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OTB On The Beach Group Plc

137.60
1.20 (0.88%)
24 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Stock Type
On The Beach Group Plc OTB London Ordinary Share
  Price Change Price Change % Share Price Last Trade
1.20 0.88% 137.60 16:29:54
Open Price Low Price High Price Close Price Previous Close
133.00 133.00 139.40 136.40
more quote information »
Industry Sector
TRAVEL & LEISURE

On The Beach OTB Dividends History

Announcement Date Type Currency Dividend Amount Ex Date Record Date Payment Date
27/11/2019FinalGBP0.0209/01/202010/01/202013/02/2020
14/05/2019InterimGBP0.01330/05/201931/05/201928/06/2019

Top Dividend Posts

Top Posts
Posted at 24/5/2024 11:30 by alotto
Hamham how will low rates help otb, considering OTB has virtually no debt? Lowe rate will reduce interest income.
Lower rates will not even help revitalising consumer spending considering that inflation may come back rampant with low rates. There is no easy way out.
The problem with rates and inflation is set to stay with us for half a decade as a minimum.
Posted at 19/5/2024 10:59 by alotto
I bought shares after the CEO purchase. I bought at 105p and sold at 160p, after the peak around 180p.
I thought 105 was a great value and I was hoping to see OTB trading around 300p as a fair value. I'm not so convinced OTB will deliver at least £40-50 mln PBT in the FY to justify such a rerating. So yes you're right, I'm not so upbeat as I used to be.
I will wait for the next TU then I may change my views.
In the last trading update they said otb will deliver profits 'in line with current consensus expectations'.. and that is..?? I cant find the figure anywhere, nor who are the people/institutions forming the consensus.
Posted at 18/5/2024 11:51 by alotto
Thanks Adam. So the cash on the balance sheet is working capital and OTB can't release it as a dividend, unless they want to get into debt. The latter should be considered as an option imo. Interest on debt (4/5/6%?) is smaller than the reurn an investor can make if the capital is released as a dividend. If the management considers the company itself more profitable than the interest paid on debt they should consider to implement a buyback program (50-100 mln). That will help in future paying a dividend to shareholders as the dividend would be distributed among a smaller number of shares in issue.
Many companies (e.g., utilities) have a huge debt, they can service it and pay a good dividend. But their income is very reliable. Maybe OTB cannot rely on a consistent income in order to operate a similar financial model without a great risk to go broke (e.g., the next pandemic(s), like Bill Gates and other experts expect more frequent waves of global pandemics in the near future, of course I hope they are worng from a human and economic standpoint).
Posted at 17/5/2024 22:15 by alotto
If that's the case, you would expect current liabilities to go down just as much as the cash.
Anyways...
You should not consider cash held in treasury as company cash, as it can't be invested or distributed as a dividend.
The 0.6 - 0.7% dividend is cute for a cash generative company.
Usually you can tell if a company is undervalued if the dividend is unusually high.
Posted at 16/5/2024 12:08 by darrin1471
halfpenny "Ryan Air deal will be transformative"
Correct me if im wrong but the Ryan deal is not exclusive to OTB. Ryan are likely to have come out better in the deal as they appeared to pick the fight before agreeing the deal.
Long haul holidays have been historically difficult to sell profitable throughout the cycle and worst hit during a recession. UK short haul is increasingly competitive with EZJ and JET2 increasing capacity year after year.
This time may be different as long haul is becoming less adventurous as the world becomes easier to travel to and more mainstream.
The planned increase in capacity for short haul is a multi year thing as aircraft have a long lead time. IMO this can not be sustainable and profitable to expand year after year.
OTB may benefit if EZJ and JET2 struggle to sell extra capacity as the airlines are more likely to turn to agents to sell excess holidays at a cheaper price.
This scenario would hurt the sentiment of the whole sector initially but OTB could be a big winner, benefiting from excess capacity.
I think OTB shareholders should take past p/e numbers with a big pinch of salt. OTB were a disruptor online only travel agent growing rapidly justifying a high p/e. Now they are in a more competitive environment where strong brand names compete and there are low barriers to entry for low cost or specialist entrants.
Posted at 14/5/2024 15:36 by adamb1978
Rimau

I think they don't want to. As you say, the cash is there but not accessible by OTB til the customer has travelled. A few extracts from the results:

"The cash flow profile of the Group is seasonal with approximately 50% of customers travelling in the period June to August and therefore in a normal year the cash flows (excluding any cash held in the Trust) experience a trough prior to June and a peak following this."

"Customer payments made to OTB in advance of travel are deposited in the Trust account. During the period, the Trust account balance has increased from £108.6m to £195.9m, which will unwind as customers travel over the summer months. As well as reflecting the continued growth of the business, this increase is a result of an increasing number of customers choosing to book their holidays earlier."

"As at 31 March 2024 Group cash (excluding cash held in trust which is ringfenced and not factored into the going concern assessment) was £7.7m (31 March 2023: £9.6m, 30 September 2023: £75.8m).

Cash received from customers for bookings that have not yet travelled is held in a ring-fenced trust account and is not withdrawn until the customer returns from their holiday. Cash held in trust at 31 March 2024 was £195.9m (31 March 2023: £137.2m, 30 September 2023: £108.6m)."

