Saga, Johnston Press and Stagecoach

“The FTSE100 opened in negative territory as the turmoil surrounding ongoing Brexit negotiations showed little sign of abating. Overseas markets were also weaker overnight as geopolitical and economic growth concerns continued to unsettle investors,” says AJ Bell Investment Director Russ Mould.

“Saga’s shares plunged after it issued a profits warning. The insurance and holiday specialist for the over 50s has faced more challenging conditions in its insurance broking division and has also been hit by the collapse of Monarch Airlines which will result in a one-off cost of £2m. Saga has carried out a comprehensive review of its operating structure which will bring annualised savings of around £10m but it will incur a one-off cost of £4m to implement these changes. Saga’s shares were down by more than 21.2% in early trading.

“Johnston Press was an early riser after earnings for the i newspaper averaged £1m in September, October and November. Johnston Press acquired the paper in April 2016 when it had annual earnings of £5.2m. Over the past 19 months there has been a significant investment in the editorial team and the group has taken steps to maximise the value and appeal of the brand to both print and digital audiences. Johnston Press was up 8% in early trading.

“Transport group Stagecoach’s shares rose after it maintained its interim dividend and affirmed its forecasts for full year adjusted earnings per share. First half pre-tax profits were up 8% but this was chiefly due to one-off items as revenues were down by 10%. Stagecoach’s shares were up by more than 3.6%.”

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