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On the Beach - H2 sales up 70% whilst non marketing costs remain flat, electrifying profits

January 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • OTB
  • Price:
  • 363p
Following the 7% growth in H1, OTB grew sales by an astonishing 70% in H2 - and it did so without increasing its non-marketing costs. Overall as it was, sales for the year to end September were £83.6m, delivering pretax profit up 33% to £28.5m and eps up 35% to 17.6p.Sales in the UK went up 11% to £81.9m (14% excluding Sunshine.co.uk acquired in May, which has been fully integrated onto the OTB platform) and profit was up 38% to £26m. Daily unique visitors to the UK site increased by 13% to 66m. Historically, OTB invested >50% of revenue in marketing but has reduced the cost of customer acquisition (Google cost per click and marketing) thanks to its proprietary bid management software and more visitors na ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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