Saga today outlined an ambition to double earnings from its travel businesses within five years.
The forecast came at a capital markets day where the over-50s specialist reported trading across its various interests, which include insurance and healthcare, as being in line with market expectations.
The company said: “In travel, Saga aims to double Ebitda within five years from January 2014 by further diversifying its offer to include a greater range of third-party products alongside its own to target different groups of customers more effectively, while also diversifying distribution channels.”
Group chief executive Lance Batchelor said: “In the ten months that I have led the business, I have seen the depth of insight into our core demographic that our unique database provides, the potential of our brand, the consistent performance of the group – in particular our insurance business – and the quality of our people.
“I am very clear that our model is predominantly that of a broker, accessing the best products for our customers and delivering them with our own high standards of customer service.
“This model works best when superior customer knowledge and a trusted brand work together to create a competitive edge, helping to build enduring relationships directly with our customers.
“The strategy that we outline today shows how we intend to use these competitive strengths to unlock the potential of our existing businesses and to continue to explore new areas of growth, while maintaining our capital-light, cash-generative operating model.
“This will drive growth in our existing businesses, provide scope for investment in new products and underpin a progressive dividend policy.”