Shares in beach holidays specialist On The Beach (OTB) have been on a roll since the announcement of its record full-year results on 3 December.

The strong momentum saw the stock hit a 52-week high of 258p on 2 January, also its highest level since 2022.

A combination of factors have seen investors warm to the story including resilient holiday bookings by consumers despite the squeeze on household budgets.

This is borne out in On The Beach’s latest numbers. The company reported record revenue of £128.2 million for the year ending 30 September.

On The Beach also announced a £25 million share buyback and a full year 2024 final dividend – the first regular income for shareholders since dividends were axed in 2020 because of the pandemic.

Canaccord Genuity analyst Karl Burns does offer a note of caution on expansion into city destinations: ‘While the move to City breaks make sense, in our view, more detail around execution is needed.

‘City breaks are a commoditised part of the market, with huge competition and, as a result, lower revenue margins and lower revenue per customer compared to beach, while customer acquisition costs are likely to be higher. 

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