Saga warns on profits after suspending cruises

Saga has suspended its cruise operations right until Could one subsequent the unfold of coronavirus and warned that the shift will hit revenue.

The travel and insurance plan specialist mentioned the shift follows updated guidance from the Federal government advising people today aged 70 and over and individuals with pre-existing well being ailments from likely on cruises.

Shoppers who were due to travel in the subsequent six weeks will be offered  both a entire refund or credit for a foreseeable future departure.  

Saga mentioned that although cancellations had enhanced in recent weeks, desire for cruises was “very constructive”, with bookings of about 80pc of its income concentrate on for the yr.

Suspending its cruise operations for the subsequent six weeks would lower profit in the division by between £10m and £15m.

The agency mentioned that while the travel setting was “unsure”, it had significant liquidity accessible, which include a £100m credit facility, £33m of funds at the finish of February and powerful funds technology in its insurance plan small business.

Saga did not anticipate the outbreak of coronavirus to have an effect on its insurance plan arm, which has noted a “excellent start” to the latest fiscal yr.

Shares commenced the yr at 54p but fell almosr 2pc to less than 15p on Friday subsequent the recent current market selloff, valuing the organization at £163m.