Saga Reports Strong Annual Performance Driven by Travel Sector and Strategic Insurance Restructuring

Saga has revealed a truly transformative year, marked by impressive financial achievements and strategic advancements. For the fiscal year concluding on January 31, 2026, the company reported an 11% increase in underlying revenue and a 19% rise in underlying profit before tax from its ongoing operations, reaching £44.2 million. This strong performance, surpassing internal expectations, was significantly bolstered by an operating cash flow of £205.9 million. Furthermore, Saga successfully reduced its net debt to £499.5 million following a new 2031 financing facility and securing £150 million in undrawn committed lines, strengthening its financial foundation. This progress instills considerable confidence in the company's ambitious goal of achieving £100 million in profit by January 2030.

The travel division proved to be the primary engine of profitability, with its underlying profit before tax escalating to £87.2 million, a substantial 37% increase. This was largely attributed to the outstanding performance of Ocean Cruise, which alone contributed £67.3 million in underlying profit before tax, characterized by high load factors and robust future bookings. Meanwhile, the insurance sector underwent a significant strategic realignment through the sale of its in-house underwriter, AICL, and the establishment of a partnership with Ageas. This move effectively eliminated underwriting risks, transitioned a majority of staff to Ageas, and has so far generated £60 million, with total proceeds anticipated to reach approximately £80 million as a new commission-based model is implemented. This comprehensive restructuring significantly streamlined operations and improved the risk profile of the insurance segment.

Looking ahead, Saga's leadership expresses strong optimism for the fiscal year 2026/27, anticipating continued growth across its travel businesses, including further increases in Ocean Cruise and River Cruise profitability, along with a rise in Holidays passenger numbers. The revamped insurance broking segment is projected to maintain its profitability, meeting or exceeding previous forecasts as the Ageas partnership fully integrates. The company also expects a slight reduction in finance costs, with an effective blended pro forma rate of 7.6%. This forward-looking outlook is supported by resilient customer demand, robust future travel bookings, and a de-risked insurance model, all contributing to management's high confidence in sustained financial improvement and further debt reduction. Saga is dedicated to delivering exceptional experiences for its clientele and fostering positive change within its operational landscapes and communities, as demonstrated by its early success in a savings partnership with NatWest, which has already attracted over £200 million in deposits.