The share price of On The Beach (OTB) may have got a bit ahead of itself, as shown by the morning’s fall of 15p (5%) on news that UK revenue has only grown by 26% in the 4 months to 31st January and the company reports strong growth in both bookings and revenue.
At yesterdays closing price of 305p the shares had nearly doubled since 7th December when they stood at 166p.
OTB claims to be the UK’s leading online retailer for beach holidays. Its target is the disruption of the established operators by having a low cost base, innovative, flexible online technology and a strong customer proposition. Growth is led by the company’s investment in technology and in online and offline marketing, investment which enables it be fleet of foot and beat its more sclerotic competitors by reacting rapidly and successfully to changes in demand, such as the recent huge shift from the eastern Mediterranean and Egypt to the safer shores of the western Mediterranean.
OBT has come a long way from its start up in a terraced house in Macclesfield in 2004 to its 2015 listing on Aim.
Preliminary results for the year to the end of September showed group revenue up by 37% to £63m., adjusted underlying profit before tax up by 46.5% and EBITDA by 44.9%.
Interim results for the 6 months to the end of March are due on the 19th May.