Cruise operator Saga in talks with lenders as debt mounts
Over 50s holiday and insurance provider Saga revealed this morning that it is in talks with lenders about its debt levels as restrictions on travel during the pandemic continue to have a negative impact on its business.
Saga it has “significant liquidity and headroom to the current covenants in short term bank facilities”, but it is taking action to increase flexibility.
The cruise holiday operator, which announced that total net debt had jumped £139m to £785m since July, said lenders “remain supportive”.
Its share price dipped 1.51 per cent to 273.6p following the update.
The company announced this morning that it will report full-year underlying profit before tax, despite the impact of Covid-19 on its travel business.
Saga, which last week said customers will be required to receive a Covid vaccine before travel, said it had reduced monthly cash burn to around £6m.
Saga chief executive Euan Sutherland said: “We have made good progress in delivering our new strategy and have accelerated the pace of change at Saga, against the backdrop of the challenges that the Covid-19 pandemic has brought to our business.
“Insurance remains resilient, while within travel we are focusing on ensuring the safest possible environment for our guests when cruise and holidays resume, whilst appropriately controlling costs until that time.
“We are confident in our strategy, the strength of our brand and the loyalty and economic resilience of our customers.
“We know they are ready to travel in great numbers and live their lives to the full as the vaccine programme is rolled out. We are excited about the opportunities ahead as we focus on delivering more exceptional experiences for our customers.”