UK holiday group Saga expects slight profit rise; refinances debt (updated)
30/01/2025 08:20
(Adds share move in paragraph 1, sector context in paragraph 2,
details on bookings in paragraph 3, details on refinancing in
paragraph 7)
Jan 30 (Reuters) - UK over-50s holiday and insurance
group Saga SAGA.L forecast on Thursday a marginal rise in
profit on a like-for-like basis for the year ending Jan. 31, and
said it had refinanced the group's corporate debt in full,
sending its shares 4% higher.
Global tourism-focused travel companies are experiencing a
rebound, fuelled by strong demand from consumers eager to travel
in the post-COVID-19 era, with off-the-beaten-path locations
being preferred over overcrowded hotspots.
Saga said load factor at its ocean cruise business according
to bookings done by Jan. 26 for the first-half period was 67%, 1
percentage point ahead of the prior year, while river cruise
load factor rose to 77%, from 74% a year earlier.
The group expects continued momentum in its cruise and
travel businesses, although earnings from insurance broking are
expected to decline in the short term, CEO Mike Hazell said.
The company, which also offers holiday packages, said that
following its 20-year agreement with Belgian insurer Ageas
AGES.BR , the London-listed firm will count its insurance
underwriting and claims-handling businesses as discontinued
operations for the year ending Jan. 31.
Saga said it expects the partnership with Ageas to go live
in the fourth quarter of 2025.
The debt refinancing comprises a 335 million pound ($416.7
million) term loan facility, a 100 million pound delayed-draw
term loan and a 50 million pound revolving credit facility, it
added.
($1 = 0.8039 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich)
((abyjose.koilparambil@thomsonreuters.com;))