Over 50s specialist journey operator Saga is mulling a spread of capital elevate choices that would see it offload its two-ship cruise enterprise.
Closely in debt, Saga is working with advisers to restructure and lift capital. The cruise line enterprise affords the best technique to unlock further funding.
Saga launched a press release to the London inventory market, the place it’s listed: “The board is exploring alternatives to optimize Saga’s operational and strategic place in cruise. There may be distinctive demand for boutique ocean cruises, and is working at near capability.”
Varied Capital Elevate Choices Being Mentioned
Choices mentioned are outsourcing the cruise enterprise and licensing it to a different cruise operator, promoting a stake, or a sale and leaseback deal for its two ships.
Saga operates the Spirit of Journey and Spirit of Discovery ships, that are comparatively new and have a capability for nearly 1,000 visitors.
Saga Cruises is predicated within the UK and serves a largely UK market of mature, over-50-year-old visitors. It sails from Portsmouth and Dover within the UK to Northern Europe, the Mediterranean, and the Canary Islands.
It additionally affords longer, month-long itineraries to the Caribbean, the US East Coast, and Canada. It additionally operates a separate river cruises division.
Saga additionally sells group excursions, all-inclusive holidays, tailored journeys, and insurance coverage and monetary companies for the over-50s. Based mostly on Saga’s steadiness sheet launched late final yr, the corporate has a web debt of greater than £650 million.
Chairman protecting enterprise afloat
It has relied on funding from Chairman Roger de Haan for a while. The son of Saga’s founder, de Hann, has now loaned the enterprise round £85 million. Mr de Hann was introduced again in 2020 to assist flip across the firm in the course of the COVID-19 pandemic.
Its journey enterprise portfolio, together with the ocean and river cruise traces, is comparatively affluent and posted upbeat income and revenue forecasts late final yr. The underperforming insurance coverage division has dragged down the general enterprise.
