(Alliance News) - Saga PLC on Friday said it is open to partnering up in order to "optimise" its cruise ship offering as it looks to bolster its balance sheet.
The provider of products and services for people aged 50 and over said a partnership at its Ocean Cruise arm is the best course of action.
The company said: "The board is exploring opportunities to optimise Saga's operational and strategic position in Cruise, where exceptional demand for its boutique ocean cruise offer means it is operating at close to capacity. It has concluded that a partnership arrangement for Ocean Cruise would be consistent with group strategy to move to a capital-light business model to support further growth and crystallise value, reduce debt and enhance long-term returns for shareholders.
"No decision has yet been made and there can be no certainty that any partnership agreement will occur. A further announcement will be made in due course, as appropriate."
Sky News on Friday had reported that Saga was mulling options for the unit, including a possible sale of two vessels.
https://news.sky.com/story/saga-floats-idea-of-selling-stake-in-ocean-cruises-arm-13056351
Recent years have been tricky for Saga, as its offering was badly hurt by lockdowns and travel restrictions over the course of the Covid-19 pandemic.
Saga's debt pile also has been a sticking point for investors, standing at a sizeable GBP657.4 million as of its July 31 half-year end, trimmed from GBP721.3 million a year prior, however.
Shares in the company shot up 8.5% to 159.24 pence each in London on Friday morning. The stock is down 12% over the past 12 months, however.
Saga is due to release a trading update next week Thursday.
By Eric Cunha, Alliance News news editor
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Saga (SAGA)