Saga shares hit record low on profit alert

Shares in Saga, the over-50s insurance and holiday specialist, dived almost 40% to hit a record low of 65p after it reported lower profits and warned that earnings would be hit next year.

A “fundamental” rethink will see Saga make changes to its insurance business that are set to cut profit margins. Saga, which has just over two million customers, also cut the dividend payout to shareholders. Saga, which said it faced “increasing challenges” in its markets, reported a 5.4% fall in underlying profits to £180m for the year to 31 January. For the current financial year, it is expecting profits to fall to between £105m and £120m. BBC