Saga shares ended 15% down on Tuesday: what happened?

Saga PLC (LON: SAGA) ended more than 15% down on Tuesday after reporting widened pre-tax loss for its fiscal 2023.

Saga PLC preliminary full year results

The British company attributed weakness to asset impairment charges. The UK stock is down also because sales are expected to remain challenged in its motor and home insurance segments.  

Saga ended the year with £254.2 million of pre-tax loss ($315.6 million) versus £23.5 million loss in fiscal 2022, as per the preliminary results it posted today. Revenue printed at £581.1 million – a 54% year-on-year growth. Still, Victoria Scholar of Interactive Investor noted:

Saga shares are down about 40% for the year at writing.

Cruise and Travel businesses are doing good

Saga PLC expects its insurance underwriting unit to benefit from higher rates moving forward. In the press release, CEO Euan Sutherland said:

The London-listed firm expects continued demand for its ocean cruises and is committed to returning load factor to 80% at least. Travel bookings are also meaningfully better than the same time last year, it confirmed.

Wall Street currently has a consensus “overweight” rating on Saga shares.