On The Beach Group Live Discussion

rogerhorton 06 Feb 2020

results UPDATE 1 – On The Beach Group sees summer growth despite Thomas Cook, 737 MAX capacity crunch 06-02-2020 08:40 (Adds details on seat prices, background) Feb 6 (Reuters) – On The Beach Group said on Thursday it expects strong sales growth during the summer, helped by higher marketing spends, as the holiday package provider taps into the market share opened up by the collapse of rival Thomas Cook . On The Beach has flagged opportunities to gain additional market share after Thomas Cook’s UK business and airline went insolvent, but that has also hurt capacity in the short term, driving up prices of holidays as ticket prices rise. The company more than doubled its offline marketing spend in the four months to Jan. 31, helping it cushion any hit from the capacity crunch caused by Thomas Cook’s liquidation, it said, adding delays in flights services after Boeing’s 737 MAX crisis were also driving up seat prices. … On The Beach said it does not expect pricing to fully normalise in the current financial year. The company’s shares were nearly 2% lower at 397.4 pence as of 0813 GMT. However, the company also pointed to good demand for its new “Classic Package Holidays”, with more than 2,300 agents signed by the end of January. Liberum analysts said that while there are short-term challenges in the market, On The Beach’s business model and growth across offline, long-haul and international categories should work in its favour.

Ripley94 08 Apr 2018

Re: Sunday Times This was the last of Peel Hunts value shares for 2018.Others Charter court financial , ASOS, B&M, The gym Group , JUST Eat, Nostrum oil , MP Evans, and top pick SQZ.

IOMINVESTCOM 03 Dec 2017

Sunday Times Unfortunately, I do not subscribe to get the full article but here is a bit.....The Sunday Times: The £240 million float of the online holiday company On the Beach is at the heart of the City watchdog’s probe into alleged rigging of share prices by a clutch of Britain’s best-known fund managers.Maybe others can post the full commentsatb

IOMINVESTCOM 30 Nov 2017

Re: Paul Scott's view [link]

IOMINVESTCOM 30 Nov 2017

Paul Scott's view Preliminary results - for the year ended 30 Sep 2017. This is an online travel agent.Today's results are very impressive. This could be the last time we report on this company, as it's now above our usual upper end market cap (of c.£400m) - although we bend the rules if something looks interesting.Both Graham and I have written positively about this company before. Looking through today's accounts, it strikes me as a growth at reasonable price company, and am kicking myself for not buying some a while ago, when it was on a cheaper rating.All the P&L measures are up today, e.g.Revenue up 17.2% to £83.6m (14% organic, and the balance being from a small acquisition called "Sunshine".Adjusted profit before tax is up 33.8% to £28.5mAdjusted proforma EPS up 35.4% to 17.6p - a PER of 25.3 - that's a whisker ahead of broker consensus of 17.5pNote that this share has re-rated a fair bit - when I reviewed it here on 2 Feb 2017, I thought it looked a nice GARP share, and at 280p per share then, the forward PER was only 15.3. In the 10 months since, the shares are up 59%. So this was clearly a missed opportunity for me, and am kicking myself for not having bought some, when the value was so obvious.Forecasts - looking through broker notes today, earnings are forecast to continue growing strongly, as follows;FY 09/2018: EPS 21.9p - forward PER 20.3FY 09/2019: EPS 26.1p - forward PER 17.0Those multiples don't look stretched to me, considering this is a fast-growing, profitable online business. If anything, I could see scope for this share to re-rate upwards more - in a bull market this is very much the kind of thing that would be attributed a premium rating.Reading through today's narrative, the company's business model seems to focus on having a low cost overheads base, and negotiating deals (sometimes exclusives) directly with hotels.Marketing costs - reaching sufficient scale to be able to fund a large & growing marketing budget, and increase profitability too, is what all online businesses seek to do. Many fail to achieve the necessary scale. In this case, the company has clearly succeeded, and manages to generate a high net profit margin too. I'm really warming to this share.Note that the marketing spend in FY 2017 was by far the largest cost, at £40.3m. To be able to spend that much, and still achieve a £28.5m adjusted profit for the year, is really impressive.The blurb today says that OTB has 20% market share of UK online sales in the short haul beach holiday market. I find it remarkable that this relative newcomer has managed to grab that sort of market share from the bigger, established holiday companies. So whatever OTB is doing, it's clearly very good at it.Current trading - is going well;"The Board is pleased to report that current trading is in line with expectations and believes the business is well positioned for the key trading period that commences in late December and continues into Q1 2018."Balance sheet - is nothing special. However, travel companies can often manage with quite weak balance sheets, as they receive payment up-front from customers. So this isn't a worry.Cashflow statement - I've reviewed this, and am happy with it. There aren't any funnies - this is a genuinely cash generative business. It My opinion - as you've probably already gathered, I really like these numbers.OTB is currently a mainly UK-focused business, but is also expanding (from a low base) in Scandinavia, with a launch in Denmark imminent too. If it can crack some overseas markets, then that could drive a further re-rating.There is also potentially more M&A, and expanding the product range into longer haul destinations.Overall, this looks a very nice business, at a reasonable price. It's not easy to buy into a company which has more than doubled in price in the last year, but in some cases that can still make sense.[link]

