Saga owner Acromas reveals £529m loss

16th Aug 2010

Folkstone-based Acromas Holdings has revealed a £529 million annual loss as huge interest payments on debt eclipsed strong sales.

The group – which operates specialist tour operator Saga Holidays and the AA - posted an operating profit of £183.5 million for the year to January 31st, as both brands enjoyed strong sales.

Pictured: Saga owned Bel Jou Hotel in St Lucia

However, debt repayments of £705 million dwarfed this figure, according to results lodged with Companies House.

Acromas was created in June 2007 following a £6.15 billion deal bringing together Charterhouse’s Saga and CVC’s AA. The transaction – carried out at the height of the buy-out boom - valued the AA at £3.35 billion and Saga at £2.8 billion.

According to the reports the debt pile of Acromas jumped by 3.5 per cent to £6.4 billion over the financial year, although this includes £4.9 billion of bank loans that the group does not have to start repaying until 2015.


Saga Holidays

Saga Holidays if focused on accommodating the travel needs of the over 50s.

The operator provides package holidays and tours across the globe, and owns and operates the cruise ships Saga Pearl and Saga Ruby and as well as the Bel Jou Hotel in St Lucia.

Nestor Healthcare

Saga Holidays last week saw a £102 million acquisition offer for Nestor Healthcare Group rejected.

In a statement Saga explained the acquisition of Nestor would accelerate its strategy to grow a home healthcare services division within the company, with the aim of building a major national branded business servicing its customers.

“This is a fragmented market in which there is currently no trusted nationwide brand operating,” added Saga.

“Nestor is one of a number of businesses which Acromas has approached and Acromas has a number of live discussions having already made two acquisitions.”

A further bid is expected.


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