Shares rally after On the Beach founder buys £2.5m-worth of stock

Simon Cooper, founder and former CEO of Manchester-based holidays provider, On the Beach Group, has bought almost £2.5m of new shares in the business.

Mr Cooper, who stood down as CEO on June 30 to take up his new role of founder director NED, spent £2.487m on 2,823,862 ordinary shares, priced at 88.0907p per share, on August 11.

Following this purchase, Mr Cooper, will own 12,521,226 ordinary shares, representing 7.51% of the issued share capital of the company.

Mr Cooper announced his intention to leave the CEO role on December 8, 2022, as part of a succession plan that also saw Jon Wormald installed as group chief financial officer on June 30, after leaving Manchester-based online retail giant THG where he was CFO of THG Nutrition.

Simon Cooper founded On the Beach in 2004 and has grown the business into one of the UK’s leading online beach holiday retailers.

In May this year the group announced its interim results for the six months to March 31, 2023, that showed revenues jumped by 38% to £73.2m, while the first half pre-tax loss fell from £7m last year to £6m. On the Beach historically enjoys a stronger second half performance.

Following the announcement, analysts at investment bank Panmure Gordon, reduced their estimates and share target price to 126p per share, from 160p, although they retained their ‘Hold’ call on the group’s stock.

On the Beach shares opened trading this morning (August 14) at 94.4p, initially dropping to 91p, but then jumping to a peak of 103.4p per share on news of Mr Cooper’s purchase. They closed the day at 104.8p, valuing the group at £174.62m

The stock has traded as high as 192.19p in the past year, with a low of 81.24p.