Annual Report and Accounts for the year ended 30 September 2025

On the Beach Group plc

Annual Report and Accounts

FOR THE YEAR ENDED 30 SEPTEMBER 2025

ABTA number: P8849

On the Beach Group plc Annual Report and Accounts 2025

Contents

Strategic Report

Governance

Financial Statements

Additional Information

28 Sustainability

51 Non-financial and sustainability information statement

52 Risk report

59 Viability statement

129 Independent auditor's report

135 Statement of Directors' responsibilities

Financial Statements

1. Company Balance Sheet

2. Company Statement of Changes in Equity

3. Notes to the Company Financial Statements

Strategic Report

Governance

Financial Statements

Additional Information

Financial highlights

Group TTV1

Group adjusted revenue2

2024

2023

£1,124.2m

£983.8m

2024

2023

£114.6m

£106.9m

Adjusted profit before tax2

2024

£29.2m

Adjusted earnings per share2

2024

13.1p

Strategic Report

2023

Cash

£24.7m

2023

Trust account

12.0p

02 At a glance

04 Chair's statement

06 Our Strategy for growth

08 Chief Executive Officer review

16 Business model

18 Chief Marketing Officer report

20 Key performance indicators

24 Chief Financial Officer report

28 Sustainability

2024

2023

£75.8m

£96.2m

2024

2023

£108.6m

£139.5m

51 Non-financial and sustainability information statement

52 Risk report

59 Viability statement

1. Group Total Transaction Value ('TTV') is a non-GAAP measure representing the cumulative total transaction value of sales booked

   each month before cancellations and adjustments. The prior periods are restated for the effects of discontinued operations.

2. A full reconciliation of all non-GAAP measures to the closest equivalent GAAP measure is included in the glossary. The prior periods are restated for the effects of discontinued operations.

01

On the Beach Group plc Annual Report and Accounts 2025

At a glance

Las Vegas

Mexico

Florida

New York

Manchester

Spain

Cyprus

Turkey

Egypt

Dubai

Vietnam

Maldives

Key: Office location

02

Selected top selling short haul and long haul destinations

Other selected destinations

Mauritius

Strategic Report

Governance

Financial Statements

Additional Information

We operate in:

Cities

Beach destinations

Countries

1.7m

Passengers travelled this year

4.3/5

Trustpilot score

employees in 2025

employee engagement index score

of our Executive team are female

Female Male

of the Board are female

Female Male

5,765*

sustainable hotels available on our website

94%

reduction in direct emissions since our FY23 baseline, significantly ahead of our 2030 reduction trajectory

* Data as at 30 September 2025.

03

On the Beach Group plc Annual Report and Accounts 2025

Chair's statement

FY25 has been a year of impressive strategic progress, in which we have expanded our reach, enhanced our customer proposition and reinforced the foundations for

long-term growth.

Richard Pennycook

Chair of the Board

I am pleased to present the Annual Report and Accounts of On the Beach Group plc for the financial year ended 30 September 2025.

Delivering growth in a challenging environment

FY25 has been a year of impressive progress against our strategy, underpinned by strong delivery from our core B2C business. Despite a cautious consumer backdrop, the Group has once again significantly outperformed the wider package holiday market, demonstrating both the resilience of our model and the continued appeal of our customer proposition.

Financial performance

We have delivered another record year, with Total Transaction Value reaching £1.25bn, an increase of 11% year-on-year, supported by 9% growth in booking volumes. Adjusted profit before tax was £35.0m, and adjusted earnings per share increased by 45% to 19.0p. This performance demonstrates the strength of our model and our ability to generate profitable growth. The CFO report provides further detail on the financial results, on page 24.

Capital allocation and balance sheet strength

The Board remains committed to a disciplined and balanced approach to capital allocation. In March 2025, we completed our first £25m share buyback, and in September 2025 we commenced a further £25m buyback which completed in November 2025 (after the financial year end). Taken together, these two buybacks represent a £50m return of capital

(of which £28m was during FY25), reflecting the Board's confidence in the long-term prospects of the business.

In line with our policy of distributing 25% of profit after tax, we also declared an interim dividend of 1.0p per share and are recommending a final dividend of 3.0p per share, bringing total dividends for the year to 4.0p.

In total, the Group will have returned approximately £33m to shareholders in FY25 through dividends and buybacks. These returns demonstrate the Group's strong cash generation and financial discipline.

In September 2025, the Group completed a refinancing of its banking facilities, expanding from a two-bank £85m facility to a three-bank £120m facility with improved terms and an option to extend by a further £30m. This provides the Group with significant additional flexibility to support the delivery of its strategic growth plans and Medium Term Ambition.

Strategic progress

Our strategy to help people holiday better and more often has continued at pace. We have expanded our product offering into 157 cities, more than doubling our addressable market, and established a growing presence in the Republic of Ireland.

£1.25bn

TTV for the full year

11%

increase in TTV on last year

13%

Summer ʼ25 year-on-year volume growth

£50m

returned to shareholders via share buyback between December 2024 and November 2025

04

Strategic Report

Governance

Financial Statements

Additional Information

After the FY25 year end, we successfully launched our cruise offering, entering a new high-growth segment that represents a significant additional revenue opportunity and further broadens our appeal to existing and new customers. We have further enhanced our technology-led proposition, embedding personalised perks into our app,

launching our Price Drop Protection feature, and leveraging AI and faster search technology to deliver a differentiated customer experience.

Discontinued Operations: Classic Collection

As announced on 24 September 2025, the Board took the decision this year to commence an orderly wind down of the B2B business, Classic Collection. This decision allows

management to sharpen focus on the higher growth, profitable B2C business, while ensuring that customers and agents are fully supported during the transition.

Following that decision, FY25 includes a £16.0m loss from discontinued operations relating to Classic Collection as we complete the wind-down. This includes exit costs and the write-down of historic goodwill and intangible assets, with c£10m of the charge being non-cash and is reported within

discontinued operations to provide a clear view of the ongoing performance of the continuing On the Beach business.

