Business
Trading Update
Trading Update.
About this update from On The Beach Group Plc
[{"type":"text","content":"\n \nRNS Number : 4806I On the Beach Group PLC 09 August 2019 \n\nThis announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014\n \n9 August 2019\n \nOn the Beach Group plc\n(\"On the Beach\", \"OTB\", the \"Company\" or the \"Group\")\n \nTrading Update\n \nOn the Beach Group plc (LSE: OTB.L), the UK's leading online retailer for beach holidays, today issues an update on current trading.\n \nCurrent Trading\n \nOn the Beach operates a flexible model incorporating dynamic rather than currency hedged pricing for the packages that it provides its customers. With the increased likelihood of a no deal Brexit, Sterling has significantly devalued against the euro since the beginning of May and this accelerated at the end of July, continuing into August. Whilst the Group has seen a strengthening of demand in H2, this weakening of Sterling leads to a significant increase in OTB prices versus full risk competitors with currency hedges. As OTB remains focused on profitable growth, these relative price increases make it difficult for the Group to gain share of market while maintaining margins.\n \nAs a result, the Group anticipates delivering a full year performance below the Board's expectations.\n \nStrategic Progress\n \nDespite the difficult market conditions in FY19, the Group has continued to increase investment in both talent and infrastructure in the areas that we believe offer the most significant expansion opportunities. As a result, we have made excellent progress towards delivering our strategy.\n \n\n· Following our head office move into Manchester in November 2018, to underpin our objective to recruit and retain the very best digital talent, we have accelerated the pace at which we are adding digital headcount to our teams. We have also reorganised the technology and product functions to allow us to better scale and increase the pace at which we evolve our platform to support our strategic objectives.\n· We acquired Classic Collection Holidays in August 2018 to support our objective to offer our competitively priced beach holidays to a wide range of intermediaries through an online portal. Classic Package Holid...