On The Beach mulls head office location to support innovation

On The Beach mulls head office location to support innovation

Manchester-based OTA On the Beach Group is reviewing the location of its head office to help it retain and recruit top talent.

In a pre-close trading update yesterday, the firm said it was also reviewing how it rewards its top performers.

The publically-listed travel agent said further details would be announced to shareholders in due course.

In a statement it said: “To support our continued ability to out innovate the market and to attract and retain top talent we are considering the future location of our head office, together with reviewing our reward mechanisms for top performers.”

On The Beach said trading in the year to September 30 had been in line with expectations with profit before tax expected to be in line with previous forecasts.

UK revenue growth for the year was 17% on the back of a strong second half performance which saw growth of 26%.

Excluding the acquisition of Sunshine.co.uk on May 9, UK revenue growth was 14%, with second half revenue up 21% and there was improved EBITDA margin compared to 2016.

The firm added it experienced significant growth for the majority of the key summer trading period, despite some softness in the weeks that followed the Barcelona terrorist attack in August and it had “exited the financial year with strong forward momentum”.

The integration of Sunshine.co.uk, which is based in Newcastle, is substantially complete and “trading since acquisition is in line with our expectations”, On The Beach said.

It added: “We have continued to make good progress in our international markets, with full year revenue growth of 48%.

“We are particularly encouraged by the significant revenue growth in H2 of 70% and that the Group’s net investment in international operations is in line with expectations.

“This performance supports our plans to launch in our third international market, Denmark, early in 2018.”

On The Beach is continuing to assist customers affected by the collapse of Monarch Airlines at the start of October.

As a result the firm is expecting a one off exceptional cost due to the failure although did have it Scheduled Airline Failure Insurance in place covering Monarch Airlines.

Simon Cooper, chief executive of On the Beach, said: “The Group has traded well in the year with a particularly strong performance in the second half during the key summer trading period. The integration of Sunshine.co.uk Limited, acquired in May 2017, has progressed in line with our expectations.

“We have continued to increase market share in our international markets and delivered strong revenue growth in the year. As a result of this performance, we are pleased to be launching in our third international market, Denmark, early in 2018.”

The Group will announce its audited preliminary results on November 30.

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