On the Beach Group PLC AGM Trading Update (1095C)
06 Febbraio 2020 - 8:00AM
UK Regulatory
TIDMOTB
RNS Number : 1095C
On the Beach Group PLC
06 February 2020
6 February 2020
On the Beach Group plc
("On the Beach" or the "Group")
AGM Trading Update
On the Beach Group plc (LSE: OTB.L), the UK's leading online
retailer for beach holidays, today issues the following trading
update for the four months to 31 January 2020, in advance of its
Annual General Meeting to be held today.
As outlined in the Group's Preliminary Results on 27 November
2019, there exists an unprecedented opportunity to take market
share in the beach travel market following the failure of Thomas
Cook Group ("TCG"). On the Beach has responded to this opportunity,
more than doubling offline marketing spend to drive awareness of
the On the Beach brand. Management expects that a proportion of
this investment will payback in the second half of the financial
year. Alongside this exceptional marketing spend, the Group has
also focused on price competitiveness to continue to drive long
term market share gains.
The reduction in overall capacity in the market following the
TCG failure has led to significant year on year ("YOY") seat price
increases for all departures. This seat capacity shortfall is
further accentuated by continuing delays in Boeing's 737 Max
aircraft returning to active service. As a result, seat pricing is
not anticipated to fully normalise in the current financial
year.
Despite the significant increase in the prices of holidays
across the market and the seat capacity constraints, the immediate
actions taken by the Group to capture market share are helping to
drive strong sales growth for summer 2020 departures.
The Group's international sites have continued to deliver an
efficient performance YOY and the Board continues to evaluate
opportunities to enter new source markets.
The rollout of Classic Package Holidays continues and as at 31
January 2020, more than 2,300 agents were signed up to the
portal.
The Group will report Interim Results for the six months to 31
March 2020 on 12 May 2020.
Simon Cooper, Chief Executive of On the Beach Group plc,
commented:
"The actions we have taken in the first four months of the new
financial year have accelerated our market share gain and mean we
are well prepared to take advantage of capacity returning into the
market. Our incremental investment into offline marketing activity
is helping to drive significant growth in awareness of the brand
nationally and we are delighted with the performance of the Classic
Package brand in its first year post launch. We look forward to
providing a more detailed update on progress at the Group's Interim
Results."
For further information:
On the Beach Group plc via FTI Consulting
Simon Cooper, Chief Executive
Officer
Paul Meehan, Chief Financial
Officer
FTI Consulting Tel: +44 (0)20 3727 1000
Jonathon Brill
Alex Beagley
Fiona Walker
Sam Macpherson
About On the Beach
With over 20% share of online sales in the short haul beach
holiday market, we are one of the UK's largest online beach holiday
retailers. We have significant opportunities for growth and a
long-term mission to become Europe's leading online retailer of
beach holidays. By using our innovative technology, low-cost base
and strong customer-value proposition to provide a structural
challenge to legacy tour operators, we continue our journey to
disrupt the online retail of beach holidays. Our model is
customer-centric, asset light, profitable and cash generative.
www.onthebeachgroupplc.com
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 a number of 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
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END
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