall outside of the Adjusted OTB EBITDA 12.8 9.7 36.3
normal activities of the Group. See glossary explanation for OTB exceptional
items for further details.
OTB adjusted operating profit Adjusted OTB Operating profit is based on OTB operating profit before the 6 months ended 31 6 months ended Year ended 30
impact of exceptional items, amortisation of acquired intangibles and the non-
cash cost of the share based payment schemes. Adjusted OTB operating profit (£'m) March 2025 31 March 2024 September 2024
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for OTB exceptional OTB operating profit 2.4 0.7 20.1
items for further details
These costs / income are excluded by virtue of their size and in order to Exceptional items 0.9 0.5 (0.4)
reflect management's view of the performance of the Segment.
Share-based payments 1.9 1.6 2.2
1.1 2.2
Amortisation of acquired intangibles 1.1
Adjusted OTB operating profit 6.3 3.9 24.1
OTB adjusted revenue OTB adjusted revenue (£'m) 6 months ended 31 6 months ended Year ended 30
Adjusted revenue is based on Group revenue, net of exceptional refunds March 2025 31 March 2024 September 2024
received from airlines that had previously been provided for.
OTB revenue 59.4 56.3 119.2
Exceptional recoveries (0.1) (2.7) (4.6)
OTB adjusted revenue 59.3 53.6 114.6
OTB booked TTV OTB TTV is a OTB booked TTV (£'m) 6 months ended 31 6 months ended Year ended 30
non-GAAP measure representing the cumulative total transaction value
of March 2025 31 March 2024 September 2024
sales booked each month before cancellations and adjustments.
*Costs relate to the gross costs for bookings made on an agent basis
OTB revenue 59.4 56.3 119.2
Costs* and amendments 552.3 495.1 1,005.0
OTB booked TTV 611.7 551.4 1,124.2
OTB EBITDA OTB EBITDA is based 6 months ended 31 6 months ended Year ended 30
on OTB operating profit before depreciation and
OTB EBITDA (£'m) March 2025 31 March 2024 September 2024
amortisation.
OTB operating profit 2.4 0.7 20.1
Depreciation and amortisation 7.6 6.9 14.4
OTB EBITDA 10.0 7.6 34.5
OTB gross profit after OTB gross profit after marketing cost
is revenue adjusted for exceptional items
Adjusted OTB gross profit after marketing cost (£'m) 6 months ended 31 6 months ended Year ended 30
marketing costs and expected credit losses
after OTB cost of sales and marketing costs. March 2025 31 March 2024 September 2024
OTB revenue 59.4 56.3 119.2
Expected credit losses (1.9) (1.0) (1.7)
Exceptional items (0.1) (2.7) (4.6)
Adjusted OTB gross profit 57.4 52.6 112.9
OTB online marketing costs (16.3) (15.4) (30.2)
OTB off-line marketing costs (9.8) (10.5) (12.2)
Total OTB marketing (26.1) (25.9) (42.4)
OTB gross profit after marketing
costs 31.3 26.7 70.5
Overheads % revenue (£'m) 6 months ended 31 6 months ended Year ended 30
March 2025 31 March 2024 September 2024
Overheads % revenue (£'m) Overheads as a percentage of revenue is based on the OTB adjusted revenue OTB adjusted revenue 59.3 53.6 114.6
divided by the overheads for OTB. OTB overheads is the administrative expenses
excluding depreciation and amortization.
Overheads (18.5) (17.0) (34.2)
OTB overheads % revenue 31.2% 31.7% 29.8%
OTB overheads % booked TTV
Overheads as a percentage of TTV is based on the OTB booked TTV divided by
the overheads for OTB. OTB overheads is the administrative expenses excluding 6 months ended 31 6 months ended Year ended 30
marketing costs, depreciation and amortisation. Overheads % revenue (£'m) March 2025 31 March 2024 September 2024
OTB booked TTV 611.7 551.4 1,124.2
Overheads (18.5) (17.0) (34.2)
OTB overheads % revenue 3% 3% 3%
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