Saga Plc swung to a pre-tax loss of £55.5m in its interim results for the six month ended 31 July, which it released yesterday (10 September).
The insurance group, specialising in over-50s travel, said the tax loss was due to its £60m impairment of goodwill travel, reflecting the impact Covid-19 is having on perceived travelling risk.
This loss is a 205.5% decline from the corresponding figure from 2019.
In the group’s latest report, Saga made reference to its £150m Capital Raising investment to boost the firm’s financial performance after Covid-19.
Roger de Haan, the former chief executive of Saga, has recently returned to the company to assist in its efforts to regroup and will invest up to £100m of his own money in investment.
Euan Sutherland, the group’s chief executive officer, said: ‘‘Saga has made significant progress in the first half. Through this year our priorities have been serving our customers and keeping colleagues safe during a period of major disruption and further strengthening our financial position.
‘‘While taking decisive action to react to the COVID-19 outbreak, we have also continued to make progress in our businesses. This is clearly shown in Insurance with the success of our three-year fixed-price product and our COVID-19 travel insurance product, and in Cruise by the imminent arrival of our second new ship, Spirit of Adventure.’’
He added: ‘‘We have conducted a comprehensive review of strategy and have developed a plan which we believe will strengthen our brand, improve our focus on our customers, deliver exceptional experiences for them, and return both our Insurance and Travel businesses to growth.
‘‘The Capital Raising, supported by Sir Roger De Haan’s cornerstone investment, will allow us to build on our actions to date by enhancing our resilience and financial strength.’’