Why invest?

How we are different

Saga focuses on the over 50s, the fastest growing demographic in the UK. This demographic tends to be wealthier and more resilient during times of economic uncertainty. Our customer insight allows us to gain unique insight into the traits of our target demographic, helping us to develop products and services that we know will be valuable to our customers. We operate across sectors which provide services that people need. This means that demand for our products and services remains consistent amongst a customer base that predominantly spends unearned income.

The model works

The capital efficiency of the model means that we are highly cash generative. This enables us to invest for future growth, whilst continuing to pay down debt and enhance long-term returns to shareholders through our dividend.

Confidence in future delivery

Our existing strategy is robust. The in-depth work we have undertaken to deepen our understanding of our customers has provided the logical next step in the evolution of our model. We are now in a position to use our enhanced insight and data capability through a membership structure to become a more efficient organisation, ensuring that we:

  • retain and deepen our customer relationships;
  • increase new customer targeting; and
  • generate increased profits at lower risk, with lower capital.

This strategic evolution increases our confidence in our ability to generate consistent long-term earnings growth on a sustainable basis.