Specialist insurer
Saga PLC has revealed its half year results, which the group’s CEO has described as a “consistent financial performance” driven by “robust” profit growth in its retail broking and travel businesses.
Underlying profit before tax grew by 5.5% to £110.2m, generating £89.6m of available operating cash flow, which the firm said allowed it to further reduce its debt ratio to 1.8x net debt to EBITDA. Profit before tax was £103m, which it said reflects costs associated with the successful refinancing and net fair value losses on derivatives.
The company, a UK specialist in products and services over-50s, increased interim dividend by 11.1% to 3.0p thanks to “continued confidence in the business's operational performance,” group CEO Lance Batchelor said in a statement.
Saga reported strong travel profit growth of 63% to £11.9m, compared to £7.3m in the first half of last year. Retail broking profit grew 4.7% to £70.9m, up from £67.7m, with a strong performance in motor broking.
“Saga is on track to deliver a fourth consecutive year of growth. Underlying profits are up again and so is our dividend,” Batchelor commented.
“Our retail broking and travel divisions are performing well. Saga’s new ship, Spirit of Discovery, will arrive in June 2019, and pre-sales are very strong. Our confidence in demand has supported our decision to purchase our second new ship, Spirit of Adventure, and to bring forward delivery to August 2020,” he went on to say.
Batchelor also revealed the launch of Saga Possibilities, a new membership programme available to all Saga customers.
“Saga Possibilities is a critical new offering that will allow us to thank and encourage our customers to enjoy more of what Saga can offer,” he said of the venture.
“I believe that these results continue to demonstrate that Saga is growing, has good momentum, and is on track to deliver in line with expectations for the full year,” the CEO concluded.
Related stories:
Saga reports good start to year
Are drivers being pushed too far by premium rises?
.jpg)
