On the Beach has seen its share price fall by more than 18% in today’s trading as the package holiday provider delivered a warning over its profits.

The travel company has also announced plans to wind down the B2B segment of its business, Classic Collection, after it made a small loss in the year.

On the Beach was providing a trading update for its full financial year to 30 September, ahead of publishing its final results which it will release on 2 December. It confirmed the B2B segment would be presented as discontinued operations in the final results.

The group stated that it would instead focus on what it described the “higher growth potential” of its B2C business.

On the Beach said that its summer 2026 bookings were currently reflecting the “later booking trend” reported across the market, with bookings being made increasingly closer to the date of departure.

As a result, the group warned it is expecting an adjusted pre-tax profit for the full year to 30 September to be between £34.5m and £35.5m, which excludes the B2B segment of the business.

However, despite the market reaction to the trading update, On the Beach did also announce fresh plans for a £25m share buyback programme, which would follow the £30m already returned to shareholders in the ongoing current financial year.

“Our core B2C business has again outperformed the market, underpinned by the group’s asset light, cash generative model and balance sheet strength,” commented On the Beach chief executive, Shaun Morton.

“It remains clear that customers are still prioritising their holidays with our winter 2025 bookings up 12% and we are confident that summer 2026 will continue to build, notwithstanding the later booking patterns.”

---