REG - On the Beach Group - INTERIM RESULTS
14/05/2024 07:00
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RNS Number : 2556O On the Beach Group PLC 14 May 2024
14 May 2024
On the Beach Group plc
("On the Beach", "OTB", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2024 ("H1 FY24")
GROUP TTV +22%, WITH IMPROVING OPERATIONAL LEVERAGE VERSUS H1 FY23 AND
CONTINUED MOMENTUM IN EXPANSION AREAS
WELL POSITIONED FOR H2 FY24
Financial & Operational Highlights
H1 24 H1 23((6)) H1 24 vs H1 23
Unaudited Unaudited Unaudited
£'m £'m %
Group booked TTV((1)) £597.8m £491.7m 22%
Group revenue £80.8m £72.9m 11%
Revenue as Agent((2)) £59.9m £50.3m 19%
Revenue as Principal((3)) £20.9m £22.6m (8%)
Group gross profit £58.8m £51.0m 15%
Gross profit as Agent £56.7m £48.6m 17%
Gross profit as Principal £2.1m £2.4m (13%)
Gross Profit after Marketing((4)) £32.1m £23.2m 38%
Adjusted EBITDA ((5)) £8.1m £4.2m 93%
Adjusted Group profit before tax ((4)) £4.3m £0.0m
Group profit/(loss) before tax £0.6m (£5.9m)
(1) Group booked TTV ('TTV') is the total transaction value of holidays
booked in the period before cancellations and adjustments.
(2) As an agent, revenue is accounted on a "booked" rather than "travelled"
basis (unlike tour operators and airlines) and the Group is reporting H1
bookings taken between 1 October 2023 and 31 March 2024.
(3) As a principal, revenue is accounted on a "travelled" basis and
reported on a gross basis and the Group is reporting H1 bookings which
departed between 1 October 2023 and 31 March 2024.
(4) See glossary for reconciliation to nearest GAAP measure.
(5) EBITDA is profit before tax, exceptional items, share based payments,
depreciation and amortisation, see glossary for reconciliation to nearest GAAP
measure.
(6) The prior period is restated for the effect of operations that were
discontinued in the prior financial year.
Financial headlines
· Group Booked TTV for the period was £597.8m, +22% year-on-year
("YOY"), resulting in Group Revenue of £80.8m, +11% YOY. This was driven by
increased passenger bookings during the period (+15%) as well as an increase
in the average value of holidays sold.
· Continued delivery of operational efficiencies resulted in
marketing spend and overheads lower as a % of revenue YOY.
· As a result of the above, Group adjusted EBITDA was £8.1m, up
93% on the prior year, with strong performance from OTB and Classic Package
Holidays ("CPH") brands.
· Proforma continuing EBITDA following B2B changes of £10.1m (H1
23: £6.5m).
· Group adjusted profit before tax was £4.3m, (H1 23: £0.0m), and
statutory profit before tax was £0.6m (H1 23: (£5.9m)).
· Interim dividend of 0.9p per share declared in line with capital
allocation policy, reflecting the Board's continued confidence in the Group's
prospects.
Trading dynamics
· Overall market remains strong, underpinned by an additional 7%
airline capacity to beach leisure destinations for Summer 24. OTB continues to
grow at ahead of this rate, supported in part by our new partnership agreement
with Ryanair which ensures we have secure access to this increase in capacity.
· The premium market continues to perform strongly with TTV growth
in 5* holidays within the B2C segment of +41% YOY, and now represents 34% of
B2C TTV mix (H1 23: 30%).
· The value market remains more challenging, reflecting ongoing
cost of living pressures, with 1% TTV growth YOY.
· Long Haul ("LH") continues to outperform as we continue to add
new destinations. B2C LH TTV is up 61% vs prior year, and now represents 9% of
B2C TTV mix (H1 23: 7%).
Current trading and outlook
· Trading momentum has continued since the half year date.
· Summer '24 forward order TTV currently 22% ahead of last year.
· As a result of these factors, and our new Ryanair partnership, we
expect to deliver another record Summer.
· Board is confident in delivering FY24 profit in line with current
consensus expectations.
Shaun Morton, Chief Executive of On the Beach Group plc, commented:
"I am pleased to report another strong set of results, marking our ninth
consecutive quarter of record performance. TTV was up 22% as we saw strong
growth across both volume of bookings and the average value of holidays sold.
Our customers are favouring our premium and Long Haul beach holidays, whilst
making the most of our enhanced customer perks.
The signing of our long-term distribution agreement with Ryanair was a
milestone achievement in the period. Through this partnership, our customers
can now secure free and fair access to Ryanair's seat supply, and we hope this
industry-leading collaboration can be used as a blueprint for how the industry
can better work together. In the two weeks since the partnership went live,
demand for Ryanair seats has been encouraging and supports the growth of our
value proposition that is enjoyed by families across the UK.
Looking ahead, the summer '24 forward order TTV is currently 22% ahead of last
year which, coupled with our continued trading momentum since the half year,
means we are confident of delivering our biggest summer ever."
Analyst & investor webinar
A meeting for sell-side equity analysts and investors will be held today at
10.00am, the details of which can be obtained through FTI Consulting via
onthebeach@fticonsulting.com. There will also be a conference call option
(with no Q&A function); the details of which can also be obtained from FTI
Consulting.
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
Fiona Walker
Harriet Jackson
Hannah Butler
About On the Beach
On the Beach Group plc is one of the UK's largest online beach holidays
retailers, with significant opportunities for growth. Its innovative
technology, low-cost base and strong customer-value proposition provides a
structural challenge to legacy tour operators and online travel agents, as it
continues disrupting the online retail of beach holidays. Its model is
customer-centric, asset light, profitable and cash generative.
Cautionary statement
This announcement may contain certain forward-looking statements with respect
to the financial condition, results, operations and businesses of the Company.
Forward looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as 'anticipates', 'aims', 'due',
'will', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans',
'targets', 'goal' or 'estimates'. These forward-looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that may or may not occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward-looking statements, including factors
outside the Company's control. The forward-looking statements reflect the
knowledge and information available at the date of preparation of this
announcement and will not be updated during the year. Nothing in this
announcement should be construed as a profit forecast.
This statement together with the interim financial statements and investor
presentation is available on www.onthebeachgroupplc.com
(http://www.onthebeachgroupplc.com/) .
Chief Executive's Review
Summary
Group Booked TTV in H1 was +22% ahead of the prior year, supported by strong
volume growth of +15% vs H1 23 and continued momentum in strategic expansion
areas, contributing to an increase in average booking values. Whilst TTV
growth in the 3* market in H1 was more suppressed by ongoing cost of living
pressures, OTB continues to experience very strong growth in its 5* premium
and Long Haul markets.
Signing a partnership agreement with Ryanair provides OTB with free and fair
access to seats from Europe's largest airline, enables the parties to move on
from long standing litigation and supports the momentum we carry into the
second half of the year across the lates market. This partnership agreement
resolves a longstanding risk for the Group and will ensure that our customers
can book package holidays with a Ryanair flight with complete confidence.
We expect the B2B channel's profitability to improve once the key measures
identified to simplify its operating model have been implemented, having
undertaken a review in the first half of the year.
The Group continues to develop and evolve its perks proposition and the
strategy is proving effective with increased Top 3 Consideration for customers
with a perk. Where customers are aware of the perks proposition, their
perception of OTB as a differentiated and good value for money holiday company
increases significantly which in turn improves our consideration scores.
Trading post half year date across the Group remains strong and we expect this
summer to be our biggest ever.
Expansion areas
The strategic actions the Group continues to take to enhance its proposition
and supply position it well to continue to outperform in the premium market.
The Group estimates the premium market is a similar size to the value market
in terms of passengers, but approximately two and a half times larger in
absolute value, and the revenue margin opportunity on each individual booking
is significantly greater. The premium market has shown greater resilience to
cost-of-living pressures, recovering earlier. Attracting these customers that
typically book earlier is giving greater visibility of the season ahead.
Premium 5* TTV was +41% in H1 24 versus H1 23.
The Group has continued to scale its Long Haul offering and OTB is now a brand
firmly associated with long-haul as well as short haul beach holidays. OTB has
a low single digit but growing share of a 3m pax market. There remains a
significant organic growth opportunity in Long Haul. The majority of OTB's
continued growth is from its existing Long Haul destinations, and there is
significant headroom for further penetration in these destinations. Booked
Long Haul TTV was 61% up vs a strong comparator in H1 23 and H1 LH mix of B2C
TTV is now up to 9%.
Ryanair partnership
We signed our transformational Ryanair partnership agreement in February,
representing a significant milestone for OTB.
