Saga plc explained

Saga plc
Type:Public
Foundation:1951
Location City:Folkestone, Kent
Location Country:United Kingdom
Key People:Roger De Haan (Chairman)
Mike Hazell (Group Chief Executive Officer)
Industry:Insurance
Travel
Financial services
Revenue: £581.1 million (2023)[1]
Operating Income: £(213.5) million (2023)
Net Income: £(259.2) million (2023)

Saga is a British company focused on serving the needs of those aged 50 and over. It has 2.7 million customers. The company operates sites on the Kent and Sussex coast: Enbrook Park and Priory Square.[2] [3] [4] It is listed on the London Stock Exchange.

History

Early history

The business was founded by Sidney De Haan in 1951 and was passed to his son Roger De Haan who took over in 1984 after his father's retirement.[5] Saga was acquired by staff (20%) backed by the private equity firm Charterhouse in October 2004.[6] Saga merged with The AA (owned by CVC and Permira) to form Acromas Holdings.[7]

In July 2011, Saga acquired Allied Healthcare. On 31 January 2015, it wrote it down to zero, and then sold it, at a small net profit, to Aurelius Group in December 2015.[8] [9] [10]

In May 2014, Saga Group Ltd was successfully listed on the London Stock Exchange as Saga PLC.[11]

Also in 2014, Saga acquired Bolton based luxury holiday company, Destinology.[12]

In January 2020, Saga appointed Euan Sutherland as CEO of the Saga Group. At the same time, Saga's escorted touring brand Titan Travel was put up for sale, but has subsequently been paused due to the ongoing impact of Coronavirus.[13]

Debt problems

In 2019 the company issued a profit warning and since then it has struggled to reduce its debt. Part of the strategy has been to sell off assets.[14]

In February 2020, Saga sold its motorcycle insurance business, Bennetts, to Atlanta Investment Holdings Ltd, part of the Ardonagh group, for £26 million.[15]

In March 2020, Saga sold its Patricia White's and Country Cousins domiciliary care agencies to private equity firm Limerston Capital for a reported £14 million now rebranded as Trinity Homecare.[16]

In June 2020 Saga Care at Home permanently closed and its assets assigned to another care provider. This marked the end of Saga's involvement in the homecare sector.[17]

In November 2023, Euan Sutherland resigned as chief executive with immediate effect after serving for four years.[18] [19] Sutherland will serve until January 2024. Mike Hazell, the company's finance director, has been appointed as his replacement.

Operations

Saga's operations include:[20]

Magazine

Saga operates a subscription magazine, Saga Magazine, with a circulation of 627,000 and a readership of one million per month; it has been described as the "United Kingdom's biggest selling monthly subscription title".[22] Founded by Paul Bach, under his editorship, it became Britain's biggest selling monthly magazine.[23]

Television campaign

In 2021 Saga launched a new television campaign featuring actor Nicholas Farrell and called Experience is Everything.[24]

Notes and References

  1. Web site: Annual Report 2023. Saga Group. 15 February 2024.
  2. http://www.hoovers.com/company/Saga_Group_Limited/ryhsysi-1.html Saga Group Limited
  3. Web site: MetroMail. metromail.co.uk. 3 April 2015.
  4. Web site: Welcome to Saga. Over 50s Insurance, Holidays, Magazine and More. www.saga.co.uk. 3 April 2015.
  5. Web site: Saga Holidays founder dies. 18 February 2002. BBC. 10 April 2016.
  6. Web site: Saga sale nets £1.2bn for founder's son. The Telegraph. 5 October 2004. 10 April 2016.
  7. News: Equity windfall for Saga and AA staff. Goodman. Matthew. 23 September 2007. The Sunday Times. Times Newspapers Ltd. 2009-11-14.
  8. Web site: Allied Healthcare International Inc. to Be Acquired by Saga Group Limited. Market wired. 29 December 2016. 2011.
  9. Web site: Saga Sells Allied Healthcare Business To Aurelius For GBP19 Million . Morning Star. 13 February 2017.
  10. Web site: Saga Sells Allied Healthcare . 2 December 2015. Care Management Matters. 11 December 2017.
  11. Web site: Saga PLC company summary. London Stock Exchange. 27 August 2014.
  12. Web site: Saga takes majority stake in Destinology. Travel Weekly. 22 September 2017.
  13. Web site: Saga pauses Titan Travel sale due to coronavirus – reports. TTG.
  14. News: Goss. Louis. Saga looks to sell off insurance business to help pay down £721m debt. 22 January 2023. 8 February 2024. https://web.archive.org/web/20231003075129/https://www.cityam.com/saga-looks-to-sell-off-insurance-business-to-help-pay-down-721m-debt/. 3 October 2023.
  15. Web site: Saga sells Bennetts Motorcycle insurance for £26m. Simon. Hancocks . 17 February 2020. Visordown.
  16. Web site: Sale of introductory care agencies, Trading Update – Company Announcement - FT.com. markets.ft.com.
  17. Web site: Preliminary Results 2022. Saga. 7 February 2024.
  18. News: Patrick. Hosking . 2023-11-29 . Saga chief quits after four years at the helm . . en . 2023-11-29 . 0140-0460.
  19. Web site: Saga chief Euan Sutherland resigns as group explores debt reduction . 2023-11-29 . www.ft.com.
  20. Web site: Saga's holidays help lift revenues as car insurance decelerates. 30 April 2015 . The Telegraph. 11 April 2016.
  21. Web site: Travel. Saga Corporate. 5 January 2017.
  22. Web site: Saga magazine gets a new look. Wemakemedia. 13 February 2017.
  23. News: Obituaries — Paul Bach . The Daily Telegraph . 16 October 2011 . 24 October 2011.
  24. https://www.youtube.com/watch?v=VvTGVTmQUDM/ Experience is Everything YouTube video

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