(Alliance News) - Saga PLC on Wednesday posted a narrowed annual loss, with its travel arm resuming operations in the second half of the financial year.
The company's outlook is clouded, however. It decided against providing formal guidance for the new financial year.
Saga provides insurance, cruises and package holidays to people over 50.
In the financial year ended January 31, Saga's pretax loss narrowed to GBP23.5 million from GBP61.2 million.
Revenue rose 12% to GBP377.2 million from GBP337.6 million, boosted by the resumption of its travel arm.
"The group's Travel businesses were suspended in mid-March 2020 following government restrictions introduced as a result of the Covid-19 pandemic. The Cruise business resumed on June 27, 2021," Saga explained.
Citing Covid-19 uncertainty, however, the company opted against providing earnings guidance for the new financial year.
In January, however, it had said it expected to return to profit in financial 2023.
It also outlined potential changes at its Tour Operations arm. It eyes creating a "lower-cost, more agile and digitally-led operation".
"These changes will place us in a better position as our customer demand rebuilds and will help us in facing any further external challenges, such as the current war in Ukraine," Chair Roger De Haan said.
Secured bookings for financial 2023 in the tour arm stand at GBP132 million, down 30% from two years earlier.
The company said "customer confidence still impacted by the pandemic" but it expects a recovery over the course of the year.
Saga shares were 3.8% lower at 244.41 pence each in London on Wednesday morning, down 25% from a year earlier.
By Tom Budszus; tombudszus@alliancenews.com
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Saga (SAGA)