On the Beach Group PLC COVID-19 Update (5437E)
29 February 2020 - 1:15AM
UK Regulatory
TIDMOTB
RNS Number : 5437E
On the Beach Group PLC
28 February 2020
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) No 596/2014
28 February 2020
On the Beach Group plc
("On the Beach" or the "Group")
COVID-19 Update
On the Beach Group plc (LSE: OTB.L), the UK's leading online
retailer for beach holidays, today issues a trading update
following recent COVID-19 developments.
The Group experienced a small but noticeable reduction in demand
for Summer 2020 travel following the early reports of COVID-19
cases in early February. The reduction in demand has accelerated
significantly following the increase in COVID-19 cases in Europe,
particularly the spread of the virus to Tenerife.
Whilst this reduction in demand has led to a natural reduction
in marketing spend, the Board does not now expect the Group to
achieve payback in the current financial year on its previously
outlined strategic marketing investment.
With the expectation that the spread of the COVID-19 is going to
cause significant disruption for a period of time, the Board
believes that the Group's Full Year results for the year to 30
September 2020 will be below current market expectations.
On the Beach's asset light business model, low inventory risk
and tight cost and cash controls ensure that the Group is resilient
in a volatile market environment, enabling it to return to
profitable growth when the demand for short haul beach holidays
normalises.
For further information:
On the Beach Group plc via FTI Consulting
Simon Cooper, Chief Executive
Officer
Paul Meehan, Chief Financial
Officer
FTI Consulting Tel: +44 (0)20 3727 1000
Alex Beagley
Fiona Walker
Sam Macpherson
About On the Beach
With over 20% share of online sales in the short haul beach
holiday market, we are one of the UK's largest online beach holiday
retailers. We have significant opportunities for growth and a
long-term mission to become Europe's leading online retailer of
beach holidays. By using our innovative technology, low-cost base
and strong customer-value proposition to provide a structural
challenge to legacy tour operators, we continue our journey to
disrupt the online retail of beach holidays. Our model is
customer-centric, asset light, profitable and cash generative.
www.onthebeachgroupplc.com
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 information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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