It provides free and fair access to Ryanair's seat supply for our customers,
facilitating a smoother customer journey when booking Ryanair flights as part
of an OTB package, which significantly improves the customer experience.
This simplifies OTB operations, while enabling greater focus on areas of
strategic value. Amongst other operational benefits, we expect a reduced
number of contacts into Contact Centre teams, enhanced tech reliability at
reduced costs, improved working capital efficiency through funds taken out of
trust, and a simplified future refunds process.
This is an important development for the holiday industry as a whole. This
partnership arrangement ensures that customers will continue to benefit from
the enhanced consumer protection that buying a package holiday provides
combined with the low cost fares that Ryanair offers.
Finally, the agreement enables the parties to move on from the outstanding
litigation and focus efforts on building the partnership. We are working
collaboratively with Ryanair to resolve all historic refunds and expect this
to be concluded by year-end.
B2B
During H1, we reviewed Classic Collection Holidays ("CCH") and Classic Package
Holidays operations (both segments in aggregate representing B2B) and have
identified several structural changes to improve performance. Both businesses
represent a meaningful part of our Group, and we remain committed to
continuing the growth and supporting the trade with quality service and
products.
B2B operates in an increasingly competitive market, particularly post
pandemic, where competition has intensified. To win share in this market, we
need to operate with a simple operating model for the benefit of suppliers,
agents, and customers. We will be supporting the B2B channel with a single
brand trading as Classic Collection, and a single platform solution leveraging
Group technology and operations. Following a short transitional period, B2B
will be a more closely integrated channel within the Group, represent a single
segment, and adopt an agency revenue recognition policy which will simplify
Group reporting.
Si Morris-Green has taken up the role of Director of B2B and will lead the
business through our next chapter of growth. Having recently completed a
period of collective consultation, we are providing dedicated support to our
teams, including those affected. We expect these actions will deliver a
significant improvement in operating efficiency and return this channel to
profitability.
Strategy for growth
Our strategy remains consistent with that set out at the end of FY23. Ongoing
investment into brand, proposition, technology, customer experience and supply
enables our strategy to continue to penetrate each of our addressable markets,
contributing to our record performance in FY23 and building towards our
biggest summer ever in FY24.
The Group is making considerable progress developing its customer proposition.
Being known for Perks and investing in the customer Perks offer, including
lounge, fast track and mobile data, significantly benefits OTB. It offers a
key point of differentiation from other holiday companies, makes our offline
marketing campaigns more effective, strengthens the brand, attracts new
customers, and improves our customer's overall holiday experience, increasing
the likelihood of repeat purchase. In H1 24, top 3 Consideration was 29%,
whilst top 3 Consideration for those aware of Perks was 46%.
We have also recently made significant progress upgrading the core platform,
increasing the accuracy and speed by which we are able to serve billions of
deals to our customers. Our new platform capabilities allow us to integrate
with new partners quickly and reliably (e.g. Ryanair) and ultimately enable
OTB to scale more efficiently.
We are excited by what we can achieve across the Group for the remainder of
FY24 and look forward to updating further on progress at the year end.
Segmental performance
The Group organises its operations into three principal financial reporting
segments, being OTB (onthebeach.co.uk and sunshine.co.uk), CCH (Classic
Collection Holidays) and CPH (Classic Package Holidays).
OTB Segment performance
H1 2024 H1 2023 vs
Bookings '000s 276.4 240.3 15%
Booked TTV £m 551.4 445.8 24%
H1 2024 H1 2023 vs
£m £m %
Revenue 56.3 47.8 18%
Adjusted Revenue* 53.6 48.5 11%
Adjusted gross profit* 52.6 48.5
Online Marketing costs (15.4) (12.5)
Offline Marketing costs (10.5) (13.4)
Gross profit after marketing costs* 26.7 22.6 18%
Overheads (17.0) (15.7)
Depreciation and amortization (5.8) (4.3)
Adjusted operating profit* 3.9 2.6
Exceptional items (0.5) (1.8)
Share based payments (1.6) (1.3)
Amortisation of acquired intangibles (1.1) (2.3)
Operating profit/(loss) 0.7 (2.8)
Adjusted EBITDA* 9.7 6.9 41%
Adjusted EBITDA % 18.1% 14.2%
*see glossary for reconciliation to nearest GAAP measure
Revenue increased by 18% to £56.3m (H1 23: £47.8m). The increase in revenue
was due to an increase in both booking volumes and average booking values
("ABV"). The growth in ABV reflects a continuing level of price inflation
across the market, in addition to the continued growth in premium and
long-haul holidays, which carry a higher ABV than more traditional 3* beach
holidays.
Revenue is stated net of one off costs of c.£3m retaining Ryanair flights on
sale prior to finalisation of the partnership agreement.
Total marketing costs at £25.9m represent 48% of adjusted revenue (H1 23:
53%). In line with strategy, offline marketing costs at £10.5m, (H1 23
£13.4m) were heavily weighted into H1 to capitalise on the peak bookings
period and build momentum into H2. Online marketing costs were £15.4m (H1 23:
£12.5m) and 29% of adjusted revenue (H1 23: 26%) during the period. Total
marketing costs for the full year are expected to remain within 40% of
revenue.
Adjusted gross profit after all marketing costs increased by 18% to £26.7m
(H1 23: £22.6m).
Operating leverage and overheads
H1 2024 H1 2023
Overheads % adjusted revenue* 31.7% 32.4%
Overheads % booked TTV* 3% 4%
*see glossary for reconciliation to nearest GAAP measure
Overheads have increased by £1.3m to £17.0m representing 31.7% of adjusted
revenue (H1 23: 32.4%) and 3% of TTV (H1 23: 4%).
The absolute increase in overheads results primarily from increases in
variable costs, and in particular credit / debit card transaction costs. Fixed
overheads have been subject to underlying inflation, which has offset the
benefit from a reduction in headcount in H1 vs the year-end.
Overall growth in overheads remains well behind the rate of bookings growth,
demonstrating management's commitment to improved operational efficiency.
Adjusted EBITDA for the period was £9.7m (H1 23: £6.9m).
Classic Collection Holidays segment performance
H1 2024 H1 2023 Vs
Bookings '000s (booked) 4.0 4.9 (18%)
Bookings '000s (travelled) 2.9 3.1 (6%)
Booked TTV £'m 29.1 32.9 (12%)
H1 2024 H1 2023 Vs
£m £m %
Revenue 20.9 22.6 (8%)
Gross profit 2.1 2.4
Gross Profit after marketing costs 1.3 1.2 8%
Overheads (3.3) (3.5)
Depreciation and amortisation (0.1) (0.2)
Amortisation of acquired intangibles (0.3) (0.5)
Exceptional items (0.3) -
Operating loss (2.7) (3.0)
Adjusted EBITDA* (2.0) (2.3)
*see glossary for reconciliation to nearest GAAP measure
As a principal (rather than an agent), Classic accounts for revenue on a
"travelled" basis and reports revenue on a gross basis.
The high street remains an extremely competitive market for B2B sales, which
has contributed to a reduction in bookings of 6% on a travelled basis since
the prior year. Despite the changes made in Q4 FY23 to centralise a number of
group functions, costs to serve remain high. This has driven the need for a
strategic review and conclusion that a simpler operating model is required to
serve the B2B market.
For the purposes of IFRS 5, we expect CCH to be classified as discontinued
operations during H2 24.
Classic Package Holidays segment performance
H1 2024 H1 2023 Vs
Bookings '000s 7.4 5.8 28%
Booked TTV £'m 17.3 13.0 33%
H1 2024 H1 2023 Vs
£'m £'m %
Revenue 3.6 2.5 44%
Adjusted revenue* 3.5 2.5
Adjusted gross profit* 1.4 0.9 56%
Gross Profit after marketing costs* 1.3 0.4
Overheads (0.9) (0.8)
Adjusted operating profit/(loss)* 0.4 (0.4)
Exceptional items 0.1 -
Operating profit/(loss) 0.5 (0.4)
Adjusted EBITDA* 0.4 (0.4)
*see glossary for reconciliation to nearest GAAP measure
CPH provides an online B2B platform that enables high street travel agents to
sell dynamically packaged holidays to their customers.
Revenue for the period increased by 44% to £3.6m (H1 23: £2.5m). With
marketing and overheads growing at a slower rate than bookings growth this has
resulted in an increase in EBITDA of £0.8m on the prior year.
Exceptional and adjusting items
Exceptional items on a Group basis include £3.5m of costs offset by £2.8m of
income following the settlement of the refunds litigation with Ryanair. Costs
of £2.9m relate to legal and professional costs in respect of litigation,
including Ryanair litigation prior to the signing of the partnership
agreement. £0.6m relates to B2B restructuring earlier in H1 24.
