Shares of Manchester-based holiday firm On the Beach Group fell as much as 13% on Thursday after it published an AGM trading update on its performance from October 1, 2025, to February 28, 2026, and on current trading from March 1, 2026.
“Whilst the group has limited exposure to destinations in the Middle East, it has experienced a significant slowdown in demand following the onset of conflict in the region, particularly to destinations such as Turkey, Greece, Cyprus and Egypt,” said On the Beach.
The firm said it has been working around the clock to support customers in resorts to enable a return to the UK as soon as possible.
“Following another record year in FY25, momentum has continued into FY26 …” said the firm.
However, on current trading from March 1, 2026, On The Beach said: “Whilst the group has limited exposure to destinations in the Middle East, it has experienced a significant slowdown in demand following the onset of conflict in the region, particularly to destinations such as Turkey, Greece, Cyprus and Egypt.
“The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown. Both will impact group profitability and as a result the group is temporarily suspending its guidance of £39m to £43m Adj. PBT for the full year.
“Despite the volatile environment, the company continues to trade profitably and generate cash because of its asset light model with significantly lower fixed costs, commitments and exposure to increases in variable costs versus the asset heavy tour operators.
“The board remains confident in the delivery of the Group’s medium-term ambition of £2.5bn TTV, £100m EBITDA, £85m PBT and 38.7p EPS …”
On the Beach CEO Shaun Morton said: “Momentum has been building since we entered 2026, recording our highest ever volume trading day on 1st February and a 34% increase in Q2 travelled / departed volumes. Our customer loyalty continues to grow with repeat customers up 19% in the period.
“The advancements in both our proposition and app functionality are enabling customers to search great value holidays, be that in a city, on a beach or on a cruise ship, and app bookings have increased 58% as a result.
“Following the onset of the conflict in the Middle East, our operational teams have been working round the clock to support directly impacted customers in resort and to enable a return home as soon as possible.
“I am confident that On the Beach’s enhanced strategy to scale into new markets, underpinned by its asset light operating model with no committed inventory to fill, remains a key competitive advantage.”