Saga considers partnership deal for cruise division
The move comes after reports from Sky New that the company could sell a stake in its ocean cruises division.
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Saga has said it is exploring options for its cruise business, which could see it bring in an external firm to invest in the division.
Shares in the business shot higher on Friday morning as a result.
The move came after reports from Sky New that the company, which specialises in insurance and holidays for over-50s, could sell a stake in its ocean cruises division.
Saga currently runs two flagship vessels, Spirit of Adventure and Spirit of Discovery, through its ocean cruises operation.
In a statement to the stock market, the firm said: “The board is exploring opportunities to optimise Saga’s operational and strategic position in cruise, where exceptional demand for its boutique ocean cruise offer means it is operating at close to capacity.
“It has concluded that a partnership arrangement for ocean cruise would be consistent with group strategy to move to a capital-light business model to support further growth and crystalise value, reduce debt and enhance long-term returns for shareholders.”
It stressed that no decision has yet been made and there is no certainty that any partnership deal will take place.
Saga is also expected to update shareholders in a trading update next week.
In September last year, the company said its pre-tax loss narrowed from £262 million to £77.8 million for the first six months of 2023.
Shares in Saga were up 9.2% on Friday morning.