On The Beach Share Discussion Threads

[undervaluedassets] 03/12/2024 09:03

I think it might be our cash otherwise why this..

"Cash has increased to £96.2m (FY23: £75.8m), enabling the Board to determine that sufficient surplus cash exists, alongside investment for continued organic growth, to be able to recommend a final dividend of 2.1p alongside a share buyback programme of up to £25m."

[adamb1978] 03/12/2024 08:54

Highlands - I agree. I think that might happen eventually. Company strategies go int cycles and at some point RYAN will decide owning someone like OTB makes sense

[highlands] 03/12/2024 08:53

OTB would be a perfect takeover target for Ryanair

[weemonkey] 03/12/2024 08:50

I think your average brit would rather starve for the rest of the year than miss their drunken, sun soaked 2 weeks on a beach somewhere hot.

[ianio5691] 03/12/2024 08:46

Still way, way, way undervalued!

This has so far to go, to get back to true value.

[undervaluedassets] 03/12/2024 08:39

I have sspg as well

So today is a good day..

[undervaluedassets] 03/12/2024 08:37

So how much cash do the company actually have pray tell?

can those of an actuarial brain work that out.

[adamb1978] 03/12/2024 08:33

If they can hit the £85m mid-term PBT target then thats perhaps 38p EPS.

That growth should deserve at least a mid-teens multiple so potentially this could at least 3x over the medium-term (3-4 years?)

[its the oxman] 03/12/2024 08:32

Yep will certainly climb higher in days ahead. Looking good and got some momentum now. Happy days.

[adamb1978] 03/12/2024 08:31

Correct - cash excludes cash held in trust so its not the company's own money.

However the seasonality of the business means at Sept it needs to have a high cash balance to fund buying capcity for the next year and funding through winter

Sept-23 cash was £76m and then Mar-24 net debt was £47m. Had they distributed the Sept-23 cash then Mar 24 net debt would have been £123m!!!

So they need to have a high balance at the sept point, though they're now at the tipping point where they're starting to have excess cash hence buybacks and increased divi.

The balance sheet here is fine and is a non-issue, but they don't have £96m excess cash

[ianio5691] 03/12/2024 08:30

WOW - Great results!!
In line, if not better than what some of us have been saying and predicting!

Bring on the 500p party....!!!!

[london07] 03/12/2024 08:24

Should easily smash 200p today

[undervaluedassets] 03/12/2024 08:24

The cash excludes cash held in trust so I think It might be our cash actually. ready to stand corrected.

OTB has no dilution as it is asset-light (no planes, trains automobiles, hotels)
and, unlike so many travel companies it never went cap in hand to the market during covid, issued new shares or had to raise money in the bond market.

screaming obviosity ... the results are an all-time record. but the all-time high for the share price is around £6

long long way to go on these.

If you discount the cash the pe of this company is minute. (advn Pe is wrong for OTB by the way.)

I do not see why £ 3-6 is not a reasonable price target for this share.

[mrnumpty] 03/12/2024 08:24

On 22nd November here , Johndoe23 treated us to his / her / its expertise by stating about the OTB share price “ can’t break £ 1.62 “ . Also DiscOdave , who is a fairly prolific poster on other share chat sites , added to the gloom by claiming that OTB’s cash pile isn’t really the Company’s own money . I shall treat the ponderings of these two experts with the respect they deserve .

[london07] 03/12/2024 08:22

Absolutely brilliant results.

Once she share buybacks kick in, new analyst targets, institutions start buying, OTB will explode. Just look at IAG.

With next to no liquidity on the LSE, £25m share buyback on a £270m company is MASSIVE.

[adamb1978] 03/12/2024 08:11

Very good results. Nice buyback too.

Ignore comments from people on here re the cash balance. Its not cash which they can distribute. The dividend and buyback shows that they're starting to have excess cash, but certainly not £96 of excess cash

Very happy to keep holding

[babbler] 03/12/2024 08:02

It's called credit cards lol

[gasheadmicky] 03/12/2024 07:33

Great results, this business/industry seems quite immune to people reigning in their discretionary spending.

[aishah] 03/12/2024 07:26

16.6m buyback, so 10% of shares in issue!
Firing on all cylinders. £96m cash. How long before a bidder emerges here?

[mirabeau] 03/12/2024 07:21

wowzer results and a SBBP

[se81] 03/12/2024 07:13

Impressive stuff- don't think anyone was expecting a share buyback!

The medium term ambition looks rather interesting too

[ianio5691] 02/12/2024 09:31

170.

Right on cue...

Onwards and upwards

[adamb1978] 29/11/2024 22:57

Funding teh business with the cash is essential.

If they distributed that £90m+ they probably wouldnt be able to raise that much in debt to fund the company. Plus if a cyclical business runs with debt then the share price will get killed in any downturn

[disc0dave46] 29/11/2024 16:48

Completely agree, the cash pile is upfront customer payments and working capitalrequirements are significant, they have bank debt to balance out their seasonal working capital fluctuations so it's not truly a net cash position IMO.