Profits rise for Cheadle’s On the Beach

On the Beach, the Cheadle-based online travel company, has posted group revenues of £83.6m for the year ending 30 September 2017, up by over 17% on the previous year.

Profits for the group before tax rose by nearly 34% to £28.5m over the same period.

In the UK, revenues increased by 16.7 per cent to £81.9m and EBITDA jumped by 30.3 per cent to £32.7m. This means that UK EBITDA as a percentage of revenue increased to 39.9 per cent in 2016/17, up from 35.8 per cent in the prior year.

Simon Cooper, chief executive of On the Beach Group, said:

“These results are further testament to the continued strength and flexibility of our agile business model.

“On the Beach has delivered a 33.8 per cent increase in group adjusted profit before tax, in line with market expectations, and a market-leading performance for UK EBITDA as a percentage of revenue at 39.9 per cent. Revenue growth in the international business supports our plans to launch in our third international market, Denmark, early in 2018.

“On the Beach continues to use its modular technology platform to innovate and deliver value and flexibility to an increasing audience of beach holidaymakers.”

In the UK, revenues increased by 16.7 per cent to £81.9m and EBITDA jumped by 30.3 per cent to £32.7m. This means that UK EBITDA as a percentage of revenue increased to 39.9 per cent in 2016/17, up from 35.8 per cent in the prior year.

Simon continued:

“In May, we completed our first significant acquisition, Sunshine.co.uk Limited, which is now fully integrated onto the OTB platform. I am pleased with the performance that has been achieved by the team both through the integration process and beyond. The Board will continue to evaluate acquisition opportunities that will both increase our scale and deliver value for shareholders.

“We remain confident in the resilience and flexibility of our business model to capitalise on any structural changes in the market. On the Beach continues to successfully build a leading position as more consumers discover the ease of use and wide choice of beach holidays that our platforms offer.

“The Board is pleased to report that current trading is in line with expectations and believes the business is well positioned for the key trading period that commences in late December and continues into Q1 2018.”