TIDMSAGA
RNS Number : 2114D
SAGA PLC
20 June 2023
20 June 2023
Saga plc
AGM Trading Update
Growth momentum continues
Saga plc (Saga or the Group), the UK's specialist in products
and services for people over 50, provides the following update on
trading covering the period from 1 February 2023 to 19 June
2023.
Euan Sutherland, Saga Group Chief Executive Officer,
commented:
"Four months into the financial year, we have continued to build
on the momentum in our Cruise and Travel operations, while making
further progress in our growth agenda through the development of
our newer businesses. Year-end underlying profit is expected to be
well ahead of the prior year.
"We have taken strong bookings for our ocean cruises with a load
factor that is ahead of the same point in the prior year, and our
River Cruise and Travel businesses are on track to return to
profitability in line with previous guidance. In Insurance, market
conditions, particularly in motor, continue to weigh on our Group
result. We have secured a valuable partnership with Bupa that will
not only improve our current private medical offering but also open
up exciting new opportunities, and we plan to launch our new pet
insurance later in the year. Meanwhile, we are also continuing with
the sale process of our Insurance Underwriting business.
"We are developing a series of new products in Saga Money and
preparing for the July launch of Saga Spaces, our new
subscription-based online platform that will offer customers social
interaction and a series of online services. At the same time, we
have continued to develop Saga Media, which is performing ahead of
expectations, and have made good progress in our data and digital
strategy".
Group highlights
-- Growth momentum continues to build in Cruise, Travel, Money and Media.
-- The sale process for the Group's Insurance Underwriting
business is ongoing, consistent with the ambition to reduce debt
and move towards a more capital-light model.
Cruise
-- The booked Ocean Cruise load factor for 2023/24 at 18 June
2023 was 79%, 7ppts ahead of the same point last year. At the same
date, the per diem was GBP338, which was 6% ahead of the same point
in 2022.
-- The full year load factor projection is in line with previous
guidance of at least 80% and we remain on-track to deliver GBP40m
EBITDA per ship (excluding overheads). Due to expected seasonality
in the late summer, this will be weighted towards the second half
of the year.
-- The launch of the 2024/25 Ocean Cruise season was the
strongest on record, already having secured a booked load factor of
34% and per diem of GBP342 at 18 June 2023.
-- The booked River Cruise load factor for 2023/24 at the same
date was 74%, with a per diem of GBP293. This equated to revenue of
GBP39m which was 37% ahead of the same point in the prior year.
Travel
-- The booked revenue for 2023/24, at 18 June 2023, was GBP150m,
37% ahead of the same point in 2022 and largely driven by an uplift
in touring.
-- Travel is on track to return to an Underlying Profit Before
Tax for the second half and full year, in line with previous
guidance.
Insurance Broking
-- In what continued to be a challenging market, total policy
sales across all products, for the four months ended 31 May 2023,
were 6% behind the prior year.
-- The growth in sales of travel insurance continued over the
same period, with policies 6%, and revenue 22%, ahead of the prior
year.
-- Private medical insurance (PMI) delivered revenue growth of
16% when compared with the prior year on a broadly stable policy
count.
-- To further enhance our PMI product, we are pleased to have
secured a new partnership with Bupa. This move will not only
improve our current proposition but also open up exciting new
opportunities for a digital health and wellbeing offer for our
customers.
-- Within motor and home insurance, for the same four-month period:
o Policy sales were 7% behind the prior year.
o Customer retention remained strong at 85%, compared with 83%
last year.
o The margin per policy was GBP56, reflecting the market-wide
inflationary environment and is expected to be around GBP55 for the
first half, before returning to around GBP60 over the medium term
in line with previous guidance.
Group liquidity
-- In the financial year to date, a further GBP15.8m of ocean
cruise ship debt was repaid and, after taking account of this,
Available Cash, at 31 May 2023 was GBP149.5m.
Wider strategic progress
-- An ambitious expansion plan is in place for Saga and we
remain on track to deliver another year of growth in revenue and
underlying profit.
-- Saga Money will launch a series of new products in the second half of the year.
-- Saga Exceptional, through Saga Media, continues to deliver
audience numbers significantly ahead of its initial business case
with more than 2.5m visits since it was launched in late
January.
-- We are planning the launch of Saga Spaces in July, a new
subscription-based online platform that will offer customers social
interaction and online services initially with a focus on health
and wellbeing and including classes, health advice and 24/7 GP
access.
-- Progress in enhancing our data capabilities continues,
including actions to improve customer consent and contactability
across the Group and the development of a more personalised
approach to marketing.
Annual General Meeting
The Annual General Meeting will be held at 11.00am today at the
offices of Numis Securities Limited, 45 Gresham Street, London EC2V
7BF.
For further information, please contact:
Saga plc
Emily Roalfe, Head of Investor Relations and Treasury Tel: 07732 093 007 Email: emily.roalfe@saga.co.uk
Headland Consultancy
Susanna Voyle Tel: 07980 894 557
Will Smith Tel: 07872 350 428
Tel: 020 3805 4822
Email: saga@headlandconsultancy.com
Notes to editors
Saga is a specialist in the provision of products and services
for people over 50. The Saga brand is one of the most recognised
and trusted brands in the UK and is known for its high level of
customer service and its high quality, award-winning products and
services including cruises and holidays, insurance, personal
finance and publishing. www.saga.co.uk
END
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END
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June 20, 2023 02:00 ET (06:00 GMT)
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