Saga warns on profits after suspending cruises

Saga has suspended its cruise operations until finally Might one adhering to the distribute of coronavirus and warned that the shift will hit revenue.

The vacation and insurance policy expert mentioned the shift follows up to date information from the Federal government advising individuals aged 70 and about and individuals with pre-current wellness circumstances from likely on cruises.

Clients who had been because of to vacation in the subsequent six weeks will be offered  both a complete refund or credit for a upcoming departure.  

Saga mentioned that when cancellations experienced elevated in modern weeks, demand for cruises was “extremely favourable”, with bookings of about 80pc of its profits goal for the yr.

Suspending its cruise operations for the subsequent six weeks would minimize earnings in the division by concerning £10m and £15m.

The agency mentioned that while the vacation atmosphere was “uncertain”, it had significant liquidity offered, such as a £100m credit facility, £33m of cash at the finish of February and sturdy cash technology in its insurance policy organization.

Saga did not count on the outbreak of coronavirus to have an effect on its insurance policy arm, which has described a “superior commence” to the recent money yr.

Shares started out the yr at 54p but fell almosr 2pc to less than 15p on Friday adhering to the modern sector selloff, valuing the corporation at £163m.