On The Beach swings to loss as Covid restrictions dent revenues

(Sharecast News) - On The Beach said on Thursday that it swung to a full-year pre-tax loss as revenues fell, with bookings dented by Covid restrictions.
In the year to 30 September, the group swung to an adjusted pre-tax loss of £18.4m from a profit of £0.6m the year before, with revenues down to £35.5m from £71.2m.

OTB said booking volumes remained low throughout the national UK lockdown that took place between 4 January and 17 May. It also pointed to "dampened consumer confidence through the calendar year due to complex and inconsistent rules coupled with prohibitively expensive testing costs".

In addition, OTB noted its decision in May to suspend new bookings for holidays departing before 1 September.

Chief executive officer Simon Cooper said: "The disruption caused by Covid-19 has lasted longer than anyone would have anticipated and the travel industry has been, and continues to be, one of the hardest hit. Whilst our trading performance has clearly suffered, our successful placing this year is testament to the support from our shareholders who see the long term value of On the Beach and it ensures we are well positioned as the market starts to normalise."

OTB maintained the suspension of full-year guidance in light of continued market uncertainties and "until such time that the overall impact of Covid-19 on the group becomes clearer".