The Manchester-based online travel agent, On the Beach Group, has declared that it is in a strong financial position to emerge from the coronavirus pandemic and grow its market share, having released a full year (to 30th September) trading update.
Months of unpredictable trading conditions, further intensified by the four week ban on international leisure travel beginning on 5th November, have resulted in £45 million of annual exception costs. Yet, strong cost control and adjusted profit before tax for the year means that On the Beach breaks even.
Throughout the pandemic, the group has worked continuously to provide full, cash refunds to all customers who have had holidays cancelled. On the Beach has access to a £75 million credit facility. However, this amount remains undrawn. On 6th November, the group’s cash position was £44 million, excluding customer prepayments as these are held in a ring-fenced trust account.
The board believes that the group’s balance sheet and flexible business model ensures that On the Beach will withstand further substantial disruption. Additionally, the board predict that the business’ market share will grow as holiday demand increases in the future.