- Saga
- 30 September 2026 10:37:04
Source: Sharecast
Underlying revenues at the business, which specialises in people aged 50-plus, jumped 14% to £366.3m in the six months to 31 July, while trading earnings before interest, tax, depreciation and amortisation soared 35% to £90.9m. Underlying pre-tax profits spiked 98% at £46.6m.
In the travel division, which sells river and ocean cruises as well as holidays, revenues rose 14% to £282.1m, while insurance broking posted a 12% jump to £71.7m.
Saga has looked to overhaul its business in recent years, including handing over its home and motor insurance business to the UK arm of Belgium’s Ageas in a 20-year deal.
Chief executive Mike Hazell said its simplified approach had "brought strategic clarity to our decision making and ensured customer focus is our number one priority.
"Profitability has increased significantly in the first half and we expect this to drive a strong full-year outcome, ahead of our previous guidance. All our core businesses are growing, cash generation has increased and debt continues to fall."
Full-year underlying pre-tax profits are now slated to come in between £65m and £70m. Last year Saga posted pre-tax profits of £44.2m The group also flagged that it was "significantly ahead" in meeting medium-term targets, of underlying profits of £100m by January 2030.
As at 0930 GMT, the stock had rallied 10% at 706p.
Hazell concluded: "While conscious of the potential economic headwinds and volatile global conditions, our performance this year further demonstrates the resilience of our business model and target customer group, increasing our confidence in achieving our medium-term targets ahead of plan."
Berenberg increased its underlying pre-tax profit estimates by 11% to 13% following the results. "Saga’s durable brand, its strong travel offering and its relentless focus on the customer continue to drive results, and we reiterate our ‘buy’ recommendation," it said.
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