The Saga Board of Directors has considered the early progress made in the implementation of the Group's revised strategy and is confident in the ability of Saga to achieve the full year target for Underlying Profit Before Tax of between £105m and £120m.
Subject to the two risk factors outlined above and potential actions to reduce leverage, the Board remains of the view that a medium-term pay-out ratio of around 50% of underlying earnings after tax is appropriate. This balances an attractive dividend for investors, while reducing both absolute levels of leverage and leverage ratios over the next few years.
The Board has declared an interim dividend per share of 1.3p (H1 2018: 3.0p), in line with the rebased dividend policy.
Other financial highlights include:
The Group has adopted IFRS16 Leases and is reporting its performance for the six months to 31 July 2019 against a restated comparative period for the six months to 31 July 2018 under this new standard.
Bank debt and borrowings net of available cash (excluding restricted cash)
Underlying Profit Before Tax of £52.8m and Available Operating Cash Flow of £24.9m in line with expectations.
Full year guidance for Underlying Profit Before Tax of between £105m and £120m remains unchanged.
