Saga PLC (LON: SAGA) have announced a new chief executive appointment in an update to shareholders on Wednesday.
Saga is a British company focused on serving the needs of those aged 50 and over. It has 2.7 million customers.
Shares of Saga jumped 1.27% on the announcement and trade at 47p. 11/12/19 10:13BST.
Saga have seen a mixed time of trading across 2019, with mixed results leaving shareholders on edge. The appointment today seems to come at a good time for both senior management and shareholders, as it shows an ensured effort to turnaround business in a tough operating environment.
Saga chose former Superdry PLC Euan Sutherland as its new chief executive, in an attempt to drive performance.
The firm have said that Sutherland will be joining on January 6, and we be replacing Lance Batchelor who will duly depart at the end of January.
Batchelor was previously in charge Dominos Pizza Group PLC who recently announced that their chair would be leaving the company. Batchelor joined Saga in 2014, where he has seen a turbulent time in the role.
“I am very pleased Euan is joining Saga at this important time in the development of the business. He has substantial experience across several consumer-facing businesses that will be invaluable as we continue the Saga transformation, with our customers at the heart of our strategy,” said Saga Chair Patrick O’Sullivan.
Sutherland left Superdry in April after an internal disagreement with founder Julian Dunkerton, who won a shareholders trust to win himself a place on the fashion giants senior board.
Sutherland has a wide range of experience, having worked with funeral services group Co-op and becoming head of B&Q who are owned by Kingfisher PLC (LON: KGF).
Additionally, he has held roles at Coca Cola and Mars in the drinks and confectionary business.
Saga is currently undergoing a change in strategy following a poor set of annual results for its year ended January 2019, unveiled in April. It warned at the time profit for its current year would fall well short of the prior year as a result.
The strategy shift will include refocusing on the “heritage as a direct-to-consumer brand”, which will provide products and services which customers cannot find anywhere else in the market.
“Alongside the recent appointments of Cheryl Agius as CEO of Insurance and Gilles Normand as COO, the board has every confidence in the team now in place to lead and accelerate Saga’s turnaround strategy,” said Chair O’Sullivan.
“On behalf of the board I would like to thank Lance for focusing on reinvestment over the last six years and for launching our membership scheme, Saga Possibilities, and wish him well for the future.”
