On the Beach Group sees half-year profits leap 33.8%

Holiday company On the Beach Group plc has reported half-year profit growth in the double digits.

During the six months to March 31 2017, the Stockport-based business saw its pre-tax profit rise to £9.9m, an increase of 33.8% against the previous year’s £7.4m.

On the Beach, which yesterday announced its £12m acquisition of online travel agent Sunshine.co.uk, achieved group-wide revenues of £38.1m during the period, up year on year by 7.3%.

The company also managed to slash its net debt, cutting the figure down from £6.6m in H1 2016 to £2.3m in H1 2017.

On the Beach Group plc CEO Simon Cooper said: “On the Beach has delivered a solid performance in H1, with booking growth strengthening towards the end of the period and continuing into H2.

“In the group’s AGM Trading Update, management outlined the view that H2 performance would be stronger than H1, with more favourable YOY comparators in H2 and because H1 was impacted by the later timing of the low cost carriers’ seat release as well as key hotel partners in the Western Mediterranean holding back capacity to sell in the late market.”

He continued: “All of these assumptions played out in the first half and have continued in H2. Given these market dynamics, we took a proactive decision to balance volume and revenue growth.

“This position remains under constant review to ensure that business performance is optimised.”