On the Beach basks as profits surge
NEWLY listed online holiday operator On The Beach has reported a strong year of growth for the year to September.
The Cheadle-based company, which was previously backed by private equity firm Inflexion, listed on September 28 – two days before its year end.
On The Beach said revenues in the period rose nearly 38% to £63.1m (FY14: £45.8m), while pre-exceptional operating profits was up 39.4% to £17.5m and underlying pre-tax profits by 46.5% to £14.5m.
The company raised £90m in its IPO and is now looking to expand internationally, with Scandinavia its first port of call.
Daily unique visitors to its website increased by 14% to 54.4million, while mobile traffic share increased to 61.2% from 49% in 2014.
In Swedem its first new markert, it increased investmenrt from £700,000 to £1.8m as it launched its first TV advertising campaign in May. Total transaction value there rose 250% to £5.6m (FY14: £1.6m)
Founder and chief executive Simon Cooper hailed a “highly successful year” for the business.
He added: “Our results demonstrate how we are successfully building a leading position as more consumers discover the ease of use and wide choice of beach holidays that our platforms offer.
“Our customers’ reaction to our flexible payment plans and cross device holiday searching experience continues to be very encouraging and we are excited by the product development innovations we delivered during the year. We continue to invest in the brand in both the UK and internationally, where we see long term growth potential. All the while we are constantly improving the customer experience and pricing to ensure we stay competitive in our market.
“The company reached an important internal milestone in the year by arranging beach holidays for over one million customers in the UK for the first time. This would not have been possible without the commitment and passion of our team and I would like to thank them for their hard work and dedication. We have the talent, resources and resolve to build on our solid foundations and I am delighted with the progress we have made both financially and operationally as a group.”
Cooper said the new financial year had started strongly: “I remain confident for the year ahead as we focus on our strategic objectives while investing to deliver long-term, sustainable returns for our shareholders.”
