2025 Pre-Close Trading Update & £25m Share Buyback
Summary by AI BETAClose X
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
FOR IMMEDIATE RELEASE
24 September 2025
On the Beach Group plc
("On the Beach", "OTB" or the "Group")
2025 Pre-Close Trading Update and further £25m Share Buyback
On the Beach Group plc (LSE: OTB.L) today provides an update on trading for its financial year ending 30 September 2025 ("FY25"), in advance of announcing its final results on 2 December 2025.
B2C business continuing to grow well ahead of the package holiday market
- Third consecutive record year of growth:
o TTV1 of £1.23bn, representing an increase of 11% on last year;
o Summer 25 bookings 12% ahead of last year, significantly ahead of the package holiday market2;
- Product expansion has continued at pace with 155 cities now live.
- Established a presence in the Republic of Ireland following net investment of £2m.
- Significant increase in operational leverage, with EBITDA margin expected to be c.34% (FY24: 31.7%), alongside improving customer metrics including a record NPS, up 17% to c.55.
- Winter 25 bookings are strong at 12% ahead of last year's record.
- Summer 26 bookings currently reflect the later booking trend as reported across the market, with bookings being made increasingly closer to the date of departure.
- FY25 adjusted PBT on a continuing basis (excluding B2B) is expected to be in the range of £34.5m - £35.5m.3
Discontinuing non-core B2B operations
- The Board has taken the strategic decision to commence an orderly wind down of the B2B segment trading as Classic Collection which made a small loss in the year, to focus on the higher growth potential of the B2C business trading as On the Beach.
- The B2B segment will be presented as discontinued operations in the final results.
Successful refinancing with new £120m facility
- OTB exits the year debt free and with a strong cash position of c.£90m.
- The Group has completed a refinancing with Lloyds, NatWest and HSBC, entering a new four-year credit facility of £120m with an accordion of £30m.
- This replaces the previous facility which was due to expire in 2027, providing significant additional balance sheet flexibility at improved pricing.
- This is a reflection of OTB's track record of delivery to date and demonstrates the significant level of lender appetite to support the Group's medium-term ambition.
Further £25m share buyback
- In line with its capital allocation policy, the Board has determined that sufficient surplus cash exists to announce a further share buyback programme of up to £25m, building on the £30m already returned to shareholders in FY25.
1 Group total transaction value ("TTV") of holidays booked in the period before cancellations and amendments.
2 ATOL data from the latest CAA renewal cycle in March 2025 reports a 3% year-on-year increase in total licensed forecast passenger volumes across the market for the next 12 months.
3 Consensus FY25 Adjusted PBT, per the Group's corporate website, is £38.4m. The average of house broker estimates for profits associated with B2B operations is £2m.
Shaun Morton, Chief Executive of On the Beach, commented:
"I am pleased to report another year of significant growth with record TTV of £1.23bn, representing a 11% increase on FY24. Our core B2C business has again outperformed the market, underpinned by the Group's asset light, cash generative model and balance sheet strength.
"The team has had a busy year, with 155 Cities now on our website and a presence developed in the Republic of Ireland. Both exciting workstreams have landed well with our customers and we look forward to expanding the offer in FY26.
"It remains clear that customers are still prioritising their holidays with our Winter 25 bookings up 12% and we are confident that Summer 26 will continue to build, notwithstanding the later booking patterns. The Board and management team remain focused on delivering the Group's medium-term ambition of TTV of £2.5bn, EBITDA of £100m and Adjusted PBT of £85m and I look forward to updating further at our final results in December."
For further information:
|
On the Beach Group plc Shaun Morton, Chief Executive Officer Jon Wormald, Chief Financial Officer
|
via FTI Consulting |
|
FTI Consulting Alex Beagley Harriet Jackson Lia Bevan |
Tel: +44 (0)20 3727 1000 onthebeach@fticonsulting.com |
About On the Beach
On the Beach Group plc is one of the UK's largest online package holiday specialists, with significant opportunities for growth. Its innovative technology, low-cost base and strong customer-value proposition provides a structural challenge to legacy tour operators and online travel agents, as it continues disrupting the online retail of beach holidays. Its model is customer-centric, asset light, profitable and cash generative.
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 statement together with the interim financial statements and investor presentation is available on www.onthebeachgroupplc.com.
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