Board and Executive changes

David Kelly stepped down from the Board in January 2025, having served for nine years. We thank him again for his significant contribution. We welcomed Victoria Self to the Board in February 2025. She brings significant digital and customer-facing experience, and following a thorough induction is already strengthening the Board's expertise

in these areas.

On our Executive Team, our longstanding Chief Supply Officer, Bill Allen retired in September and we thank him for his service. As part of a wider organisational redesign, responsibility for supply and commercial has now moved

under our CFO, Jon Wormald, ensuring the business is best structured to deliver on its strategy.

Shareholder engagement and Remuneration Policy

The Board oversaw important shareholder engagement this year, particularly ahead of our General Meeting in September to approve the new Remuneration Policy and Growth Plan. We greatly value the time and insight of shareholders during that process, and I would like to acknowledge the extensive engagement led by our Remuneration Committee Chair,

Rt Hon Justine Greening.

We were pleased to receive strong support at the meeting, with over 80% of votes cast in favour. Full details are set out in the Directors' Remuneration Report on page 94.

People and culture

Our colleagues remain central to everything we do. Our most recent employee engagement survey, returned a score of 7.2, showing continued positive engagement throughout our teams. The feedback provides valuable insight into our culture and the voice of our people to help us keep driving engagement even further. We are grateful for the work of Veronica Sharma, our designated Non-Executive Director for employee engagement, who has helped ensure that Board discussions are firmly rooted in the perspectives of our colleagues.

ESG and community

We have continued to strengthen our sustainability and community initiatives. Our People Team has led impressive outreach programmes with local schools to build a diverse pipeline of future tech talent, and we have achieved material reductions in our Scope 1 & 2 emissions this year, keeping us ahead of the path required to meet our internal reduction target. More detail can be found in the Sustainability section of this report on page 42.

Customer service and satisfaction

Our operational improvements have translated into measurably better customer outcomes this year. We achieved a record Net Promoter Score of 56, representing a 14%

year-on-year improvement, while reducing inbound contact volumes by 21% through tech-enabled self-service capabilities.

These results reflect our systematic approach to enhancing the customer experience and demonstrate the operational leverage we continue to see from our business model.

Regulatory environment

We continue to engage with regulators and industry stakeholders on matters of importance to our sector, including long-awaited ATOL reforms and reforms to the Package Travel Regulations. A fair, transparent and well-designed regulatory environment is critical to maintaining consumer protection, supporting a level playing field across the industry, sustaining customer confidence and underpinning long-term economic growth.

In December 2025, the Group also joined ABTA. Membership further strengthens our consumer protection credentials, aligns us with industry best practice, and provides an additional platform through which to engage constructively on key regulatory issues.

Conclusion and outlook

On behalf of the Board, I would like to thank all my colleagues across the business for their dedication and hard work this year, our customers for their continued loyalty, and our shareholders for their support.

The Group has an ambitious Medium Term Ambition of £2.5bn TTV, £100m EBITDA and £85m Adjusted PBT. We believe we have the right strategy to achieve this, led by a strong management team and supported by talented colleagues across the business.

Despite near-term uncertainty in consumer sentiment, the Group is resilient, financially disciplined, and well positioned to deliver long-term value for all stakeholders.

Richard Pennycook

Chair of On the Beach Group plc

1 December 2025

05

On the Beach Group plc Annual Report and Accounts 2025

Our strategy for growth

Our mission

To help people holiday better and more often.

Our ambition

To become Europe's largest online package holiday specialist.

Our strategy

How we'll achieve our mission and ambition.

See more on page 10

Stickiness

Increase the purchase frequency and repeat rate of active customers

Choice

Increase the share of holiday wallet to attract new and existing customers

Peace of mind

Create hiccup-free holidays to increase NPS and reduce churn

Scale and automation

Increase our addressable market, designing for 10x not +10%

Our stakeholders

Are central to our business, and we seek to align our interests with theirs.

See more on page 78

• Customers

• Our People

• Shareholders

• Suppliers and Partners

• Communities and Society

• Government and Regulators

06

Strategic Report

Governance

Financial Statements

Additional Information

Our values

Underpin our culture and how we work.

See more on page 72

We're bold

We're open We're dynamic

Sustainability

Our ESG strategy is embedded

in our mission and strategic priorities.

Supporting long-term resilience, responsible supply chain practices and sustainable value creation - while positioning us to lead positive change across the industry.

See more on page 28

Here for

people

Here for

holidaymakers

Here for

the planet

07

Overview

A winning business model

On the Beach ('OTB') has a low-cost, asset light, and cash generative business model that provides a structural challenge to tour operators, disrupting the package holiday market.

Our proprietary technology, combined with a market-leading proposition, delivers value, choice, peace of mind and financial protection for our customers.

Operating in a large, growing market

Overseas leisure travel spend continues to grow year-on-year, and within that, package holidays continue to grow in

popularity. With Summer volumes +13%, we have been growing significantly ahead of the market1.

Seat and bed supply remain abundant, with over 70m seats from UK departure points to European destinations in Summer ʼ25, including an additional 5% airline capacity to beach leisure destinations and total seat growth of +3% from the

UK to all European destinations. This represents significant headroom for OTB to continue to grow into, having taken 1.7m passengers away on holiday during the year.

Another record year

FY25 has been another record year, achieving TTV for the full year of £1.25bn, representing an increase of 11% on last year. We continue to improve operational leverage whilst improving customer metrics. FY25 represents the fourth consecutive year that the Group has increased Revenue, EBITDA and EBITDA as a percentage of Revenue, and this year we achieved significant improvement in customer satisfaction, with an NPS score of 56, +14% year-on-year ('YOY').

We are confident about the future

The Group has delivered transformational progress against its strategic priorities in the current year, which positions us well for another exciting year of growth in FY26 as we build toward our Medium Term Ambition ('MTA') by FY29 (see page 14).

£1.25bn

TTV for the full year

11%

OTB increase in TTV on last year

13%

OTB Summer '25 year-on-year volume growth

3%

Package holiday market growth1

1. In FY25, ATOL data from the latest CAA renewal cycle in March

2025 reported a 3% YOY increase in total licensed forecast passenger volumes across the market for the next 12 months.

