Saga finance director Stuart Howard has announced his retirement four months after the company’s disappointing initial public offering.
Saga’s stock market listing in May was criticised after it pitched itself to investors as a specialised consumer company, despite the majority of its revenues coming from its insurance arm. Its shares dropped significantly after floating at 185p a share.
The over-50s specialist group said Howard, who has been in the role for more than 14 years, ‘felt it is time to hand over to someone who can take the business forward in the next stage of its development’.
He will be replaced by Jonathan Hill, finance director of house building company Bovis Homes.
The announcement came as Saga released its maiden set of interim results as a public company today.
Half-year pre-tax profits to July 31 fell from £91.2 million to £32.8 million despite a strong start to the year for its travel division.
The travel division grew operating profit from £2.6 million to£9.1 million, with total revenue up by 9.2% to £176.5 million.
Operating profit for the whole group was up by 15.2% to £110 million as revenue dipped by 3.9% to £583.5 million.
Earlier this week, Saga announced plans to sell through travel agents for the first time.
Chief executive Lance Batchelor said: "Within the holidays business we continue to innovate and look at ways of opening up the Saga experience to more of our target demographic.
"In August we announced the acquisition of Destinology, an acquisition that will expand and enhance Saga’s offer in premium travel. In particular, given the age profile of Destinology’s customer base, it will help improve access to the affluent younger age group (50-60) within Saga’s target demographic.
"In the cruising business, we have extended the Saga brand into third party cruising, through agreements with four separate cruise lines.
"Initial demand for this product has been strong and, encouragingly, 30% of the demand has originated from new customers – those that have not booked a cruise or holiday with us before – with a further 19% of the demand from people who have not holidayed or cruised with us for over three years."
