25th Feb 2022 11:38
(Alliance News) - On the Beach Group PLC on Friday reported a pick-up in sales in its second quarter to date as travel restrictions ease, advancing after a first quarter that was stymied by the emergence of the Omicron virus variant.
Shares in On the Beach were 6.5% higher at 271.50 pence on Friday in London.
Following the end of the prior financial year ended September 30, the Manchester-based online travel agent said sales had been exceeding 2019 levels before Omicron "heavily impact" sales in November, December and early January.
However, from January 13 onwards, sales have returned to levels not seen since the 2019 financial year, and in the four weeks ended February 23 sales were up 50% compared to 2019 levels.
For the current financial year to date, sales have more than tripled compared to the prior year, but are 2% short of pre-pandemic levels, driven by an increase in traffic and booking volumes as travel restriction imposed by the UK were eased in early and late January.
As at February 23, On the Beach had a cash position of GBP19 million, excluding ring-fenced customer deposits, plus an undrawn GBP75 million credit facility.
"After what has been a very difficult time for the travel industry, it has been incredibly pleasing to see consumer confidence and demand return in line with the loosening of travel restrictions in the UK and our destinations," said Chief Executive Simon Cooper.
"While we are mindful of the ongoing inflationary pressures impacting our core consumer base, we look to the future with renewed confidence and believe On the Beach is favourably positioned to continue to gain market share as demand for beach holidays further normalises," Cooper added.
By Dayo Laniyan; [email protected]
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