On the Beach took a 26% group profit hit in the fallout following the Thomas Cook collapse.
Figures revealed in the OTA’s preliminary results for the year ending 30 September show the company made £19.4 million in group profit before tax, down from £26.1 million in 2018.
However, adjusted figures, which it says provides a “fair, balanced and understandable view” of underlying performance, show a group gross profit increase of 7% and group profit before tax rise of 3%.
The company’s cash at bank – the sum of all coins, currency and other unrestricted liquid funds placed on deposit – was £54.8 million at the year end, up from £47.3 million.
Excluding the Cook impact, its cash at bank would have been £62 million.
“In what has been a difficult general economic climate with the prolonged uncertainty regarding Brexit and the related currency impacts, I am pleased with the group’s performance with significant progress made against our strategic objectives while delivering a 3% increase in group adjusted profit before tax, in line with market expectations,” said Simon Cooper, chief executive of the On the Beach Group.
“Following the failure of Thomas Cook Group, all teams across our business responded exceptionally to ensure that customers were either rebooked or refunded in the shortest possible time while maintaining high-quality customer care."
He highlighted On The Beach launched Classic Package Holidays in March 2019 and expanded its long-haul offering.
Describing the Cook collapse as leading to a “material shift in market dynamics”, Cooper added: “The board strongly believes the correct course of action to ensure that On the Beach is best-positioned to capture market share is to focus on price competitiveness and to increase the visibility of all of the group’s brands, with the expectation that seat supply will normalise during fiscal year 2020.
“Whilst the consumer environment will continue to be challenging, we remain confident in the ability of our resilience.”
Key appointments over the year include Stefan Nordin as chief technology officer, Adam Hansen in the newly formed role of corporate development director and Oliver Garner as chief executive of Classic and CPH.
The company has also opened new digital headquarters in central Manchester and refurbished its operational headquarters in Cheadle.