On The Beach reports 3 per cent profit increase despite impact of ‘Thomas Cook failure’

Holiday operator On The Beach has attributed its pre-tax profit drop to the “failure of Thomas Cook” in its preliminary results.

In results covering the year ending September 30, the firm has reported a 26 per cent drop in profit before tax.

In addition, the firm has reported that its cash reserves has been affected by the impact of refunds and replacement flights as a result of the Thomas Cook collapse.

Despite the impact of Thomas Cook’s failure, the firm’s adjusted gross profit before tax increased by 3 per cent to £34.6m.

Simon Cooper, chief executive of On the Beach Group, commented: “In what has been a difficult general economic climate with the prolonged uncertainty regarding Brexit and the related currency impacts, I am pleased with the Group’s performance with significant progress made against our strategic objectives.

“Following the failure of Thomas Cook Group plc (“TCG”), all teams across our business responded exceptionally to ensure that customers were either re-booked or refunded in the shortest possible time while maintaining high quality customer care.

“Whilst the consumer environment will continue to be challenging, we remain confident in the ability of our resilient and flexible business model to significantly increase our market share in the medium term.”

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