- £34.5m to £35.5m adjusted pre-tax full year profit now expected
- Winding down B2B business Classic Collection
- Further £25 million share buyback
Shares in On The Beach (OTB) plunged 15% to 218p in morning trading as the online package holidays provider said it was winding down its non-core B2B (business-to-business) operations after a small loss in the year.
In the trading update for the full year ending 30 September, the company said its adjusted pre-tax profit for full year 2025 is expected to be in the range of £34.5 million to £35.5 million (excluding B2B operations) missing the consensus forecast of £38.4 million.
STRONG BOOKINGS
However, on the plus side, the company said its B2C business (business-to-consumer) continues to grow well ahead of the package holiday market.
The group reported TTV (total transaction value) of £1.23 billion, an increase of 11% from last year including B2B.
Summer 2025 and winter 2025 bookings remain strong, both up 12% ahead of last year’s record.
Looking ahead, the company said summer 2026 bookings will be affected by the ‘later booking trend’ common across the market.
The ‘later booking trend’ is when bookings are being made increasingly closer to the date of departure, it added.
WHAT DID THE CEO SAY?
Shaun Morton, CEO said: ‘The team has had a busy year, with 155 cities now on our website and a presence developed in the Republic of Ireland. Both exciting workstreams have landed well with our customers and we look forward to expanding the offer in full year 2026.
‘It remains clear that customers are still prioritising their holidays with our Winter 25 bookings up 12% and we are confident that summer 2026 will continue to build, notwithstanding the later booking patterns.
‘The board and management team remain focused on delivering the group’s medium-term ambition of TTV of £2.5 billion, EBITDA (earnings before interest, taxation, depreciation, and amortisation) of £100 million and adjusted pre-tax profit of £85 million and I look forward to updating further at our final results in December.’
Analysts at Shore Capital said: ‘Whilst the adjusted pre-tax profit miss is disappointing, and we will watch to see how summer 2026 evolves, and see good progress with the strategic pillars and the expansion markets.
‘Winter 2025 is up 12% year-on-year, and the group remains focused on driving tech efficiencies throughout the B2C business.’
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