Saga on Track to Deliver Significant Growth in 2024

[Alchymist]

The latest, substantive financial summary of SAGA plc's performance comes in the form of the Interim Results as at 31st. July 2023 (attached, if necessary click on the attachment to see it in full) and I certainly don't want to get into an analysis of them or what might be the case now. However, please remember that businesses fail when they run out of money and this is where debt comes in. I am sure it is where the management will be focusing a whole lot of attention. The year end was about 2 weeks ago and we can be sure that the finance department will be hard at work and they are likely to be published in April. We would probably all do well to wait until then before offering any further comment, however interesting it is to share other people's views.

[twotravellersLondon]

43 minutes ago, Alchymist said:

The latest, substantive financial summary of SAGA plc's performance comes in the form of the Interim Results as at 31st. July 2023 (attached, if necessary click on the attachment to see it in full) and I certainly don't want to get into an analysis of them or what might be the case now. However, please remember that businesses fail when they run out of money and this is where debt comes in. I am sure it is where the management will be focusing a whole lot of attention. The year end was about 2 weeks ago and we can be sure that the finance department will be hard at work and they are likely to be published in April. We would probably all do well to wait until then before offering any further comment, however interesting it is to share other people's views.

 

That's not the case.

 

Best to see the latest SAGA report to the Stock Market of a few days ago which we paraphrased in our post.

[Alchymist]

Many thanks for your response, but your interpretation of the 30 January Trading Update was rather selective as it made no mention of the insurance business where policy sales are down 9%, customer retention down from 84% to 81% and margin per policy down from £69 to £54. Net debt at is also expected to be slightly higher. However, cash availability is not a problem at the moment, it would seem. Cruise and travel is just a part of SAGA plc's total business and it is great to see that it is doing well, but you cannot ignore the drag of the insurance business it is towing along. Please let me re-iterate, I am in no way getting at their cruise business, it's a great offering at very reasonable prices. I want the business to survive and continue to provide me with the opportunity to travel with them again, but I am not blind to the issues the business as a whole faces. I will wait for the annual report, thank you. Hopefully it will also carry some good news about a re-structuring of the business. Best wishes to all subscribing to this board and happy sailing.

[twotravellersLondon]

20 minutes ago, Alchymist said:

Many thanks for your response, but your interpretation of the 30 January Trading Update was rather selective as it made no mention of the insurance business

 

We've not strayed into a discussion on the insurance/underwriting business because this is a travel site and this forum is about SAGA Ocean Cruises. The SAGA Board and the company chairman, Sir Roger de Haan, see the cruise sector as an entity.

 

Waiting for the annual report strikes us as the best idea... that will certainly cut through the ill-informed speculation of many of the cruise-line knockers who pop up on all sorts of sites like mole hills on a golf green.

 

The suggestion of "wait and see" is a very wise one.

 

Like you, we look forward to good news and also hope to be able to enjoy many years of sailing with SAGA.

 

Best Wishes.

Edited February 14 by twotravellersLondon

[Alchymist]

Fingers crossed!

[nosapphire]

On 2/9/2024 at 3:41 PM, nosapphire said:

Thank you.

I wonder if this is the Amadeus Elegant chartered and renamed (like the chartered Spirit of the Douro, which was also announced as a new ship).

Not that it makes any difference to those who sail on her, it will still be Saga whether chartered or owned.

It is indeed a brand new river ship being constructed now.

This is (probably) also owned by Rijfers, chartered by Saga (unlike the Ocean ships, Saga do not own their river ships). Which makes not the slightest difference, as far as passengers are concerned it is a Saga river cruise on a Saga river boat.

https://newsroom.saga.co.uk/news/saga-expands-their-purpose-built-river-fleet-with-announcement-of-spirit-of-the-moselle

https://newsroom.saga.co.uk/fact-sheets/saga-river-cruise-ships-spirit-of-the-rhine-and-spirit-of-the-danube

 

[Minor Mariner]

Preliminary results announced 17th. April. No comment from me, but here is a link to them https://corporate.saga.co.uk/media/0n1hupcl/saga-plc-2023-24-preliminary-results-presentation-vf.pdf

[Windsurfboy]

Looks healthy if investors have patience. 

 

They will escape the trap and costs of the fixed price 3 year insurance deals by end of this financial year. Debt on ships is being paid off.

 

Unless the unexpected happens,  which is always possible,  will be a very profitable company by 2026. 

 

So not desperate for a partnership at any terms. But one that is win win

[Denarius]

16 minutes ago, Windsurfboy said:

Looks healthy if investors have patience. 

 

They will escape the trap and costs of the fixed price 3 year insurance deals by end of this financial year. Debt on ships is being paid off.

 

Unless the unexpected happens,  which is always possible,  will be a very profitable company by 2026. 

 

So not desperate for a partnership at any terms. But one that is win win

I agree. The insurance business is still the fly in the ointment but the travel arm appears to be booming, especially cruises. 88% is a good average occupation rate for ocean cruises especially when you consider that Saga does not benefit from extra berths in cabins during school holidays. And the river cruise business probably still has plenty of scope for growth.