In its preliminary results for the year ended September 30, the firm, which saw a £2.5 million loss in 2015, reported a 110% year-on-year increase in group operating profit to £16.8 million and a 776% increase in group profit before tax to £16.9 million.
Group operating profit before amortisation and exceptional costs increased 30.3% to £22.8 million.
For the UK specifically, UK operating profit increased 87.1% to £18.9 million and daily unique visitors increased by 12.6% to 61.3 million.
Directly contracted hotel product increased to 57%.
Simon Cooper, chief executive of On the Beach Group, said: "These results are testament to the strength and flexibility of our agile business model amidst difficult conditions in the travel industry.
“On the Beach has delivered a 47% increase in underlying profit before tax, ahead of market expectations despite a number of challenging external factors and a market-leading performance for UK Ebitda as a percentage of revenue at 36%.
“During the year, the group has showcased its unique strengths and attributes to deliver profitable growth. On the Beach continues to use its modular technology platform to innovate and deliver value and flexibility to an increasing audience of beach holidaymakers.
"Using our scale to drive exclusivity, our technology to drive innovation and our financial strength, Atol protection and strong consumer brand to drive customer trust, we are well-placed to capitalise on the structural changes in the market which will only accelerate given the difficult conditions in the market this year.
"We remain confident in the resilience and flexibility of our business model, and the long-term resilience of our sector. On the Beach continues to successfully build a leading position as more consumers discover the ease of use and wide choice of beach holidays that our platforms offer."
Regarding its outlook, the group said the first quarter of our financial year is “historically the quietest trading period for the group” and is influenced by the timing of when the low-cost carriers release their spring/summer capacity.
“Comparisons between this quarter and the same period last year are complicated by the widespread cancellations to Egypt experienced in November 2015 and the subsequent surge in re-bookings to alternative destination,” said the group.
It said current performance was in line with expectations and the business was well-positioned for the key trading period that commences in late December and continues into Q1 2017.
The firm continued: “We expect and have planned for some of the key trends seen in 2016 to remain prevalent in 2017; namely the shift in demand from the Eastern Mediterranean, the overcapacity of seats versus demand on high volume routes leading to aggressive seat-only pricing and pressure on bed capacity in key Western Mediterranean destinations in peak periods.
“The board also believes that some of the wider macroeconomic trends will lead to a shortening of lead times throughout 2017, similar to those witnessed in the lead up to summer 2016.
“Notwithstanding these conditions, the board remains confident of meeting market expectations for the financial year and will provide a further trading update at our AGM on February 2 2017.”
