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(Alliance News) - Saga PLC on Thursday said its loss widened during a "year of change" and added that it has suspended its dividend due to Covid-19.
Saga, which provides products and services for life after 50, earlier in March suspended cruise ship operations until May 1.
In the year ended January 12, the company said its revenue fell 5.2% to GBP797.3 million from GBP841.5 million.
Its said pretax loss stretched to GBP300.9 million from GBP134.8 million. Impairment costs rose 24% to GBP383 million and Saga incurred restructuring expenses of GBP5.9 million and reported GBP3.9 million in costs due to holiday provider Thomas Cook going under.
When the company publishes its annual report on April 9, it expects to report underlying pretax profit of GBP109.9 million, 39% lower than GBP180.1 million in the year prior, but in line with the GBP105 million to GBP120 million guided range.
Saga's full-year results were delayed by a week following advice by the UK's Financial Conduct Authority.
Chief Executive Officer Euan Sutherland said: "In a year of change, Saga has made significant operational progress and strengthened the management team to ensure the business is positioned to deliver for our customers and members and for investors. Our Insurance and Cruise businesses made good progress against the priorities we set out in April and we have moved to significantly strengthen our financial position, reducing debt and operating expenses and improving cash flow."
Focus now turns to Covid-19, with Sutherland saying the company's Insurance unit has been "largely unaffected by" thus far.
It has introduced cost saving measures, however, like suspending its dividend. It added that GBP15 million in cost savings have been earmarked from actions implemented in February, though this will be slightly offset by GBP10 million in redundancy costs.
The company said it has, as a precaution, drawn down GBP50 million from a revolving credit facility. Available cash resources at the end of March were GBP92 million.
"Saga has strong liquidity and diversified sources of income, and has the flexibility to respond to the challenging market environment due to the cash generative Insurance business, an expected GBP23 million in cash proceeds to be received from the sale of Bennetts and the GBP50 million remaining undrawn revolving credit facility," the company said.
Saga added on Thursday that Non-Executive Director Ray King will not stand for re-election at Saga's annual general meeting, calling time on a six-year stint in the role.
Saga shares were 4.8% lower at 16.80 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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