On the Beach has initiated a £25m share buyback and promised substantial full-year dividends for investors, following a surge in demand for its package holidays to record levels in 2024.
The Manchester-based company announced plans to reintroduce a final dividend of 2.1p per share, marking the first full-year payout since the pandemic affected the travel sector, as reported by .
This decision comes after On the Beach reported record bookings for the third consecutive year, capitalizing on the travel boom that has swept across Europe in recent years. The company's total transaction value (TTV) reached £1.2bn, a 15% year-on-year increase, alongside revenue of £128.2m, up 14%.
On an adjusted basis, pre-tax profit rose by 25% to £31m. In a statement to the market, On the Beach informed investors that its forward order book had reached record levels, with winter bookings to date up by 25%.
"Current trends and strategy give us confidence that summer 2025 will be significantly ahead of summer 2024," the company added. Chief Executive Shaun Morton attributed the performance to a combination of initiatives, including the company's announcement of a landmark partnership deal with its long-term budget airline partner, Ryanair.
"The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an On the Beach package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value."
"What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland."
The group expressed "every confidence" in achieving its medium-term goals, which include doubling Total Transaction Value (TTV) to £2.5bn, attaining pre-tax earnings of £100m and an adjusted profit of £85m. Shares in the company have surged by 43 per cent over the past year.
