Saga trading in line as 'challenging headwinds' continue

In a trading update released ahead of its annual general meeting, the over 50s specialist said progress has been made in the stabilisation of its retail broking operations, though policy volumes were 753k at 31 May, down by 6% in a reflection of lower travel insurance volumes.

Elsewhere in the FTSE 250-traded company's insurance division, the launch of three-year fixed price products in its motor & home business is progressing in line with expectations as more than half of direct new business customers have opted for the fixed price product.

Lance Batchelor, chief executive of Saga, said: "We are resolutely focused on the execution of our new strategy and have a clear set of priorities. Against challenging headwinds in both travel and insurance, we see early signs of progress in stabilising our retail broking business and forward bookings for the cruise business have been resilient."

Forward bookings for the 2020/21 year for the two new ships are broadly on track, though the division will report an interim operating loss of around £3m due to the sale of the 'Saga Pearl II' craft in April and a consequent reduction in revenues.

Finally, revenue from the tour operations business is 4% lower compared to the same period last year as margins remain set to be impacted by competitive discounting as Saga said the market as a whole remains affected by "current political uncertainties".

Saga's shares were down 4.26% at 36.00p at 0807 BST.