(Reuters) - UK over-50s holiday and insurance group Saga forecast on Thursday a marginal rise in profit on a like-for-like basis for the year ending Jan. 31, and said it had refinanced the group's
Saga Anticipates Profit Increase and Completes Debt Refinancing
(Reuters) - UK over-50s holiday and insurance group Saga forecast on Thursday a marginal rise in profit on a like-for-like basis for the year ending Jan. 31, and said it had refinanced the group's corporate debt in full, sending its shares 4% higher.
Global tourism-focused travel companies are experiencing a rebound, fuelled by strong demand from consumers eager to travel in the post-COVID-19 era, with off-the-beaten-path locations being preferred over overcrowded hotspots.
Saga said load factor at its ocean cruise business according to bookings done by Jan. 26 for the first-half period was 67%, 1 percentage point ahead of the prior year, while river cruise load factor rose to 77%, from 74% a year earlier.
The group expects continued momentum in its cruise and travel businesses, although earnings from insurance broking are expected to decline in the short term, CEO Mike Hazell said.
The company, which also offers holiday packages, said that following its 20-year agreement with Belgian insurer Ageas, the London-listed firm will count its insurance underwriting and claims-handling businesses as discontinued operations for the year ending Jan. 31.
Saga said it expects the partnership with Ageas to go live in the fourth quarter of 2025.
The debt refinancing comprises a 335 million pound ($416.7 million) term loan facility, a 100 million pound delayed-draw term loan and a 50 million pound revolving credit facility, it added.
($1 = 0.8039 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)
