Online travel agent On the Beach says its “low-risk” approach has helped it report a 776% leap in annual pre-tax profits in a turbulent year for the travel industry.

Chief executive Simon Cooper said the “flexibility” of not owning its own aircraft or having commitments to hotels has helped.

“We have been able to present a much wider range of product at a far more competitive price,” he said.

He added that the collapse of Lowcost Travel Group, which had no Atol licence, has reinforced the importance of protection to consumers, and left a gap in the market for other OTAs to fill.

“Lowcost’s collapse collapsed with only two months to go of the financial 12 months,” he explained. “Will that underpin even more impressive growth next year? We’ll have to wait and see.”

On the Beach made a profit of £16.9 million in the 12 months to September 30.

Group revenues rose by 13% to £71.3 million in the period, with the UK representing £70.2 million bulk of the total.

Cooper added that success selling holidays in Sweden has led to On the Beach beginning Norway trips before Christmas and exclusively announced that – if the pattern continues – the firm will add Denmark to its portfolio of holidays.