12th Jan 2016 07:56
LONDON (Alliance News) - SAGA PLC, which sells products such as insurance and holidays for people over 50 years old, on Tuesday said it has agreed a deal with major shareholder Acromas that will enable it to recognise a GBP7.7 million tax credit in the financial year ending January 31.
The company, a member of the FTSE 250 index, said it agreed to acquire tax losses from Acromas SPC Co Ltd and Acromas Mid Co Ltd with a tax affected value of GBP15.3 million, equal to half of the "tax affected face value". Acromas owns 31.5% of Saga, having sold 13% of the company in early December.
Acromas is owned by Charterhouse Capital Partners, CVC Capital Partners and Permira, the private equity firms which were behind floating Saga on the London Stock Exchange in May 2014.
The news came as Saga said it saw growth in its core business between August 1 and January 11, with higher policy numbers across all key insurance lines and increased passenger numbers in the travel business.
Saga said it is positioned for further growth in 2016 following the creation of a motor insurance panel with five insurers, including Saga's own AICL underwriting vehicle.
"Our core businesses are growing, the motor insurance panel is developing well, we have signed the contract to build our new ship and we have launched into the wealth management market," Chief Executive Lance Batchelor said in a statement.
"Whilst doing all of this we have remained focused on our financial performance and current trading means that we expect to deliver results in line with market expectations for the full year," Batchelor added.
By Samuel Agini; [email protected]; @samuelagini
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