25
September 2024
On the Beach Group
plc
("On the
Beach", "OTB" or the "Group")
2024 Pre-Close Trading
Update
On the Beach Group plc (LSE: OTB.L)
today provides an update on trading for its financial year ending
30 September 2024 ("FY24"), in advance of announcing its
preliminary results on 3 December 2024.
Group trading update
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Record TTV1 of £1.2bn,
representing an increase of 15% on last year, underpinned by Summer
24 year-on-year volume growth of 13%.
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Transformational partnership
agreement signed with Ryanair, enhancing operational efficiency and
unlocking further strategic growth opportunities.
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Strong control over total cost base
with significant improvement in operating leverage.
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Adjusted PBT in line with market
expectations2, despite incurring significant one-off
costs related to the Ryanair integration.
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OTB exits the year debt free and
with a strong cash position of c.£95m, providing significant
balance sheet flexibility.
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Following the reintroduction of an
interim dividend, as announced at interim results in May, the Board
expects to recommend a final dividend in line with its stated
capital allocation policy.
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Shaun Morton, Chief Executive of On the Beach,
commented:
"Summer 24 has set a new record for On the Beach and our full
year performance represents the third consecutive year of revenue
growth while delivering improved operating leverage resulting in
significant EBITDA and PBT growth.
We executed on a number of
strategic initiatives during the year, including the successful
integration with Ryanair, the launch of selling package holidays in
Ireland and continued enhancements to our platform capabilities. We
did this through a period of flight price inflation and subsequent
deflation, highlighting the benefits of On the Beach's asset light,
low fixed cost operating model, delivering the best value for money
to our customers reflected in our volume growth this year.
The considerable progress made over the last twelve months has
set us up for further success in FY25. Looking ahead,
Winter 24
volumes are currently 34% ahead of the prior year, with customers
seeking winter sun and enjoying our Long-Haul destination packages.
Notwithstanding that it remains in its early stages, bookings for
Summer 25 are very encouraging and we look forward to providing
further detail at our preliminary results in
December."
1 Group total transaction value ("TTV") of holidays booked in
the period before cancellations and amendments.
2 Consensus FY24 Adjusted PBT, per the Group's corporate
website, of £31.0m.
For
further information:
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On
the Beach Group plc
Shaun Morton, Chief Executive
Officer
Jon Wormald, Chief Financial
Officer
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via
FTI Consulting
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FTI
Consulting
Alex Beagley
Harriet Jackson
Hannah Butler
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Tel: +44 (0)20 3727 1000
onthebeach@fticonsulting.com
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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.
