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On the Beach Group plc (LSE:OTB.L) has provided a trading update ahead of its preliminary results for the fiscal year ending 30 September 2024 (FY24), highlighting strong financial and operational performance. The group reported record total transaction value (TTV) of £1.2 billion, marking a 15% year-on-year increase, supported by a 13% rise in volume for Summer 2024. This significant growth underscores the company's resilience and ability to capture demand in the travel market.
A key highlight for the year is the company's transformational partnership agreement with Ryanair. This collaboration is expected to drive operational efficiency while also opening up new strategic growth opportunities for On the Beach. The integration with Ryanair incurred some one-off costs, but the company maintained strong control over its total cost base, demonstrating a significant improvement in operating leverage.
Despite the costs associated with the Ryanair partnership, On the Beach’s adjusted profit before tax (PBT) remains in line with market expectations. This reflects the company's ability to manage its expenses while continuing to grow its core business.
On the financial side, On the Beach ends FY24 debt-free and with a robust cash position of approximately £95 million. This strong cash reserve provides the company with considerable balance sheet flexibility as it continues to explore growth opportunities and strategic investments.
Additionally, following the reintroduction of an interim dividend earlier in the year, the Board expects to recommend a final dividend in accordance with its capital allocation policy. This move reflects the company’s commitment to delivering value to its shareholders while maintaining a strong financial foundation.
