Online holiday booking platform On the Beach has seen its share price surge by 20.1 per cent following the announcement of reinstated dividends and a £25 million share buyback programme, marking a significant milestone in its post-pandemic recovery.
The London-listed firm reported impressive financial results for the year ending September 30, with total transaction value reaching £1.2 billion – a 15 per cent increase from the previous year’s £1 billion. This achievement represents the company’s third consecutive year of record revenue growth.
Chief Executive Shaun Morton highlighted the company’s “transformational” partnership with Ryanair as a key driver of success. The agreement enables customers to book Ryanair flights within On the Beach holiday packages, effectively doubling the company’s addressable market by introducing city breaks alongside traditional beach holidays.
The Manchester-based organisation posted a remarkable 84 per cent increase in group profit before tax, reaching £26.5 million, while revenue climbed 14 per cent to £128.2 million. Looking ahead, the company projects next summer to be “significantly ahead” of last year, with underlying profits expected to rise by 22 per cent to £37.9 million.
Winter 2024 bookings have demonstrated robust growth, showing a 25 per cent year-on-year increase, driven by strong demand for winter sun and European city breaks. The company has set ambitious medium-term growth targets, aiming to double total transaction value to £2.5 billion and achieve underlying profit of £100 million.
Investment bank Peel Hunt maintains its “buy” rating on the stock, which closed at 206p, describing the results as evidence of a “great year, great start.” The share buyback programme, representing 25 per cent of net earnings, will be managed by brokers Peel Hunt and Numis.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.