Saga swings to underlying loss after cruises restart

Over-50s specialist Saga reported a “resilient” performance against Covid-19 challenges in its preliminary results on Wednesday, swinging to an underlying loss.

The London-listed company said its underlying loss before tax totalled £6.7m for the 12 months ended 31 January, compared to a profit of £17.1m for the prior year.

Its loss before tax widened 62% to £23.5m.

Saga said it was in a “strong” liquidity position following actions taken over the last year, with its available operating cash flow rocketing 2,129% to £75.8m after cruise operations resumed, available cash totalling £186.6m, and its undrawn revolving credit facility standing at £100m.

Net debt narrowed by £31.2m to £729m, despite the impact of the pandemic.

“Over the last year, Saga has delivered a resilient performance, whilst laying the foundations for future growth,” said chief executive officer Euan Sutherland.

“During 2021-2022, we reduced our debt, strengthened our financial position and relaunched the brand.

“The insurance business delivered a robust performance with the second year of policy growth after several years in decline, whilst in travel, we resumed operations, secured positive cruise bookings for 2022-2023, and began the restructure of our tour operations business.”

Looking ahead, Sutherland said he was “confident” in the company’s opportunities as it emerged from the pandemic.

“Against this backdrop, we are now looking to convert the foundations laid over the past two years into sustainable growth and are further evolving our strategic approach.

“Our growth plan will see us focused on maximising our existing businesses, reducing our debt while step-changing our ability to scale the business and positioning Saga as 'the Superbrand' for older people.

“We already have a strong brand, management team and financial position - all the tools required to return the business to sustainable growth and create long-term value for our stakeholders.”

At 0959 GMT, shares in Saga were down 6.69% at 237p.