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Interim Results

Saga reports consistent growth of 5.5% in underlying pre-tax profit

22 September 2017 07:31

Saga reported consistent growth of 5.5% in underlying profit before tax, supported by 10.4% growth in the retail broking and travel businesses in the six months to 31 July 2017.

FINANCIAL HIGHLIGHTS:

- Profit before tax of £103m reflects costs associated with the successful refinancing and net fair value losses on derivatives

- Sustained cash generation, leading to further deleveraging to 1.8x

- 11.1% growth in the interim dividend to 3p

OPERATIONAL HIGHLIGHTS:

- Saga Possibilities launched to all our customers with a range of exclusive benefits

- Launch of our new 'keep doing' brand identity

- High demand for Spirit of Discovery supports our decision to invest in our cruise capacity with the purchase of our second new ship, Spirit of Adventure, for earlier delivery in August 2020

- Retail broking profit growth of 4.7% to £70.9m (H1 2016: £67.7m) with a strong performance in motor broking

- Underwriting profit before tax of £46.8m (H1 2016: £49.1m) driven by lower reserve releases as previously guided

- Strong travel profit growth of 63% to £11.9m (H1 2016: £7.3m)

- Marketing and operational efficiencies reducing operating costs

CEO Lance Batchelor said: "Saga is on track to deliver a fourth consecutive year of growth. Underlying profits are up again and so is our dividend. 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.

"I'm delighted to announce the launch of Saga Possibilities, our 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.

"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."

Story provided by StockMarketWire.com

Related Company: SAGA

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