SAGA PLC Sale of introductory care agencies, Trading Update (0693F)
05 Marzo 2020 - 1:00AM
UK Regulatory
TIDMSAGA
RNS Number : 0693F
SAGA PLC
05 March 2020
5 March 2020
Saga plc
("Saga" or "the Group")
Sale of Patricia Whites and Country Cousins & Trading
Update
Sale of Patricia Whites and Country Cousins
Saga announces it has completed the sale of Patricia Whites and
Country Cousins for an enterprise value of GBP14m to Limerston
Capital. Patricia Whites and Country Cousins are introductory care
agencies.
This is consistent with the stated objective to reduce leverage
and simplify the business through the disposal of non-core
assets.
As at 31 January 2020, and based on unaudited financial
information, the Group's net short-term bank debt was around
GBP110m, reduced from GBP148m as at 31 July 2019. Since the end of
January, the Group has announced two disposals which are expected
to generate net cash proceeds of around GBP37m in the first half of
this year. The cash from disposals will be used to further reduce
short-term bank debt.
Trading in February
Saga is closely monitoring the evolving situation with respect
to COVID-19 and our focus is to ensure customers, guests and
colleagues are safe and reassured in all circumstances. We have
taken significant steps to safeguard everyone and will continue to
do so throughout this time.
Saga has seen a robust start to trading in our Insurance
business with both the Retail Broking and Underwriting businesses
trading as expected. The Insurance business continues to make good
progress in execution of the strategy set out last April.
Trading in the Travel business has been impacted by recent
developments surrounding COVID-19.
For our Cruise business, bookings until recently have been very
strong, with forward sales for the current year of 80% of the full
year revenue target as of 29 February. The remaining 20% of our
full year revenue target is weighted towards Q3 and Q4 2020
cruises. While we have seen a higher level of cancellations for
departures in the near-term and more generally a lower level of
bookings for departures further out, our two most recent departures
had load factors of around 80%. The Cruise business continues to
only depart and return to UK ports and we have flexibility on
destinations visited.
Our Tour Operations businesses have experienced an increase in
cancellations and suppressed demand in line with the industry.
Forward passenger bookings for 2020/21 were down around 20% versus
the prior year, with a more significant impact in recent weeks.
However, given our relatively low level of cost commitments and
lower exposure to Northern Europe and Far East destinations we are
able to react to changes in demand and flex elements of our cost
base for the remainder of the year.
Outlook
The evolution of COVID-19 and the impact this will have on full
year earnings for 2020/21 cannot be predicted with any certainty at
the current time. While our Travel business will be impacted, the
Group expects the performance and cash generation of the Insurance
business to be largely unaffected. There are a range of actions the
Group can take to mitigate against weaker trading in the Travel
business, such as the cost efficiency actions already underway and
announced in the recent trading statement.
The Group will provide a full update with full year results for
the year ended 31 January 2020 on 2 April 2020 and reiterates that
underlying profit before tax is expected to be in line with
expectations.
ENDS
For further information please contact:
Saga plc
Mark Watkins, Director of Investor Tel: 07738 777 479
Relations Email: mark.watkins@saga.co.uk
Headland
Susanna Voyle
Henry Wallers Tel: 020 3805 4822
Email: saga@headlandconsultancy.com
Notes to editors
About Saga
Saga is a specialist in the provision of products and services
for life after 50. The Saga brand is one of the most recognised and
trusted brands in the UK and is known for its high level of
customer service and its high quality, award winning products and
services including cruises and holidays, insurance, personal
finance and publishing. www.saga.co.uk
This information is provided by RNS, the news service of the
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END
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