(Alliance News) - On the Beach Group PLC on Tuesday reported a heavy fall in interim revenue after travel restrictions significantly disrupted trading, though its loss did narrow substantially.
For the six months ended March 31, the beach holiday travel agent posted revenue of GBP4.4 million, down 79% from GBP21.4 million in the prior year period which was largely unaffected by Covid-induced travel restrictions.
However, group slashed its pretax loss to GBP21.6 million from GBP34.1 million a year prior, after efforts to conserve cash and cut costs.
It said it "continues to adjust for Covid-19 related cancellations", and expects cancellations to continue in the future.
"The group has experienced continued disruption through the first half and this has remained as we head into the summer," said Chief Executive Simon Cooper.
Looking to the future, On the Beach noted "significant uncertainty" remains in the near-term, due to doubts about whether European destinations would be in a position to accept UK tourists. In early May, the company made the decision to stop selling holidays for departure before September, and has instead focused on taking bookings for winter 2021 and summer 2022.
Despite continued uncertainty, the business said it is "well-positioned to grow market share" as demand for holidays recovers and that it "remains confident" in the resilience of its business model. Full year guidance will be suspended until the overall impact of Covid on the group's financial performance becomes clearer, On the Beach said.
"The board believes that On the Beach is well-positioned to grow market share as demand for holidays recovers," Cooper commented.
"Whilst this recovery is likely to take some time and the consumer environment will continue to be challenging, the differentiating features of our business model, combined with the actions taken during the pandemic, position us very strongly for successful and sustained growth as we move out of this extended period of disruption."
As with the prior year, On The Beach will not pay an interim dividend.
Shares were trading 1.5% lower at 353.68 pence each on Tuesday in London.
By Will Paige; willpaige@alliancenews.com
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On The Beach (OTB)