Saga is yet another name in a long list of companies that has been hit by Brexit uncertainty which has seen bookings plummet.
The over 50s travel firm said bookings has dropped by 4% in the year to 15 June, shares fell by 13.1% to 32.7p on Wednesday morning trading.
However, the travel operator said that the cruise business has been more resilient as bookings are “in line” with their targets.
Saga added, Forward bookings for the 2020/21 year for the two new ships are broadly on track, with a significant step up in marketing activities planned for the next three months to coincide with the launch of the Spirit of Discovery.”
Lance Batchelor, the outgoing chief executive, who leaves next year said, “We are resolutely focused on the execution of our new strategy and have a clear set of priorities.
“Against challenging headwinds in both travel and insurance, we see early signs of progress in stabilising our Retail Broking business and forward bookings for the Cruise business have been resilient.”
Russ Mould, investment director at AJ Bell said, “Saga is having a hard job digging itself out of a massive hole.
“Having issued several profit warnings in the past few years, changed its insurance strategy, and announced plans to part ways with its chief executive, the business has come back with a patchy trading update.
“In its defence, the turnaround plan is still fairly new and it will take time to see if the strategy works.
“A warning from its travel business isn’t helping sentiment towards the business – already at rock bottom, judging by how its share price is performing.”