Over 50 per cent growth to Saga profits and a hike in proposed final dividend for the year ended January 2016 leads to share price rise
Saga today revealed a boost to its profits in its preliminary results for the year ended January 2016.
The company, which specialises in services aimed at the over-50s market, revealed that its profits before tax had risen to £176.2m, up 54.8 per cent on the prior year's £113.8m.
The company also announced that it was increasing its proposed full-year dividend to 7.2p per share, up 75.6 per cent on 4.1p the year before.
"I'm delighted that we are able to propose an increased dividend for the year that is above expectations as well as committing to a higher future payout range," said Lance Batchelor, group chief executive of Saga. "This commitment is supported by our confidence in the group's continued strong profit and cash generation performance and the successful evolution of our model towards less capital intensive activities, delivering a higher quality earnings stream."
Additionally, Saga has seen an increase in active customer numbers during the year, growing from 2.63m to 2.66m.
Batchelor added: "The year ahead will see a renewed focus on our customers and further developing the Saga brand. While the customer has always been at the heart of the Saga proposition, there is more we can do to enhance our approach and build stronger relationships."
Shares in the company were trading up 1.2 per cent at 200.2p shortly before 3pm London time.