Profit growth for On the Beach Group plc despite ongoing impact of Monarch collapse

Online beach holiday company On the Beach Group plc has recorded half-year profit growth of 9%.

The Stockport company achieved a pre-tax profit of £10.8m over the six months to March 31 2018, up from £9.9m the year previous.

Groupwide revenue came in at £45.3m, a 19% uptick on the £38.1m reported for the same period in 2017.

On the Beach Group’s UK business accounted for £44.4m of the total revenue, but international markets nevertheless saw growth of 51% over the six months.

Sweden enjoyed its strongest period of trading since launch, the firm said, supported by an increased investment to accelerate growth across Sweden and Norway.

On the Beach Group is set to expand its presence in Scandinavia further with a planned launch in Denmark this month.

Simon Cooper, CEO at On the Beach Group plc, said: “On the Beach has delivered a solid performance in H1, with strong booking and share growth supported by some modest and tactical discounting. Booking growth strengthened towards the end of the period and has continued into H2.

“As referenced in our AGM update on 8 February 2018, the flight capacity constriction following Monarch’s collapse has driven an increase in seat prices and a corresponding reduction in bookings.”

He continued: “The position regarding flight capacity continues to recover as incremental capacity has been scheduled which alleviates this constriction.

“Given the resilient and flexible nature of our business model, the Board remains confident in delivering a full year result in line with management’s expectations, taking into account the one-off impact of flight capacity constraints as a result of the Monarch failure and the accelerated investment to support International growth.”

Speaking further, Mr Cooper said that to support the firm’s “continued desire to attract and retain the best digital talent”, On the Beach has signed a lease on a new digital HQ in Manchester with the capacity to support its growth ambitions.

He added: “Fit out work will begin shortly and we are scheduled to occupy this exciting new space by the end of 2018.”

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