Saga, the financial services and travel provider for over-50s, has reported profit ahead of market expectations, driven by demand for cruises.
The company told markets this morning that underlying profit before tax for the year ended January 31 was £47.8m, up 25 per cent year on year.
Revenue for the year was £588.3m, up four per cent year on year, while net debt fell seven per cent to £590.5m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18 per cent to £137.1m.
“[Progress] was driven by the strength of our Travel businesses, with especially high levels of customer demand for our differentiated ocean and river cruise offers,” CEO Mike Hazel said.
During the year, Saga announced a 20-year partnership for motor and home insurance with Belgian insurance giant Ageas last month, which saw Saga’s price-comparison website, pricing, claims and customer service activities taken over by the insurer.
The company also agreed to the sale of its insurance underwriting business.
Hazel said that these decisions, combined with a strong trading performance, allowed Saga to refinance its long-term corporate debt, replacing its 2026 debt maturities with new long-term credit facilities.
“The new facilities provide us with significant financing headroom and flexibility as we move forward,” Hazell said.
“Following the completion of these important objectives, our focus has shifted to the long-term growth plans for the Group, building on our established businesses by continuing to explore complementary partnerships and unlocking new avenues for growth beyond our current business and product lines,” he added.
Saga’s share price has fallen by 0.79 per cent in the year to date and by more than 45 per cent in the past five years.