Fully listed On The Beach (LON: OTB) confirms that its full year results will show record revenues. The trading statement of the holiday company says pre-tax profit will be at the top end of expectations. The share price is 15% ahead at 119.6p.
In the year to September 2022, revenues were £144.1m, which was slightly higher than the pre-Covid level of £140.4m, and underlying pre-tax profit was £14.1m. Consensus forecasts for 2022-23 are revenues of £179.5m and pre-tax profit of £22.6m. The guidance suggests that profit should be slightly higher than that. Even so, underlying pre-tax profit in 2017-18 was higher at £27.6m.
The total transaction value of holidays booked before cancelations was 26% higher at £1.1bn. The growth comes from higher booking volumes and increases in average values. Marketing costs have fallen to 40% of revenues. The company is debt free.
The trading momentum is continuing. The shares are trading on around eleven times estimated 2022-23 earnings and that could fall to less than nine next year.
