Travel group sees profits soar

Online travel firm On The Beach has shrugged off a “difficult” travel market to post a 47% surge in annual pre-tax profits.

The group said demand for short-haul beach holidays was hit by a combination of terrorist attacks, the Brexit vote, the weaker pound and disruption from the collapse of rival Lowcostholidays.

It slowed UK revenue growth to protect earnings, with groupwide underlying profits rising to £21.3 million for the year to the end of September, up from £14.5m a year earlier.

On The Beach chairman Richard Segal said: “This financial year was particularly challenging for the travel industry, which had to adapt to terrorist attacks, the corporate failure of a large budget tour operator and the impact of currency fluctuations.”

Shares rose strongly as the group announced a maiden dividend payout of 2p a share.

Group chief executive Simon Cooper said: “These results are testament to the strength and flexibility of our agile business model.”