Business
COVID-19 Update
COVID-19 Update.
About this update from On The Beach Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 5437E\n On the Beach Group PLC\n 28 February 2020\n \n \n \n \n This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014\n \n \n \n \n \n 28 February 2020\n \n \n \n \n \n On the Beach Group plc \n \n \n (\"On the Beach\" or the \"Group\") \n \n \n \n \n \n COVID-19 Update\n \n \n \n \n \n On the Beach Group plc (LSE: OTB.L), the UK's leading online retailer for beach holidays, today issues a trading update following recent COVID-19 developments. \n \n \n \n \n \n The Group experienced a small but noticeable reduction in demand for Summer 2020 travel following the early reports of COVID-19 cases in early February. The reduction in demand has accelerated significantly following the increase in COVID-19 cases in Europe, particularly the spread of the virus to Tenerife.\n \n \n \n \n \n Whilst this reduction in demand has led to a natural reduction in marketing spend, the Board does not now expect the Group to achieve payback in the current financial year on its previously outlined strategic marketing investment.\n \n \n \n \n \n With the expectation that the spread of the COVID-19 is going to cause significant disruption for a period of time, the Board believes that the Group's Full Year results for the year to 30 September 2020 will be below current market expectations. \n \n \n \n \n \n On the Beach's asset light business model, low inventory risk and tight cost and cash controls ensure that the Group is resilient in a volatile market environment, enabling it to return to profitable growth when the demand for short haul beach holidays normalises. \n \n \n \n \n \n \n \n \n \n \n \n For further information: \n \n \n \n \n \n \n \n \n \n On the Beach Group plc\n \n \n \n \n Simon Cooper, Chief Executive Officer \n \n \n Paul Meehan, Chief Financial Officer \n \n \n \n \n \n \n \n via FTI Consulting\n \n \n \n \n \n \n FTI Consulting \n \n \n Alex Beagley \n \n \n Fiona Walker \n \n \n Sam Macpherson\n \n \n \n \n Tel: +44 (0)20 3727 1000\n \n \n \n \n \n \n \n \n About On the Beach\n \n \n With over 20% share of online sales in the short haul beach holiday market, we are one of the UK's largest online beach holiday retailers. We have significant opportuni...