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On the Beach H2 performance ‘suppressed’
Online retailer On the Beach Group’s financial performance was suppressed in the second half due to the traffic light system restrictions.
It issued an update ahead of preliminary results later this year.
It made the decision to extend its ‘off-sale period’ for holidays from 30 June to 31 August 2021 based on consumer feedback from both research, and search and sales data.
This showed a market-wide lack of appetite for booking then-amber destinations, as well as the likely loss of customer goodwill for holidays booked, only to be cancelled or re-arranged.
It restarted selling holidays to travel from early September 2021, when it became clearer that overall confidence to book a holiday had increased, with research finding 53% of Brits confident about booking a holiday for the remainder of the calendar year.
It says demand for international leisure travel remains below pre-pandemic levels but believes there is pent up demand for travel as we enter 2022.
As of 30 September 2021, the Group had cash in excess of £55m, excluding customer prepayments of about £40m which are held in a ring-fenced trust account.
The Group has access to a £75m credit facility.
It continues to refund all customers in cash and in full where their holidays are cancelled.
It is offering no guidance for the 2022 financial year considering the ongoing uncertainty.
"The strategic initiatives we have taken throughout the year to best navigate the crisis and manage risk ensure On the Beach is in a strong position as we head into our typically busiest booking period," Simon Cooper, Chief Executive of On the Beach Group plc, said.
The Board believes it is well-positioned to sustain further significant disruption and grow market share.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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