Saga Group has provided a trading update for the period from August 1, 2024, to January 29, 2025, highlighting strategic progress and expected growth in underlying profit.
The Group said it anticipates Underlying Profit Before Tax to be slightly higher than the previous year on a like-for-like basis, exceeding prior guidance.
Ocean cruise continued its strong performance, achieving a 91 percent load factor, up three percentage points from the prior year, and a per diem of £358, representing an 8 percent increase.
River cruise also saw growth, with an 89 percent load factor, four percentage points higher, and a per diem of £327, up 15 percent.
Travel is expected to report Underlying Profit Before Tax in the high single-digit millions, compared to £1.5 million last year, supported by 15 percent revenue growth and a 9 percent increase in passenger numbers.
Insurance Broking trends observed in the first half of the year continued as expected. Underlying Profit Before Tax will be lower than in 2023-24, with policy sales and the number of policies in force down by around 15 percent.
“Throughout the last financial year, we made significant operational and financial progress, said Mike Hazell, Saga Group’s chief executive officer.
The Group stated that Available Cash as of January 31, 2025, is projected at £60-70 million, excluding the £50 million undrawn Revolving Credit Facility and £10 million undrawn portion of the facility provided by Roger De Haan. Net Debt at the same date is expected to be slightly lower than £614.6 million, as reported on July 31, 2024.
The preparation for transferring the company’s motor and home insurance operations to Ageas is underway and is on track to go live in Q4 2025.
“We concluded our review of opportunities that would optimize Saga’s financial and strategic outlook and entered into the 20-year arrangement with Ageas for our motor and home Insurance Broking business and the sale of AICL, our Insurance Underwriting business, “ added Hazell. “Alongside this, we successfully refinanced our corporate debt. We continued to generate strong demand for both our Cruise and Travel businesses and the Group expects to report an Underlying Profit Before Tax that is marginally higher than the prior year on a like-for-like basis and ahead of our previous guidance.
Looking ahead to 2025-26, the Ocean cruise booked load factor is 67 percent, a 1 percentage point increase from the same point last year, with a per diem of £393, up 7 percent.
River Cruise has a booked load factor of 77 percent for the first half, compared to 74 percent last year.
The introduction of the new ship, the Spirit of the Moselle, in July 2025 is expected to further support growth, though, for the full year, the booked load factor is 55 percent, down from 59 percent last year, with a per diem of £357, compared to £335 previously.
Travel booked revenue stands at £126 million, 10 percent higher than last year, with passenger numbers up by 11 percent to 39,000.
“As we look ahead, we expect the momentum to continue to build in our Cruise and Travel businesses. As previously outlined, we anticipate that Insurance Broking earnings will fall in the short-term, ahead of the start of the partnership with Ageas, but are pleased that work on the transition is on track to allow the new arrangement to go live Q4 2025.
“We remain focused on Saga being the largest and most trusted brand for older people in the UK, continuing to drive growth, reducing debt, growing our customer base and deepening the connections we have with our customers.”
