Shares at over-50s insurer Saga (LON:SAGA) soared over 8 percent at market open on Thursday, as underlying profit for the full year to January 2018 moved up 1.4 percent.
Pre-tax profit dropped significantly over the period, down 1.4 percent, but the company raised its dividend by 5.9 percent to 9p. Saga said it reflected ‘confidence in the future cash generation of the business’.
Its travel business had an extremely strong year, seeing profit growth of 36.9 percent over the period. Retail broking insurance recorded a profit of 4.3 percent.
“In a challenging market we have delivered a set of full year results which is in line with the rebased profit expectations set at the end of 2017. We have also continued to develop our strategy for long term growth.
“We have achieved a modest increase in underlying profits and have remained highly cash generative. We have increased the dividend given our confidence in the stability of our highly cash generating model”, said CEO Lance Batchelor.
Shares in Saga are currently trading up 8.12 percent at 126.50 (0847GMT).