Yahoo Finance Saga boss takes swipe at former owners
Saga's chief executive has attacked the over-50's groups former private equity owners for being "too focused on the short-term" and dramatically increasing its debts.
Euan Sutherland said that the insurance and travel specialist had a "relentless focus" in its first 55 years that was then followed by 15 years of poor decisions.
Saga has had a difficult few years on the stock market since it was floated in 2014 by its former private equity owners. They had previously failed to find a buyer for Acromas, the debt-laden holding company that comprised Saga and the breakdown service AA.
Mr Sutherland said the business "was depleted, first under private equity ownership, when debt was increased dramatically and decision making became too focused on the short-term; then, during the period in public ownership, when the potential impact of some of the investment made was lost due to poor delivery".
His comments came as the company swung to a £55m loss for the year to July 31 as older people avoid overseas travelling during the pandemic. The Covid pandemic forced Saga to suspend its cruise operations and bring 3,000 customers back to Britain.
The company also confirmed a £150m equity raising aimed at slashing its debts. Sir Roger De Haan, the son of Saga’s founder Sidney De Haan, will stump up the lion’s share of the raising with other investors asked to supply the rest as part of efforts to restore its fortunes.
Sir Roger is taking a 20pc stake and will replace Patrick O’Sullivan as its non-executive chairman under proposals that the business said were well advanced.
Saga shares fell 3.3pc to 15.51p.
