Saga has contingency plans in place for reopening delay
Saga PLC (LON:SAGA) said it has contingency plans ready in the event of a further delay in the easing of coronavirus restrictions in the UK.
The over-50s cruise operator and insurer had intended to resume cruises on 27 June, but reports today indicated that the government will delay the next reopening date of 21 June by four weeks.
Saga said its contingencies include plans to operate for a short period with fewer guests than typical load factors, if necessary.
Demand for summer cruises has been high it added, with 77% capacity booked so far 2021/22 and 48% for the following year.
Monthly cash burn for the four months to 31 May 2021 was at the lower end of the previous guidance of £7mln-£9mln per month but the liquidity position remains strong, with total available cash of £78m at 31 May 2021, Saga added.
In insurance, motor and home policy sales are expected to broadly flat over the first half, with the company’s three-year fixed price policy now accounting for 43% sales, up from 38% a year earlier.
Lower claims are also expected to help results for the first half of the year.
Euan Sutherland, Group Chief Executive Officer, said: “Saga has made further strong progress, delivering against all the pillars of our turnaround plan.”
“In Travel, the resumption of sailing for both ships and restarting Tours remains the priority, whilst in Insurance we aim to deliver consistent performance,” added the statement.