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On The Beach Group PLC on Tuesday said it is confident of its prospects in the coming financial year as sales of five-star holidays improved on pre-Covid figures, despite considerable disruption to lower-budget getaways.
For the twelve months that ended September 30, the Manchester, England-based travel company said it expects underlying profit before tax to be in line with market expectations.
The company said group sales for the year were 16% ahead of the 2019 financial year, when revenue was reported at £140.4 million. This suggest financial 2022 revenue was £162.9 million.
On The Beach said revenue for the second half of the recent year was 25% higher than the same period in 2019.
Though it acknowledged the impact of significantly disrupted trade, with sales of three-star holidays for the 2022 financial year 18% below 2019, the company remained optimistic in its outlook.
It said that while the Omicron variant of Covid-19 "heavily impacted" consumer demand in November and December 2021, sales in the latter half of the year remained ahead of pre-pandemic figures despite the indirect consequences of Russia's war on Ukraine.
Over the course of the financial year, On The Beach saw growth in five-star holiday sales of 83% compared to 2019, which contributed to total average booking value growth of 31% versus the same pre-pandemic results.
The company attributed these results to strategic investment across brand, technology and customer proposition, which it said put it in the best possible position to grow market share across its core addressable market and expansion areas in the 2023 financial year.
"I am pleased with the group's performance in what was another disrupted and unpredictable year," said Chief Executive Simon Cooper.
"Despite the tougher trading conditions at the end of the year, the strength of the group's balance sheet ensures we are well-placed to deliver further strategic progress in FY23, and the board will continue to appraise opportunities for growth."
On The Beach shares were trading 2.7% lower at 90.00 pence each in London on Tuesday morning.
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