TIDMOTB
RNS Number : 9359D
On the Beach Group PLC
25 October 2022
25 October 2022
On the Beach Group plc
("On the Beach," the "Company" or the "Group")
2022 Full Year Trading Update and Notice of Results
On the Beach Group plc (LSE: OTB.L), today provides an update on
trading for the 12 months to 30 September 2022 ("FY22").
Summary
-- In H2 FY22, Group Sales* were 25% ahead of H2 FY19,
despite the indirect consequences of the war in Ukraine
and ongoing disruption across the travel supply chain
-- FY22 Group Sales were 16% ahead of FY19
-- The Group has continued to strategically invest ahead
of full market recovery, across brand, technology
and its customer proposition. This ensured the Group
exited the year in the best possible position to grow
market share across its core addressable market and
expansion areas in FY23
-- Along with improved access to a broader hotel portfolio,
these actions have resulted in FY22 growth in 5* holiday
sales of 83% vs FY19, contributing to total FY22 average
booking value ("ABV") growth of 31% versus FY19
-- Group underlying PBT performance for the year is in
line with market expectations. OTB exits the year
with a strong cash position and balance sheet flexibility
Trading Update
The Omicron variant heavily impacted Group Sales in November and
December 2021, and into the key booking period of early January
2022. Consumer demand remained materially below H1FY19 levels until
restrictions were eased in mid-January.
In H2FY22, Group Sales were 25% ahead of H2FY19, despite the
indirect consequences of the war in Ukraine and ongoing disruption
across the travel supply chain as the sector continued to recover
from the pandemic. Over the full year, FY22 Group Sales were 16%
ahead of FY19.
All booked Sales over the year relate to new bookings. The sales
of many other operators over the same period will be flattered by a
proportion of their bookings rolled over from previous periods or
booked using vouchers or refund credit notes ("RCNs").
The Group has never issued vouchers or RCNs in lieu of refunds.
Where customers have been refunded using vouchers or RCNs from
other operators, they are then captive to that operator, narrowing
our addressable audience this year. The Group believes that our
enhanced proposition and reputation will allow us to target these
customers in FY23 when the playing field is levelled.
The Group has materially invested in its brand, technology, and
customer proposition throughout the year. This includes offering a
differentiated customer experience with premium lounges and fast
track security, increasing headcount in technology and customer
service areas, and investing in above the line media to drive
awareness of the brand. These investments, combined with improved
access to a broader hotel portfolio have resulted in FY22 growth in
5* holiday sales of 83% vs FY19, contributing to total FY22 ABV
growth of 31% versus FY19.
On the Beach also continues to make good progress in B2B and
Long Haul. B2B sales were 45% ahead of FY19. Long Haul sales were
257% up vs FY19.
Partly due to continued rising costs of living, the lates market
for value holidays has remained subdued in H2FY22 and as a result,
sales of 3* holidays for FY22 were 18% below FY19. The Group is
committed to maintaining its focus on this important segment and
growing its share of value holidays.
Despite heavily disrupted trading throughout the financial year,
and the Group continuing to strategically invest ahead of full
market recovery, the Board expects underlying PBT performance for
the period to be in line with market expectations. OTB exits the
year with a strong cash position and balance sheet flexibility.
The Board is confident that the strategic actions taken during
the pandemic, together with continued investment made in FY22,
ensures the Group exits the year in the best possible position to
grow market share across its core addressable market and expansion
areas in FY23.
Notice of Results
The Group will announce its Preliminary Results on 8 December
2022.
Simon Cooper, Chief Executive of On the Beach Group plc,
commented:
"I am pleased with the Group's performance in what was another
disrupted and unpredictable year. Whilst Omicron significantly
impacted Q1 and into Q2, the second half delivered a 25% sales
improvement on H2FY19, contributing to a full year Group Sales
performance 16% ahead of FY19.
"Both the Group's long haul segment and 5* holiday sales
delivered substantial growth in the year and we will continue to
grow these important revenue streams. I am also confident that we
will take market share in the Group's core 3* holiday product in
FY23.
"Despite the tougher trading conditions at the end of the year,
the strength of the Group's balance sheet ensures we are well
placed to deliver further strategic progress in FY23, and the Board
will continue to appraise opportunities for growth."
* Total transaction value of holidays booked in the year before
cancellations and amendments
For further information:
On the Beach Group plc via FTI Consulting
Simon Cooper, Chief Executive
Officer
Shaun Morton, Chief Financial
Officer
FTI Consulting Tel: +44 (0)20 3727 1000
Alex Beagley onthebeach@fticonsulting.com
Fiona Walker
Sam Macpherson
Rafaella de Freitas
About On the Beach
On the Beach is a consumer-centric disruptor on a mission to
continually democratise easy access, hassle free, excellent value
holidays. Having invested in proposition, technology, brand and
service, our asset light model is well positioned to continue to
attract and retain the widest possible audience of beach
holidaymakers. We are a leading online retailer in the UK short
haul beach holiday market. By expanding into B2B and Long-Haul
channels, we have doubled our UK addressable market, and have a
long--term vision to become Europe's leading online retailer of
beach holidays.
Cautionary statement
This announcement may contain certain forward-looking statements
with respect to the financial condition, results, operations, and
businesses of the Company. Forward looking statements are
sometimes, but not always, identified by their use of a date in the
future or such words as 'anticipates,' 'aims,' 'due,' 'will,'
'could,' 'may,' 'should,' 'expects,' 'believes,' 'intends,'
'plans,' 'targets,' 'goal' or 'estimates.' These forward-looking
statements involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in the
future. There are several factors that could cause actual results
or developments to differ materially from those expressed or
implied by these forward-looking statements, including factors
outside the Company's control. The forward-looking statements
reflect the knowledge and information available at the date of
preparation of this announcement and will not be updated during the
year. Nothing in this announcement should be construed as a profit
forecast.
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END
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