Highlights

  • On the Beach Group has received buy ratings from Berenberg, Investec Bank (UK) plc and Panmure Liberum, each with a target price of GBP 300.
  • The company reported its third consecutive year of record growth in its B2C operations.
  • FY25 adjusted profit before tax is expected to be between GBP 34.5 million and GBP 35.5 million.
  • The Group announced a further share buyback programme of up to GBP 25 million.

On the Beach Group plc (LSE:OTB) has secured favourable backing from analysts, with Berenberg, Investec Bank (UK) plc and Panmure Liberum each issuing a buy rating on the company. All three analysts have set a target price of GBP 300, reflecting a unified view on the Group’s valuation trajectory.

Record Growth in B2C Trading Performance

For the financial year ending 30 September 2025, the company confirmed that its B2C business continues to outperform the broader package holiday market. The Group recorded its third consecutive year of growth, achieving total transaction value of GBP 1.23 billion, an 11% increase over the prior year. Bookings for Summer 2025 were 12% ahead of the previous year, while the number of destinations offered has expanded to 155 cities.

The Group also established a presence in the Republic of Ireland following a GBP 2 million investment and reported a notable improvement in operational leverage. EBITDA margin for FY25 is expected to reach approximately 34%, up from 31.7% in FY24, while customer satisfaction registered a record Net Promoter Score of around 55, marking a 17% improvement. Winter 2025 bookings remain strong at 12% ahead of last year, although Summer 2026 bookings reflect the later booking trend observed across the wider travel sector.

Adjusted profit before tax for FY25, excluding discontinued operations, is expected to fall within the range of GBP 34.5 million to GBP 35.5 million.

Strategic Refocus Through B2B Wind-Down

The company announced that it has initiated an orderly wind-down of its non-core B2B segment, trading as Classic Collection. This decision follows a year in which the B2B arm posted a small loss. The move is intended to concentrate the Group’s efforts on its higher-growth B2C operations, which will continue to be presented as the Group’s core business. The B2B segment will appear as discontinued operations in the final results.

Strengthened Balance Sheet Through Refinancing

On the Beach reported a positive year-end financial position, exiting FY25 debt-free with cash reserves of approximately GBP 90 million. The Group has refinanced its facilities with Lloyds, NatWest and HSBC, entering a new four-year credit agreement valued at GBP 120 million with an additional GBP 30 million accordion. The renewed facility replaces the previous structure that was set to expire in 2027 and provides enhanced balance sheet flexibility at improved terms.

Additional GBP 25 Million Share Buyback Announced

Aligned with its capital allocation policy, the Board has authorised a further share buyback programme of up to GBP 25 million. This follows GBP 30 million already returned to shareholders during the financial year.