Investing.com -- Shares of On the Beach Group plc (LON:OTB) surged by over 24% on Tuesday, driven by the company's results for the fiscal year ending September 30.
The company reported a third consecutive year of record Total (EPA:TTEF) Transaction (JO:TCPJ) Value, which rose by 15% to £1.2 billion.
Revenue increased by 14% to £128.2 million, while adjusted profit before tax soared by 25% to £31 million.
These metrics were complemented by an 84% rise in group profit before tax, reaching £26.5 million.
“This performance was driven by a combination of initiatives, including the successful integration with Ryanair, ongoing investment in our proprietary technology platform and further enhancements to our differentiated customer proposition,” said Chief Executive Shaun Morton in a statement.
The Ryanair partnership, in particular, was a critical factor in the company’s success. It provided On the Beach with secure access to Europe’s largest airline, enabling the company to offer more comprehensive and competitive packages to its customers.
Additionally, the technological upgrades—such as enhancements to its smart caching and live pricing capabilities—have improved operational efficiency and doubled the company’s addressable market by introducing city break packages and launching operations in the Republic of Ireland.
Further fueling the stock surge was the company’s announcement of a £25 million share buyback program, reflecting the board's confidence in On the Beach’s financial position and growth trajectory.
The company also declared a final dividend of 2.1p per share, bringing the total dividend for the year to 3.0p per share, reinforcing its commitment to returning value to shareholders.
The company said that its forward order book was at record levels, up 25% year-on-year. Early bookings for Summer 2025 were already ahead of the previous year, indicating strong demand despite ongoing economic challenges.
Morton said the resilience of consumer spending on travel, noting that holidays remain a priority for customers seeking value and variety.
Investments in customer perks, including airport lounges, fast-track services, and an enhanced mobile application, have also strengthened the company’s market position by improving customer satisfaction and retention rates.
Additionally, expansions into premium segments such as five-star holidays and long-haul destinations have diversified revenue streams and attracted higher-value customers.
Going forward, the company outlined its medium-term ambitions, including doubling TTV to £2.5 billion and achieving an adjusted profit before tax of £85 million.
With its asset-light business model, strong cash reserves of £96.2 million, and increasing operational efficiency, On the Beach appears well-positioned to capitalize on growth opportunities in both existing and new markets.