Saga on track to meet full-year expectations as interim profit surges

30th Sep 2015 08:03

(ShareCast News) - Travel, insurance and financial products provider Saga said it remains on track to meet its annual targets on the back of a surge in interim pre-tax profit.In the six months to 31 July, pre-tax profit more than doubled to £101.3m, while revenue grew 8.6% year-on-year to £478.3m.Administrative and selling expenses declined 23.8% from the corresponding period in the previous year to £106.2m, while the number of active customers in the 12 months to 31 July was broadly stable at 2.6m.In the financial services division, the group posted a 9.7% increase in the number of core motor insurance policies it sold and completed the acquisition of motorbike insurance specialist Bennetts, while the travel business reported continued earnings growth.Meanwhile, the FTSE 250 company said the sale of Allied Healthcare was progressing well and it was expected to be completed before the end of the year."We are confident of delivering on our targets for the full year and of continuing to build sustainable returns for shareholders through profit growth, cash generation and our progressive dividend policy," said group chief executive Lance Batchelor."This confidence supports our decision to pay a maiden interim dividend of 2.2p."Saga shares were up 2.78% to 206.70p at 0820 BST on Wednesday.