Business
Interim Results for six months ended 31 July 2016
Interim Results for six months ended 31 July 2016.
About this update from Saga Plc
[{"type":"text","content":"\n \nRNS Number : 3813K SAGA PLC 21 September 2016 \n\n21 September 2016\n \nSaga plc\n \nInterim Results for the six months ended 31 July 2016\n23% increase in interim dividend supported by strong financial performance \n \nSaga plc (\"Saga\" or \"the Group\"), the UK's specialist in products and services for life after 50, announces its interim results for the six months ended 31 July 2016.\n \nFinancial highlights \n\n\n\n\n \n\n\n31 July\n2016\n \n\n\n31 July 2015\n\n\nChange\n\n\n\n\nProfit before tax from continuing operations\n\n\n£109.9m\n\n\n£101.3m\n\n\n8.5%\n\n\n\n\nBasic EPS from continuing operations\n\n\n7.9p\n\n\n7.3p\n\n\n8.2%\n\n\n\n\nDebt ratio (net debt1 to EBITDA1)\n\n\n2.2x\n\n\n2.4x\n\n\n(0.2)x\n\n\n\n\nInterim dividend \n\n\n2.7p\n\n\n2.2p\n\n\n22.7%\n\n\n\n\n \n· Trading Profit1 of £117.6m (H1 2015: £117.5m) \no Trading Profit in the core businesses grew by 2.0%, including £4.7m negative profit impact in H1 2016 of scheduled maintenance for Saga Sapphire cruise ship\n· Profit before tax, excluding the effect of derivative gains, increased by 3.9% to £104.5m (H1 2015: £100.6m)\n· Sustained cash generation, leading to further deleveraging:\no Net debt to EBITDA reduced to 2.2x from 2.4x at 31 July 2015\no Progressing towards target range for debt ratio of between 1.5 and 2.0 times in the medium term\n· 23% increase in interim dividend to 2.7p supported by financial performance and ongoing deleveraging \nOperational highlights\n· Insurance - strong performance in competitive environment: \no Total core insurance policies increased to 3,051k (H1 2015: 2,731k), 3.0% growth excluding Bennetts \no Motor panel performing effectively, taking around one quarter of net premium2 on renewals\no Continued strong performance in motor underwriting with combined operating ratio3 of 58.6% (H1 2015: 65.5%)\no Solvency II position of 196% (31 January 2016: 170%)1 \no Quota share reducing capital at risk, enabling cash to be gradually released from AICL\n· Travel - robust trading performance and visibility: \no Substantial majority of 2016/2017 sales targets already met and ahead of pri...