On the Beach has reinstated the profit guidance it suspended earlier in the year, after reporting a ‘more consistent trading pattern’ and ‘stabilised activity’.
However, it expects pre-tax profits to now be between £18 million and £25m, lower than earlier forecasts.
In March, the online travel agent suspended its guidance of £39 million to £43m in pre-tax profits for the full year, after experiencing a ‘significant slowdown’ in demand due to the ongoing conflict in the Middle East.
In an update today to announce its interim results for the six months to March 2026, On the Beach said booking volumes were up 7% and total transactional value was up 2%.
However, pre-tax profit fell to £2.3 million compared to £8.4m the previous year.
Chief Executive Shaun Morton said: “Whilst the Group has limited exposure to destinations in the Middle East, the ongoing conflict has impacted consumer demand since 1 March and led the Group to withdraw its guidance, as announced in the AGM Trading Update.
“H2 booking activity has stabilised to a more consistent trading pattern and bookings over the last six weeks are up 9% as we approach the key summer departure months. As a result, we have today reinstated guidance and the Board is confident in delivering FY26 adjusted PBT [profit before tax] in the range of £18m to £25m.
“We have delivered significant growth in bookings across our expansion areas, with city volumes, such as Krakow and Amsterdam, up 116% and the Republic of Ireland delivered volume growth of 74%.”
“Experience tells us that consumers value their summer holiday incredibly highly and I am confident that On the Beach is well placed to satisfy this demand and deliver a solid summer trading performance.”
