On the Beach shares up 9% after Thomas Cook update

Shares of Manchester-based holiday retailer On the Beach Group plc (OTB) rose 9% on Monday after it issued a stock exchange statement giving details of the impact that the collapse of Thomas Cook will have on OTB.

The statement read: “On the Beach Group plc … notes the recent announcements by Thomas Cook Group plc and the Civil Aviation Authority that Thomas Cook Airlines Ltd and other companies in Thomas Cook Group plc have entered compulsory liquidation.

“On the Beach is assisting customers that are currently in resort and whose travel plans will be affected. 

“The board anticipates that there will be a one-off exceptional cost associated with helping customers to organise alternative travel arrangements, and lost margin on cancelled bookings.

“The group expects to be able to recover the costs of the cancelled flights via chargeback claim (as was the case for the Monarch failure in 2017).

“This one-off exceptional will be booked in the current financial year.

“The board is currently evaluating the potential effects of the failure on its forecasted performance for the year ending 30 September 2020, and a further update will be provided when appropriate.

“The group will announce a full year trading update on 22 October 2019 ahead of its preliminary results on 27 November 2019.”

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