On The Beach results impress, but Shore Capital stays at 'hold'.


On the Beach's stock surged on Tuesday morning after the online package holiday impressed with its third straight year of record results, though they weren't enough to deter Shore Capital from keeping a 'hold' rating on the stock.

  • On The Beach Group
  • 02 December 2025 12:46:07

Source: Sharecast

The company reported that total transaction value (TTV) was up 11% at an all-time high of £1.23bn, with revenues rising 6% to £121.4m and repeat customer bookings and app monthly actives users up 18% and 58%, respectively.

Shares, up nearly 13% on the day at 217.5p by 1231 GMT, have still fallen 13% since the start of the year (as of Monday's close) on the back of a series of downgrades – something which Shore Capital said "leave[s] us questioning whether management's targets [...], reiterated this morning, are still realistic".

The company is targeting TTV of £2.5bn, EBITDA of £100m and adjusted pre-tax profits of £85m over the medium term. That's up from £1.23bn, £40.3m and £35.0m for the year to 30 September 2025, respectively.

"Note that targets were set out in Dec 2024, with a medium-term target that, to our minds, implies 2028 and so more than doubling the business," Shore Capital said.

"Whilst valuation, EV/EBITDA <5x, appears attractive and we continue to like the cash-fuelled balance sheet, we believe there is execution risk with new ventures, as well as a difficult trading backdrop of growing competition and low consumer confidence. We believe this nervousness is also reflected in the shares being off by c.25% year-to-date," the broker said.


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