Adam
Posted at 14/5/2024 14:27 by paleje
IC's view a couple of hours ago:-

On the Beach expects record summer
A distribution agreement with Ryanair is a big deal for the business

May 14, 2024
by Christopher Akers


Dividend reinstated
Attractive valuation
On the Beach (OTB) lost over a tenth of its value after it published interim figures, as investors took fright at muted budget holiday growth of 1 per cent. Given that the shares jumped earlier in the week, however, the effect is largely neutral. Plus, growth is generally strong: the online beach holiday retailer achieved a record total transaction value (TTV) last year, and forecasts "another record summer" ahead as demand for its premium and long-haul travel options strengthen markedly.

The performance supported the reinstatement of the dividend. This was expected but still backs up the thesis that things are moving in the right direction for the company.

OTB:LSE
On The Beach Group PLC

1mth
Today change
-12.77%Price (GBP)
146.19
Group-wide TTV rose by 22 per cent to £598mn in the six months to 31 March, helped by a 15 per cent rise in customer bookings and higher prices. Summer forward order TTV is up by more than a fifth against last year. It seems that post-pandemic demand has normalised at higher levels.

TTV was up 41 per cent in the higher-margin, premium holiday division, helping it take 34 per cent of the business-to-consumer sales mix. Long-haul TTV soared by 61 per cent. On the other hand, cost of living pressures suppressed value holidays growth.

A distribution agreement with Ryanair (IE:RYA), signed in February, removes a drag factor on the valuation and ends a longstanding legal dispute between the two companies. On the Beach customers now have "free and fair access to Ryanair's seat supply", meaning they can benefit from additional flight capacity.

Elsewhere, the company announced a rejig of its smaller business-to-business (B2B) operations amid stiff competition. It will move to a single brand and platform under the Classic Collection moniker.

The shares trade at 11 times forward consensus earnings, a material discount to the five-year average of 20 times. We remain of the view that a rerating is in order. Buy.
Posted at 28/2/2024 19:36 by darrin1471
When I looked at OTB last year, most of the last minute holidays were using Ryanair. I have just looked at 20 OTB holidays from various airports and none of them were using Ryanair.
I had read that Ryanair were calling online travel agents "pirates" but had not paid much attention until yesterday's announcement.
A quick search and I found "Ryanair has claimed that On The Beach is 'the number one pirate"


All well and good. Ryanair and OTB have made up and struck a deal.
But who will be the winner in this deal? Who needs who the most? Ryanair are notoriously tough negotiators. No doubt in my mind that Ryanair have got a good deal.
What is the cost to OTB. A worse deal than when they were "pirates"? No winter flights with Ryanair. If others like lastminuite.com can't do a deal then OTB may end up with an advantage.
Posted at 27/2/2024 07:02 by hamhamham1
RNS Number : 5207E
On the Beach Group PLC
27 February 2024

27 February 2024



On the Beach Group plc

("On the Beach" or the "Group")



Partnership with Ryanair



On the Beach Group plc (LSE: OTB.L) is delighted to announce that it has signed a long-term distribution agreement with Ryanair Holdings ("Ryanair").

The agreement represents a transformational shift in OTB's relationship with its most significant low cost carrier. It enables OTB customers to seamlessly access Ryanair's low fare flights as part of their holiday packages with full price transparency, whilst continuing to benefit from OTB's flexible payment plans, customer perks (including free lounge and fast track), and ATOL protection. In summary, the agreement:

- secures OTB free and fair access to Ryanair seat supply;

- facilitates a smoother customer journey when booking Ryanair flights as part of an OTB package;

- simplifies OTB operations while enabling greater focus on areas of strategic value; and

- enables the parties to move on from the outstanding litigation and focus efforts on building the partnership

Shaun Morton, CEO of On the Beach Group plc said:

"We are excited to have entered into this transformational partnership with Ryanair. This will improve the booking and travel experience for our customers selecting Ryanair flights, while ensuring we can continue to provide customers with best value package holidays. We will continue our campaign to safeguard consumer choice in the travel sector and the signing of this agreement marks a significant milestone in On the Beach's journey, as we strive to do the best for our customers. Importantly, this agreement enables both parties to move on from outstanding litigation and we look forward to working closely with our new partner."

Ryanair's Dara Brady said:

"Ryanair is pleased to announce our latest partnership with leading OTA, On the Beach. This new deal will see Ryanair partner with its fourth approved OTA partner. On the Beach customers can now book Ryanair flights, seats, and bags as part of their holiday package with the guarantee that they will have full price transparency of Ryanair products (without any overcharges), and that they will receive any information regarding their flight directly from Ryanair as well as having direct access to their booking through their myRyanair account."
Posted at 14/2/2024 08:25 by elsa7878
Reasons for caution.

1) Competition in the OTA space is fierce and while OTBs growth rates have been impressive, others eg Love Holidays are growing much faster and have a much higher planned growth rate (95%).
2) OTA's are seeing increased access resistance from airlines eg Ryanair. OTA's model is very sensitive to seat availability.
3) EasyJet holidays now making over £100m PAT profit and with it's much deeper pockets can easily outspend OTB. It also planning huge capacity increases of circa 35%.
4) OTB sacrificing margin for bookings. Is that sustainable (see 3 above). Consensus estimates for OTB came down throughout substantially in 2023 while they were going up for easyJet, Jet2 etc.
5) Airlines and tour operators that control inventory benefit from higher fare prices through higher operational gearing. OTA's package fares at cost so higher fares would normally mean lower bookings.

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