LONDON (ShareCast) - (Sharecast News) - On the Beach warned on Friday that full-year results will be below current market expectations due to the coronavirus outbreak.
The online retailer of beach holidays said it had experienced a "small but noticeable" reduction in demand for summer 2020 travel following reports of coronavirus cases in early February. However, the drop in demand has accelerated "significantly" following the increase in cases reported in Europe, particularly the spread of the virus to Tenerife.

"Whilst this reduction in demand has led to a natural reduction in marketing spend, the board does not now expect the group to achieve payback in the current financial year on its previously outlined strategic marketing investment," it said.

Amid expectations that the spread of the virus will cause significant disruption for a period of time, the company said it now anticipates that results for the year to 30 September 2020 will be below current market expectations.

"On the Beach's asset light business model, low inventory risk and tight cost and cash controls ensure that the group is resilient in a volatile market environment, enabling it to return to profitable growth when the demand for short haul beach holidays normalises," it said.

At 1530 GMT, the shares were down 3.3% at 320.52p.

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