On the Beach places share issue to ride Covid crisis
Published on Friday, May 22, 2020
On the Beach has raised £67.3 million in a new share placing and has secured a £25 million bank loan in order to help offset the impact of Covid-19.
In a trading update yesterday, the group’s Board said it expects a one-off hit of £35 million in the first half due to a sharp drop in bookings.
It said the length of the current travel restrictions remains unknown and it believes the ‘vast majority’ of bookings taken in the first half will not travel as planned in the second half.
“The Group’s H2 results are also expected to be impacted, dependent upon how long travel restrictions remain in place,” it said.
Chief executive Simon Cooper added: “The fundraising and banking facilities announced today will provide On the Beach with greater flexibility and firepower to ensure the Group is ready to take advantage of the multiple opportunities that are likely to arise across the travel industry, as and when the world emerges from the ongoing crisis.
“There is no doubt that the Group’s asset light and flexible model, combined with its ring-fenced trust account for customer funds, helps to differentiate On the Beach from its competitors and has stood us apart when providing customers the refunds they are entitled to in these difficult times.”