Home » News and Views » Ian Pollard – Saga Blames Profits Fall On Cost Savings

Ian Pollard – Saga Blames Profits Fall On Cost Savings

Saga plc SAGA In its preliminary results for the year to 3st January Saga comes out with the statement that the fall of 7.6% in like for like profit before tax is due (inter alia) to cost savings. No wonder the CEO admits that it has been a challenging few months for the company with the share price under pressure. Like for like earnings per share fell by a similar amount, down 7.8%. As a sign of what could be done, there was strong growth in travel with a rise of 36.9% The full year dividend is to be increased by 5.9% to 9p per share but just imagine where it might have been without those cost savings.

WH Smith plc SMWH claims it delivered a good performance in the half year to the 28th February with the interim dividend increased by 10% as senior management celebrates falls of 1% in profit before tax, diluted earnings per share and profit from trading operations, not to mention a 6% drop in High Street trading profit. In fact the only growth came from the travel division which once more saved the day with a 5% rise in trading profit. The CEO is confident in the outcome for the full year. Shareholders can only hope that it will not be as “strong” as the first half.

Dunelm DNLM The new Chief Executive says has become increasingly excited since he joined the company in February but that may soon wear off once he has to deal with the reality of keeping store sales rising.In the quarter to the 31st March like for like online sales rose by 35.7% and store sales by 1.2%, a sign of the times if ever there was one. Total group sales for the quarter rose by 5.1% but gross margins were down by 15bps although they are expected to improve in quarter 4. No new stores at all are to be opened in the second half which is perhaps an even greater sign of the times.

Hays plc HAS Total net fees for the three months to the 31st March grew by 9% as the world, with the exception of the UK, prospered.  Again the figures reveal the plight of the UK economy where net fees fell by 2% compared for exmple to Germany which had a record quarter with a rise of 19%. Twenty of the company’s 33 markets achieved double digit growth which makes the UK look sick indeed.

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