On the Beach online sales plummet 85 per cent due to lockdown restrictions
Online holiday retailer On the Beach remained debt-free despite online sales plummeting 85 per cent in the first quarter due to two lockdowns.
Lockdown measures enforced in November and early January drove “very weak” UK travel traffic and bookings, the Group said, with rates down 73 per cent and 83 per cent, respectively.
Chief Executive the Group Simon Cooper said: “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.”
In light of the pandemic measures, the holiday retailer removed holidays that departed prior to 1 May.
The Group has invested in the areas of technology, customer service, hotelier relationships and marketing, in hopes the next financial quarter will offer “unprecedented opportunity” to drive market share gains.
At the end of January, the holiday retailer reported a cash position of £39m and an undrawn revolving credit facility of £75m after the benefits of the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The Group was able to take advantage the CLBILS which has boosted the credit facility by £25m and expires in May next year. The remaining £50m in the facility expires in December 2023.
Cooper added: “Following the prudent activities undertaken in the last financial year, the Group remains in a strong and debt-free financial position.”