Shares plunge by 19 per cent
Britain’s Saga group said today that it expected its full-year underlying pretax profit to grow by just 1-2 per cent and will be around five per cent lower next year following the collapse of Monarch Airlines.
The company, which provides travel and insurance services for people of 50 and above, saw its shares drop today morning by 19 per cent to 145.7.
“This has been impacted by more challenging trading in insurance broking during the period and the Monarch Airlines administration, which has affected our tour operations business,” the group stated.
Saga also said that its tour business would take a hit of £2m ($2.68m) amid Monarch going into administration.
Next year, Saga’s underlying profit before tax is expected to be around five per cent lower than the current year.
Lance Batchelor, chief executive of Saga, said the firm has continued to develop for the long term against a backdrop of tough trading conditions: “With greater customer insight and a stronger business platform, now is the right time for Saga to invest in growing the customer base and the business.”