Manchester-based online holiday retailer On the Beach Group plc warned on Friday its full year results for the year to September 30, 2020, will be below current market expectations as the coronavirus causes a reduction in demand that “has accelerated significantly.”

In a trading update, On the Beach Group said it experienced a small but noticeable reduction in demand for Summer 2020 travel following the early reports of COVID-19 cases in early February.

However, the company added: “The reduction in demand has accelerated significantly following the increase in COVID-19 cases in Europe, particularly the spread of the virus to Tenerife.

“Whilst this reduction in demand has led to a natural reduction in marketing spend, the board does not now expect the group to achieve payback in the current financial year on its previously outlined strategic marketing investment.

“With the expectation that the spread of the COVID-19 is going to cause significant disruption for a period of time, the board believes that the group’s full year results for the year to 30 September 2020 will be below current market expectations …”