DAVY VIEW

On The Beach has reported its H1 FY26 results this morning with headline adjusted EBITDA of £6.4m (£12.8m H1 25) impacted by the Middle East war. Guidance had been suspended in March as a result of the war outbreak but has been reinstated today, with the Board confident in delivering adjusted profit before tax (PBT) in the range of £18-25m (previously £39-43m), a c.48% cut to guidance taking the midpoints. On current trading, the company has called out a late booking profile and subdued demand with booking activity stabilising since the half-year. Bookings over the last six weeks since H1 26 are +9%, and H2 26 forward orders are currently flat year-on-year (yoy). We expect consensus to move towards the midpoint of the guided range.