Saga Management Needs to Get a Grip, says Hobson

THE WEEK: Morningstar columist Rodney Hobson says investors caught out by Saga's share price drop should stay in - but he wouldn't invest any more cash

Rodney Hobson 8 December, 2017 | 10:56AM
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The most worrying aspect of the profit warnings from Saga (SAGA) was the way that management was apparently completely caught out by the collapse of Monarch Airlines and was blissfully unaware of the impact that this would have on Saga’s tour operations.

At times I do wonder what investors want

The last trading update we had from the services to the over 50s specialist came with interim results on 22 September, and very bullish it was, too, with an 11.1% rise in the dividend. In particular, it assured shareholders that the travel business “has had another strong period of trading” with the tour business generating a 7.6% increase in revenue from a modest increase in passengers.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Legal & General Group PLC283.50 GBP0.00
Prudential PLC1,270.50 GBP0.00Rating
Saga PLC265.80 GBP0.00

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.