The amortization of acquired intangibles has reduced by £1.2m on prior year
due to full amortization of customer relationship and website technology in
the period.
Financing
In the prior year, the Group refinanced its credit facilities with Lloyds Bank
and NatWest. This included cancelling all current facilities and entering into
a new facility for £60m expiring in December 2025.
In December 2023 an option was exercised to extend the expiry date to December
2026. In January 2024, an option was exercised to extend the facility by £25m
in order to provide additional working capital headroom for continued growth.
This extension is effective until July 2025.
The cash draw down on this facility at 31 March 2024 was £55m (31 March 2023:
£30m).
Details of the current facility limits and maturity dates with are as follows:
Facilities 1 (#_ftn1) £m Issued Expiry Cash drawn at 31 March 2024
RCF - Lloyds Bank £42.5m Dec 2022 Dec 2026 £27.5m
RCF - NatWest £42.5m Dec 2022 Dec 2026 £27.5m
Total facility £85m £55m
Share based payments
The Group has an LTIP scheme in place which vests based on performance
criteria. In accordance with IFRS 2, the Group has recognised a non-cash
charge of £1.6m (H1 23: £1.3m).
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 £0.1m (H1 23: credit of £1.2m) represents an
effective rate of 25% (H1 23: 20%) which is in line with the standard UK rate
of 25% (H1 23 higher than the standard rate of 19%).
During the period, a Corporation Tax payment of £2.1m was made in respect of
the prior year.
Cash flow
£m H1 2024 H1 2023 FY23
Profit/(loss) before tax from continuing operations 0.6 (5.9) 12.9
Loss before tax from discontinued operations - (0.1) (0.5)
Depreciation and amortization 7.3 7.3 15.3
Net finance income (2.1) (0.3) (2.6)
Share based payments 1.6 1.3 1.2
Movement in working capital (124.2) (80.5) (4.1)
Corporation tax (paid) / received (2.1) 0.4 (0.2)
Cash generated from operating activities (118.9) (77.8) 22.0
Other cash flows
Capital expenditure net of proceeds - - -
Capitalised development expenditure (5.5) (6.8) (12.0)
Capitalised intangible assets - (0.1) -
Net finance income 2.2 0.4 2.8
Payment of lease liabilities (0.9) (0.6) (1.5)
RCF drawdowns 55.0 30.0 -
Total net cash flows (68.1) (54.9) 11.3
Opening cash balance 75.8 64.5 64.5
Closing cash at bank 7.7 9.6 75.8
Closing trust balance 195.9 137.2 108.6
The cash flow profile of the Group is seasonal with approximately 50% of
customers travelling in the period June to August and therefore in a normal
year the cash flows (excluding any cash held in the Trust) experience a trough
prior to June and a peak following this.
Operating cashflows of £118.9m represents investments made by the Group in to
online and offline marketing as well as the working capital required to fund
the customer deposits scheme and meet agreed advances to hoteliers.
Customer payments made to OTB in advance of travel are deposited in the Trust
account. During the period, the Trust account balance has increased from
£108.6m to £195.9m, which will unwind as customers travel over the summer
months. As well as reflecting the continued growth of the business, this
increase is a result of an increasing number of customers choosing to book
their holidays earlier.
Dividend
In view of the current full year outlook and the Board's continued confidence
in the Group's prospects, it has decided to pay an interim dividend of 0.9p
per share (2023: nil). The dividend will be paid on 28 June 2024 to
shareholders on the register at 31 May 2024. The full year payout ratio is
expected to be 25% of FY24 profit after tax, in line with the Group's capital
allocation policy.
Shaun Morton Jon Wormald
CEO
CFO
14 May 2024 14 May 2024
On the Beach Group Plc
INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MARCH 2024
CONDENSED CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 31 March 2024
Restated*
6 months ended 31 March 2024 6 months ended 31 March 2023 Year ended 30 September 2023
Note £'m £'m £'m
unaudited audited
unaudited
Revenue 3,4 80.8 72.9 170.2
Cost of sales (21.0) (21.9) (54.2)
Expected credit losses 12 (1.0) - (2.0)
Gross profit 58.8 51.0 114.0
Administrative expenses 5 (60.3) (57.2) (103.7)
Group operating (loss)/profit 4 (1.5) (6.2) 10.3
Finance costs (0.4) (0.6) (1.5)
Finance income 2.5 0.9 4.1
Net finance income 2.1 0.3 2.6
Profit/(loss) before taxation 0.6 (5.9) 12.9
Taxation 6 (0.1) 1.2 (2.3)
Profit/(loss) for the period from continuing operations 0.5 (4.7) 10.6
Loss from discontinued operations - (0.1) (0.5)
Profit/(loss) for the period 0.5 (4.8) 10.1
Other comprehensive income:
Net loss on cash flow hedges - (0.8) (0.6)
Net (loss)/gain on fair value hedges (0.2) 0.5 0.7
Total comprehensive income/(loss) for the period 0.3 (5.1) 10.2
Attributable to equity holders of the parent
Profit/(loss) from continuing operations 0.5 (4.7) 10.6
Loss from discontinued operations - (0.1) (0.5)
Other comprehensive (loss)/income (0.2) (0.3) 0.1
Total comprehensive income/(loss) for the period 0.3 (5.1) 10.2
Basic and diluted earnings per share from continuing operations attributable
to the equity shareholders of the Company:
Basic earnings/(loss) per share 8 0.3p (2.8p) 6.4p
Diluted earnings/(loss) per share 8 0.3p (2.8p) 6.3p
Adjusted basic earnings per share ** 8 1.9p 0.0p 11.6p
Adjusted diluted earnings per share ** 8 1.9p 0.0p 11.5p
Basic and diluted earnings per share from total operations attributable to the
equity shareholders of the Company:
Basic earnings/(loss) per share 8 0.3p (2.9p) 6.1p
Diluted earnings/(loss) per share 8 0.3p (2.9p) 6.0p
Adjusted profit measure **
Adjusted profit before tax (before amortisation of acquired intangibles, 5 4.3 - 23.6
exceptional items and share based payments) **
* The period ending 31 March 2023 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 2024
At 31 March 2024 At 31 March 2023 At 30 September 2023
£'m £'m £'m
Assets Note unaudited unaudited audited
Non-current assets
Intangible assets 9 73.2 75.0 73.7
Property, plant and equipment 10 7.0 8.0 8.3
Deferred tax 11 2.7 4.6 2.6
Other assets - 0.3 -
Total non-current assets 82.9 87.9 84.6
Current assets
Trade and other receivables 12 333.9 264.7 165.3
Derivative financial instruments 15 0.1 - 0.9
Trust account 14 195.9 137.2 108.6
Corporation tax receivable 0.5 - -
Cash at bank 7.7 9.6 75.8
Total current assets 538.1 411.5 350.6
Total assets 621.0 499.4 435.2
Equity
Share capital 1.7 1.7 1.7
Share premium 89.6 89.6 89.6
Retained earnings 207.9 190.7 205.9
Capital contribution reserve 0.5 0.5 0.5
Merger reserve (129.5) (129.5) (129.5)
Total equity 170.2 153.0 168.2
Non-current liabilities
Trade and other payables 13 1.4 2.4 2.6
Total non-current liabilities 1.4 2.4 2.6
Current liabilities
Corporation tax payable - 0.6 1.7
Trade and other payables 13 389.1 311.8 261.2
Loans and overdrafts 15 55.0 30.0 -
Provisions 13 1.9 0.6 0.4
Derivative financial instruments 15 3.4 1.0 1.1
Total current liabilities 449.4 344.0 264.4
Total liabilities 450.8 346.4 267.0
Total equity and liabilities 621.0 499.4 435.2
Jon Wormald
Chief Financial Officer
14 May 2024
On the Beach Group plc. Reg no 09736592
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 31 March 2024
Restated*
6 months ended 31 March 2024 6 months ended 31 March 2023 Year ended 30 September 2023
unaudited unaudited audited
Note £'m £'m £'m
Profit/(loss) before taxation
From continuing operations 0.6 (5.9) 12.9
From discontinued operations 7 - (0.1) (0.5)
Adjustments for:
Depreciation 5 1.3 1.1 2.7
Amortisation of intangible assets 5 6.0 6.2 12.6
Finance costs 0.4 0.6 1.5
Finance income (2.5) (0.9) (4.1)
Share based payments 1.6 1.3 1.2
7.4 2.3 26.3
Changes in working capital:
Increase in trade and other receivables 12 (168.2) (138.8) (39.9)
Increase in trade and other payables 13 131.3 126.1 75.0
Increase in trust account (87.3) (67.8) (39.2)
Movement in working capital (124.2) (80.5) (4.1)
Cash flows from operating activities
Cash generated from operating activities (116.8) (78.2) 22.2
Tax (outflow)/received (2.1) 0.4 (0.2)
Net cash (outflow)/inflow from operating activities (118.9) (77.8) 22.0
Cash flows from investing activities
Purchase of property, plant and equipment 10 - - (0.1)
Proceeds from disposal of assets - - 0.1
Purchase of intangible assets 9 - (0.1) -
Development expenditure 9 (5.5) (6.8) (12.0)
Interest received 2.5 0.9 4.1
Net cash outflow from investing activities (3.0) (6.0) (7.9)
Cash flows from financing activities
Proceeds from borrowings 15 55.0 30.0 -
Interest paid on borrowings (0.3) (0.5) (1.3)
Payment of lease liabilities (0.9) (0.6) (1.5)
Net cash inflow/(outflow) from financing activities 53.8 28.9 (2.8)
Net (decrease)/increase in cash at bank and in hand (68.1) (54.9) 11.3
Cash at bank and in hand at beginning of period 75.8 64.5 64.5
Cash at bank and in hand at end of period 7.7 9.6 75.8
* The period ending 31 March 2023 is restated for the effects of the
discontinued operations (see note 7).
