1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Dear Guest, we realise advertising is annoying, it is however necessary to help us be a sustainable resource for all, if you want to go advert free then please use the following link to subscribe for £5 a month: Click here
    Dismiss Notice

(SAGA) Share Chat

Discussion in 'General Share Chat' started by Groucho, Jun 11, 2019.

  1. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    4 April 2019

    Saga plc


    Preliminary Results for the full year ended 31 January 2019

    Saga to refocus on its heritage as a direct to consumer brand with membership at its core


    Saga plc ("Saga" or "the Group"), the UK's specialist in products and services for life after 50, announces its preliminary results for the twelve months ended 31 January 2019.


    Lance Batchelor, Group Chief Executive Officer, said:

    "Over recent years Saga has faced increasing challenges from the commoditisation of the markets in which we operate, especially in Insurance. This has had an impact on both customer numbers and profitability. Although Underlying Profit Before Tax for the 2018/19 financial year is in line with our expectations, the long-term challenges we face and the results demonstrate that Saga cannot grow without a clearly differentiated offering to its customers.


    In response, today we are launching a fundamental change to the Group's strategy to return the whole business to its heritage as an organisation that offers differentiated products and services. This will give our customers and members a compelling reason to come to us and stay with us.


    As a first step, we are announcing the launch of a new approach to Insurance. This focuses on direct channels and products that offer attractive innovative features, moving the conversation from price to value. Our new three-year fixed price insurance offering is a powerful indication of our change in approach.


    As a result of lower margins in Insurance, a change in approach to renewal pricing, lower reserve releases and investment in new products, Underlying Profit Before Tax for the 2019/20 financial year is expected to be between £105m-120m. Therefore, we have taken the difficult decision to reduce our final dividend and write down goodwill. The fundamental changes we are making are essential to address the long-term challenges facing our business. They will support future growth in customers and profits, and generate attractive cash flows for Saga."


    Financial highlights
    53E1401B-73CA-4C1C-B625-D4CD7426776A.jpeg


    Performance in 2018

    · Underlying Profit Before Tax down 5.4% at £180.3m reflecting strong reserve releases but disappointing Retail Broking result

    - Retail Broking down 19.1% at £105.8m

    - Underwriting up 9.3% at £86.7m, supported by underlying reserve releases of £78m

    - Travel up 2.4% at £21.1m, with strong forward bookings in Cruise

    - Emerging businesses and central costs (excluding finance costs) improved by 21.5% to (£21.6m)

    · Loss before tax of (£134.6m) after Goodwill impairment of £310m

    · Available operating cash flow £180.6m

    · Net debt reduced to £391.3m with net debt to trading EBITDA at 1.7x

    · Proposed full year dividend reduced to 4.0p with expected future payout of approximately 50%



    Strategic Change

    · Fundamental shift in strategy to address long term challenges

    · Saga to refocus on its heritage as a direct to consumer brand with membership at its core, providing differentiated products and services that customers can't get elsewhere

    · Launch of new Insurance approach focused on growing direct channels, with the launch of a 3 year fixed price proposition, and with a new approach to renewal pricing

    · Accelerating transformation of Tour Operations

    · Continue the Cruise transformation

    · Investment behind new products and membership to build on early signs of traction

    · 2019/20 Underlying profit before tax expected to be £105-£120m due to a reduction in reserve releases, as well as a decline in Broking gross margins (less marketing costs) from £80 to between £71-£74 per policy

    · Action on dividend and amendments to banking facilities provide robust balance sheet to support strategic change

    https://corporate.saga.co.uk/media/1274/saga_ar19_03_strategic-report.pdf
     
    Last edited: Jun 11, 2019
  2. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    11 June 2019


    Saga plc announces savings partnership with Marcus by Goldman Sachs

    Saga plc ("Saga" or "the Group"), theUK'sspecialist in products and services for life after 50, today announces that Marcus by Goldman Sachs ("Marcus") is to become its new long-term savings partner. Saga and Marcus will launch new products together from autumn 2019.


    Marcus launched in theUKin September 2018 with an easy-access savings account. It has been praised for its strong customer service and, to date, has attracted over 250,000 customers in theUK.


    This announcement is one of several strategic initiatives by the Group that are aimed at returning Saga to its heritage of delivering high quality products and services to its customers.


    Lance Batchelor, Chief Executive Officer of Saga said: "This is an exciting time for Saga and our customers as we announce our new long-term savings partnership. We know that our customers hold a large proportion of their wealth in savings and want to know that they're getting a great return with a brand they can trust.


    "This is an important strategic partnership for Saga that will help us provide innovative and high- quality products that will be designed not just to meet our customers' needs, but to exceed their expectations."


    Harit Talwar, Global Head of Marcus by Goldman Sachs, said: "We are excited to collaborate with brands such as Saga and to provide savings products to their customers. This partnership is an example of our ambition to bring our global scale and deep capabilities to meet a broad range of personal finance and investment needs."
     
  3. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    67C097E3-DDF0-4DF2-87A7-C0B01393E155.jpeg

    Chair of the Remuneration Committee, Gareth Williams said in relation to the voting results of the Resolution 2:

    "I am pleased that a significant majority of shareholders have voted in favour of the Annual Report on Remuneration. However, the Committee has noted that approximately 28% of shareholders voted against the Report.

    We started consulting with shareholders on 1 May 2019 on changes to the future performance conditions for our Long-Term Incentive Plan to align with our new Strategy. I issued an update on this consultation through an RNS Announcement issued on 12 June 2019 in which I stated our intention to continue the consultation process to enable this dialogue between the Committee and shareholders to continue. This extension to the process will allow us to receive replies from some shareholders who had not responded prior to 12 June and to continue discussions with others on the performance conditions.

    We will now extend this consultation to ask those shareholders who voted against the Annual Report on Remuneration the reasons for their vote. In line with the UK Corporate Governance Code we will issue an announcement on the feedback received from those shareholders and the action the Committee intends to take within six months of the date of this Annual General Meeting; with a full explanation set out in the Remuneration Report for 2019/20."

    SAGA Plc - Result of AGM @SagaUK https://www.voxmarkets.co.uk/rns/announcement/41b3414c-e46d-4be1-8b4a-60d0362d0a29
     
  4. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    upload_2019-6-20_9-51-5.png
    Daily Mail 20/6/19
     

    Attached Files:

  5. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    7FF6C272-E2C9-4409-9C39-27DF9A565DD2.jpeg
    Mail on Sunday 14/07/19
     
    Megster likes this.
  6. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319
    Activist fund manager Elliott has taken a 5 per cent stake in Saga, the travel and financial services company that has seen its shares fall from a peak of around 225p to less than 50p. Saga says ‘we have good and open relations with all of our shareholders and expect to be in contact with Elliott shortly.’ Observers speculate that Elliott could propose a split of the company’s tour operating and financial services businesses.
    http://www.langtoncapital.co.uk/
     
  7. Groucho

    Groucho Member

    Messages:
    4,433
    Reputation:
    319

Share This Page