On The Beach Group Plc · LSE:OTB
On The Beach — H1 2021 Earnings Presentation
19 slides from On The Beach's earnings presentation, Jun 15, 2021
Slide 1: H1 21 Results Presentation
H1 21 RESULTS PRESENTATION Our vision is to become Europe’s leading online retailer of beach holidays 15 June 2021
Slide 2: Agenda and Cautionary Statement
AGENDA CAUTIONARY STATEMENT H1 21 Financial Performance This presentation may contain certain forward-looking Shaun Morton - CFO statements with respect to the financial condition, results, operations and businesses of the Company. Forward looking statements are sometimes, but not always, identified
Slide 3: Shaun Morton, CFO: HY Financial Performance
Shaun Morton Chief Financial Officer HY Trading HY Financial Performance
Slide 4: H1 Trading
H1 Trading H1 has been impacted by strict travel bans and ongoing Monthly booked sales uncertainty around travel in 2021 COVID-19 uncertainty / restrictions COVID-19 related disruption has been more significant than most would Lockdown / travel ban have predicted The re-opening of travel in Dece
Slide 5: Cash Status
Cash Status The Group had cash balances of £30.0m at 31 March 2021, customer prepayments held in Trust of £24.1m, and access to a £75m revolving credit facility Cash status at 31 March 2021 On 31 March 2021 Group cash balances were £30.0m (30 September 2020: £36.5m). Cash burn remains low and at 3
Slide 6: Profit and Loss Account – Group
Profit and Loss Account – Group H1 21 H1 20 Change Due to the ongoing COVID-19 pandemic leisure travel has been severely £m £m % restricted Statutory Revenue 4.4 21.4 (79%) As a result, H1 revenue, net of cancellations was £4.4m (H1 20 £21.4m) Exceptional cancellations 7.6 31.4 Adjusted Revenue
Slide 7: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment H1 21 H1 20 Change Adjusted revenue of £10.0m, down (71%) YOY £m £m % Offline marketing spend of £4.3m, relates to the brand campaign, which went Statutory Revenue 3.2 5.2 (38%) live on Christmas day Exceptional cancellations 6.8 29.2 Adjusted Revenue 10.0 3
Slide 8: Profit and Loss Account – B2B segments
Profit and Loss Account – B2B segments H1 21 H1 20 Change Classic Collection Holidays (Classic) £m £m % Revenue 1.0 15.5 (94%) As a principal (rather than an agent) Classic accounts for revenue on a Gross Profit 0.1 2.2 "travelled" basis and reports revenue on a gross basis Gross Profit after mark
Slide 9: Balance sheet
Balance sheet H1 21 H1 20 Seasonal cash flow requirements are covered by a revolving credit facility £m £m (RCF) which is drawn down as required Intangible assets 76.8 82.4 At 31 March, Cash was £30.0m (H1 20 net debt of £13.0m) Tangible assets 9.6 11.3 Deferred tax 1.5 Customer prepayments he
Slide 10: Cash Flow
Cash Flow H1 21 H1 20 Cash generated from operating activities of (£3.6m) (H1 20: (£62.4m)) in the £m £m period reflect operating losses incurred, off-set by the reduction in amounts due from airlines to £11.8m EBIT (21.2) (34.2) Adjustments for: Included in working capital movements in the peri
Slide 11: Presentation of GAAP and non-GAAP measures
Presentation of GAAP and non-GAAP measures H1 21 (£m) H1 20 (£m) Change H1 21 Adjusted GAAP Adjusted GAAP Adjusted GAAP £m £m £m £m % % The COVID-19 adjustment to Gross Profit of £7.1m reflects the lost gross profit associated with cancelling Group revenue 12.0 4.4 52.8 21.4 (77%) (79%) and amendi
Slide 12: Simon Cooper, CEO: Evolution of Key Drivers
Simon Cooper Chief Executive Officer Evolution of Key Drivers
Slide 13: OTB Growth Strategy
To reach the widest possible audience of beach holidaymakers LONG SHORT OTB GROWTH STRATEGY DIFFERENTIATE SUPPLY HAUL HAUL INSPIRE HOLIDAYMAKERS PERSONALISE EXPERIENCES Our vision is to build Europe’s leading online beach holiday retailer via a single platform, multi brand strategy To support the in
Slide 14: Our core: Invest in talent and technology to extend core platform capabilities
Our core: Invest in talent and technology to extend core platform capabilities Extend generic platform capabilities to quickly take advantage of opportunities post COVID-19 OTB has continued to invest to extend core platform capabilities Data platform Modularise flight data acquisition capability:
Slide 15: Our core: Drive brand
Our core: Drive brand Maintain, repair and re-invigorate brand awareness and consideration OTB Trust Pilot score 4.2 Maintain Maintain: 4.1 Repair 4.0 Reinvigorate ― Delivered prompt / efficient customer care via a fully staffed Contact Centre 3.9 ― Protected the reputation of the OTB brand by ref
Slide 16: Our core: Differentiate supply
Our core: Differentiate supply Surely the X axis should say FY15 to FY20 not Sep 15 to Sep 20 Leverage multi-brand distribution capability to drive increasing exclusivity Our direct hotelier relationships have been fundamental to protect service Direct contracting – share of hotel sales 100% levels
Slide 17: Expansion opportunities: B2B, Long haul and International
Expansion opportunities: B2B, Long haul and International A huge opportunity exists to broaden our addressable audience post pandemic B2B: Both brands are well positioned to benefit as demand returns ― Ahead of plan pre-pandemic: CPH product live in more than 2500 agents ― Highest levels of servic
Slide 18: Current trading & outlook
Current trading & outlook In the near term there remains significant uncertainty for the industry. If Summer 2021 volumes do not recover travel operators will need to sustain further cash burn over the Winter. As we look to exit the pandemic, we expect opportunities for financially strong and zero c
Slide 19: Opportunities for financially strong, resilient operators will only increase
Opportunities for financially strong, resilient operators will only increase Stakeholder sentiment across the sector is fragile. OTB remains well positioned to benefit and gain share. Liquidity Government Investors supported OTB’s raise in May 20 Government furlough support due end on Sep 21 C