(Alliance News) - On The Beach Group PLC shares surged on Wednesday as it predicted significant increases in total transaction value and revenue, as well as a strong profit and "flexible" balance sheet.
The stock was up 15% at 119.66 pence in London on Wednesday.
The Manchester, England-based online beach holiday retailer said it "will deliver record TTV and revenue" for the year ending September 30. It expects TTV to be up 26% to around GBP1.1 billion, from GBP856.1 million last year.
On The Beach delivered GBP144.1 million in total revenue in financial 2022, surging from GBP21.2 million the year before.
On The Beach said this "record" performance was driven by increased volumes and average booking values, and underpinned by "enhanced platform capabilities and a well-executed strategy across brand and proposition."
The company added that adjusted pretax profit will be "at the top end of the range" of market expectations, primarily due to higher than expected interest income. Moreover, On The Beach said group earnings before interest, tax, depreciation and amortisation are in line with market expectations.
"The group is debt free and cash generative, providing balance sheet flexibility," it added.
On The Beach swung to adjusted pretax profit of GBP14.1 million in financial 2022, following a GBP18.4 million loss the prior year. Adjusted Ebitda was GBP22.1 million compared with a GBP6.1 million loss.
"We continue to leverage the benefits of the investments we have made in our proprietary technology platform, brand and proposition and I am pleased to see that this has driven growth in both the top and bottom lines during the second half of the year as planned," commented Chief Executive Officer Shaun Morton.
"Alongside access to greater seat and bed capacity, this has resulted in our most successful summer, sending more passengers on their holidays than ever before."
On The Beach expects to report an 11% increase in summer passengers during the current fiscal year, and a 26% increase in winter passengers. It said bookings for summer next year are already "significantly ahead" of this year's figures.
Morton continued: "Following our strong second half performance we will exit FY23 with the momentum of a record forward order book and demonstrable progress in strategic expansion areas, which we are excited to build upon in FY24."
By Emma Curzon, Alliance News reporter
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On The Beach (OTB)