Shares in Saga (LON:SAGA) have fallen more than two percent in London this morning, as the cruises-to-insurance group for the over-50s posted its full-year results. While the company unveiled an overall profit rise, profits from the company’s insurance underwriting business fell last year.
As of 09:07 BST, Saga’s share price had lost 2.43 percent to 204.90p, underperforming the mid-cap FTSE 250 index which has slipped marginally lower and is currently 0.10 percent worse off at 18,935.16 points. The group’s shares have gained more than seven percent over the past year, and are up by nearly five percent in the year-to-date.
Saga announced in a statement this morning that its profit before tax from continuing operations had climbed 9.7 percent to £193.3 million in the year ended January 31, while the group’s underlying profit before tax had gained 5.6 percent to £187.4 million. The group’s revenue, however, dipped 9.5 percent to £871.3 million during the reported period, while profit from insurance underwriting fell to £73.1 million, down from £84.1 million delivered in the prior-year period.
“For the third successive year since IPO, we have delivered a strong set of financial results,” Saga’s chief executive Lance Batchelor commented in the statement, adding that the company was planning to launch a membership scheme as it looks to deepen its relationship with customers.
Saga proposed a full-year dividend of 8.5p, marking an 18.1-percent rise on the prior-year’s 7.2p.
The nine analysts offering 12-month price targets for Saga for the Financial Times have a median target of 225.00p on the stock, with a high estimate of 250.00p and a low estimate of 200.00p. As of March 24, the consensus forecast amongst nine polled investment analysts covering the mid-cap lifestyle group has it that the company will outperform the market.