People

Our people remain at the heart of everything we achieve. This year, we've made significant investments in leadership development, launching a bespoke programme that's upgrading capability across our senior team and will cascade to all people managers over the coming year. This focus on developing exceptional leaders creates the foundation for accelerated performance throughout our organisation.

We've continued to evolve our employee benefits and enhanced our pension contributions for the second consecutive year. Our commitment to supporting our people has never been stronger.

On the Beach Group plc Annual Report and Accounts 2025

Chief Executive Officer review

Our low-cost, asset

light and cash generative model provides a structural challenge

to tour operators, disrupting the package holiday market.

Shaun Morton

Chief Executive Officer

08

The talent and innovation within our teams continues to impress. From the development of our proprietary technology platform, to breakthrough initiatives on the app, our people are pushing boundaries and delivering solutions that transform how we operate and serve customers.

We're particularly proud to be one of only eight UK employers partnering with the CIPD on their national research into AI and the Future of Work. This positions us at the forefront of shaping how AI will be adopted ethically and responsibly across UK workplaces, while building confidence and capability across our teams. Our employee engagement remains strong, with our people continuing to demonstrate the drive, innovation and collaborative spirit that defines our culture and powers our growth.

Market

Favourable trends

Market tailwinds, including rising demand for package travel, support our strategy for growth.

A consumer survey earlier this year indicated that spending on holidays for the next 12 months is the most protected discretionary category for consumers, ahead of health and well-being, home improvement, hobbies, leisure and all other buckets of discretionary spend.

A third of Brits are now taking three or more overseas trips per year. Share of holidaymakers seeking to book an overseas package over a DIY trip has increased from 40% to 59% over the last ten years.

Booking intent currently remains strong amongst younger age groups, particularly 25-34s, where package uptake is highest and has seen consistent year-on-year growth, supporting

long-term structural adoption. Recent research indicates that 38% of Gen Z are now more likely to book a package

holiday compared to five years ago. Businesses with relevant digital platforms are particularly well-positioned to benefit,

as consumers increasingly expect a seamless, tech-driven booking experience.

Sources: OC&C, Redburn, easyJet research.

A large addressable market

In the last 12 months, following a re-platforming of the business and a transformational partnership signed with Ryanair, OTB has trebled the size of its addressable market from 16m pax to 50m pax. This unlocks significant potential for medium-term sustainable growth.

In FY25, we made significant progress in our existing Beach market and in two new expansion markets: City breaks and Republic of Ireland.

During the year we also took the decision to strategically focus on our B2C offer, where we see the strongest potential for growth, resulting in the closure of our B2B operations, trading as Classic Collection. I want to take the opportunity to acknowledge the commitment and hard work of all affected colleagues.

We've trebled our

addressable market

•

•

•

•

•

Leveraging our

tech platform, brand and supply position to attract new customers

Increasing our share of

customer wallet

Focusing on B2C markets; recently entered Cruise

Addressable market now 50m pax

Foundations for potential further international expansion

in place

Republic of Ireland

Long Haul Beach

6m

4m

24m 6m 4m

City breaks, Republic of Ireland and Cruise all represent existing OTB markets. International markets and new

products represent potential opportunities at the appropriate point in the future.

Future potential

Market pax (cumulative)

In early FY26, in the latest step on our journey, OTB entered the large, high-growth Cruise market.

09

Chief Executive Officer review continued

Strategy

We are on a mission to help people holiday better and more often.

Ongoing development to our platform underpins everything we do strategically, enabling growth through delivery of the four pillars of our strategy:

Stickiness

Choice

Peace of mind

Scale and automation

Scale and automation

Beach

We have continued to grow year-on-year across all our existing B2C Beach markets (Value Short Haul, Premium Short Haul, and Long Haul), with 4 and 5-star holidays now

representing over 80% of Group TTV. In FY25, we have grown in all our core beach destinations. Most of our overall TTV growth this year has been driven by our core beach proposition.

City breaks

OTB has attracted existing and new customer demand with entry into City breaks from FY24, enabling capture of a greater share of our customer's holiday wallet. From a low base in Summer ʼ24, City bookings grew 3x YOY, representing 2% of the 11% YOY growth in Group FY25 TTV, supercharged by the significant re-platforming of our technology in Q4 FY24.

Republic of Ireland

In the final quarter of FY24 we began selling holidays departing from the Republic of Ireland, enabling access to a new source market. In FY25 we invested £2m of net spend to establish brand presence and remain on track with our strategic plans as we enter FY26. The market, estimated at 15% of the size of the UK, offers strong growth potential leveraging OTB's existing platform, brand and supply relationships.

Cruise

In early FY26, the Group is also leveraging these strengths including its organic customer acquisition channels to enter and disrupt the UK Cruise holiday market. Cruise is a compelling opportunity to further increase our share of a customer's holiday wallet. We expect to attract both existing and new customers to the brand, with 4m cruise passengers departing from the UK and Ireland each year, representing a further increase of our addressable market. Cruise represents one of the fastest growing segments of travel, with supply underpinned by new ship launches and increased demand from younger demographics.

International markets

A strong relationship with Europe's largest airline and a scalable platform supports opportunities to add new source markets and new products when appropriate.

Strategic progress in FY25 has created a foundation for further international expansion.

10

1

Why stickiness?

Stickiness

Consumers are shopping around as much as ever so we are having to reacquire them. By designing for stickiness, there is a significant opportunity to grow volumes and improve operating efficiency.

Major drivers

The app is the vehicle for stickiness. We know that customers who download the app, engage with it and search for a holiday, are more likely to book a holiday with us, are more satisfied and are more likely to repeat. This year we have focused on the app and are experiencing 6x higher search conversion vs web, a 41% higher NPS score and a +47% higher one-year rebook rate.

Increasing retention rates enables reduced and more effective marketing spend.

Significant re-platforming of our technology in FY24 has enabled OTB to transition

its strategy from booking-centric to customer-centric, focusing on how we build a relationship with a customer over their lifetime.

By adding customer-centric, app-only features, keeping customers active in the app and reducing travel anxiety through targeted app notifications, we have been increasing app downloads and engagement.

