25th Feb 2025 11:39
(Alliance News) - On the Beach Group PLC on Tuesday said it is confident of delivering full-year profit in line with consensus as it expects a stronger summer of bookings.
The Manchester, England-based online holidays retailer said the momentum it had in its 2024 financial year has continued into financial 2025, which began on October 1.
The company said total transaction value in the period from October 1 to February 23 has increased by 10%, with winter season bookings up 18% and early summer 2025 bookings up 10% from the previous year.
The firm said group total transaction value for holidays scheduled from March to June is up 17% from 2024, showing demand for holidays is bucking UK consumer trends, the retailer said.
Company-compiled consensus for adjusted pretax profit in the financial year ending September 30 is GBP38.2 million. The consensus suggests 23% growth from the previous year's result of GBP31.0 million.
On the Beach hailed its low fixed-cost operating model, which it said allows it to mitigate the inflationary macro pressures across the broader sector.
It has confidence that summer 2025 will be "significantly ahead" of summer 2024.
On the Beach said its city packages offering has scaled rapidly, and it is now taking bookings to over 70 city destinations after launching in the fourth quarter of 2024.
It said the sale of package holidays from the Republic of Ireland has also made "good progress" since launch.
It has completed 64% of its GBP25 million share buyback programme since launching in December.
Chief Executive Shaun Morton said: "I am really excited by the progress we have made following the recent launch of our strategic growth initiatives focused on selling city packages and package holidays from the Republic of Ireland.
"Demand for cities has been strong with routes to Amsterdam, Paris and Krakow proving particularly popular with both existing and new customers. Similarly, our first marketing campaign in the Republic of Ireland has generated strong bookings growth across both city and beach."
On the Beach shares were up 2.3% to 243.05 pence in London on Tuesday morning.
By Michael Hennessey, Alliance News reporter
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