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 March 2024
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
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)
Other comprehensive income 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
Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the 6 months ended 31 March 2023 £'m £'m £'m £'m £'m £'m
Balance at 30 September 2022 1.7 89.6 (129.5) 0.5 194.5 156.8
Share based payment charges including tax - - - - 1.3 1.3
Total comprehensive loss for the period - - - - (5.1) (5.1)
Balance at 31 March 2023 (unaudited) 1.7 89.6 (129.5) 0.5 190.7 153.0
Share capital Share premium Merger reserve Capital contribution reserve Retained earnings Total
For the year ended 30 September 2023 £'m £'m £'m £'m £'m £'m
Balance at 30 September 2022 1.7 89.6 (129.5) 0.5 194.5 156.8
Share based payment charge including tax - - - - 1.2 1.2
Total comprehensive income for the year - - - - 10.2 10.2
Balance at 30 September 2023 1.7 89.6 (129.5) 0.5 205.9 168.2
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 March 2024
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 2024 were authorised for issue in accordance with a resolution of the
directors on 14 May 2024.
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 2024 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 2023. 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 2023. 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 2023.
2.3 Going concern
The Group covers its daily working capital requirements by means of cash and a
£60m Revolving Credit Facility ('RCF') from Lloyds Bank and NatWest expiring
in December 2025. In December 2023 the expiry date pushed to December 2026 as
permitted by the contractual terms and then in January 2024, the facility was
increased by £25m until July 2025. The RCF has financial covenants in place
which are tested quarterly.
As at 31 March 2024 Group cash (excluding cash held in trust which is
ringfenced and not factored into the going concern assessment) was £7.7m (31
March 2023: £9.6m, 30 September 2023: £75.8m).
Cash received from customers for bookings that have not yet travelled is held
in a ring-fenced trust account and is not withdrawn until the customer returns
from their holiday. Cash held in trust at 31 March 2024 was £195.9m (31 March
2023: £137.2m, 30 September 2023: £108.6m).
The Directors have assessed a going concern period through to 30 September
2025 being the next period end after a full 12 months from the reporting date,
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 an assessment of the impact of climate risk,
as part of the Director's assessment of the Group's ability to continue as a
going concern. Detail of the Group's assessment of the impact of climate risk
is provided within the 'Principal risks and uncertainties' section of the 2023
annual report.
The Directors have modelled a reasonably possible downside scenario to
sensitise the base case. In this scenario the Directors have assessed the
impact to cash and revenue in an environment where bookings are 70% lower than
forecasted for 3 months followed by 40% reduction for the remaining going
concern period and although profitability would be affected, the Group would
be able to continue operating. The impact of climate change has not yet been
reflected in these estimates and assumptions due to the level of uncertainty
about the impact of climate change on these estimates and assumptions.
In addition, the Directors have modelled sensitivity analysis on both average
booking values and booking volumes separately, as well as a reverse stress
test with a remote possibility. Although in each of these scenarios
profitability would be affected, 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. In the period ending 31
March 2024 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 CPH segments is recognised based on there being a
single performance obligation at the point of booking. This is to arrange and
facilitate the customer entering into individual contracts with principal
suppliers providing holiday related services including flights, hotels and
transfers. For the OTB and CPH 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 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.
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 recognised 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 CPH segments is recognised
as an agent on the basis that the performance obligation is to arrange for
another entity to provide the goods or services. This assessment has given
consideration that there is no inventory risk and limited discretion in
establishing prices. Revenue in the CCH segment is recognised as a principal
on the basis that CCH have the primary responsibility for fulfilling the
package holiday for the customer.
2.5 New standards, amendments and interpretations
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 30 September 2023. The Group has not early adopted any other
standard, interpretation or amendment that has been issued but is not yet
effective.
A number of new standards and amendments to standards are effective for annual
periods beginning after 1 January 2023; the following amended standards have
been implemented, however, they have not had a significant impact on the
Group's consolidated financial statements:
• IFRS 17 Insurance Contracts
• Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice
Statement 2
• Definition of Accounting Estimates - Amendments to IAS 8
• Deferred Tax related to Assets and Liabilities arising from a Single
Transaction - Amendments to IAS 12
• International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12
introduced a mandatory temporary exception to the requirements of IAS 12 under
which a company does not recognise or disclose information about deferred tax
assets and liabilities related to the proposed OECD/G20 BEPS Pillar Two model
rules. The Group has applied the temporary exception in the Group's
consolidated financial statements.
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 2023 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:
• Amendment to IFRS 16 - Leases on sale and leaseback
• Amendment to IAS 7 and IFRS 7 - Supplier finance
• Amendments to IAS 21 - Lack of ExchangeabilityInternational Tax Reform -
Pillar Two Model Rules - Amendments to IAS 12 introduced a mandatory temporary
exception to the requirements of IAS 12 under which a company does not
recognise or disclose information about deferred tax assets and liabilities
related to the proposed OECD/G20 BEPS Pillar Two model rules. The Group has
applied the temporary exception in the Group's consolidated financial
statements.
3 Revenue
Set out below is the disaggregation of the Group's revenue from contracts with
customers:
For the 6 months ended 31 March 2024
OTB CCH CPH Total
£'m £'m £'m £'m
Booked TTV* 551.4 29.1 17.3 597.8
Revenue
Revenue as agent 53.6 - 3.5 57.1
Revenue as principal - 20.9 - 20.9
Total Revenue before exceptional items 53.6 20.9 3.5 78.0
Exceptional income** 2.7 - 0.1 2.8
Total Revenue 56.3 20.9 3.6 80.8
For the 6 months ended 31 March 2023***
OTB CCH CPH Total
£'m £'m £'m £'m
Booked TTV* 445.8 32.9 13.0 491.7
Revenue before fair value FX losses
Revenue as agent 48.5 - 2.5 51.0
Revenue as principal - 22.6 - 22.6
Total Revenue before fair value FX losses 48.5 22.6 2.5 73.6
Fair value FX losses (0.7) - - (0.7)
Total Revenue 47.8 22.6 2.5 72.9
For the year ended 30 September 2023
OTB CCH CPH Total
£'m £'m £'m £'m
Booked TTV* 983.7 58.7 28.0 1,070.4
Revenue before fair value FX losses
Revenue as agent 106.9 - 6.0 112.9
Revenue as principal - 58.1 - 58.1
Total Revenue before fair value FX losses 106.9 58.1 6.0 171.0
Fair value FX losses (0.8) - - (0.8)
Total Revenue 106.1 58.1 6.0 170.2
*The total transaction value of holidays booked during the period, before
cancellations and amendments. See the glossary for the reconciliation to GAAP
measure.
**Exceptional income for the period ended 31 March 2024 relates to refunds
received from airlines that had previously been provided for as exceptional
cancellations.
*** The results for the period ended 31 March 2023 have been restated to
exclude the results of the discontinued operation included in that period.
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'', ''CCH''
and "CPH". All segment revenue, operating profit, assets and liabilities are
attributable to the Group from its principal activities. All revenues are
derived in the United Kingdom.
OTB and CPH recognise revenue as agent on a net basis. CCH recognises revenue
as a principal on a gross 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.