In FY25 we have developed app-centric features making it easier to:

• Access documentation

• Manage your booking and payments

• Access in-resort support

  We have also developed customer-centric app-only features in the year, such as:

• Live flights information

• Access to perks and benefits

• Social features like shareable documentation and countdowns

Our ultimate goal is for the app to become a customer's essential booking and travel companion (or a rep in your pocket).

Results to date

The below leading indicators demonstrate our 'Stickiness' progress in the app during FY25, which lay the foundations for continued growth in FY26 and beyond.

Bookings from repeat customers:

+18% YoY

FY25

App downloads 1m App users before departure 80% App bookings mix 30% App monthly active users 0.6m

Destinations on sale

Cities on sale Hotels on sale Airlines on sale Combinations

FY25

240

157

24k 42

2

Why choice?

Choice

By designing for choice, we are increasing the breadth and depth of our offering, and the holiday wallet that we compete for. By adding more choice to our proposition, there is a significant opportunity to attract new customers to the brand and increase the number of customers booking more than one holiday in any given holiday year.

Major drivers

Over the last 18 months, the significant upgrades to our technology platform have transformed the choice of holiday options available to our customers.

Through our technology, we have been able to solve the complex problem of exponentially increasing holiday combinations on the platform, whilst increasing the speed and discoverability of holiday searches.

We have built an AI-powered platform managing more than 5 billion hotel prices - optimised for best pricing, availability, accuracy and speed. We call this our Hotel Discovery Cache.

Alongside this, we have also built an 'in memory' data store which allows our customers to search our entire inventory of holidays for any given date range -and in under a second. We call this Fast Flexible Search.

Without these developments we would not have been able to scale as quickly or as cost effectively. Also, the high level of accuracy of pricing and availability means that fulfilment of the billions of deals is almost entirely automated.

This is all proprietary technology. Finally, by increasing the number of suppliers per hotel we are achieving better pricing and availability for our customers.

Results to date

We have increased the number of customers booking more than one holiday with us this year by 15% (our 2+ customers). More than a quarter of our bookings this year were made by customers who booked more than one holiday with us throughout the year.

2+ customers: +15% YoY

11

Chief Executive Officer review continued

1. Why peace of mind?

   Peace of mind

   Consumers want both the peace of mind,

   and the choice, value and flexibility of an online travel agent, so we are designing for peace of mind, for hiccup-free holidays to increase NPS and reduce churn.

   Major drivers

   By significantly upgrading the platform and entering a commercial agreement with Ryanair in FY24, we have improved the booking experience and peace of mind metrics.

2. Why scale and automation?

Scale and automation

Our platform developments have

accelerated significantly, with a principle that we design for 10x scale rather than +10%.

Major drivers

We have spent 3 years building AI ready tech. Our API-first microservices architecture is enabling direct integration into ChatGPT, Gemini, and emerging AI platforms. We have developed infrastructure that scales, with

a cost that does not scale in the same way.

We are continually iterating the app, introducing several new app-only features, and improving flight/in-resort notifications.

We know that customers who don't need to contact us have higher satisfaction levels, so we are enhancing our self-serve technology and operating a digital-first contact model.

Should customers need our help, they can then contact us through Livechat. We use a chatbot to handle as many simple enquiries as possible. We continue to improve this with careful monitoring of customer satisfaction. Customers can request to chat with an advisor in their chat or request a callback.

AI automation across the back-office and company-wide is saving thousands of hours per week and enables us to move at pace towards our strategic ambition.

We have achieved company-wide AI adoption with employees using AI assistants daily for individual productivity gains.

Our move into Ireland means we have developed the technology to handle new languages and currencies in weeks, not months, which will enable further

international expansion when we are ready.

Results to date

Our strengthening of peace of mind is paying off, and we believe this will be a leading indicator for higher levels of repeat bookings in the future. Our Net Promoter Score, which is an inherently difficult measure to improve, has increased by 14% to 56.

Net Promoter Score 56: +14% YoY

Results to date

We have automated and optimised hotel content, whilst also making significant improvements to the speed of onboarding new destinations.

We are using AI to automate significant volumes of supply-related tasks - like contract loading and managing operational changes, at 50x the pace. We are using AI to increase the velocity of engineering tasks, and to assist with using new technologies (e.g. our In-Memory cache (FFS) built with significant AI support). As a result, we

are now able to store billions of holiday combinations and present the results in seconds.

12

Brand and tech enable increased differentiation and loyalty

Our brand combined with our technology enable continued differentiation from our competitors. Our perks (e.g. lounge) provide a unique value proposition and a communicable point of difference, helping strengthen our brand, and broaden

our appeal to new customers seeking package holidays in our core beach market or expansion areas. Perks are now embedded in the app, which is used to promote our perks and vice versa, supporting further stickiness.

Our perks, combined with the successful partnership with Paddy McGuinness, have enabled us to effectively

maintain high levels of spontaneous brand awareness and consideration. In FY25, alongside a significant reduction in marketing spend as a % of revenue, we achieved our highest ever Top 3 Consideration score at 32%.

Looking ahead to FY26, we are seeking to build on the trading momentum at the start of the year by continuing to execute against the four pillars of our strategy.

FY26 key strategic focus areas

Stickiness

Choice

Increase App activation and engagement

Increase in year purchase order frequency and 2 year repeat rates

Significantly grow bookings across all expansion areas

Improve customer search funnel conversion

Peace of mind

Scale and automation

Ready for LLM distribution in an AI first world

Leverage AI powered automation in booking ecosystem and customer change requests

13

Chief Executive Officer review continued

Medium term outlook

We announced our highly stretching Medium Term Ambition in December 2024: to achieve a Total Transaction Value of £2.5bn, EBITDA of £100m, and Adjusted Profit Before Tax of £85m by FY29 (the ʻMedium Term Ambitionʼ or

Medium Term Ambition driven by 5 KPIs

EBITDA

Operating

Ireland

+ leverage

FY25: 34%

MTA: 40%

UK Beach & Expansion

ʻMTAʼ). These goals represent a near tripling of adjusted PBT from FY24 and remain our central strategic focus through to FY29.

