On The Beach reports 'suppressed trading' in the second half

(Sharecast News) - On The Beach said on Wednesday that it had experienced "suppressed trading" in the second half of the year due to Covid disruptions.
The company only began selling holidays again from early September, having decided in May that it would stop selling summer holidays due to the Covid situation and the government's travel light system. It decided it would be better for customer relations to withdraw the holidays than to potentially have to rebook or cancel them.

As a result, the group said it saw suppressed trading in H2.

On The Beach said that while demand for international leisure travel remains below pre-pandemic levels, its specific initiatives, including the free Covid tests promotion, along with a further softening of government restrictions, have stimulated bookings in the final weeks of the financial year.

"The increased awareness of brand and strengthening of trading over this period provides confidence that there is pent up demand for travel, and positions the business well as we enter 2022," it said, .

The group had cash in excess of £55m at the end of September, excluding customer prepayments of around 40m which are held in a ring-fenced trust account. It also has access to a £75m credit facility which is undrawn.

OTB said that given the "continued level of short term uncertainty", it would not be appropriate to give any financial guidance for 2022.

Chief executive Simon Cooper said: "The strategic initiatives we have taken throughout the year to best navigate the crisis and manage risk while investing in our brand, people and technology, ensure On the Beach is in a strong position as we head into our typically busiest booking period. Thanks to the continued support from our shareholders and lender, we remain well-funded to successfully and sustainably grow market share."