For the 6 months ended 31 March 2024
OTB CCH CPH Total
£'m £'m £'m £'m
Revenue before exceptional items 53.6 20.9 3.5 78.0
Exceptional income* 2.7 - 0.1 2.8
Revenue 56.3 20.9 3.6 80.8
Adjusted EBITDA 9.7 (2.0) 0.4 8.1
Share based payment charge (1.6) - - (1.6)
Exceptional items (note 5b) (0.5) (0.3) 0.1 (0.7)
EBITDA 7.6 (2.3) 0.5 5.8
Depreciation and amortisation (6.9) (0.4) - (7.3)
Group operating profit/(loss) 0.7 (2.7) 0.5 (1.5)
Finance costs (0.4)
Finance income 2.5
Profit before taxation 0.6
Non-current assets
Goodwill 31.6 4.6 4.0 40.2
Other intangible assets 27.5 5.3 0.2 33.0
Property, plant and equipment 4.6 2.4 - 7.0
6 months ended 31 March 2023**
OTB CCH CPH Total
£'m £'m £'m £'m
Revenue
Revenue before fair value FX losses 48.5 22.6 2.5 73.6
Fair value FX losses (0.7) - - (0.7)
Total revenue 47.8 22.6 2.5 72.9
Adjusted EBITDA 6.9 (2.3) (0.4) 4.2
Share based payment charge (1.3) - - (1.3)
Exceptional items (note 5b) (1.1) - - (1.1)
Fair value FX losses (0.7) - - (0.7)
EBITDA 3.8 (2.3) (0.4) 1.1
Depreciation and amortisation (6.6) (0.7) - (7.3)
Group operating loss (2.8) (3.0) (0.4) (6.2)
Finance costs (0.6)
Finance income 0.9
Loss before taxation (5.9)
Non-current assets
Goodwill 31.6 4.6 4.0 40.2
Other intangible assets 28.6 6.1 0.1 34.8
Property, plant and equipment 5.4 2.6 - 8.0
Year ended 30 September 2023
OTB CCH CPH Total
£'m £'m £'m £'m
Revenue
Revenue before fair value FX losses 106.9 58.1 6.0 171.0
Fair value FX losses (0.8) - - (0.8)
Total Revenue 106.1 58.1 6.0 170.2
Adjusted EBITDA 32.1 (1.0) 0.1 31.2
Share based payment charge (1.1) (0.1) - (1.2)
Exceptional items (note 5b) (3.3) (0.2) - (3.5)
Fair value FX losses (0.8) - - (0.8)
EBITDA 26.9 (1.3) 0.1 25.7
Depreciation and amortisation (14.1) (1.3) - (15.4)
Group operating profit/(loss) 12.8 (2.6) 0.1 10.3
Finance costs (1.5)
Finance income 4.1
Profit before taxation 12.9
Non-current assets
Goodwill 31.6 4.6 4.0 40.2
Other intangible assets 27.9 5.6 0.2 33.7
Property, plant and equipment 5.5 2.5 - 8.0
*Exceptional income for the period ended 31 March 2024 relates to refunds
received from airlines that had previously been provided for as exceptional
cancellations.
**The results for the period ended 31 March 2023 have been restated to exclude
the results of the discontinued operation included in that period (see note
7).
5 Operating profit
a) Operating expenses
Expenses by nature including exceptional items and impairment charges:
Restated*
6 months 6 months ended 31 March 2023 Year ended 30 September 2023
ended 31
March 2024
unaudited audited
£'m £'m £'m
Marketing 25.3 26.3 40.6
Depreciation 1.3 1.1 2.7
Staff costs (including share based payments) 15.2 13.7 28.4
IT hosting, licences & support 3.6 3.2 6.2
Office expenses 0.4 0.5 0.9
Credit / debit card charges 1.7 1.5 3.9
Insurance 1.0 1.1 2.2
Professional Services 0.4 0.4 1.2
Other 1.9 2.1 1.5
Administrative expenses before exceptional costs & amortisation of 50.8 49.9 87.6
intangible assets
Exceptional costs 3.5 1.1 3.5
Amortisation of intangible assets 6.0 6.2 12.6
Exceptional costs and amortisation of intangible assets 9.5 7.3 16.1
Administrative expenses 60.3 57.2 103.7
* The results for the year ended 31 March 2023 have been restated to exclude
the results of the discontinued operation included in that period (see note
7).
b) Exceptional items
Total exceptional items in the 6 months ended 31 March 2024 of £0.7m,
consists of exceptional income of £2.8m for refunds received from airlines
that had previously been provided for and exceptional operating costs of
£3.5m. Exceptional operating costs include £2.9m legal and professional
costs relating to litigation during the period and £0.6m of restructuring
costs.
Total exceptional items in the 6 months ended 31 March 2023 of £1.1m.
Exceptional operating costs of £1.1m include £0.6m legal and professional
fees and £0.5m of restructuring costs.
Exceptional items in the year ended 30 September 2023 of £3.5m represents
£2.0m of non-trade legal and professional fees relating to ongoing litigation
and £1.5m of redundancy costs as a result of the consolidation of certain
Group functions between OTB and CCH.
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 March 2024 6 months ended 31 March 2023 Year ended 30 September 2023
unaudited unaudited audited
£'m £'m £'m
Profit/(loss) before taxation 0.6 (5.9) 12.9
Fair value FX losses - 0.7 0.8
Exceptional income (2.8) - -
Other exceptional operating costs 3.5 1.1 3.5
Amortisation of acquired intangibles** 1.4 2.8 5.2
Share based payments charge*** 1.6 1.3 1.2
Adjusted profit before tax 4.3 - 23.6
*The results for the period ended 31 March 2023 have been restated to exclude
the results of the discontinued operation included in that period (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 £1.6m (31 March 2023: £1.3m, 30 September 2023:
£1.2m).
6 Taxation
6 months ended 31 March 2024
6 months ended 31 March 2023 Year ended 30 September 2023
unaudited unaudited audited
£m £m £m
Current tax on profit/(loss) for the period 0.2 - 1.6
Adjustments in respect of prior period - - (0.1)
Total current tax 0.2 - 1.5
Deferred tax on losses for the period
Origination and reversal of temporary differences (0.1) (1.2) 1.0
Adjustments in respect of prior period - - (0.2)
Total deferred tax (0.1) (1.2) 0.8
Total tax charge/(credit) 0.1 (1.2) 2.3
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 operating are as follows.
6 months ended 31 March 2024
6 months ended 31 March 2023 Year ended 30 September 2023
unaudited unaudited audited
£m £m £m
Profit/(loss) on ordinary activities before tax 0.6 (5.9) 12.9
Profit/(loss) on ordinary activities multiplied by the rate of corporation tax 0.2 (1.1) 2.8
in the UK of 25% (31 March 2023: 19%, 30 September 23: 22%)
Effects of:
Impact of difference in effective rate and standard rate of corporation tax (0.1) - -
Impact of difference in current and deferred tax rates - (0.1) (0.6)
Adjustments in respect of prior years - - (0.3)
Expenses not deductible - - 0.4
Total taxation charge/(credit) 0.1 (1.2) 2.3
The effective rate of tax of 24.7% has been calculated using the full year
projections and has been applied to profit before exceptional items for the
period ending 31 March 2024. The standard rate of corporation tax of 25% (31
March 2023: 19%, 30 September 2023: 22%) for the full year has been applied to
the exceptional items in the period ending 31 March 2024.
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 Prior year loss from discontinued operations
On 27 September 2023, the Group made the decision to cease its current
operations outside of the UK. The results of the discontinued operations are
analysed below. The 6 months ended 31 March 2023 have been restated to show
separately the results of the discontinued operation included in that period.
"International" segment is no longer presented in the segment note.
6 months ended 31 March 2023 Year ended 30 September 2023
unaudited audited
£'m £'m
Loss for the year from discontinued operations
Revenue 0.3 0.9
Administrative expenses (0.4) (1.4)
Loss before tax (0.1) (0.5)
Loss from discontinued operations (0.1) (0.5)
Earnings per share
Basic EPS (0.1p) (0.3p)
Diluted EPS (0.1p) (0.3p)
Cash flows from discontinued operations
Net cash flows from operating activities (0.1) (0.5)
Net cash flows from discontinued operations (0.1) (0.5)
No impact on cash flows from investing or financing activities.
There are no assets relating to discontinued operations held for sale at 31
March 2024.
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.
