On The Beach Group Shares Plunge; B2B Operations to be Discontinued

Shares of On the Beach Group (LON: OTB) fell sharply on Wednesday after the package holiday retailer announced plans to wind down its business-to-business arm, Classic Collection, despite strong growth in its core consumer business. Later booking trends were also highlighted in the company's trading update.

The stock dropped as low as 206p before recovering slightly to trade down 14% at 221.5p in London.

In a pre-close trading update for the year ending 30 September 2025, the company reported a third consecutive record year for its consumer division, with total transaction value rising 11% to £1.23 billion.

Bookings for Summer 2025 were up 12% year on year, significantly ahead of the wider package holiday market, while Winter 2025 bookings also grew 12%. However, the company noted that bookings were also being impacted by the widely reported later booking trend.

“It remains clear that customers are still prioritising their holidays with our Winter 25 bookings up 12% and we are confident that Summer 26 will continue to build, notwithstanding the later booking patterns,” said Shaun Morton, Chief Executive of On the Beach.

Adjusted profit before tax from continuing operations is expected to come in between £34.5 million and £35.5 million, below the consensus of £38.4 million.

The B2B arm, which made a small loss during the year, will be classified as discontinued operations. Management said the decision allows greater focus on the higher-growth consumer business.

“Our core B2C business has again outperformed the market, underpinned by the Group's asset light, cash generative model and balance sheet strength,” said Morton.

Elsewhere, On the Beach highlighted its strengthened financial position, ending the year debt-free with around £90 million in cash. It has also secured a new £120 million four-year credit facility with Lloyds, NatWest and HSBC, and announced a further £25 million share buyback on top of £30 million already returned in 2025.