Our strategic pillars - stickiness, choice, peace of mind and scale and automation - are integral to achieving OTB's MTA. We are annually targeting five KPIs to deliver the MTA: new customers, repeat customers, in year purchase frequency, customers departing from the Republic of Ireland, and Group EBITDA margin. We

are measuring the success of our strategy by our progress against these KPIs.

X

New customers

X

Repeat customers*

Purchase frequency**

Ireland

+

FY25: 37k pax

MTA: 300k pax

FY25 bookings: +7% YOY

MTA bookings CAGR: +11%

* 2 year

** In year

Shaun Morton

Chief Executive Officer

1 December 2025

Medium Term Ambition

Group TTV

£2.5bn

Group EBITDA

£100m

Group PBT

£85m

Adjusted basic EPS

38.7p

14

Governance Financial Statements Additional Information

15

Business model

Profitable and cash generative business model

Structural market growth and market share growth

Personalise customer proposition and maximise revenue

Addressable market

International leisure travel from UK and the Republic of Ireland

Conversion x

Package penetration

Holiday transaction value

Online penetration

x

OTB share of market traffic

Commission %

= Customers

x

=

Revenue per customer

x

=

Efficient marketing spend

Customer

Marketing spend per customer

Revenue

-

=

Marketing investment

-

Other fixed and variable overheads

=

Strategy to scale drives operational

1. Stickiness

2. Choice

3. Peace of mind

4. Scale and automation

= EBITDA

leverage Our four strategic pillars are designed to drive the performance of all our business model levers

16

Strategic Report

Governance

Financial Statements

Additional Information

Proprietary, scalable end-to-end technology platform

Search and booking functionality

• The core platform dynamically packages flights and hotels from a wide range of supply partners in real time, delivering custom-built holidays

• Smart caching technology rolled out in FY24 enables rapid retrieval of billions of holiday combinations, significantly improving site performance and booking conversion

• Our Fast Flexible Search now allows customers to search our entire inventory of holidays for any date range in under a second

Pricing and inventory management

• Live pricing architecture supports dynamic updates of flight and hotel costs, ensuring customers receive accurate pricing and availability at the point of booking

• Our AI powered Hotel Discovery Cache manages more than 5 billion hotel prices

• Our Ryanair integration allows direct seat access and automated fulfilment, reducing manual intervention, supporting a reduction in inbound contacts

Mobile and app infrastructure

• Native iOS and Android apps were fully re-platformed in FY24, improving speed, stability and unlocking native functionality (e.g. push notifications, biometric login)

• The app supports the full booking flow as well as post-booking customer service, with over 0.6m monthly active users and 30% of bookings made via the app

Customer service and automation

• Platform includes an AI-powered chatbot, automated interactive voice response ('IVR') and self-serve options for payments, changes and cancellations

• These tools significantly reduce the volume of manual service contacts and increase customer satisfaction, contributing to our 14% increase in NPS to 56 this year

Content management and hotel onboarding

• AI tools now support content generation for hotel pages, deduplication of rooms offered through various bed banks, and quality control, reducing onboarding time by 99%

• Automated processes enable scalable inventory growth, with hotel supply increasing from 7k in FY19 to 24k in FY25

Operational efficiency and cost control

• Internal tech and product teams are now focused on growth and innovation following the resolution of legacy integration issues with Ryanair

• Platform investments are delivering measurable productivity gains across technology, marketing, operations and customer service

17

On the Beach Group plc Annual Report and Accounts 2025

Chief Marketing Officer report

I'm delighted that our continued customer focus, across service teams and beyond, has resulted in 80% of

customers rating us 8 or above on their likelihood to recommend On the Beach to friends or family.

Zoe Harris

Chief Marketing Officer

Customer report

This year has seen incredible progress from our customer and marketing teams as we continue to differentiate our proposition and improve delivery for holidaymakers.

The creation of a dedicated customer experience team, supported by automation, has enabled us to raise satisfaction while also reducing customer inbounds and the cost to serve. This balance is something we are particularly proud

of - holidaymakers enjoy a more seamless service while the business runs more efficiently.

Listening and responding

In January, we launched Price Drop Protection in response to concerns that January was no longer the best month to book. With On the Beach, travellers no longer have to take a chance - if the price of their holiday falls before 60 days of departure, they can claim a credit for the difference.

This was the latest addition to our family of perks, all designed to provide peace of mind. A record number of people were eligible this year, whether through Price Drop Protection, Free Lounge Access or Airport Fast Track. With perks now integrated into our app, it has never been easier to view, access and use them. This app engagement drives the customer stickiness that underpins our strategy, as app users show significantly higher rebooking rates.

people holidayed with us this year

uplift in NPS: perk + app users

Campaigns that cut through

Our advertising continues to perform strongly. It remains the top-performing radio creative in the pool monitored by the commercial radio industry body and delivers excellent

results on brand trackers. This reflects a consistent, distinctive approach: believing that ads wear in, not out; making the most of our brand assets across channels; and steering clear of

the stereotypes common in travel advertising. The result is a campaign that stands apart and builds recognition in a way that resonates with holidaymakers.

Making it easier to find us

We have also made it simpler for new customers to choose On the Beach, as improved search visibility and stronger positioning as trusted holiday experts have brought more visitors to our site. We are increasingly the go-to travel brand for media, with more than 700 pieces of national coverage this year.

Influencer partnerships are showcasing our holidays to new audiences, while smarter use of data has reduced the need to spend heavily on reacquiring existing customers. Many rebook with us naturally, freeing up investment to reach people seeking flexibility, choice and reassurance.

customer credits from Price Drop Protection

18

Governance

Financial Statements

Additional Information

Growing the brand

Awareness and affection for the brand continue to grow, allowing us to stretch beyond short haul beach holidays. This year, thousands booked city breaks with us, and in November, we launched Cruise, demonstrating our commitment to address more of our customers holiday needs.

We also launched in Ireland, where awareness has doubled in under a year. It is encouraging to see that the same brand proposition and campaign that work so well in the UK also resonate in the Republic of Ireland.

Going the extra mile

We introduced a campaign this year to help customers avoid costs from airport drop-off charges. With 35% admitting to being caught out, we began sending text reminders to help them steer clear of fines. It is a small initiative, but one that reflects our determination to support holidaymakers at every stage of their journey.

