As a result of the travel restrictions in place and low levels of consumer confidence, the group experienced a "varied" trading performance through Q3 and Q4, with booking volumes down 75% and 53% respectively year-on-year.

It said due to "strong cost control" adjusted profit before tax for the year is at breakeven levels.

Cancellation rates have been in excess of 90% across summer 2020 and the group expects it to continue at these levels over the winter. This has led to further exceptional costs of £10 million in H2, which the group now expects to be £45 million for the full year.

Refunds status

The group said it "continues to work hard to refund all customers in cash and in full" where their holidays are cancelled.

OTB has continued to promptly refund the hotel and transfer elements of cancelled holidays from its fully ring-fenced customer trust account.

There have been and continue to be substantial delays in receiving refunds from airlines, it added. "The group continues to pursue these rightful refund claims on behalf of its customers."

As of 6 November, total customer refunds made in cash since 15 March totalled £160 million (£70 million hotels and transfers and £90m for flights).

Monies received from airlines for cancelled flights was £79 million.

"We are awaiting refunds for cancelled flights of £11 million, where we have refunded flight costs in advance of receipt, in order to protect the brand and generate customer goodwill," the group said.

Cash position

On 6 November the group had cash of £44 million, excluding customer prepayments, which are held in a ring-fenced trust account.

This cash figure will further increase as the group continues to receive monies from airlines for cancelled flights where OTB has already provided customer refunds, it said.

The group has access to a £75 million credit facility which remains undrawn.

"The board continues to believe that the strength of OTB’s balance sheet and flexible business model means the business is well-positioned to sustain further significant disruption and to grow market share as demand for holidays recovers," said the company.

Simon Cooper, chief executive of On the Beach Group, said: "I would like to take this opportunity to thank all of my colleagues for their continued hard work and resilience in the most challenging times to have ever faced the travel industry.

"It is clear now that the full impact of Covid-19 will be every bit as extreme as any of us could have mapped out at the beginning of the year.

"Following the overwhelming support we received from our shareholders in May, combined with our ring-fencing of customer prepayments, we are in a strong and debt-free financial position.

"The board is confident about the group’s long term strategy and we will continue to look at the increasing number of exciting opportunities to grow our market share both in the UK and internationally."