On The Beach sees profit growth despite £2 million Monarch hit

On The Beach sees profit growth despite £2 million Monarch hit

On The Beach reported annual pre-tax profits growth of a third to £28.5 million for the year to September 30.

The profit before tax includes £2 million in net costs associated with the failure of Monarch Airlines.

The result came on a 17.2% rise in year-on-year group revenue to £83.6 million, with overall daily unique visitors increasing by 13.6% to 66 million.

Chief executive Simon Cooper said: “These results are further testament to the continued strength and flexibility of our agile business model.

“On the Beach has delivered a 33.8% increase in group adjusted profit before tax, in line with market expectations and a market-leading performance for UK ebitda as a percentage of revenue at 39.9%.

“Revenue growth in the International business supports our plans to launch in our third international market, Denmark, early in 2018. On the Beach continues to use its modular technology platform to innovate and deliver value and flexibility to an increasing audience of beach holidaymakers.

“In May, we completed our first significant acquisition, Sunshine.co.uk, which is now fully integrated onto the On the Beach platform.

“I am pleased with the performance that has been achieved by the team both through the integration process and beyond.”

Cooper added: “We remain confident in the resilience and flexibility of our business model to capitalise on any structural changes in the market.

“On the Beach continues to successfully build a leading position as more consumers discover the ease of use and wide choice of beach holidays that our platforms offer.

“The board is pleased to report that current trading is in line with expectations and believes the business is well positioned for the key trading period that commences in late December and continues into Q1 2018.”

Chairman Richard Segal said: “On the Beach has swiftly and effectively adapted to life as a listed company whilst maintaining the dynamism and entrepreneurial flair that has powered its continued success.

“During 2017 the business continued to improve its market position, generate impressive financial results, expand internationally and undertake an acquisition.

“We reported last year that 2016 was a particularly challenging year for the travel industry, with terrorist attacks, the corporate failure of a large budget tour operator and the impact of the UK’s vote to leave the European Union (“Brexit”).

“2017 also brought its difficulties including further terrorist attacks and unpredictability caused by the uncertainties arising from Brexit, such as currency fluctuation.

“The extent of these challenges was evidenced at the commencement of 2018 when Monarch Airlines Limited went into administration.

“Despite this difficult and unstable trading backdrop, On the Beach’s agility, cutting edge technology and focused approach enabled it to deliver group adjusted profit before tax performance towards the upper end of expectations of £28.5 million, up 33.8% on the prior year.

“At the same time, group adjusted proforma EPS of 17.6p was up 35.4% on the prior year. Given the headwinds facing the travel industry, I would like to praise and thank Simon Cooper and his team for this admirable performance.

“At the year-end, On the Beach’s balance sheet was strong with net external cash balances of £33.0m and the board is pleased to declare a final dividend of 1.9p per share, totalling 2.8p per share for the year, an increase of 27.2%.”

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