Saga plc

Saga reported underlying revenue up 7% year over year and underlying PBT from continuing operations of GBP 23.5 million, versus GBP 27.2 million in the prior period. Available operating cash flow was GBP 89.4 million, up 64%, and net debt at 31 July 2025 was GBP 515.1 million, down GBP 77.7 million from year-end and GBP 102.1 million year over year. Total leverage was 4.3x versus 4.8x a year earlier. By segment, Travel delivered GBP 41.6 million of underlying PBT, up 33%; Ocean Cruise PBT was GBP 34.5 million, up 23%; River Cruise PBT was GBP 3.9 million, up 34%; Holidays PBT was GBP 3.2 million versus GBP 0.3 million; and Insurance Broking PBT was GBP 8.9 million. The underwriting business generated GBP 15.6 million of underlying PBT before disposal. Management now expects full-year underlying PBT to be in line with the prior year, trading EBITDA to be ahead of the prior year, and year-end leverage to be below the prior year.

Michael Hazell framed the half as evidence that Saga is executing on both trading and strategy, with travel momentum, a stronger customer proposition, and major simplification steps all moving in the right direction. He emphasized Saga’s differentiated position with older customers, its large database, and the ability to use publishing and marketing to deepen engagement. His tone was confident and more upbeat about the medium-term GBP 100 million profit target and sub-2x leverage goal by January 2030.

Mark Watkins focused on the financial improvement: GBP 23.5 million of underlying PBT, GBP 89.4 million of available operating cash flow, and net debt down to GBP 515.1 million with leverage at 4.3x. He attributed the PBT result to travel growth and better insurance broking, partly offset by higher finance costs from the refinancing, and noted that cash generation benefited from seasonality and the GBP 10 million underwriting dividend. He also highlighted the sale of underwriting, which added GBP 17 million of net cash, and said full-year PBT is now expected to be in line with the prior year, with leverage below the prior year.

Analysts pressed on ocean cruise pricing, the scale of Saga’s database, the money business, competitive threats in cruise, the Ageas launch, Titan versus Saga holidays, dry-dock timing, Middle East disruption, and travel marketing. Management said ocean cruise is benefiting from higher load factors and less discounting, with future per diem growth expected to come more from value-added product and demand management than further occupancy gains. On the database, Hazell said Saga has 9.7 million people in the database and can directly contact 7.7 million, describing it as both an insight tool and a marketing asset. He said the NatWest money partnership is a long-term scale-up opportunity, Ageas remains on track for Q4 2025 go-live, and competitive pressure is limited because Saga’s no-fly, boutique, over-50 cruise proposition is differentiated; he also said Middle East disruption did not affect the business.