22nd Sep 2021 10:35
(Alliance News) - Saga PLC, which provides insurance, cruises and package holidays to people over 50, on Wednesday said revenue fell and it made an underlying loss, as confidence to book travel remains low.
It reported a pretax profit of GBP700,000 in the six months to July 31, from a GBP55.5 million loss a year before, when Saga recorded heavy restructuring costs and a goodwill impairment. Revenue was down 19% to GBP156.4 million from GBP192.4 million.
But on an underlying basis, excluding impairments and money from asset sales, Saga made a loss of GBP2.8 million from a profit of GBP15.9 million a year prior.
Shares were down 2.1% at 344.00 pence in London on Wednesday.
The company added that its performance was in line with expectations against the backdrop of travel restrictions.
Both of Saga's ships were in operation by July and sailing by the end of August. It said it hopes its cruise business "will become self-funding again" in the second half and that it can start repaying the GBP16.5 million inter-company loan it took while cruises were suspended.
Total travel bookings for departures in the 2023 financial year are 18% ahead of the equivalent from two years ago, which accounted for pre-pandemic trading. But cruise bookings for financial 2022 are 17% lower compared to the two years ago equivalent, because of uncertainty in the travel industry.
Saga declared no interim dividend, noting payouts aren't allowed during the holiday it has been granted on ship debt repayments. Its last payout was a 1.3 pence interim dividend for financial 2020.
The company said that, due to continued uncertainty in its markets caused by Covid-19, it will not provide any earnings guidance for the year.
"Whilst we are mindful of the remaining uncertainties, we continue to make progress against our strategic priorities, and we are confident that we have the right strategy, team and structure in place to emerge even stronger from the pandemic," said Chief Executive Euan Sutherland.
"Our priorities for the rest of the year remain the execution of our strategy, whilst continuing to ensure a full and safe return of our travel business.
By Josie O'Brien; [email protected]
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