On the Beach Group PLC (LON:OTB) said it expects booking demand to be weak until the latest coronavirus (COVID-19) travel restrictions are lifted.
The online seller of beach holidays said continued uncertainty in the travel industry meant it was unable to give the market any guidance as to likely full-year performance.
In a statement released ahead of the company’s annual general meeting, On the Beach said consumer demand for holidays has remained very weak with UK traffic, bookings and spend on online marketing activity in the four months to the end of January 2021 down 73%, 83%, and 85% respectively year-on-year.
As at the end of January, the group had cash of £39mln, down from £51mln at the end of November. The group also has a £75mln revolving credit facility that it has yet to use. The monthly cash burn remains at around £2mln on a worst-case scenario (i.e. in the event that no revenue is received).
"The first four months of our financial year have seen differing tiering levels across the UK, followed by the current nationwide lockdown and ban on international leisure travel. Clearly, this has and continues to impact booking volumes and the board believes that booking volumes will remain weak through H1 and into H2,” said Simon Cooper, the chief executive of On the Beach in the trading statement.
“Following the prudent activities undertaken in the last financial year, the group remains in a strong and debt-free financial position. The board is confident about the group's long term strategy and we will continue to evaluate the growing range of exciting opportunities to build our market share both in the UK and internationally," he added.