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On The Beach non-executive chairman Richard Segal to stand down

Posted by Phil Davies on
On The Beach non-executive chairman Richard Segal to stand down

On the Beach Group non-executive chairman Richard Segal is to stand down after almost five years in the role.

He will be succeeded by senior independent non-executive director Lee Ginsberg at a date yet to be confirmed.

At that time, David Kelly will become senior independent director. Both have been on the board of the company throughout its time as a listed entity.

A new non-executive director is to be recruited.

Group chief executive Simon Cooper said: “I would like to take this opportunity to thank Richard for his counsel and guidance over the last five years.

“He led the group through a period of strong change and growth, as both a private and listed business, and the Board wishes him well in his future endeavours.”

The board changes came as On the Beach reported a 15% hike in winter pre-tax profit to £14 million and revealed plans for a new digital base in Manchester.

This came as group revenue for the six months to March 31 rose by 19% to £45.3 million.

UK daily unique visitors increased by almost 24% to 34.1 million.

The company disclosed an estimated £1.1 million impact for lost bookings due to winter seat availability and pricing following the collapse of Monarch Airlines.

However, UK revenue was up by 19% to $44.4 million with adjusted earnings [ebitda] up 17% to £17 million.

Cooper said: “On the Beach has delivered a solid performance in H1, with strong booking and share growth supported by some modest and tactical discounting. Booking growth strengthened towards the end of the period and has continued into H2.

“The flight capacity constriction following Monarch’s collapse has driven an increase in seat prices and a corresponding reduction in bookings.

“The position regarding flight capacity continues to recover as incremental capacity has been scheduled which alleviates this constriction.”

Cooper added: “”Given the resilient and flexible nature of our business model, the board remains confident in delivering a full year result in line with management’s expectations, taking into account the one-off impact of flight capacity constraints as a result of the Monarch failure and the accelerated investment to support International growth.

“To support our continued desire to attract and retain the best digital talent, we have signed a lease on a new digital HQ in Manchester which has the capacity to support our growth ambitions.

“Fit out work will begin shortly and we are scheduled to occupy this exciting new space by the end of 2018.”

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