Saga makes small profit from Allied Healthcare sale

Saga has sold its Allied Healthcare domiciliary care subsidiary for £19m to private equity investor Aurelius Group.

Saga, which said Allied no longer fitted in its business model, will pour £10m into the Allied pension fund before it is transferred as part of the deal.

At the beginning of 2015 the FTSE 250 company fully wrote down the value of the Allied business to zero and so now expects to recognise a "small net profit" on the sale in the current year's accounts.

Chief executive Lance Batchelor said: "Allied remains a market leader in the provision of domiciliary care to local authorities and the NHS. However, as outlined earlier this year, it does not fit with the Saga business model."

He added that he was confident Aurelius will be provide "a good home" for Allied.