Strong summer boost for On The Beach earnings

Strong summer boost for On The Beach earnings

Strong summer trading helped boost annual revenues at online firm On the Beach Group by 17%.

A strong performance in the April to September period saw revenue growth of 26%.

UK revenue grew by 14%, with second half revenue up 21%, excluding the acquisition of Sunshine.co.uk in May.

The company said it had traded well in the year with adjusted pre-tax performance expected to be in line with board expectations.

“The group 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 we have exited the financial year with strong forward momentum,” the company said.

The group confirmed its disclosure on October 2 that it will face a one-off exceptional cash cost following the Monarch collapse “associated with helping customers to organise alternative travel arrangements or providing refunds”.

This is despite the group having scheduled airline failure Insurance in place covering the failure of Monarch.

The company said: “With regard to the recent failure of Monarch, On the Beach continues to focus on assisting customers that booked to fly with Monarch Airlines in the coming weeks and months.

An update will be given on the release of preliminary results on November 30.

The integration of Sunshine.co.uk is now “substantially complete” with its trading since acquisition in line with expectations.

On the Beach is also considering the future location of its head office, together with reviewing reward mechanisms for top performers “to support our continued ability to out innovate the market and to attract and retain top talent.

“Further updates on both of these topics will be provided to shareholders in due course.”

Chief executive Simon Cooper 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, 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.”

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