Saga expects return to full-year profit despite "challenging" backdrop

(Alliance News) - Saga PLC on Tuesday said it expects to return to underlying profit in its current financial year, and separately reported the appointment of outgoing ITV Chair Peter Bazalgette to its board.

Saga provides insurance, cruises and package holidays to people over 50, and was therefore hit by travel restrictions resulting from the Covid pandemic.

As holiday demand picks up again, Saga reported a recovery in its travel insurance business, with policy sales in June in line with pre-pandemic levels.

For the financial year ending January 2023, Saga expects to swing to an underlying pretax profit of around GBP35 million to GBP50 million, from a loss of GBP6.7 million in the last financial year.

This would be higher than the underlying pretax profit of GBP17.1 million Saga reported in its 2021 financial year, but less than half the GBP109.9 million posted for the pre-pandemic 2020 financial year.

"During the first five months of the year, Saga has made good progress in what has been a particularly challenging external environment and we are pleased that we are on-track to return to an underlying profit for the 2022/23 financial year," said Chief Executive Euan Sutherland.

Saga noted inflationary pressures, saying the firm "is navigating a period of global turbulence." It added: "Notwithstanding this, we remain confident in the strength of the Saga brand and that the growth plan set out as part of the preliminary results will return Saga to sustainable growth."

Separately, ITV Chair Bazalgette will join Saga as a non-executive director on September 1. He leaves London-based broadcaster ITV on September 29

Amongst other leadership changes, Saga said it has hired Aaron Asadi as CEO of Saga Media, to "lead Saga's media and content strategy, designed to increase the frequency and depth of Saga's interaction with customers".

Saga shares were 0.6% lower at 165.90 pence each in London on Tuesday morning.

By Tom Budszus; tombudszus@alliancenews.com

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