- Travel company On the Beach reported a 26% fall in annaul profit due to costs associated with the collapse of rival Thomas Cook.

Pre-tax profit for the year through September declined to £19.4m, down from £26.1m on-year.

Revenue rose 41% to £140.4m but the company incurred costs associated with helping customers to organise alternative travel arrangements and lost margin on cancelled bookings, in the wake of Thomas Cook's collapse in September.

Adjusted gross profit rose 7% to £99.1m and the company held its dividend steady at 3.3p per share.

'In what has been a difficult general economic climate with the prolonged uncertainty regarding Brexit and the related currency impacts, I am pleased with the group's performance,' chief executive Simon Cooper said.

Cooper said the first quarter of the company's financial year had historically been its quietest trading period.

'The failure of Thomas Cook has led to a material shift in market dynamics as it had a 20% share of beach holiday passengers and approximately 20% of the seat capacity to beach holiday destinations,' he said.

'This has created a significant short-term lack of seat capacity as well as an unprecedented opportunity in the medium-term to gain share.'

'Search demand has therefore been strong throughout the period following the failure albeit the loss of seat capacity has led to a supply-demand imbalance with a significant increase in flight pricing, particularly for winter 19/20 departures and for travel to Eastern Mediterranean destinations.'

' The board strongly believes the correct course of action to ensure that On the Beach is best-positioned to capture market share, is to focus on price competitiveness and to increase the visibility of all of the group's brands, with the expectation that seat supply will normalise during the 2020 financial year.'

'Whilst the consumer environment will continue to be challenging, we remain confident in the ability of our resilient and flexible business model to significantly increase our market share in the medium term.'

Story provided by