SAGA PLC Update in relation to travel advice from the Gov't (0219G)
13 Marzo 2020 - 1:00AM
UK Regulatory
TIDMSAGA
RNS Number : 0219G
SAGA PLC
13 March 2020
13 March 2020
This announcement contains inside information
Saga plc
("Saga" or "the Group")
Update in relation to travel advice from the Government
Saga notes the updated travel advice from the Government which
advises people aged 70 and over and those with pre-existing health
conditions against cruise ship travel at this time.
The health and safety of customers and colleagues is our number
one priority. We have, therefore, made the decision to temporarily
suspend operations of our Cruises until 1 May 2020. Our customer
service teams will be in contact with Cruise customers who were due
to travel in the next six weeks to offer them either a full refund
or a credit for a future departure.
Demand for our Cruises has been very positive, with bookings of
around 80% of the full year revenue target. While cancellations had
increased in recent weeks, as of 11 March 2020, the average booked
load factor for the remaining five Cruise departures in March was
79% and the average booked load factor for five April departures
was 85%.
Financial impact
It is estimated that a cessation of Cruise trading for the next
6 weeks will reduce Cruise profit before tax by between GBP10m and
GBP15m. Related advance customer receipts for this period are
GBP22m.
While the travel environment remains uncertain, the Group
continues to have significant available liquidity, underpinned by a
GBP100m undrawn revolving credit facility, GBP33m of cash at the
end of February and the strong cash generation of the Insurance
business. As previously noted, the insurance business is not
expected to be significantly impacted by COVID-19 and has had a
good start to the current financial year. The two disposals
recently announced are also expected to generate an additional
GBP37m of cash proceeds in the first half.
There are a range of further mitigating actions the Group will
take including additional cost efficiencies and reducing
discretionary spend.
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
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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