On the Beach Group piles up cash as Brits start booking holidays


On the Beach Group (LSE:OTB) (LSE:OTB) PLC reported increased levels of cash after it restarted selling holidays in early September, saying improved trading “provides confidence that there is pent up demand for travel”.

The online retailer of beach holidays said it experienced “suppressed trading” in the second half of the year after removing holidays from sale until the end of August, with most overseas destinations classified as ‘Amber’ under the UK government’s Coronavirus (COVID-19) travel traffic light system.

But On The Beach said it maintained investment in technology, marketing and supply to ensure it remained well-placed to take advantage of the market share opportunity when demand for booking holidays returns.

At the end of September cash was in excess of GBP55mln, not including customer prepayments of circa GBP40mln which are held in a ring-fenced trust account. This compares to cash at the end of March of GBP30mln and ring-fenced customer monies of GBP24.1mln.

Given the continued level of short term uncertainty, the board said it “would not be appropriate” to provide any financial guidance for the 2022 financial year, but noted the company has access to a GBP75mln credit facility which is undrawn.


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