Brexit Saga

Firm blames chaos for profits slump

BREXIT fears have added to a slump in profits at over-50s specialist Saga.

The company has joined a long list of businesses that have blamed political chaos around the UK’s EU exit for hitting customer confidence.

In Saga’s case, the uncertainty hit bookings in its travel arm and has also had a knock-on impact on demand for holiday insurance.

The firm’s profits tumbled by 52% to £52.6million in the six months to the he end of July.

The drop was expected by the market however, and its share price rose sharply yesterday after it stuck to its full-year l-year profit target.

Saga is overhauling its insurance nce arm, which accounts for the bulk k of the group’s profits.

It has begun selling three-year ar fixed- price motor and home me insurance, with 175,000 policies es sold to date. Boss Lance Batchelor, elor, who is retiring next year, said the company had made “good progress” ress” on its plans, including encouraging aging more customers to come to it direct rather than through other firms. ms.

Saga’s half-year revenues fell ll 8.3%

Retail sales held up »

“fairly well” last month, , according to the Office for National Statistics.

Sales by volume – the amount bought – rose 2.7% % year on year.

That actually marked a slowdown from earlier in the he year, including a 6.7% peak k in March, but was better than n some expected.

Sales by value rose 3.4%. %. The ONS said online sales les were the biggest driver of f growth. Alastair Neame, of the Centre for Economics s and Business Research, said: : “The strength of the labour market has allowed consumers to keep spending.” to £ 396million. The drop in profits included a £12.3m fall for its travel arm.

Meanwhile, Saga has just launched Spirit of Discovery, above, the first of two new cruise ships which are part of the firm’s plans to boost its travel bus business.