Saga, a company specializing in products and services for individuals over 50, has announced a strong financial recovery, transitioning from a substantial loss to a profit. For the year ending January 31, 2026, the company reported a pre-tax profit of £2.1 million, a significant improvement from the £160.2 million loss recorded in the previous year. This turnaround was supported by a 12% increase in revenue, reaching £660 million. The underlying profit before tax also saw a 19% rise, reaching £44.2 million, surpassing analyst expectations.
The positive results were largely attributed to the robust performance of Saga's travel and insurance businesses. The travel division, particularly ocean cruises, experienced significant growth. Ocean Cruise reported an underlying profit before tax of £67.3 million, a 38% increase, with revenue growing by 12% to £265.6 million. The load factor for cruises was 93% with a per diem of £394, both up from the previous year. The holidays business also performed well, with underlying profit before tax increasing by 31% to £14 million and revenue up 10% to £185.1 million, alongside an 11% rise in passenger numbers to 60,800.
Saga's financial health also improved through enhanced cash generation and debt reduction. Available operating cash flow nearly doubled to £205.9 million, contributing to a 16% reduction in net debt, which now stands at just under £500 million. This led to an improvement in the leverage ratio from 4.4 times to 3.7 times. The company's insurance broking arm also contributed positively following the sale of its underwriting arm and a new partnership.
Looking ahead, Saga expresses confidence in continued growth, expecting further increases in profit and cash generation for the 2026/27 financial year. Forward bookings for ocean cruises are strong, with 79% sold for FY27 and per diem pricing up 12.6%. The company has also hedged 100% against foreign exchange risk for 2026/27 and 2027/28, and is largely hedged for oil commodity risk. Despite current uncertainties in the Middle East, Saga stated it has minimal exposure to the region in its travel itineraries.
