On the Beach Group plc has released its preliminary results for the year ended September 30, 2023. The company reported a revenue of £170.2 million, which is £26.8 million (18.7%) higher than the previous year. The increase in revenue was attributed to strong demand for holidays across the company's core market and strategic expansion areas, resulting in growth in passenger numbers and average booking values. The summer of 2023 saw a particularly strong performance, with a 13% increase in passenger numbers compared to the previous year.
The company also focused on improving the operational efficiency of its cost base, with marketing costs reducing as a percentage of revenue compared to the previous year. Adjusted profit before tax for the year was £23.6 million, reflecting strong revenue growth and a reduction in marketing spend. Statutory profit before tax was £12.9 million.
On the Beach Group remains in a strong financial position, with combined cash balances of £184.4 million. The company's cash, excluding amounts held in trust, was £75.8 million, while customer prepayments held in a ring-fenced trust account amounted to £108.6 million. Net finance income for the year increased to £2.6 million, primarily due to an increase in bank interest receivable.
The company recently won a legal claim against Ryanair, which awarded £2 million to On the Beach Group, plus interest and costs. The company intends to pursue Ryanair for further sums due in similar circumstances. The proceeds of this action, along with costs recovered, will be included within exceptional items in the next financial year.
Looking ahead, On the Beach Group reported continued growth in the new financial year, with year-to-date total transaction value (TTV) as of December 2, 2023, up 26%. The company's forward book is at record levels, and winter 2023 year-to-date TTV is up 34%. The company is confident that summer 2024 will be significantly ahead of summer 2023. On the Beach Group also plans to reinstate dividends from the next financial year, reflecting its cash generative position and capital allocation framework.