On the Beach has recorded a 14% jump in annual revenue to £128.2m, the travel retailer’s third consecutive year of revenue growth.

The group also posted a record TTV for the third year running, which was up 15% on last year to £1.2bn, while its pre-tax profits increased by 84% to £26.5m.

On the Beach CEO, Shaun Morton, said the firm’s performance had been driven by a “combination of initiatives”, including a successful integration with Ryanair, ongoing investment in its proprietary technology platform and other enhancements to its customer proposition.

As result of the performance in the year to 30 September, the company also announced a FY24 final dividend of 2.1p per share, full year 3.0p per share, representing 25% of net earnings in line with capital allocation policy.

On the Beach also outlined details of a share buyback scheme of up to £25m, reflecting the board’s confidence in its business model.

“The positive momentum in FY24 has continued into the new financial year, with TTV 14% ahead of last year, indicating that customers continue to prioritise their spending on holidays,” Morton said.

“Winter ‘24 volumes are currently at record levels, up 25% year on year, as customers seek winter sun or a European city break, and we anticipate Summer ‘25 to be significantly ahead of last year, with bookings to date supporting this.

“Our strategy and positive booking trends, underpinned by our track record of delivery, gives us every confidence in delivering on our medium-term ambition to double TTV to £2.5bn, achieve EBITDA of £100m and adjusted profit before tax of £85m.”

Investment analyst at AJ Bell, Dan Coatsworth, highlighted that On the Beach sells beach holidays online, earning a commission on these sales, while having no physical sites or owning any planes – which has helped the company’s recent growth.

“It does not need to employ lots of capital to grow,” Coatsworth added. “Its main costs lie in marketing. The company also sells holidays offline through third-party travel agents.

“What’s put the market in a sunny mood are the company’s ambitious medium-term targets for sales, earnings and margins. The company has experienced slowing demand at the more budget end of the market, showing that pressures on household spending are having a negative impact, although this represents a decreasing share of the company’s overall business.

“On the Beach is looking to boost its exposure to long haul beach holidays and has begun serving customers in the Republic of Ireland. Targeting city breaks is also seen as an opportunity.”

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