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(Sharecast News) - On the Beach said on Tuesday that it was expecting another record year as it reported a jump in interim profit and revenue and said customer demand for its holidays "continues to buck wider UK consumer trends".
In the six months to the end of March, adjusted pre-tax profit rose 23% to 7.6m on revenue of 64.2m, up 7% on the same period a year earlier.
Booked total transactional value picked up 13% to 640.7m, driven by an 11% jump in booking volumes, which grew significantly ahead of the package holiday market.
OTB said trading momentum has continued since the half year, with third-quarter to date total transactional value growth currently up 18%.
The company said it expects deliver another record year and the board is confident in delivering FY25 profit in line with current consensus expectations.
Chief executive Shaun Morton said: "This record interim performance was driven by increased passenger bookings and reflects the strength of the On the Beach holiday proposition.
"Ongoing investment in our proprietary technology platform has supported our ambition to improve our customers' booking experience, enhance operational efficiency and to build scale. Embedding perks into our app has resonated well with customers, while transformational development to our platform have facilitated our successful expansion into Ireland and City break packages, offers which are scaling rapidly and being enjoyed by both new and existing customers.
"Demand for holidays remains strong as our customers continue to prioritise travel, and we are proud to have increased the breadth and quality of our offer so that they can holiday better and more often. This trend is reflected in our Summer '25 forward order TTV which is currently 14% ahead of last year."
Russ Mould, investment director at AJ Bell, said: "The news might be awash with worries about the economy, tariffs, geopolitical tensions and concerns about the jobs market, yet it seems nothing is going to get in the way of a summer holiday.
"On The Beach's trading update shows a business riding high thanks to strong demand to get away from the daily grind.
"People might be under financial pressure, but they're happy to cut back on everyday treats if it means squirreling enough away for a week in a foreign land."
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