10th Dec 2020 12:25
(Alliance News) - On the Beach Group PLC on Thursday fell to a pretax loss and as revenue plummeted after UK and Europe travel restrictions decimated bookings.
The Manchester, England-based retailer of package holidays to European beaches reported a pretax loss of GBP46.3 million for the financial year that ended September 30, swung from a GBP19.3 million profit the year before, and an adjusted pretax profit of GBP600,000, sharply down from GBP34.5 million.
The company said the loss was due to a significant reduction in new bookings and cancellations of holidays as a result of quarantine restrictions in the UK and Europe during the Covid-19 pandemic.
On the Beach's revenue on a GAAP basis was GBP33.7 million, a 76% decrease from GBP140.4 million the year prior. Adjusted revenue was GBP71.2 million, a 52% decrease from GBP147.5 million in 2019. GAAP refers to generally accepted accounting principles, a US accounting standard.
The company said booking volumes in October and November were "significantly below normal levels" as consumer appetite for booking holidays "remained subdued" due to legislation passed by the UK government that made leisure travel from England illegal between November 5 and December 1.
Additionally, On the Beach said it is working hard to refund customers for cancelled holidays in cash. As of September 30, it had processed GBP151 million in refunds to customers for this reason. It said it had GBP51 million in cash on November 30, excluding GBP25.8 million in customer money held separately in trust.
Chief Executive Simon Cooper said: "On the Beach continues to successfully build a leading position as more consumers discover the ease of use and vast choice of beach holidays across our platforms. The flexibility and asset light nature of our business model together with our recently strengthened balance sheet and the actions we have taken since the middle of March means we are well placed to capitalise on the inevitable structural changes in the market post Covid-19. As a result, the board continues to look to the future with confidence."
Looking ahead, On the Beach said it is maintaining its suspension of its guidance for the 2021 financial year and is paying no annual dividend, after paying 3.3p in 2019, due to uncertainty in the market.
Shares in On the Beach were down 0.8% at 364.00 pence in London on Thursday.
By Zoe Wickens; [email protected]
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