6 months ended 31 March 2024 6 months ended 31 March 2023* Year ended 30 September 2023
unaudited unaudited audited
Basic EPS for continuing operations
Profit/(loss) after tax for the period (£'m) 0.5 (4.7) 10.6
Basic weighted average number of Ordinary Shares (m) 166.8 166.4 166.5
Earnings per share (in pence per share) 0.3p (2.8p) 6.4p
Basic EPS for total operations
Profit/(loss) after tax for the period (£'m) 0.5 (4.8) 10.1
Basic weighted average number of Ordinary Shares (m) 166.8 166.4 166.5
Earnings per share (in pence per share) 0.3p (2.9p) 6.1p
Diluted EPS for continuing operations
Profit/(loss) after tax for the period (£'m) 0.5 (4.7) 10.6
Weighted average number of Ordinary Shares (m) 168.9 166.4 167.8
Earnings per share (in pence per share) 0.3p (2.8p) 6.3p
Diluted EPS for total operations
Profit/(loss) after tax for the period (£'m) 0.5 (4.8) 10.1
Weighted average number of Ordinary Shares (m) 168.9 166.4 167.8
Earnings per share (in pence per share) 0.3p (2.9p) 6.0p
*There was no difference in the weighted average number of shares used for the
calculation of basic and diluted loss per share as the effect of all
potentially dilutive shares outstanding was anti-dilutive.
6 months ended 31 March 2024 6 months ended 31 March 2023* Year ended 30 September 2023
unaudited unaudited audited
Adjusted basic earnings per share
Adjusted earnings after tax (£'m) 3.2 - 19.3
Weighted average number of Ordinary Shares (m) 166.8 166.4 166.5
Earnings per share (in pence per share) 1.9p 0.0p 11.6p
Adjusted diluted earnings per share
Adjusted earnings after tax (£'m) 3.2 - 19.3
Weighted average number of Ordinary Shares (m) 168.9 166.4 167.8
Earnings per share (in pence per share) 1.9p 0.0p 11.5p
*There was no difference in the weighted average number of shares used for the
calculation of basic and diluted loss per share as the effect of all
potentially dilutive shares outstanding was anti-dilutive.
Adjusted earnings after tax is calculated using the tax rate of 25% (31 March
23: 20%, 30 September 23: 19%) on the basis that this is the Group's effective
tax rate:
6 months ended 31 March 2024 6 months ended 31 March 2023 Year ended 30 September 2023
unaudited unaudited audited
£'m £'m £'m
Profit/(loss) for the year after taxation 0.5 (4.7) 10.6
Adjustments net of tax of 25% (31 March 2023: 20%, 30 September 2023: 19%)
Exceptional income (2.1) - -
Fair value FX losses - 0.6 0.7
Other exceptional costs 2.6 0.9 2.8
Amortisation of acquired intangibles 1.0 2.2 4.2
Share based payment charges* 1.2 1.0 1.0
Adjusted earnings after tax 3.2 - 19.3
* The share based payment charges are in relation to options which are not yet
exercisable.
9 Intangible assets
Brand Goodwill Website & development costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 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 & development costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2022 35.9 40.2 31.2 22.8 2.1 4.4 136.6
Additions - - 6.9 - - - 6.9
At 31 March 2023 35.9 40.2 38.1 22.8 2.1 4.4 143.5
Accumulated amortisation
At 1 October 2022 19.9 - 18.6 20.8 1.7 1.3 62.3
Charge for the year 1.2 - 3.5 1.2 0.2 0.1 6.2
At 31 March 2023 21.1 - 22.1 22.0 1.9 1.4 68.5
Net book amount
At 31 March 2023 (unaudited) 14.8 40.2 16.0 0.8 0.2 3.0 75.0
Brand Goodwill Website & development costs Website technology Customer relationships Agent relationships Total
£'m £'m £'m £'m £'m £'m £'m
Cost
At 1 October 2022 35.9 40.2 31.2 22.8 2.1 4.4 136.6
Additions - - 12.0 - - - 12.0
Disposals - - (0.5) - - - (0.5)
At 30 September 2023 35.9 40.2 42.7 22.8 2.1 4.4 148.1
Accumulated amortisation
At 1 October 2022 19.9 - 18.6 20.8 1.7 1.3 62.3
Charge for the year 2.5 - 7.4 2.0 0.4 0.3 12.6
Disposals - - (0.5) - - - (0.5)
At 30 September 2023 22.4 - 25.5 22.8 2.1 1.6 74.4
Net book amount
At 30 September 2023 (audited) 13.5 40.2 17.2 - - 2.8 73.7
The Group capitalise development projects where they satisfy the requirements
for capitalisation in accordance with the accounting standard and expense
projects that relate to the operations and ongoing maintenance.
Brand
The brand intangibles assets consist of three brands which were separately
identified as intangibles on the acquisition of the respective businesses. The
carrying amount of the brand intangible assets:
Brand Remaining useful economic life Acquisition At 31 March 2024 At 31 March 2023 At 30 September 2023
unaudited unaudited audited
£'m £'m £'m
On the Beach 4.5 On the Beach Travel Limited 9.0 11.2 10.0
Sunshine.co.uk 4.5 Sunshine.co.uk Limited 0.5 0.6 0.6
Classic Collection 9.5 Classic Collection Limited 2.8 3.0 2.9
12.3 14.8 13.5
10 Tangible assets
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2023 2.3 7.0 6.1 15.4
Disposals - - (0.1) (0.1)
At 31 March 2024 2.3 7.0 6.0 15.3
Accumulated depreciation £'m £'m £'m £'m
At 1 October 2023 0.3 3.1 3.7 7.1
Charge for the Year - 0.8 0.5 1.3
Disposals - - (0.1) (0.1)
At 31 March 2024 0.3 3.9 4.1 8.3
Net book amount
At 31 March 2024 (unaudited) 2.0 3.1 1.9 7.0
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2022 2.3 5.1 7.4 14.8
Additions - - - -
At 31 March 2023 2.3 5.1 7.4 14.8
Accumulated depreciation £'m £'m £'m £'m
At 1 October 2022 0.2 1.7 3.8 5.7
Charge for the Year - 0.4 0.7 1.1
At 31 March 2023 0.2 2.1 4.5 6.8
Net book amount
At 31 March 2023 (unaudited) 2.1 3.0 2.9 8.0
Freehold property Right-of-use asset Fixtures, fittings and equipment Total
Cost £'m £'m £'m £'m
At 1 October 2022 2.3 5.1 7.4 14.8
Additions - 1.0 0.1 1.1
Disposals - - (1.4) (1.4)
Modification of lease - 0.9 - 0.9
At 30 September 2023 2.3 7.0 6.1 15.4
Accumulated depreciation £'m £'m £'m £'m
At 1 October 2022 0.2 1.7 3.8 5.7
Charge for the Year 0.1 1.4 1.2 2.7
Disposals - - (1.3) (1.3)
At 30 September 2023 0.3 3.1 3.7 7.1
Net book amount
At 30 September 2023 (audited) 2.0 3.9 2.4 8.3
The depreciation expense of £1.3m for the period ended 31 March 2024 (31
March 2023: £1.1m, 30 September 2023: £2.7m) has been recognised within
administrative expenses.
11 Deferred tax
Deferred tax assets and liabilities are attributable to the following:
At 31 March 2024 At 31 March 2023
At 30 September 2023
unaudited unaudited
audited
£'m £'m £'m
Intangible assets (3.7) (5.2) (4.0)
Property, plant and equipment (0.1) (0.3) (0.1)
Share based payments 0.9 0.7 0.4
Losses and unused tax relief 5.6 9.4 6.3
Total deferred tax assets 2.7 4.6 2.6
The deferred tax asset includes an amount of £5.6m (31 March 2023: £9.4m, 30
September 2023: £6.3m) 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 31 March 2024 At 31 March 2023
At 30 September 2023
unaudited unaudited
audited
Amounts falling due within one year: £'m £'m £'m
Trade receivables - net 293.6 225.9 147.4
Other receivables and prepayments 40.3 38.8 17.9
Total trade and other receivables 333.9 264.7 165.3
For the 6 months ending 31 March 2024, other receivables includes £1.8m
receivable in respect of amounts due from airlines as a result of supplier
cancellations (31 March 2023: £1.6m, 30 September 2023: £1.2m). Other
receivables and prepayments includes £20.5m of advanced payments to suppliers
(31 March 2023: £19.8m, 30 September 2023: £7.4m) and £8.0m of rebates due
from suppliers (31 March 2023: £5.0m, 30 September 2023: £6.0m).
Expected credit losses for trade receivables
Set out below is the movement in the allowance for expected credit losses of
trade receivables:
£'m
At October 2023 1.0
Provision for expected credit losses 1.0
Utilised in year (0.7)
At March 2024 1.3
13 Trade, other payables and provisions
At 31 March 2024 At 31 March 2023 At 30 September 2023
unaudited unaudited
audited
£'m £'m £'m
Non-current liabilities
Lease liabilities 1.4 2.4 2.6
Current liabilities
Trade payables 361.5 269.7 236.4
Accruals 18.8 33.0 17.0
Contract liabilities 6.5 8.1 5.9
Lease liabilities 2.3 1.0 1.9
Provisions 1.9 0.6 0.4
Total trade, other payables and provisions 392.4 314.8 264.2
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. Bookings made in the CCH
segment are all on a principal basis. 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 2024 a provision of £0.4m has been recognised
in respect of expected future cancellations for supplier and customer
cancellations on the forward order book for future departures (31 March 2023:
£0.6m, 30 September 2023: £0.4m). The Group expect this provision to be
utilised over the next year. The provision is based on pre-pandemic trends and
best estimate of future expectation, there is inherent uncertainty in terms of
the level and timing of future cancellations which will depend on various
factors including potential further supplier disruption.
