Key headlines - looks very promising - onwards and upwards GLA22 Sep 2021 08:17
"We have successfully recommenced our Travel operations, including the launch of our newest ship, Spirit of Adventure. I am delighted with the positive feedback received so far and encouraged by the strong pipeline of future bookings. In Insurance, customer retention remains strong, and the attraction of our offer is borne out by the increased uptake of our new three-year fixed-price product. From a financial perspective, we further strengthened our position through a series of financing transactions, including the recent completion of our bond issue.Continued strategic progress positions Saga to emerge stronger from the pandemic
Successful resumption of Cruise; robust Insurance performance
· Strong liquidity position; available cash of £175.3m and £100m undrawn revolving credit facility.
· Positive operating cash flow of £41.9m, reflecting the resumption of Cruise operations.
· Travel monthly cash burn rate of £5.9m, below guidance of £7m-£9m; overall Cruise cash flow positive.
· Financial position further strengthened with issuance of five-year £250m fixed-rate bond, repayment of £70m term loan and £100m tender of existing bond, driving increased liquidity, greater covenant flexibility and extension of debt maturity profile.
· Leverage ratio (Adjusted Net Debt to Adjusted Trading EBITDA) of 2.4x, 0.3x lower than 31 January 2021.
Travel - successful Cruise restart and phased return to Tour Operations
· Successful restart of Cruise from June 2021, with international sailing underway from end of August 2021.
· Spirit of Adventure naming ceremony held on 19 July 2021 and inaugural cruise on 26 July 2021.
· Current booked Cruise load factors at 70% for 2021/22, following government capacity restrictions on early cruises, and 59% for 2022/23 departures; bookings for next year ahead of pre-pandemic levels.
· Cruise per diems ahead of expectations at £302 for 2021/22 and £306 for 2022/23 bookings.
· Tour Operations bookings for 2021/22 of £18m and £109m for 2022/23. Whilst bookings for 2022/23 are also ahead of pre-pandemic levels, there remains some uncertainty within the travel industry surrounding the longer-term impact of COVID-19.