On The Beach issues profits warning

Fears of a no-deal Brexit and a fall in the pound have led On The Beach to issue a profits warning.

Shares in On The Beach fell by over 20% on Friday morning after the company said full-year profits would be ‘below the board’s expectations’.

As a smaller travel firm, On The Beach does not hedge against currency movements and the company said ‘weakening of sterling leads to a significant increase’ in prices, which are passed on to customers.

“These relative price increases make it difficult for the group to gain share of market while maintaining margins,” On The Beach said.

Chief executive Simon Cooper said: “In what is a difficult general economic climate, we remain confident in the resilience and flexibility of our business model, focusing on profitable growth and an ability to capitalise on any structural changes in the market.”

“In full-year 2019 we have invested significantly in our infrastructure, talent and technology to ensure that we build strong foundations to support our strategic objectives.”

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