In addition, the group has provided for £1.5m of legal costs associated with
ongoing litigation (31 March 2023: £nil, 30 September 2023: £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:
FV Level At 31 March 2024 At 31 March 2023 At 30 September 2023
Financial assets £'m £'m £'m
Derivative financial assets designated as hedging instruments
Forward exchange contracts 2 0.1 - 0.9
Financial assets at amortised cost
Trade and other receivables 313.4 244.9 157.9
Trust account 195.9 137.2 108.6
Cash at bank 7.7 9.6 75.8
Total financial assets 517.1 391.7 343.2
Financial liabilities
Derivatives designated as hedging instruments
Forward exchange contracts 2 (3.4) (1.0) (1.1)
Financial liabilities at amortised cost
Trade and other payables (390.5) (314.2) (263.8)
Provisions (1.9) (0.6) (0.4)
Revolving credit facility (55.0) (30.0) -
Total financial liabilities (450.8) (345.8) (265.3)
a) Measurement of fair values
The table below analyses financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
(i) Level 1: quoted prices (unadjusted) in
active markets for identical assets or liabilities
(ii) Level 2: inputs other than quoted prices
included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices)
(iii) Level 3: inputs for the asset or
liability that are not based on observable market data (unobservable inputs)
At 31 March 2024
At 31 March 2023 At 30 September 2023
£'m £'m £'m
Forward Contracts (3.3) (1.0) (0.2)
The forward contracts have been fair valued at 31 March 2024 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
On 7 December 2022, the Group refinanced its credit facilities with Lloyds and
NatWest. This included cancelling its previous facilities of £75m with Lloyds
Bank and entering into a new facility for £60m expiring in December 2025. The
purpose of the facility is to meet the day to day working capital requirements
of the Group. At the point of refinancing there was no cash balances drawn
down.
In December 2023, the expiry date of the facility has been extended by 1 year
into 2026 per the contract terms. In January 2024, the Group has also extended
the facility by £25m (£12.5m for each party) until July 2025. The additional
facility was required to fund higher than expected funding of our low deposit
offering.
The total facility is £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 2024, 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
2024 was £55m (31 March 2023 £30m, 30 September 2023: £nil).
16 Related party transactions
No related party transactions have been entered into during the period.
PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a
material impact on the Company's performance over the remaining six months of
the financial year and could cause actual results to differ materially from
expected and historical results.
In February 2024 we entered into a transformational partnership agreement with
Ryanair. The effect of this has been to materially reduce a number of our
principal risks, as set out below.
Flight Supply - Under the agreement, OTB will have seamless access to
Ryanair's seat supply. Given Ryanair's share of bookings for the B2C segment
this materially reduces this risk.
Recoverability of airline refunds - As part of the partnership agreement we
have put in place a simplified future refunds process, as well as agreeing a
collaborative approach to resolving historic refunds. Both parties have also
agreed to move on from historic litigation and focus on the development of the
partnership.
The directors do not consider that any other principal risks and uncertainties
have changed in any material respect since the publication of the Annual
Report for the year ended 30 September 2023.
All risks and how the Company seeks to mitigate these risks are set out on
pages 30 - 41 of the 2023 Annual Report and Accounts which can be found at
www.onthebeachgroupplc.com (http://www.onthebeachgroupplc.com) .
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the interim report in accordance
with applicable law and regulations. The Directors confirm that the condensed
consolidated interim financial information has been prepared in accordance
with International Accounting Standard 34 ('Interim Financial Reporting') as
adopted by the European Union.
The interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules paragraphs 4.2.7 R and 4.2.8
R, namely:
· an indication of important events that have occurred during the
six months ended 31 March 2024 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 2024 and any material changes in the related-party transactions
described in the Annual report and Accounts 2022. The Directors of the Company
are listed in the Annual Report and Accounts 2023.
A list of current Directors is also maintained on the Company's website:
http://onthebeachgroupplc.com (http://onthebeachgroupplc.com) .
The interim report was approved by the Board of Directors and authorised for
issue on 14 May 2024 and signed on its behalf by:
Jon Wormald - CFO
14 May 2024
GLOSSARY
APM Definition Reconciliation to closest GAAP measure
Adjusted EBITDA Adjusted EBITDA is based on Group operating (loss)/profit before depreciation, Adjusted EBITDA (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
amortisation, impact of exceptional items and the non-cash cost of the share
based payment schemes.
Amortisation of acquired intangibles are linked to the historical acquisitions
of businesses. Share-based payments represents the non-cash costs, which
fluctuates year on year.
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for exceptional items
for further details.
Group operating (loss)/profit (1.5) (6.2) 10.3
Depreciation and amortisation 5.9 4.5 10.2
Amortisation of acquired intangibles 1.4 2.8 5.2
EBITDA 5.8 1.1 25.7
Exceptional items 0.7 1.1 3.5
Fair value losses - 0.7 0.8
Share based payments 1.6 1.3 1.2
Adjusted Group EBITDA 8.1 4.2 31.2
Adjusted Group profit before tax Adjusted profit before tax is based on loss before tax adjusted for Adjusted profit before tax (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
amortisation of acquired intangibles, share based payments and exceptional
items.
Amortisation of acquired intangibles are linked to the historical acquisitions
of businesses. Share-based payments represents the non-cash costs, which
fluctuates year on year.
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for exceptional items
for further details.
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.
Profit/(loss) before tax 0.6 (5.9) 12.9
Amortisation of acquired intangibles 1.4 2.8 5.2
Share based payments 1.6 1.3 1.2
Exceptional items 0.7 1.1 3.5
Fair value FX losses - 0.7 0.8
Adjusted profit before tax 4.3 - 23.6
CCH booked TTV CCH TTV is a non-GAAP measure representing the cumulative total transaction CCH booked TTV (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
value of sales booked each month before cancellations and adjustments.
* As a principal revenue is recognised on a travelled basis.
CCH revenue 20.9 22.6 58.1
Amendments 0.4 0.5 1.5
Booked in previous year and travelled in year* (13.8) (14.7) (20.9)
Bookings made but not yet travelled* 21.6 24.5 20.0
CCH TTV 29.1 32.9 58.7
CCH adjusted EBITDA CCH adjusted EBITDA is based on CCH operating loss before exceptional items, CCH adjusted EBITDA (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
share based payment charges, depreciation and amortisation. Exceptional
operating costs include £0.3m of restructuring costs for 31 March 2024 (31
March 2023: £nil, 30 September 2023: £0.2m).
CCH operating loss (2.7) (3.0) (2.6)
Exceptional items 0.3 - 0.2
Share based payments - - 0.1
Depreciation and amortisation 0.4 0.7 1.3
CCH adjusted EBITDA (2.0) (2.3) (1.0)
CCH gross profit after marketing costs CCH gross profit after marketing cost is gross profit after "CCH" marketing CCH gross profit after marketing cost (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
costs.
CCH revenue 20.9 22.6 58.1
CCH cost of sales (18.8) (20.2) (50.5)
CCH gross profit 2.1 2.4 7.6
CCH marketing (0.8) (1.2) (1.8)
CCH gross profit after marketing costs 1.3 1.2 5.8
CPH adjusted EBITDA CPH adjusted EBITDA is based on CPH operating profit/(loss) before exceptional CPH adjusted EBITDA (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
items, depreciation and amortisation.
Exceptional income of £0.1m relates to refunds received from airlines that
had previously been provided for.
CPH operating profit/(loss) 0.5 (0.4) 0.1
Exceptional items (0.1) - -
Depreciation and amortisation - - -
CPH adjusted EBITDA 0.4 (0.4) 0.1
CPH adjusted gross profit CPH adjusted gross profit is adjusted revenue after cost of sales. Exceptional CPH gross profit after marketing cost (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
income of £0.1m relates to refunds received from airlines that had previously
been provided for.
CPH revenue 3.6 2.5 6.0
Exceptional income (0.1) - -
CPH adjusted revenue 3.5 2.5 6.0
CPH cost of sales (2.1) (1.6) (3.9)
CPH adjusted gross profit 1.4 0.9 2.1
CPH adjusted operating profit/ (loss) CPH adjusted operating profit/(loss) is based on CPH operating profit/(loss) CPH adjusted operating profit/(loss) (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
before exceptional items.
