On the Beach revenue up 25% to £104m

Stockport-based beach holiday retailer On the Beach Group plc said on Wednesday its revenue increased 24.5% to £104.1 million in the year to September 30 while adjusted profit before tax rose 17.9% to £33.6 million.

Proposed final dividend is 2.2p per share, giving a total of 3.3p per share for the year, an increase of 17.9%.

On the Beach Group CEO Simon Cooper said: “This performance was delivered despite the previously highlighted exceptionally hot weather that was prevalent over the summer in the UK and in the Nordics, which combined with the football World Cup, supressed holiday demand.

“Whilst this impacted our headline revenue growth during the period, the weaker demand also drove a significant reduction in the group’s marketing spend, ensuring growth in revenue after marketing costs remained strong.

“This is further testament to On the Beach’s resilient and flexible business model.

“In August, we completed the acquisition of Classic Collection Holidays Limited, which gives On the Beach a ‘business to business’ channel through which we can access the five million short haul beach holidays that are booked offline each year.

“This will be through both the existing business (Classic Collection Holidays) and via the launch of an online agent-only booking portal (Classic Package Holidays) through which agents can book mainstream beach holidays, which is due to be launched early in 2019.

“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 first quarter of our financial year (calendar Q4) is historically the quietest trading period for the group.

“We are pleased to report a strong early trading performance, supported by a slightly earlier release of summer capacity by major low cost carriers, lower YOY seat prices for winter departures and a continued efficiency in marketing spend.

“This current performance is in line with our expectations and the board believes the business is well positioned for the key trading period that commences in late December and continues into Q1 2019.

“Whilst the consumer environment continues to be challenging, we remain confident in the resilience and flexibility of our business model.

“The board will also continue to evaluate acquisition opportunities that will both increase scale and deliver value for shareholders.”