Business
Unaudited Trading Update (inc. impact of COVID-19)
Unaudited Trading Update (inc. impact of COVID-19).
About this update from Saga Plc
[{"type":"text","content":"\n \n \n RNS Number : 5032I\n SAGA PLC\n 02 April 2020\n \n \n \n \n 2 April 2020 \n \n \n This announcement contains inside information\n \n \n \n \n \n Saga plc\n \n \n \n \n \n Unaudited trading update and assessment of the impact of COVID-19\n \n \n \n \n \n \n \n Saga plc (\"Saga\" or \"the Group\"), the UK's specialist in products and services for life after 50, announces a trading update for the 12 months ended 31 January 2020 and an updated assessment of the potential impact of COVID-19 \n \n \n \n \n \n Trading update for the 12 months ended 31 January 2020\n \n \n · \n Underlying Profit Before Tax expected to be £110m, in line with the target range of £105m to £120m.\n \n \n · \n Debt ratio (excluding Cruise) of 2.4x, with £109m of short term net bank debt.\n \n \n · \n Good progress against the business priorities set in April 2019 and positive momentum in the cash generative Insurance business.\n \n \n · \n 320,000 three-year fixed-price policies sold and 57% of new business volumes written on a direct basis. Saga branded policies down 3% due to discipline in new business pricing, gross margins at £74 per policy.\n \n \n · \n Successful launch of Spirit of Discovery; financial performance in the first six months of operation was consistent with a full year objective of £40m of EBITDA. As at 31 January 2020, forward Cruise bookings for 2020/21 were at 80% of the full year target, ahead of internal expectations.\n \n \n · \n Projected Insurance cash flows are broadly unchanged from the prior year, however Insurance goodwill to be impaired by £370m primarily relating to an increase in the post-tax discount rate from 8.55% to 10.7%. This is due to updated external inputs, including the Group's share price in January 2020.\n \n \n · \n Audited results for the year ended 31 January 2020 and the 2019/20 annual report are expected to be published on 9 April 2020, a week later than initially planned, following the request by the Financial Conduct Authority to observe a moratorium on the publication of results statements.\n \n \n · \n Dividend to be suspended.\n \n \n Updated assessment of the potential impact of COVID-19\n \n \n · \n Strong progress from largely unaffected Insurance business underpins cash flow and profitability.\n \n \n · \n Saga moved rapidly to full home working with ove...