21 June 2018 – trading update
A trading update covering the first four months of the financial year has been released, coinciding with the company’s AGM. Trading has been in line with expectations. Saga branded retail insurance policies increased by approximately 1% year on year although total retail insurance policies for the period are flat as a result of Direct Choice being discontinued in 2017. The motor and home markets remain competitive. Saga’s underwriter continues to perform well. Tour bookings for 2019/20 departures were broadly the same as last year. Bookings for the new cruise ship, Spirit of Discovery, are said to be over 55% of sales target for the first 9 months from June 2019. The new membership scheme, Possibilities, had 740,000 members as at 17 June. Overall the update was reassuring and we continue to rate the shares as a BUY.