Manchester-based online holiday retailer On the Beach Group plc (OTB) said its revenue rose 38% to £73.2 million in the six months to March 31, 2023, while its statutory loss before tax was narrowed to £6 million from £7 million.
On the Beach CEO Simon Cooper is due to step down from his role on June 30 to be succeeded Shaun Morton, currently the group’s chief financial officer (CFO).
THG executive Jon Wormald will join On the Beach on June 30 as CFO. Cooper will transition to a new role of “Founder Director NED.”
In its “current trading and outlook” comment, On The Beach said: “We believe there is significant unsold bed and seat capacity in market …
“We continue to see strength in late and long lead time bookings, and believe that unsold bed and seat capacity should support greater strength in bookings for peak / school summer holidays as these approach …
“The group typically generates a greater profit in the second half of the year and we are confident that the upfront investment into the brand and proposition will ensure both top and bottom line growth in the second half of the year …”
On the Beach shares fell about 14% and are down about 50% for the past year.
On the Beach Group CEO Simon Cooper said: “I am pleased with the group’s strong performance in the first half, delivering a record Group Booked TTV and Group revenue performance, up 28% and 38% respectively, driven by increases in both volume of bookings and the average value of holidays sold.
“This was supported by our largest ever offline marketing campaign, ‘The most wonderful time of the year’, which included sponsorship of ITV’s Masked Singer and the Magic Radio breakfast show.
“This marketing effort also delivered the group’s highest ever top 3 brand consideration score, despite a more aggressive competitive environment.
“The travel sector continues to recover post-pandemic and the group has experienced significant increases in demand for its holiday product, particularly the Premium 5 offer.
“This segment represents a substantial growth area and we continue to see a significant incremental revenue opportunity to be gained in the medium term by attracting these customers to the brand.
“Our Long Haul offer also continues to grow and we have added new airlines and increased the number of destinations we can offer to our customers.
“We continued to invest in our technology capabilities including a migration to the cloud in H1 to allow greater speed of developments and increased security.
“These investments will enable the Group to drive continued growth in both the core business and the exciting expansion opportunities.
“In what will be my last half-year results as CEO before handing over the reins to Shaun on 30 June, I am pleased with the group’s performance in the first half and I am confident that the right building blocks are in place for Shaun and the team to continue to deliver growth across the business and I remain excited about both the near term and longer term opportunities for On the Beach.”