Business
Sale of introductory care agencies, Trading Update
Sale of introductory care agencies, Trading Update.
About this update from Saga Plc
[{"type":"text","content":"\n \n \n RNS Number : 0693F\n SAGA PLC\n 05 March 2020\n \n \n \n 5 March 2020\n Saga plc\n (\"Saga\" or \"the Group\")\n Sale of Patricia Whites and Country Cousins & Trading Update\n Sale of Patricia Whites and Country Cousins\n Saga announces it has completed the sale of Patricia Whites and Country Cousins for an enterprise value of £14m to Limerston Capital. Patricia Whites and Country Cousins are introductory care agencies.\n This is consistent with the stated objective to reduce leverage and simplify the business through the disposal of non-core assets.\n As at 31 January 2020, and based on unaudited financial information, the Group's net short-term bank debt was around £110m, reduced from £148m as at 31 July 2019. Since the end of January, the Group has announced two disposals which are expected to generate net cash proceeds of around £37m in the first half of this year. The cash from disposals will be used to further reduce short-term bank debt. \n \n Trading in February\n \n Saga is closely monitoring the evolving situation with respect to COVID-19 and our focus is to ensure customers, guests and colleagues are safe and reassured in all circumstances. We have taken significant steps to safeguard everyone and will continue to do so throughout this time.\n Saga has seen a robust start to trading in our Insurance business with both the Retail Broking and Underwriting businesses trading as expected. The Insurance business continues to make good progress in execution of the strategy set out last April.\n Trading in the Travel business has been impacted by recent developments surrounding COVID-19. \n For our Cruise business, bookings until recently have been very strong, with forward sales for the current year of 80% of the full year revenue target as of 29 February. The remaining 20% of our full year revenue target is weighted towards Q3 and Q4 2020 cruises. While we have seen a higher level of cancellations for departures in the near-term and more generally a lower level of bookings for departures further out, our two most recent departures had load factors of around 80%. The Cruise business continues to only depart and return to UK ports and we have flexibility on destinations visited.\n Our Tour Operations businesses have experienced an increase in cancellations and suppressed de...