Manchester-based holiday firm On the Beach Group said it will launch a £25 million share buyback programme, alongside higher annual profit and a positive outlook, sending its shares up more than 20%.
The company, whose shares are down 50% over the past five years, said: “On the Beach remains committed to its capital allocation policy which is focused on investment into the business to deliver organic growth, maintaining a sustainable and progressive dividend policy, investing in additional growth opportunities and returning surplus cash to shareholders.”
In its annual results posted on Tuesday, On the Beach said it is debt free and has about £96 million of cash in hand. It declared a final dividend for the year of 2.1p per share.
For the full financial year, it said revenue rose 14% to £128.2 million while adjusted profit before tax increased 25% to £31 million.
Looking forward, it said: “Current trends and strategy give us confidence that Summer ’25 will be significantly ahead of Summer ’24. The Board is confident in delivering FY25 Adjusted PBT in line with the Company-compiled consensus estimate of £37.9m.”
Shaun Morton, Chief Executive Officer, said: “I am delighted to report yet another record-breaking performance this year, achieving Group TTV of £1.2 billion, representing our third consecutive year of revenue growth. With a 25% year on year increase in Group adjusted profit before tax, and a strong balance sheet, we are entering FY25 in better shape than ever.”
“This performance was driven by a combination of initiatives, including the successful integration with Ryanair, ongoing investment in our proprietary technology platform and further enhancements to our differentiated customer proposition. The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an OTB package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value. What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland.”