On The Beach cheers investors with bumper returns after record year
The package holiday group saw underlying pre-tax profits surge by a quarter to £31 million in the year to September 30.
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Your support makes all the difference.On The Beach has declared it is in “better shape than ever” as it resumed dividend payouts as part of a wider move to boost investor returns after a year of record demand for package holidays.
The group saw underlying pre-tax profits surge by a quarter to £31 million in the year to September 30, with sales by total transaction value (TTV) hitting record highs for the third year in a row.
It saw passenger numbers rise 13% over the summer as the boom in demand for overseas holidays showed no sign of slowing after the pandemic-hit years.
The positive momentum in 2023-24 has continued into the new financial year, with TTV 14% ahead of last year, indicating that customers continue to prioritise their spending on holidays
Manchester-headquartered On The Beach said it expects summer 2025 to be “significantly ahead” of last year again and said it was on track for expectations for underlying profits to jump by another 22% to £37.9 million.
It reinstated its final dividend for the first time since Covid-19 sent the holiday sector reeling due to lockdowns and travel restrictions, while announcing a £25 million share buyback in a further boost for investors, sending shares up around 12%.
Shaun Morton, chief executive of On The Beach, said: “With a 25% year-on-year increase in group adjusted profit before tax, and a strong balance sheet, we are entering 2024-25 in better shape than ever.”
He added: “The positive momentum in 2023-24 has continued into the new financial year, with TTV 14% ahead of last year, indicating that customers continue to prioritise their spending on holidays.
“Winter 2024 volumes are currently at record levels, up 25% year on year, as customers seek winter sun or a European city break, and we anticipate summer 2025 to be significantly ahead of last year, with bookings to date supporting this.”
The group said TTV is up 14% so far in the new financial year, with winter bookings up 25% and forward orders at record levels.
Mr Morton also said a partnership deal with Ryanair helped to drive sales over the past year, with the group adding Ryanair flights into its holiday packages.