Over the past month, the Saga share price (LON: SAGA) (SAGA.L) has gained around 10%. That’s more than the FTSE All-Share Index (INDEXFTSE: ASX) has managed in the same time period. It is currently 3% up.
In that time, Saga has released results for the financial year to 31 January. They were announced on 7 April and showed the company’s underlying pre-tax profit declined by 84.4% versus the prior year to £17.1 million. According to its results, this was due to Covid-19 challenges.
The firm’s reported loss before tax of £61.2 million was down on the £300.9 million it reported in 2020. Its loss reflected a £59.8 million impairment of its Travel segment’s goodwill in the first half of the financial year.
Within the company’s insurance segment, its update stated that it made progress in the second half of the year within the retail broking division. It launched an online self-serve portal and a new motor price comparison website proposition. It also delivered motor and home margins that were in line with expectations, while Saga-branded motor and home core policies were 1.1% higher than the previous period.
Still in insurance, the firm’s underwriting division delivered a profit of £58.7 million. This included £37.6 million of reserve releases primarily due to continued favourable experience on large bodily injury claims relating to prior accident years.
In Saga’s travel segment, the firm stated it is ready to resume its tour operations and cruise businesses in 2021. The restarts are dependent upon government policies regarding lockdown restrictions. According to the firm, customer demand remains strong and there is pent-up demand from customers who are ready to travel.
The company’s adjusted net debt declined by 31.7% in the 2021 financial year to fall to £246.9 million. This was aided by its £150 million capital raise in September 2020. Its leverage ratio of 2.7x net debt to trading EBITDA excluding cruise operations was higher than the 2.4x recorded in 2020.
Over the past month, Saga shares were awarded to senior management via the deferred bonus plan. In addition, CEO Euan Sutherland purchased 51,259 shares in the company at a price of 386p. The total value of the transaction was £198k.
In the past year and five years the Saga share price has risen by 85% and fallen by 86%, respectively. Other the same time period the FTSE All-Share Index has gained 24% and 20%, respectively. The firms shares currently trade at 383p at the time of writing.