Shares of Manchester-based holiday firm On the Beach Group fell as much as 15% after it published a trading update for its financial year ending September 30, 2025, and announced a further £25 million share buyback.
The firm said it has taken the strategic decision to “commence an orderly wind down” of its B2B unit trading as Classic Collection which made a small loss in the year “to focus on the higher growth potential of the B2C business trading as On the Beach.”
The company reported total transaction value (TTV) of £1.23 billion, an increase of 11% on last year, with Summer 2025 bookings 12% ahead of last year and “significantly ahead of the package holiday market.” The company said Winter 20225 bookings are 12% ahead of last year’s record.
However the Manchester firm said its Summer 26 bookings “currently reflect the later booking trend as reported across the market, with bookings being made increasingly closer to the date of departure.”
On the Beach said FY25 adjusted profit before tax on a continuing basis (excluding B2B) is expected to be in the range of £34.5 million to £35.5 million. The firm said “consensus FY25 Adjusted PBT, per the group’s corporate website, is £38.4m. The average of house broker estimates for profits associated with B2B operations is £2m.”
The firm said it has completed a refinancing with Lloyds, NatWest and HSBC, entering a new four-year credit facility of £120 million with an accordion of £30 million.
On its latest share buyback, the company said: “In line with its capital allocation policy, the board has determined that sufficient surplus cash exists to announce a further share buyback programme of up to £25m, building on the £30m already returned to shareholders in FY25.”
On the Beach CEO Shaun Morton said: “I am pleased to report another year of significant growth with record TTV (total transaction value) of £1.23bn, representing a 11% increase on FY24.
“Our core B2C business has again outperformed the market, underpinned by the group’s asset light, cash generative model and balance sheet strength.
“The team has had a busy year, with 155 Cities now on our website and a presence developed in the Republic of Ireland. Both exciting workstreams have landed well with our customers and we look forward to expanding the offer in FY26.
“It remains clear that customers are still prioritising their holidays with our Winter 25 bookings up 12% and we are confident that Summer 26 will continue to build, notwithstanding the later booking patterns.
“The board and management team remain focused on delivering the group’s medium-term ambition of TTV of £2.5bn, EBITDA of £100m and Adjusted PBT of £85m and I look forward to updating further at our final results in December.”