Double-digit profit and revenue growth at newly-listed online beach travel agent On the Beach (OTB) send shares in the £246 million cap surging 17.4% to 197p.
The company, which floated on 28 September, achieved a 46.5% rise in underlying profit before tax to £14.5 million in the year to 30 September, with revenue 37.9% higher at £63.1 million.
Chief executive Simon Cooper says customers have been drawn to On the Beach’s simple booking process, competitive pricing and ability to personalise their holiday - for example by booking each component of their trip separately.
On the Beach’s shares have fallen 10% since the float due to concerns about the impact of terrorism, but Cooper says the attacks in Tunisia, Sharm el-Sheikh and Paris haven’t affected sales.
The group is reacting to the attacks by providing more hotel options in the West Mediterranean, such as Ibiza and the Canary Islands.
On the Beach primarily targets UK travellers but it recently launched in Sweden and will shortly enter the Norway market. Cooper says it will probably expand to Denmark as well.
The company has a low fixed cost base, is cash generative and plans to pay a maiden dividend for the September 2016 financial year.
