Saga share price volatile as company releases first full-year results since IPO

on Apr 30, 2015

Saga’s (LON:SAGA) share price has been volatile this morning, after the provider of travel and financial products tailored to the over-50s released its first full-year results as a listed company.

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Saga, which joined the London Stock Exchange in July last year, reported a pretax loss of £133.8 million for the 12 months to the end of January, compared to a profit of £106.6 million a year earlier, as it booked a £220.2 million loss from the public parts of Allied Healthcare that it had earmarked for sale. Excluding that, however, Saga’s pretax profit from continuing operations fell 32.2 percent to £113.8 million, due to the £50 million cost of its initial public offering (IPO) as well as £34.6 million of interest on debt on borrowings.
The company’s like-for-like profit rose 9.6 percent to £195.5 million, as revenue increased 0.06 percent to £900.5 million, and its earnings before interest, tax, depreciation and amortisation (EBITDA) margin improved to 21.3 percent from 20.7 percent.
Saga’s chief executive, Lance Batchelor, commented on the results: “The current year has started well and trading is in line with our expectations and we remain on track to deliver on our Trading EBITDA growth target of between 5% and 7%. We are also making good progress against our strategic objectives in preparing to launch a motor panel, proceeding with the disposal of the public healthcare elements of Allied Healthcare, announcing the proposed acquisition of Bennetts, the UK’s leading provider of motorbike insurance and partnering with Tilney Bestinvest to create a compelling wealth management proposition, Saga Investment Services.”
The company’s board proposed a final dividend of 4.1p a share, which it said was at the top end of the range detailed in its IPO.
Separately, Saga also announced the appointment of Jonathan Hill as executive director this morning. He was previously group finance director at property firm Bovis Homes.
Saga’s share price swung between gains and losses this morning. As of 09:30 BST, the stock was changing hands at 189.03p – 0.23 percent up intraday. The shares are trading around one percent above their floatation level.


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