Saga Share Discussion Threads

[careful] 04/4/2019 08:23

I bought yours at 68p.

[asagi] 04/4/2019 08:19

spot on, spob. I've dumped mine for a big loss this morning at 67p.

Asagi (no position)

[spob] 04/4/2019 08:17

I'm surprised these were not marked down to around 50p at the open, given the news today

[spob] 04/4/2019 08:16

Problem is the £400m net debt becomes much more relevant now after the profit and market cap collapse.

[gutterhead] 04/4/2019 08:12

disgraceful and pathetic

[spob] 04/4/2019 08:10

I might be a buyer if it gets down to around 35p

[spob] 04/4/2019 07:35

Probably looking at full year dividends of around 3p going forward

[jurgenklopp] 04/4/2019 07:28

Shocking !!

I despair for existing shareholders but, assuming a hefty mark down this morning, it could just be worth stashing some away.

[spob] 04/4/2019 07:18

This is now a total disaster for anyone who bought into the IPO

[spob] 04/4/2019 07:13

I sold recently because I was uncomfortable with the debt level, but wasn't expecting this.

[spob] 04/4/2019 07:11

Dividend and Goodwill impairment

In the near-term, a combination of margin pressures and other factors mean that profitability will be significantly below that of recent years and also below our previous expectations. As a result we have had to make some difficult decisions.

The Board has proposed a final dividend per share of 1.0p and a full year dividend per share of 4.0p, compared to 6.0p and 9.0p respectively in the prior year. We are targeting a sustainable payout ratio of around 50% of earnings over the next few years.

We have also re-assessed the carrying value of the goodwill relating to the Group's Insurance operations. This has resulted in a non-cash impairment charge of £310.0m, representing 22% of the Insurance goodwill, and has led to an overall loss before tax for the financial year 2019/20 of £134.6m and a loss after tax of £162.0m.

While the decisions to reduce our dividend and impair Insurance goodwill are disappointing, the Board believes that these actions are essential to address our challenges, allow for the product investments needed and enable the Group to return to sustainable growth.

[dr biotech] 04/4/2019 07:11

Basically dividend cut and profits warning. Never buy when private equity is selling.

[spob] 04/4/2019 07:07

As a result of lower margins in Insurance, a change in approach to renewal pricing, lower reserve releases and investment in new products, Underlying Profit Before Tax for the 2019/20 financial year is expected to be between £105m-120m. Therefore, we have taken the difficult decision to reduce our final dividend and write down goodwill. The fundamental changes we are making are essential to address the long-term challenges facing our business. They will support future growth in customers and profits, and generate attractive cash flows for Saga."

[colonel a] 04/4/2019 00:54

If I remember correctly the two Ronnies explained perfectly how insurance works.
Although I can't find it on youtube.

[stewart64] 03/4/2019 20:02

Just don't understand how insurance pays, not withstanding there is the travel arm ( not that Tui inspires confidence in that respect). Gave up on this at about 125 many moons ago after losing plenty. Fwiw Saga insure my house and contents for half a million, annual premium £130...How does that work?

Will, however, take note of the results and price action at these levels.

[dr biotech] 03/4/2019 16:59

Its not been the most confident approach to the results tomorrow, and the JPM note from last month didn't inspire the share price either. Lets hope they can pull a rabbit out of the bag. A live one. Even "meeting expectations" may be above expectations...

[tonybaloni] 12/3/2019 09:40

Saga, the FTSE 250 insurance and travel specialist, is exploring the sale of a cluster of its leisure businesses as it seeks to streamline its operations.Sky News has learnt that Saga is working with bankers on the possible disposal of Titan Travel, which offers escorted holidays, and Destinology?, an online provider of four- and five-star vacations.Duff & Phelps, the professional services firm, has been hired by Saga to gauge the appetite of potential buyers.City sources said on Monday that the two businesses could collectively command a price tag of about £100m.The possible disposals are part of an effort by Lance Batchelor, the company's chief executive, to focus on its Saga-branded businesses.Destinology and ?Titan Travel have been owned by Saga for five and 10 years respectively, but make only a modest contribution to the group's earnings, the sources added.The two cruise ships which operate holidays for Titan Travel customers - Saga Pearl II and Saga Sapphire - are due to leave service by June next year, the company said in January.Mr Batchelor, who will update the City on Saga's strategy when he presents its full-year results next month, has run the over-50s specialist since 2014.He is also thought to have explored offloading non-core insurance assets in recent months, although these are not thought to be part of the work being overseen by Duff & Phelps.A Saga spokesman declined to comment.

[joshuam] 10/3/2019 08:16

Results due next month, investors bailing out already???

[dr biotech] 08/3/2019 09:18

Don’t buy when private equity is selling. Have learned that lesson.

[gutterhead] 08/3/2019 08:20

What a sorry tale this is. Another highly pumped ipo with nothing left in it. Brexit is an easy excuse

[dr biotech] 08/3/2019 08:04

Broker downgrade adding to the fall today



Brokerage JP Morgan cuts rating on British tourism and insurance group Saga Plc to "underweight" from "neutral"
* Says co. faces margin pressure across its broking business, as competitive conditions continue to weigh on industry profitability
* Says co's travel business may also see pressures due to
Brexit uncertainty
* JPM sees little scope for a re-rating currently, as any further pressure could raise the question of dividend sustainability
* Co's tour revenue for 2019/20 departures is approximately flat as change in mix towards higher margin products, with fewer passengers, continues for the period Aug. 1, 2018 to Jan. 15,
2019 ...
* JPM cuts TP by ~14 pct to 120p; median price target of 165p

[tonybaloni] 07/3/2019 08:50

I'm back in here 18022 and 18750. Been over at FOOT riding the wave up. Looking forward to divi news early April