Saga PLC (LON: SAGA) ended more than 15% down on Tuesday after reporting widened pre-tax loss for its fiscal 2023.
Saga PLC preliminary full year results
The British company attributed weakness to asset impairment charges. The UK stock is down also because sales are expected to remain challenged in its motor and home insurance segments.
Saga ended the year with £254.2 million of pre-tax loss ($315.6 million) versus £23.5 million loss in fiscal 2022, as per the preliminary results it posted today. Revenue printed at £581.1 million – a 54% year-on-year growth. Still, Victoria Scholar of Interactive Investor noted:
Its insurance business is still struggling with sales of motor and home insurance policies down 7.0% versus the prior year, weighing on shares today.
Saga shares are down about 40% for the year at writing.
Cruise and Travel businesses are doing good
Saga PLC expects its insurance underwriting unit to benefit from higher rates moving forward. In the press release, CEO Euan Sutherland said:
Our top priorities for next 12 months are to strengthen our financial position and continue to build Saga into largest and fastest-growing business for older people in the U.K, delivering long-term, sustainable growth for stakeholders.
The London-listed firm expects continued demand for its ocean cruises and is committed to returning load factor to 80% at least. Travel bookings are also meaningfully better than the same time last year, it confirmed.
Wall Street currently has a consensus “overweight” rating on Saga shares.
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