Exceptional income of £0.1m relates to refunds received from airlines that
had previously been provided for.
CPH operating profit/(loss) 0.5 (0.4) 0.1
Exceptional items (0.1) - -
CPH adjusted operating profit/(loss) 0.4 (0.4) 0.1
CPH adjusted revenue CPH adjusted revenue is revenue after exceptional items. Exceptional income of CPH adjusted revenue (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
£0.1m relates to refunds received from airlines that had previously been
provided for.
CPH revenue 3.6 2.5 6.0
Exceptional income (0.1) - -
CPH adjusted revenue 3.5 2.5 6.0
CPH booked TTV CPH TTV is a non-GAAP measure representing the cumulative total transaction CPH booked TTV (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
value of sales booked each month before cancellations and adjustments.
* Costs relate to the gross costs for bookings made on an agent basis.
CPH revenue 3.6 2.5 6
.
0
Costs* and amendments 13.7 10.5 2
2
.
0
CPH booked TTV 17.3 13.0 2
8
.
0
CPH gross profit after marketing costs CPH gross profit after marketing cost is adjusted revenue after cost of sales CPH gross profit after marketing cost (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
and marketing costs. Exceptional income of £0.1m relates to refunds received
from airlines that had previously been provided for.
CPH revenue 3.6 2.5 6.0
Exceptional income (0.1) - -
CPH adjusted revenue 3.5 2.5 6.0
CPH cost of sales (2.1) (1.6) (3.9)
CPH marketing (0.1) (0.5) (0.6)
CPH gross profit after marketing costs 1.3 0.4 1.5
Exceptional items Total exceptional items in the 6 months ended 31 March 2024 of £0.7m, Exceptional items (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
consists of exceptional income of £2.8m for refunds received from airlines
that had previously been provided for and exceptional operating costs of
£3.5m. Exceptional operating costs include £2.9m legal and professional fees
relating to litigation during the period and £0.6m of restructuring costs.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees and restructuring costs.
Exceptional items in the year ended 30 September 2023 of £3.6m represents
£2.1m of legal and professional fees and £1.5m 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
of their size and in order to better reflect management's view of the
performance of the Group.
Exceptional income (2.8) - -
Other exceptional costs 3.5 1.1 3.5
Exceptional items 0.7 1.1 3.5
Group booked TTV Group TTV is a non-GAAP measure representing the cumulative total transaction Group booked TTV (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
value of sales booked each month before cancellations and adjustments.
* Bookings where revenue has been recognised on a travelled basis as a
principal.
** Costs relate to the gross costs for bookings made on an agent basis.
Group revenue 80.8 72.9 1
7
0
.
2
Costs** and amendments 509.2 409.0 9
0
1
.
1
Booked in previous year and travelled in year* (13.8) (14.7) (
2
0
.
9
)
Bookings made but not yet travelled* 21.6 24.5 2
0
.
0
Group booked TTV 597.8 491.7 1
,
0
7
0
.
4
Gross Profit after Marketing Group gross profit after marketing cost is gross profit before exceptional Group gross profit after marketing cost (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
items less Group online and offline marketing costs.
Group gross profit 58.8 51.0 114.0
Group online marketing costs (16.2) (14.4) (29.1)
Group off-line marketing costs (10.5) (13.4) (14.7)
Total Group marketing (26.7) (27.8) (43.8)
Group gross profit after marketing costs 32.1 23.2 70.2
OTB adjusted EBITDA Adjusted OTB EBITDA is based on OTB operating profit/(loss) before Adjusted OTB EBITDA (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
depreciation, amortisation, impact of exceptional items and the non-cash cost
of the share based payment schemes.
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for OTB exceptional
items for further details.
OTB operating profit/(loss) 0.7 (2.8) 12.8
Depreciation and amortisation 5.8 4.3 9.9
Amortisation of acquired intangibles 1.1 2.3 4.2
OTB EBITDA 7.6 3.8 26.9
Exceptional items 0.5 1.1 3.3
Fair value FX losses - 0.7 0.8
Share based payments 1.6 1.3 1.1
Adjusted OTB EBITDA 9.7 6.9 32.1
OTB adjusted operating profit Adjusted OTB Operating profit is based on OTB operating profit/(loss) before Adjusted OTB operating profit (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
the impact of exceptional items, amortisation of acquired intangibles and the
non-cash cost of the share based payment schemes.
Exceptional items derive from events or transactions that fall outside of the
normal activities of the Group. See glossary explanation for OTB exceptional
items for further details.
These costs / income are excluded by virtue of their size and in order to
reflect management's view of the performance of the Segment.
OTB operating profit/(loss) 0.7 (2.8) 12.8
Exceptional items 0.5 1.1 3.3
Fair value FX losses - 0.7 0.8
Share based payments 1.6 1.3 1.1
Amortisation of acquired intangibles 1.1 2.3 4.2
Adjusted OTB operating profit 3.9 2.6 22.2
OTB booked TTV OTB TTV is a non-GAAP measure representing the cumulative total transaction OTB booked TTV (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
value of sales booked each month before cancellations and adjustments.
*Costs relate to the gross costs for bookings made on an agent basis
OTB revenue 56.3 47.8 1
0
6
.
1
Costs* and amendments 495.1 398.0 8
7
7
.
6
OTB booked TTV 551.4 445.8 9
8
3
.
7
OTB Exceptional items Total exceptional items in the 6 months ended 31 March 2024 of £0.7m, Exceptional items (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
consists of exceptional income of £2.8m and exceptional operating costs of
£3.5m. Exceptional operating costs include £2.9m legal and professional fees
relating to litigation during the period and £0.6m of restructuring costs.
Exceptional items in the 6 months ended 31 March 2023 include legal and
professional fees and restructuring costs.
Exceptional items in the year ended 30 September 2023 of £3.6m represents
£2.1m of legal and professional fees and £1.5m 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
of their size and in order to better reflect management's view of the
performance of the Group.
Exceptional income (2.7) - -
Other exceptional costs 3.2 1.1 3.3
Exceptional items 0.5 1.1 3.3
OTB gross profit after marketing costs OTB gross profit after marketing cost is revenue adjusted for exceptional Adjusted OTB revenue after marketing cost (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
items and fair value FX losses after OTB cost of sales and marketing costs.
OTB revenue 56.3 47.8 106.1
Fair value FX losses - 0.7 0.8
Exceptional items (2.7) - -
Adjusted OTB revenue 53.6 48.5 106.9
Cost of sales (1.0) - (1.9)
OTB online marketing costs (15.4) (12.5) (26.0)
OTB off-line marketing costs (10.5) (13.4) (14.6)
Total OTB marketing (25.9) (25.9) (40.6)
OTB gross profit after marketing costs 26.7 22.6 64.4
Overheads % revenue Overheads as a percentage of revenue is based on the OTB adjusted revenue Overheads % revenue (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
divided by the overheads for OTB. OTB overheads is the administrative expenses
excluding the depreciation and amortisation.
OTB adjusted revenue 53.6 48.5 1
0
6
.
9
Overheads (17.0) (15.7) (
3
2
.
3
)
Overheads % revenue 31.7% 32.4% 3
0
.
2
%
Overheads % booked TTV Overheads as a percentage of TTV is based on the OTB booked TTV divided by the Overheads % booked TTV (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
overheads for OTB. OTB overheads is the administrative expenses excluding
marketing costs, depreciation and amortisation.
OTB booked TTV 551.4 445.8 9
8
3
.
7
Overheads (17.0) (15.7) (
3
2
.
3
)
Overheads % booked TTV 3% 4% 3%
Proforma continuing EBITDA Proforma continuing EBITDA is the Group operating (loss)/profit before Proforma continuing EBITDA (£'m) 6 months ended 31 March 2024 6 months ended 31 March 2023 12 months ended 30 September 2023
depreciation, amortisation, exceptional items, fair value losses and share
based payments, excluding CCH adjusted EBITDA.
Group operating (loss)/profit (1.5) (6.2) 10.3
Depreciation and amortisation 7.3 7.3 15.4
Exceptional items 0.7 1.1 3.5
Fair value losses - 0.7 0.8
Share based payments 1.6 1.3 1.2
Group adjusted EBITDA 8.1 4.2 31.2
CCH adjusted EBITDA 2.0 2.3 1.0
Proforma continuing EBITDA 10.1 6.5 32.2
1 (#_ftnref1) The Facilities will revert to £30m for each of Lloyds Bank
and NatWest on 27 July 2025.
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