Stockport-based On the Beach delivers quadruple-digit profit growth following “impressive” half year

On the Beach Group plc, the online holiday retailer, has secured quadruple-digit profit growth following its first full year of national TV advertising.

During the six months to March 31 2016, the Stockport-based firm’s pre-tax profit hit £7.3m, a year-on-year increase of over 2493% against the previous year’s £282k figure.

Meanwhile, On the Beach’s revenue leapt 21.7% to just over £35.5m.

In its UK business, the number of daily visitors to the company’s website grew to 26.4m, up from 22.5m during H1 2015, while the total daily revenue per unique visitor rose 3.9% to £1.33.

On the Beach Group plc’s chief executive, Simon Cooper, said: “The business has delivered impressive financial results in the first half that highlight the resilient and flexible nature of our model.

“I am pleased that we continue to make strong progress in delivering our strategic objectives.”

On the Beach completed its first full-year national TV advertising campaign in recent months, a move that drove its prompted brand awareness to 46%, up from 34% in H1 2015.

However, global terrorism in late 2015 and early 2016 led to “uncertainty and volatility” in the holiday market, Mr Cooper explained, continuing: “The business has adapted to changes in typical consumer practices by focusing on securing incremental supply in the Western Mediterranean, enhancing margin, delivering operational efficiencies and retaining an efficient level of spend in driving demand to site.

He added: “In the absence of any future negative market events, we anticipate stronger consumer confidence in the second half of the financial year, buoyed by a strong lates market, and are on track to meet our expectations for the full year.”

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