On the Beach warns on profits as weaker pound pushes up prices
On the Beach warned on profits on Friday, pinning the blame on a weaker pound amid rising risks of a no-deal Brexit.
FTSE All-Share
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FTSE Small Cap
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On The Beach Group
149.20p
16:49 26/04/24
Travel & Leisure
7,572.38
16:59 26/04/24
The online travel agent, which adjusts prices to account for currency movements rather than hedging against them, said its prices had risen significantly versus full risk competitors with currency hedges.
"As OTB remains focused on profitable growth, these relative price increases make it difficult for the group to gain share of market while maintaining margins," it said.
As a result, it now expects to deliver full-year results below the board's expectations.
Chief executive Simon Cooper said: "In what is a difficult general economic climate, we remain confident in the resilience and flexibility of our business model, focusing on profitable growth and an ability to capitalise on any structural changes in the market.
"In FY19 we have invested significantly in our infrastructure, talent and technology to ensure that we build strong foundations to support our strategic objectives."