On the Beach Group (OTB) Shares Tumble Despite Swinging to Profit

On the Beach Group (LON: OTB) shares tumbled more than 12% Thursday morning on the back of its preliminary results, which saw it swing to a full-year profit and announce a new CEO.

For the year ended September 30, OTB reported an adjusted pre-tax profit of £14.1 million, compared to a pre-tax loss of £18.4 million during the same period last year. However, it came in below 2019's pre-tax profit of £34.5 million.

Revenue was £144.3 million, up from the £30.5 million last year and below the £147.5 million posted in 2019. Revenue in 2021 was significantly impacted by Covid-related travel restrictions

“2022 has been a year of strategic progress for the Group. Despite a number of well-documented headwinds faced by the entire industry, including the disruption caused by Omicron in the key booking period of January, the Group reported double digit growth in Group Sales, returned to profitability and exited the year in a strong cash position,” said Simon Cooper, Chief Executive of On the Beach Group. “This success is largely as a result of the investments we have made in the last 12 months across our brand, technology and customer proposition.”

Looking forward, OTB said that over the last 6 weeks, key trends have continued, including growth across premium, long-haul, and B2B expansion areas despite macroeconomic headwinds. 

In addition, the company has started FY23 with a “healthier overall forward order book” compared to the pre-pandemic period, stating that while it is unclear how the cost of living crisis will impact consumer behaviour in 2023, it is confident that the foundations laid over the past year, position it favourably for growth in FY23.

In a separate announcement Thursday, OTB revealed that Simon Cooper, the Founder, and Chief Executive, will step down within the next 12 months, and Shaun Morton, currently the Chief Financial Officer, will take up the role of CEO.