REG - On the Beach Group - 2025 Pre-Close Trading Update & £25m Share Buyback

On Beach groupAnnouncement

24/09/2025 07:00

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RNS Number : 5148A  On the Beach Group PLC  24 September 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018.

FOR IMMEDIATE RELEASE

24 September 2025

On the Beach Group plc

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

2025 Pre-Close Trading Update and further £25m Share Buyback

On the Beach Group plc (LSE: OTB.L) today provides an update on trading for
its financial year ending 30 September 2025 ("FY25"), in advance of announcing
its final results on 2 December 2025.

 

B2C business continuing to grow well ahead of the package holiday market

-      Third consecutive record year of growth:

o     TTV(1) of £1.23bn, representing an increase of 11% on last year;

o     Summer 25 bookings 12% ahead of last year, significantly ahead of
the package holiday market(2);

-      Product expansion has continued at pace with 155 cities now live.

-      Established a presence in the Republic of Ireland following net
investment of £2m.

-      Significant increase in operational leverage, with EBITDA margin
expected to be c.34% (FY24: 31.7%), alongside improving customer metrics
including a record NPS, up 17% to c.55.

-      Winter 25 bookings are strong at 12% ahead of last year's record.

-      Summer 26 bookings currently reflect the later booking trend as
reported across the market, with bookings being made increasingly closer to
the date of departure.

-      FY25 adjusted PBT on a continuing basis (excluding B2B) is
expected to be in the range of £34.5m - £35.5m.(3)

( )

Discontinuing non-core B2B operations

-      The Board has taken the strategic decision to commence an orderly
wind down of the B2B segment trading as Classic Collection which made a small
loss in the year, to focus on the higher growth potential of the B2C business
trading as On the Beach.

-      The B2B segment will be presented as discontinued operations in
the final results.

 

Successful refinancing with new £120m facility

-      OTB exits the year debt free and with a strong cash position of
c.£90m.

-      The Group has completed a refinancing with Lloyds, NatWest and
HSBC, entering a new four-year credit facility of £120m with an accordion of
£30m.

-      This replaces the previous facility which was due to expire in
2027, providing significant additional balance sheet flexibility at improved
pricing.

-      This is a reflection of OTB's track record of delivery to date and
demonstrates the significant level of lender appetite to support the Group's
medium-term ambition.

 

Further £25m share buyback

-      In line with its capital allocation policy, the Board has
determined that sufficient surplus cash exists to announce a further share
buyback programme of up to £25m, building on the £30m already returned to
shareholders in FY25.

 

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

(2) ATOL data from the latest CAA renewal cycle in March 2025 reports a 3%
year-on-year increase in total licensed forecast passenger volumes across the
market for the next 12 months.

(3  )Consensus FY25 Adjusted PBT, per the Group's corporate website, is
£38.4m. The average of house broker estimates for profits associated with B2B
operations is £2m.

 

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

"I am pleased to report another year of significant growth with record TTV of
£1.23bn, representing a 11% increase on FY24. Our core B2C business has again
outperformed the market, underpinned by the Group's asset light, cash
generative model and balance sheet strength.

 

"The team has had a busy year, with 155 Cities now on our website and a
presence developed in the Republic of Ireland. Both exciting workstreams have
landed well with our customers and we look forward to expanding the offer in
FY26.

 

"It remains clear that customers are still prioritising their holidays with
our Winter 25 bookings up 12% and we are confident that Summer 26 will
continue to build, notwithstanding the later booking patterns. The Board and
management team remain focused on delivering the Group's medium-term ambition
of TTV of £2.5bn, EBITDA of £100m and Adjusted PBT of £85m and I look
forward to updating further at our final results in December."

 

 

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

 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/%22%20/t%20%22_blank) .

 

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