Listening and responding

Travellers no longer have to take a chance. If the price of their holiday falls after booking and before 60 days of departure, they can claim a credit for the difference.

Powered by our people

I am incredibly proud of the passion and commitment shown by the whole team. From service colleagues through to Finance, Technology & Product, Legal and beyond, every part of the business contributes to ensuring holidaymakers have the best possible experience. The determination to

do whatever it takes is what makes these results possible.

Looking ahead

As we look to the year ahead, our focus is clear: to keep putting customers first, to continue investing in our proposition, and together to help more people holiday better.

Zoe Harris

Chief Marketing Officer

1 December 2025

19

Key performance indicators

Financial

TTV1 (£m)

£m

1,400

1,200

1,000

800

600

400

200

0

2022

2023

2024

£1,249.0m

£1,124.2m

£983.8m

£762.7m

2025

120

100

80

60

40

20

0

£106.1m

£87.1m

2022

2023

2024

2025

120

100

80

60

40

20

0

2022

2023

14.6m

2024

£121.4m

£106.9m

£86.9m

2025

Marketing spend (£m) as a % adjusted revenue2

£m %

Adjusted EBITDA (£m) as a % adjusted revenue2

£m %

Adjusted profit before tax2 (£m)

£m

38%

33%

£38.9m

£40.6m

£42.4m

£40.5m

50 45%

40

50 45

37% 40

£29.2m

£24.7m

£14.9m

40

33% 40 40

30%

32%

£32.1m

£36.3m

£40.3m

25%

£22.1m

35 35

£35.0m

35 30 30

30

20

10

0

2022

2023

30

20

10

0

2024 2025

30

25

20

15

10

5

0

2022

2023

25

20

15

10

5

0

2024 2025

25

20

15

10

5

0

2022

2023

2024

2025

Marketing spend (£m) Marketing spend %

statutory revenue

% of adjusted revenue

Adjusted basic earnings per share2 (p) Profit before tax3 (£m)

p £m

25.0

20.0

15.0

10.0

5.0

0

20

2022

2023

2024

19.0p

12.0p

13.1p

6.8p

2025

30.0

25.0

20.0

15.0

10.0

5.0

0

2022

2023

2024

£27.9m

£25.2m

£15.2m

£4.7m

2025

1. Group Total Transaction Value ('TTV') is a non-GAAP measure representing the cumulative total transaction value of sales booked each month before cancellations and adjustments. The prior periods are restated for the effects of discontinued operations.

2. A full reconciliation of all non-GAAP measures to the closest equivalent GAAP measure is included in the glossary. The prior periods are restated for the effects of discontinued operations.

3. The prior periods are restated for the effects of discontinued operations.

Passenger numbers (booked)1 Number of customers (UK)2 Average order frequency ('AOF')3

m

2.0

1.5

1.3

1.8 1.7

1.6

1.4

1.2

1.8

'000

600

500

400

1.18

1.17

1.16

1.15

1.17

1.16

1.0 300 1.14

0.8

0.6

0.4

0.2

200

100

1.13

1.12

1.11

0 0 0

2022

2023

2024

2025

2024

Existing New

2025

2024

2025

Bookings share4 Customers 2+ bookings in year5 Repeat customers6

ʼ000 % '000 ʼ000

650

600

550

500

450

2%

1%

8% 9

8

7

6

5

4

80

70 62.0

60

50

40

71.1

300

250

200

150

100

50

0

146.8

170.8

1. Passenger number is defined as the number of passengers booked in the year. The prior periods are restated to exclude the effects of discontinued operations.

2. Existing customer is defined as customers who have previously booked with OTB prior to the year. New customer the first booking within the year.

3. Average order frequency (ʻAOFʼ) is defined as the average number of bookings per customer in the year.

4. Bookings share is defined as the number of bookings, booked in the year. Expansion areas inclusive of Republic of Ireland and Cities.

5. Customers 2+ is defined as the number of customers who have booked more than one holiday in the year.

6. Repeat customer is defined as the number of customers who have booked in the year and also booked within the prior 2 years.

21

Key performance indicators continued

Non-financial

Each of our non-financial KPIs is mapped to the four strategic priorities that underpin our growth strategy - choice, stickiness, peace of mind and scale and automation.

Voluntary employee turnover (%) Employee engagement (Score out of 10) Net Promoter Score

% Score Score

30 10 60 56

25%

22%

19.3%

12.1%

25 8

20

6

15

4

10

8.1

7.6 50

47

50

49

40

30

20

5 2 10

7.3

7.2

0 0 0

2022

2023

2024

2025

2022

2023

2024

2025

2022

2023

2024

2025

Description

Voluntary turnover tracks the number of employees who have left of their own volition and provides a measure of our ability to retain employees.

Performance

Voluntary turnover has reduced for the fourth consecutive year to 12.1%, reflecting improved retention as we strengthen our organisational capabilities and embed higher performance expectations. This continued improvement provides an important counterbalance to the engagement trend, indicating that colleagues remain committed and are choosing to stay with us through a period of significant strategic change.

Description

Overall employee engagement score from the employee engagement survey (administered by Hive, a third party).

Performance

We achieved an engagement score of 7.2. While this is a modest reduction year-on-year, it reflects the scale of

organisational and strategic change undertaken to support a higher-performance culture. Engagement remains strong overall, and when viewed alongside a material improvement

in voluntary turnover, the results suggest a stable and resilient workforce that is aligned behind our strategy.

Description

Index that measures willingness of customers to recommend the Company's services to others. It gauges a customer's overall satisfaction and provides us with insight into our customers' views.

Performance

Our investment in technology and skilled teams is shown in impressive customer satisfaction results with a Net Promoter Score high score of 56.

22

Brand traffic share (millions) Spontaneous brand awareness Brand consideration - Top 3 choice

m

100

80

60

40

20

0

2022

2023

2024

71.6m

2025

%

60.9m

47.7m

56.8m

68%

67%

72%

72%

29.7m

27.2m

18.9m

26.4m

100

80

60

40

20

0

%

25%

25%

27%

27%

30

25

20

15

10

5

0

2022

2023

2024

2025

%

27%

29%

35

30

25

20

15

10

5

0

2022

30%

2023

2024

32%

2025

Description

Data shows the percentage share of sessions that have come from brand and non-brand channels.

