Saga Plc Starts Financial Year on Positive Note, Businesses Performing Well
Why we think this is good
The trading update from Saga plc indicates that the company has started the financial year on a positive note, with all its businesses performing well and in line with expectations. The key highlights include strong performance in the Ocean and River Cruise and Holidays businesses, as well as the Insurance Underwriting and Broking segments. The company is also making good progress on its partnership strategy, including a potential new agreement with NatWest. While the update does not mention any explicit profit upgrades or transformational acquisitions, the overall performance across the business segments is positive, and the company's financial position, with decreased net debt and available cash, is also encouraging.
Key Points
- Strong performance in Ocean and River Cruise and Holidays businesses
- Insurance Underwriting and Broking segments trading in line with expectations
- Progress on strategic partnerships, including potential agreement with NatWest
- Improved financial position with decreased net debt and available cash
Summary
Saga plc, the UK's specialist in products and services for people over 50, has provided a trading update covering the period from 1 February 2025 to 23 June 2025. The key highlights include:
- Ocean and River Cruise had a strong start to the year, with booked load factors for the first half ahead of the same point last year.
- Holidays bookings for the full year are also ahead of the prior year, with booked revenue and passengers higher than the same point last year.
- The Insurance Underwriting business continues to trade in line with expectations, and the sale to Ageas SA/NV is progressing well.
- The Insurance Broking business is also trading in line with expectations, and the transition to the 20-year partnership with Ageas is on track.
- The company is making good progress with its partnership strategy, including a potential new agreement with NatWest for personal banking products.
- Net Debt at 31 May 2025 was £569.5m, which included Available Cash of £96.7m, an improvement compared to the prior year.