Saga (LON:SAGA), the cruises-to-insurance group for the over-50s, is shaking up its boardroom and restructuring travel operations, City A.M. reports. The move follows the company’s recent profit warning.
Saga’s share price has reacted positively to the news, having gained 1.12 percent to 126.20p as of 13:43 GMT, outperforming the FTSE 250 which currently stands 0.20 percent higher at 20,786.12 points. The group’s shares have lost more than 36 percent of their value over the past year, as compared with an over 14-percent rise in the mid-cap index.
Shake up at Saga
City A.M. reported today that Saga was set to combine its tour operations and cruises the group’s new travel chief executive Robin Shaw, previously head of the group’s cruise offering. Jeanette Linfoot, previously the managing director of tour operations, left at the end of last year.
Roger Ramsden, the chief executive of retail broker division Saga services, was due to step down and move to “a new role within the group”. Today, however, it was announced that he will not take up a new position and will instead leave in the first quarter of the year. Ramsden will be replaced by Gary Duggan, who will also take on responsibility for financial services arm Saga money.
The changes come after the mid-cap group cautioned on profits last month, disclosing that it had experienced challenging trading environment and was impacted by Monarch Airlines’ collapse.
Analysts on company
The nine analysts offering 12 month price targets for Saga for the Financial Times have a median target of 170.00p, with a high estimate of 195.00p and a low estimate of 135.00p. As of December 30, the consensus forecast amongst nine polled investment analysts covering the lifestyle group has it that the company will outperform the market.