Performance

Another record year of sessions (98.8m) to https://www.onthebeach.co.uk driven by growth in brand sessions. Brand traffic share at 72%, the increase reflecting the efficiencies in non-brand sessions.

Description

Chart shows the % of people who name On the Beach, without a list or prompt, when asked to think of a beach holiday company.

Performance

Spontaneous awareness remains at our highest level as media optimisation and consistency continues to pay off.

Description

Chart shows the % of people who consider On the Beach as one of their top three choices when booking a package holiday. This is directly linked to purchase intent.

Performance

Our highest ever Top 3 consideration despite no increase in investment, driven by improved effectiveness from imaginative repetition of our campaign assets used to communicate our unique perks proposition.

Brand sessions

Key brand metrics - multiplied

Total

750

783

675

900

800

700

600

500

400

300

200

100

0

864

Description

This metric combines our top two brand indicators by multiplying Spontaneous Awareness with Brand Consideration (Top 3 choice), providing a single measure of brand strength.

Performance

This year saw our highest ever performance across spontaneous brand awareness and Top 3 consideration combined, despite no increase in investment, driven by improved effectiveness from imaginative repetition of our campaign assets used to communicate our unique perks proposition.

2022

2023

2024

2025

23

The Group's financial performance for the year ended 30 September 2025 ('FY25') is reported in accordance with UK adopted international accounting standards and applicable law.

Following the discontinuation of activities in relation to B2B (Classic Collection) during the year, the Group now operates with a single segment with all revenue accounted for on a booked rather than travelled basis as it is not the primary party responsible for providing the components that make up the customers' bookings. Prior periods have been restated accordingly.

Financial performance

1. Adjusted measures are non-GAAP measures, a full explanation of the adjustments is included in the glossary. The prior period is restated for the effects of discontinued operations.

Revenue

Booked TTV has increased by £124.8m (11%) to £1.25bn (FY24: £1.12bn), as a result of volume growth of 9% and ABV

growth of 2%. Growth has been across 3*, 4* and 5* bookings, with a 20% increase in 5* TTV as the brand continues to resonate across a more diverse customer base.

The major contributor to TTV growth remains Beach holidays, with 2% growth coming from each of Ireland and City breaks.

Growth in Adjusted Revenue (after adjusting for exceptional recoveries in the prior year) of 6% reflects a lower revenue per booking (FY25: £193; FY24: £199) as a result of the expansion in City breaks, due to a lower ABV, and also incremental

price investment reflecting the more challenging trading environment in H2.

On the Beach Group plc Annual Report and Accounts 2025

Chief Financial Officer report

Booked TTV has increased by 11% with growth across 3*, 4* and 5* bookings as the brand continues to resonate across a

diverse customer base.

Jon Wormald

Chief Financial Officer

24

Gross profit after marketing costs

Gross profit after marketing costs of £78.4m was up £7.9m (11%) on FY24 (£70.5m), after adjusting for exceptional income relating to Ryanair refunds in the prior year.

Total marketing costs in the year were £40.5m which is £1.9m lower than the prior year (FY24: £42.4m) despite significant volume growth, demonstrating the improving effectiveness and operational leverage as the business scales.

Online marketing costs were down by £1.8m on the prior year despite Investment into our Irish business as we continue to build scale.

Offline marketing costs of £12.1m were £0.1m below the prior year, inclusive of investment into brand awareness in Ireland.

Overheads

1. Adjusted measures are non-GAAP measures, a full explanation of the adjustments is included in the glossary. The prior period is restated for the effects of discontinued operations.

   Total overheads in the year amounted to £38.1m, an increase of £3.9m on FY24. £1.1m of the increase relates to variable costs which have increased below the rate of volume growth. Incremental fixed costs relate to continued investment into Technology & Product talent, alongside additional cloud computing costs relating to the increased inventory being made available to customers. Overall costs remained consistent as a % of TTV.

   Depreciation and amortisation

   Depreciation and amortisation charges in the year have reduced to £10.3m from £12.2m in FY24. During the year the Audit Committee considered a proposal from management to reconsider the useful economic life policy that was being

   applied to capitalised development costs. This had historically been three years, but this is now felt to be too short a period given the investment that has been made in recent years into transformational platform development that will support the delivery of the medium-term targets over the next five years and beyond.

   The useful economic life has been changed to five years to more appropriately reflect the nature of the spend. This has been considered by our auditors alongside external

   benchmarking data and agreed as an appropriate treatment. The change has been applied prospectively from 1 October 2024 and decreased amortisation expense by £2.5m for the year ended 30 September 2025.

   Amortisation of acquired intangibles in the year of £2.2m (2024: £2.2m) has been included as an adjusting item as per previous years with no changes made to the useful economic life.

   Net interest income

   Net finance income in the year has reduced to £5.0m (2024 restated: £5.1m) due to the impact of lower base rates on the trust balance and the incremental costs of being further drawn on the RCF in the year due to continued growth and shareholder returns.

   Taxation

   The Group tax charge of £3.3m represents an effective rate of 28% (FY24: 24%) based on total Group profit on ordinary activities.

   25

   
   
   

   On the Beach Group plc Annual Report and Accounts 2025

   Chief Financial Officer report continued

   Exceptional items

   Group exceptional items on a net basis are £1.3m in the year. Costs related to legal and professional fees of £0.3m, fees for commission and stamp duty arising on the repurchase

   of shares of £0.3m and restructuring costs of £0.7m.

   Exceptional items in the prior year (restated) amounted to £0.4m, being exceptional income of £4.6m following the settlement of refunds litigation with Ryanair, offset by

   exceptional costs of £4.2m, relating to legal and professional fees £3.9m and restructuring costs £0.3m.

   Share-based payments

   The Group has a number of Long Term Incentive Plan ('LTIP') schemes in place which vest subject to continued employment and performance criteria. In accordance with

   IFRS 2, the Group has recognised a non-cash charge of £3.6m (FY24 restated: £2.2m).

