Saga PLC (LON:SAGA) said it will report an underlying profit for the full year but added that it has started talks with its lenders due to the continued suspension of its travels arm amid coronavirus restrictions.
The travel business has focused on customer retention and cost control, while the insurance arm had delivered a “resilient” performance in what remains a highly competitive market, the over 50s specialist said in a year-end trading statement.
READ: Saga unveils new strategy after slumping to loss in first half
As of last Saturday, January 23, 2020, there was £140mln of total cruise bookings, representing 68% and 28% of the latest revenue targets for the 2021/22 and 2022/23 financial years respectively, excluding around £8mln of bookings that have been cancelled and where customers have chosen to receive a voucher.
Any Saga Travel customers this year will now have to be fully vaccinated at the time of travel, it said,
Saga's total year-end net debt at the end of December 2020 stood at £785mln, up £139mln since the end of July after receiving delivery of the Spirit of Adventure cruise ship, partially offset by proceeds from September’s £150mln capital raise. Cash balances were £51mln and there was an undrawn £100mln bank facility, with the total up £22mln since July.
in the statement, chief executive Euan Sutherland said: “We have made good progress in delivering our new strategy and have accelerated the pace of change.”
But the company said it was “taking actions to further enhance financial flexibility”, reviewing the covenants attached to a term loan and bank facility, while a package of measures available for the cruise industry could allow for deferral of up to £45mln of principal payments due to be made from April.