Saga Share Discussion Threads

[sharebuddy1] 05/4/2019 16:49

To all those shareholders who bought into the completely misleading January statement and are now faced with this absolute fiasco, surely LB should consider his position.

I’m not an accountant, clearly, but do not understand how this intangible goodwill can reflect on actual profits made. Really, it was only this provision which turned what would have been an acceptable profit into a disastrous loss. In my view, which is probably incorrect, figures on the balance sheet should not impinge on the profit and loss account. How is this goodwill calculated and presumably if it turns out to be incorrect, we are looking at a really profitable company with an excellent cash flow.

[boraki] 05/4/2019 16:03

Underwriting up 9.3% at GBP86.7m, supported by underlying reserve releases of GBP78m
Travel up 2.4% at GBP21.1m, with strong forward bookings in Cruise

At least travel and underwriting are going the right way

[stewart64] 05/4/2019 09:53

First major pullback today, anybody feeling lucky?

[wallywoo] 05/4/2019 09:34

To me what stopped me investing here when the share price £1 ish was the £1.5B of goodwill assets on the balance sheet, now with £300M written off (only £1.2B ish to go!). Might be worth a trade to 2, but not a long term hold IMO.

Its like the dragons den IMO, see how they all react when someone starts valuing their company based on some fictional notion of future sales likelihood

[spob] 05/4/2019 09:24

543.5m plus current net debt of ~ 390m = £933.5m

[spob] 05/4/2019 09:20

11 Property, plant and equipment


On 21 December 2015, the Group contracted with Meyer Werft GmbH & Co. KG to purchase Spirit of Discovery for delivery in July 2019, with an option to purchase a second similar cruise ship for delivery in 2021. On 24 April 2017, the Group signed an agreement with the shipyard to bring forward the delivery date by one month to June 2019.

On 20 September 2017, the Saga plc Board approved the purchase of the second cruise ship, Spirit of Adventure, with an earlier delivery date of August 2020, and the Group exercised the option in December 2017.

Four stage payments for Spirit of Discovery were made between February 2016 and July 2018. The remaining element of the contract price is due on delivery of the ship, and the Group entered into appropriate financing for this on 21 December 2015.

The first two stage payments for Spirit of Adventure were made between December 2017 and January 2019. Two similar stage payments will be made during the construction period (18 months and 12 months prior to delivery), funded via cash resources of the Group. The remaining element of the contract price is due on delivery of the ship, and the Group entered into appropriate financing for this on 20 September 2017.


As at 31 January 2019, the capital amount contracted but not provided for in the financial statements in respect of the ships amounted to £543.5m (2018: £583.8m).

[spob] 05/4/2019 09:13

The financing for Spirit of Discovery represents a 12-year fixed rate sterling loan, backed by an export credit guarantee. The loan value of approximately £245m will be repaid in 24 broadly equal instalments, with the first payment 6 months after delivery. On the date the finance was entered into, the Group purchased Euro currency forwards totalling £273.2m to lock in the cost of the ship.

The financing for Spirit of Adventure represents a 12-year fixed rate sterling loan, backed by an export credit guarantee. The loan value of approximately £295m will be repaid in 24 broadly equal instalments, with the first payment due 6 months after delivery. On the date the finance was entered into, the Group purchased Euro currency forwards totalling £211.5m, which represents 72% of the cost of the ship.

[teamwork1] 05/4/2019 09:11

https://invezz-com.cdn.ampproject.org/v/invezz.com/news/equities/34204-Saga-share-price-Hargreaves-Lansdown-sees-groups-plans-as-too-little-too-late-?amp_js_v=a2&_gsa=1&&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=http%3A%2F%2Finvezz.com%2Fnews%2Fequities%2F34204-Saga-share-price-Hargreaves-Lansdown-sees-groups-plans-as-too-little-too-late-

[spob] 05/4/2019 09:09

current market cap = 784m

[spob] 05/4/2019 09:06

how do people know the dividends will be sustained ?

if debt is soon to shoot up to around 900m

[teamwork1] 05/4/2019 08:58

People will buy just for dividends

[holts] 05/4/2019 08:28

Hargreaves questioning its existence

[muffster] 05/4/2019 08:19

Anyone making a case to buy at this level?

[ignoble] 05/4/2019 07:33

Good idea but what happens if insurance costs fall within that 3 years.
As a customer , are you locked in or can you switch to a cheaper provider within that 3 year period.

[diku] 05/4/2019 00:02

Fundamental change a little too late...and as for the new 3 year fixed price insurance offering won't be new for long...others will come out with similar offerings...then to back to square one...another one of the pumped up IPO the owners sold into..




In response, today we are launching a fundamental change to the Group's strategy to return the whole business to its heritage as an organisation that offers differentiated products and services. This will give our customers and members a compelling reason to come to us and stay with us.

As a first step, we are announcing the launch of a new approach to Insurance. This focuses on direct channels and products that offer attractive innovative features, moving the conversation from price to value. Our new three-year fixed price insurance offering is a powerful indication of our change in approach.

[diku] 04/4/2019 23:15

I have said it before this company is listed in the no mans land sector...has leisure and Insurance...split the company and realise value...outdated business model...time for insiders to have their bonuses...

[glavey] 04/4/2019 21:40

wilwak
4 Apr '19 - 16:36 - 1458

"I would have thought, like me, that many SAGA shareholders are also customers so they’ve all taken a financial hit today and will be feeling pretty miffed off at the company."

It was reported that circa 50% of the shares on offer (representing 27% of the overall value of the business) went to 'retail', mostly customer applications. The only thing some have to be pleased about is that they were significantly scaled back at the IPO stage.

[gutterhead] 04/4/2019 20:15

it won't recover with the current management team, major holders won't tolerate them, nor should the shgareholders-they don't know what day of the week it is....or are dishonest

[glavey] 04/4/2019 19:38

Repetitive Strain Injury?

[justiceforthemany] 04/4/2019 19:20

Telegraph - Saga vulnerable to Take-Over

[devonwood] 04/4/2019 19:16

So I thought it was at.the bottom yesterday having watched positive trading volume and bought tryng to get the upswing.
I did my research including this one. Wet my stop loss and now down 30%.
The CEO needs sacking. Singing a great story of rebranding and new.stattegy on Radio 4 this morning. The negative PR of 30% nose dive is like a Boeing Max!

[t 34] 04/4/2019 18:51

Everybody is bashing saga but it may recover nicely .

[risa5] 04/4/2019 18:28

Any idea what's the interest rate on the £400m debt ?

[sharebuddy1] 04/4/2019 18:14

Something is not right here. In the January update all is ok and yet the price was tanking before the actual results today. Someone obviously knew something was happening which had not been reported. As usual the poor shareholder has borne the brunt of this whilst others, I would imagine, have made a fortune out of this collapse. All in all, very unsatisfactory and should be investigated by the FSA.