IN CRUISE CONTROL
Saga sailing into calmer waters after over 50s specialist had rough year
SAGA, WHICH provides specialist products and services for people over 50, is heading for stability after a rough year, according to analysts.
In a trading update, Saga said its insurance business is in a much more stable position than a year ago and the cruise business is “fully on track”.
The statement added: “Our customers are responding well to what we are doing and it is clear that the Saga brand remains strong with our core target market.”
The company said: “The strategy we set out in April was focused on returning Saga to its heritage as a company that delivers high quality, differentiated products and services that resonate with its core customers.
“Our experience since April gives us confidence that the group is taking the right actions, and we are seeing good progress and a significant improvement in the quality of execution.
“With the recent appointments of Euan Sutherland as group CEO, Cheryl Agius as insurance CEO and Gilles Normand as group COO, we have a strong team in place to improve Saga’s operational and financial performance.”
Mr Sutherland, said: “I’m delighted to have joined Saga and to be working with a strong executive team. Although Saga continues to face challenging markets in insurance and travel, we have a clear focus on improving performance and cost efficiencies within the group, while strengthening our financial position and reducing debt.”
Will Ryder, equity analyst at Hargreaves Lansdown, said: “It’s been a rough year for Saga investors, but the business looks like it’s stabilised. The absence of bad news is good news, and the group can now look to recover lost ground.
“While the insurance broking division is still in decline, some aspects look more positive, particularly around the new three-year fixed policies. Meanwhile, the new cruise ships are looking healthy and no major operational hiccups have materialised.
“The new CEO, Euan Sutherland, has a big job to relaunch Saga’s profits.”