   The share-based payment charge represents a non-cash charge for the expected cost of shares vesting under the Group's LTIP. The increase in the year is a result of an increase in the number of awards in the year as well as reflecting the increase in the share price in the period. Given the volatility and size of these charges they are added back to provide comparability to prior periods.

   Financing

   In September 2025, the Group refinanced its credit facilities, extending the RCF to £120m, with a £30m accordion. The initial term of the new facility is four years, with a one-year extension option. We were pleased to see significant support for the refinancing from both our existing lenders, Lloyds Bank and NatWest, and from a number of new lenders. We were delighted to add HSBC to our lending syndicate following

   a competitive process, which showed the confidence in the Medium Term Ambition of the Group and which enabled

   us to deliver improved pricing versus the previous facility.

   26

   The increased facility will be utilised in line with our capital allocation policy, focusing initially on the delivery of our organic growth plans.

   Existing facilities	£	Issued	Expiry	Drawn at 30 September 2025
   RCF - Lloyds Bank	£40.0m	Sep 2025	Sep 2029	Nil
   RCF - NatWest	£40.0m	Sep 2025	Sep 2029	Nil
   RCF - HSBC	£40.0m	Sep 2025	Sep 2029	Nil
   Total facilities	£120.0m

   Cash flow

   	FY25 £m	FY24 £m
   Profit before tax from continuing operations	27.9	26.5
   Loss before tax from discontinued operations	(16.0)	(7.2)
   Depreciation and amortisation	13.1	15.1
   Net finance income	(5.1)	(5.3)
   Share-based payments	3.8	2.3
   Net (profit)/loss on disposal of property, plant and equipment	(0.6)	0.6
   Net loss on disposal of intangible assets	0.1	0.2
   Loss on goodwill for discontinued operations	8.4	4.6
   Movement in working capital	7.9	(4.3)
   Corporation tax	(4.1)	(3.9)
   Cash generated from operating activities	35.4	28.6
   Capitalised development expenditure	(10.4)	(10.2)
   Purchase of intangible assets	-	(0.1)
   Proceeds from disposal of assets	2.6	-
   Net finance income	5.1	5.4
   Payment of lease liabilities	(1.4)	(1.8)
   Dividends paid	(4.9)	(1.5)
   Share buyback	(30.9)	-
   Total net cash flows	(4.5)	20.4
   Opening cash balance	96.2	75.8
   Closing cash at bank	91.7	96.2
   Closing trust balance	142.9	139.5

   The Group's asset light business model continues to deliver strong cash conversion, with cash generation from operating activities increasing to £35.4m in the year (FY24: £28.6m).

   The Group remains in a strong financial position with combined cash balances of £234.6m (2024: £235.7m) despite returning £38m to shareholders during the year, with:

   • group cash, excluding amounts held in trust, of £91.7m (30 September 2024: £96.2m); and

   • customer prepayments held in a ringfenced trust account of £142.9m (30 September 2024: £139.5m). Growth in the trust account was below the rate of bookings growth due to slower growth in the final quarter of the year and also cash relating to Ireland bookings not being held in trust.

Earnings per share

Profitable growth in the year, coupled with continued shareholder returns through share buybacks, have resulted in a 45% increase in basic adjusted EPS in the year in respect of continuing operations. This growth is ahead of the CAGR required to achieve the Medium Term Ambition of 38.7p

by FY29.

Discontinued operations

During the year the Board made the decision to commence an orderly wind down of our B2B operations, Classic Collection. As a result of these changes the results of Classic Collection are presented as discontinued operations.

We have recognised a loss on discontinued operations of

£16.0m. This includes the impairment of £8.4m of goodwill and intangibles previously attributed to the Classic Collection segment, as well as redundancy costs, onerous contract provisions and the loss for the period.

Capital allocation

In line with our stated capital allocation policy, the Board has continued to invest in organic growth whilst maintaining capital discipline. During FY25 £38m has been returned to shareholders following the reintroduction of the dividend in FY24 and share buyback activity across two programmes.

The £25m share buyback announced in December 2024 completed in March 2025, with 10,517,173 shares being repurchased and subsequently cancelled, providing a positive enhancement to EPS.

The Board announced as part of its pre-close update in September 2025 the commencement of a further £25m share buyback. This completed on 18 November 2025 with a further 11,569,166 shares being repurchased and subsequently cancelled.

Dividend

The Board is recommending a final dividend of 3.0p per share (2024: 2.1p per share). An interim dividend of 1.0p per share was paid in June 2025. The Board is comfortable that the Company has sufficient distributable reserves to recommend the dividend. Subject to approval at the 2026 AGM on 12 March 2026, the final dividend will be paid on 19 March 2026 to shareholder on the register of members at the close of business on 6 February 2026.

Current trading and outlook

We have seen a positive start to FY26, with YTD booking volumes up 14% and TTV up 16% as at 30 November 2025. Winter ʼ25/26 forward bookings are currently tracking +15% YOY and Summer 26 momentum is building; YTD forward bookings for Summer 26 +8% YOY.

The Board is confident in delivering FY26 Adjusted PBT in the range of £39-43m and the Group remains on track with its Medium Term Ambition; TTV of £2.5bn, EBITDA of £100m, Adjusted PBT of £85m and EPS of 38.7p.

Medium-term guidance

As set out within the Strategic Report, the Board remains confident in the delivery of the Medium Term Ambition. Despite not having yet seen a full year benefit of the growth in our Cities proposition or launch in Ireland we have seen positive growth in both new and repeat customers, alongside an increase in the average order frequency. With a continued focus on operational improvement, which resulted in a 150bps improvement in EBITDA margin % in the year, we remain confident of the non-linear trajectory towards those targets.

Jon Wormald

Chief Financial Officer

1 December 2025

27

On the Beach Group plc Annual Report and Accounts 2025

Sustainability

We are committed to conducting our business the right way and we want to drive meaningful change across the industry in areas that are strategically important.

To that end, we developed an ESG strategy aligned to our purpose, values and strategy that will help build resilience in the business, improve behaviours in our supply chain, create long-term value and ultimately drive positive change.

28