TIDMOTB
RNS Number : 3552Q
On the Beach Group PLC
27 October 2021
27 October 2021
On the Beach Group plc
("On the Beach", "OTB" or the "Group")
Full Year Trading Update and Notice of Results
On the Beach Group plc (LSE: OTB.L), the UK's leading online
retailer of beach holidays, today provides an update on trading for
the 12 months to 30 September 2021 ("FY21") ahead of announcing its
Preliminary Results on 9 December 2021.
Following the Government's announcement in May 2021 on the
traffic light system for leisure travel, where most destinations
were classified "amber", On the Beach made the decision to extend
the Group's off-sale period for holidays from 30 June to 31 August
2021. In addition to the Group's focus on growing its market share
in the long term, the Board's decision was based on consumer
feedback from both research and search / sales data, showing a
market-wide lack of appetite for booking amber destinations, as
well as the likely loss of customer goodwill for holidays that
might be booked only to be cancelled or re-arranged.
As a result of the above, the Group along with the whole travel
industry experienced suppressed trading in H2. The Group has
maintained investment in all strategic areas over this period,
including technology, brand and supply, to ensure it remains
well-placed to take advantage of the market share opportunity when
demand for booking holidays returns.
OTB restarted selling holidays to travel from early September
2021, when it became clearer that overall confidence to book a
holiday had increased, with OTB research finding 53% of Brits
feeling confident about booking a holiday for the remainder of
calendar year 2021 (up from 34% in July 2021).
While demand for international leisure travel currently remains
below pre-pandemic levels, our specific initiatives, including the
"Free Covid Tests" promotion, combined with a further softening of
government restrictions, have stimulated bookings in the final
weeks of the financial year. The increased awareness of brand and
strengthening of trading over this period provides confidence that
there is pent up demand for travel, and positions the business well
as we enter 2022.
On 30 September 2021, the Group had cash in excess of GBP55m,
excluding customer prepayments of c.GBP40m which are held in a
ring-fenced trust account. The Group has access to a GBP75m credit
facility which is undrawn. The Group continues to refund all
customers in cash and in full where their holidays are
cancelled.
Given the continued level of short term uncertainty, it would
not be appropriate to provide any financial guidance for the 2022
financial year. The Board remains committed to investing for long
term market share gains in FY22, ahead of full market recovery.
The Board continues to believe that the strength of OTB's
balance sheet and flexible business model means the business is
well-positioned to both sustain further significant disruption and
to grow market share. OTB continues to appraise UK and
international commercial opportunities. The Group will update
shareholders further on release of its Preliminary Results.
Simon Cooper, Chief Executive of On the Beach Group plc,
commented:
"The strategic initiatives we have taken throughout the year to
best navigate the crisis and manage risk while investing in our
brand, people and technology, ensure On the Beach is in a strong
position as we head into our typically busiest booking period.
Thanks to the continued support from our shareholders and lender,
we remain well-funded to successfully and sustainably grow market
share.
"I would like to thank the On the Beach team for their support
and hard work as we continue to evolve towards a new normal of
holidaying. Their creativity and ingenuity, which was the
inspiration behind our recently launched "Free Covid Test" offer is
a key reason why our customers are building back their confidence
and On the Beach continues to thrive."
For further information:
On the Beach Group plc via FTI Consulting
Simon Cooper, Chief Executive
Officer
Shaun Morton, Chief Financial
Officer
FTI Consulting Tel: +44 (0)20 3727 1000
Alex Beagley
Fiona Walker
Sam Macpherson
Rafaella de Frietas
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 Group. 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 Group'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.
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END
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