dontlikenicknames 30 Nov 2017

results good

Blanketstacker 02 Oct 2017

Re: Paul Scott's view Should be "Graham Neary's view".

IOMINVESTCOM 02 Oct 2017

Paul Scott's view So how does this affect the online travel retailer, On The Beach?The Group has Scheduled Airline Failure Insurance in place which covers the failure of Monarch Airlines Ltd including monies paid to Monarch Airlines Ltd and also the costs to repatriate customers currently in resort. The Board anticipates that there will be a one-off exceptional cash cost associated with helping customers to organise alternative travel arrangements or providing refunds and will update shareholders in due course. The Group has no exposure to Monarch Holidays Ltd bookings as it only offered Monarch Airlines Ltd seat-only flight options on its website.In short, I don't think this is a big deal for On The Beach. The CAA website appears to have crashed under the pressure of everyone trying to work out what ATOL protection means, but the costs in my opinion will almost entirely be falling on the government, CAA, various insurance companies and then the passengers themselves. On The Beach is just a middleman, which sounds like it has protected itself from airline failure, and while this will be a messy episode, I suspect that it will have been forgotten about a year or two from now.For someone who was already thinking about buying shares in On The Beach (LON:OTB), maybe today would be the day to do that?[link]

claude reins 03 Apr 2017

tured again in SCSW..... ...hence the rise this morning no doubt. However, it has concided with Lord Howard - presumably the frmer Conservative leader - saying that no doubt the British government would take the same attitude towards Gib as we did to the Falklands! Extraordinary comment, as indicated by the current Defence Minister. Frtom sabre rattling to war threats in the space of a week. I listeden to the Andrew Marr show yesterday and it contrasted the importance afforded to the Spanish government's alleged likely stand during the Brexit negotiations on Gib. In UK newspapers, prominent page 1. In El Pais, equivalent of The Times in Spain, a comment on page 19! Less about sovereignty, more about offshore banking apparently. Anyway, if there is serious trouble with Spain in the coming months, which will spill over to the treatment of foreign nationals in the two countries, thne that will not do OTB a great deal of good. They already migrated to the Western Med from the East. EWhere to next?

charlie51 05 Jun 2016

SCSW comment Good write up in SCSW this weekend……so far clearly a very unknown, but seemingly quality stock.

charlie51 06 May 2016

Good week It's been a very positive week - and the volume today is interesting. Summer season clearly pressaging interest?

charlie51 11 Mar 2016

Rosier buys in Interesting to see that John Rosier has bought into this very recently. He has a good track record overall. Some might wish to follow his lead. That aside I heartily recommend looking at his website.C51

charlie51 10 Mar 2016

From the Fool Same sector as OTB so some relevance here…Motley Fool | Tue, 8th March 2016 - 090Share thisShares in Jet2.Com operator Dart Group (LSETG) were given a boost last week after it issued an upbeat trading update. It now believes that operating profit for the full year to 31 March 2016 will be ahead of current market expectations as a result of lower-than-anticipated winter losses.Furthermore, forward bookings in the leisure travel business for summer 2016 are promising, supported by an increasing number of package holiday customers as a proportion of overall customers. And with trading volumes at Dart Group's distribution and logistics business, Fowler Welch, also being encouraging, the outlook for the wider company is very bright.With Dart Group's bottom line expected to rise by over 64% in the current year, it continues to offer exceptional growth potential. However, its shares trade on a price-to-earnings (P/E) ratio of just 11.2, which indicates that there could be capital gains on the horizon. And with consumer confidence improving in the UK and across Europe, the company's long-term future could be one of more growth, which makes now a good time to buy a slice of the business.