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Saga delivered a \u201ctransformational year,\u201d with underlying revenue up 11%<\/strong> and underlying PBT from continuing operations of \u00a344.2m<\/strong> (+19%), operating cash flow of \u00a3205.9m<\/strong> and net debt reduced to \u00a3499.5m<\/strong> after a new 2031<\/strong> facility and \u00a3150m<\/strong> of undrawn committed lines, underpinning confidence in the \u00a3100m profit by Jan 2030<\/strong> target.<\/p>\n<\/li>\n Travel was the largest profit driver\u2014Travel underlying PBT rose to \u00a387.2m<\/strong> (+37%), with Ocean Cruise delivering an \u201cexceptional\u201d year (underlying PBT \u00a367.3m<\/strong>), high load factors and stronger forward bookings supporting continued growth.<\/p>\n<\/li>\n Insurance was materially reset by selling in\u2011house underwriter AICL and launching the Ageas partnership, removing underwriting risk (underwriting now discontinued), transferring most staff to Ageas and generating a \u00a360m<\/strong> payment to date with ~\u00a380m<\/strong> total proceeds expected as the commission\u2011based model is implemented.<\/p>\n<\/li>\n Interested in Saga plc? Here are five stocks we like better.<\/a><\/p>\n<\/li>\n<\/ul>\n Saga (LON:SAGA) reported results for the year ended Jan. 31, 2026, with management describing a \u201ctransformational year\u201d marked by stronger-than-expected profits, significant debt reduction, and major strategic simplification\u2014particularly in Insurance\u2014alongside continued momentum in Travel.<\/p>\n Group CEO Mike Hazell<\/strong> said the performance was \u201cahead of expectations,\u201d pointing to the completion of a refinancing, the reshaping of Insurance through the sale of the group\u2019s in-house underwriter AICL and the launch of the Ageas partnership, and Travel becoming \u201cour largest and fastest-growing driver of profit.\u201d Hazell added that the progress made during the year has increased management\u2019s confidence in the group\u2019s previously stated target of reaching \u00a3100 million profit by January 2030<\/strong>.<\/p>\n \u2192 3 Surprising S&P 500 Outperformers of 2026<\/a><\/p>\n Group CFO Mark Watkins<\/strong> said Saga \u201cexceeded our guidance,\u201d with performance driven by Travel and Insurance Broking. Underlying revenue rose 11%<\/strong> year over year, while underlying profit before tax (PBT) from continuing operations increased to \u00a344.2 million<\/strong>, up 19%<\/strong> versus the prior year and ahead of expectations. Watkins noted that improved trading was partly offset by higher finance costs following the group\u2019s refinancing early in the year.<\/p>\n Watkins highlighted strong cash generation, with available operating cash flow of \u00a3205.9 million<\/strong>, an 88%<\/strong> increase, supported by improved Ocean Cruise cash performance and a \u00a360 million<\/strong> receipt from Ageas following the insurance partnership launch. Net debt at year-end fell to \u00a3499.5 million<\/strong>, down \u00a393.3 million<\/strong> from the prior period, while leverage declined to 3.7x<\/strong> from 4.4x<\/strong> a year earlier.<\/p>\n<\/p><\/div>\n \u2192 Microsoft\u2019s Copilot Problem Isn\u2019t What You Think<\/a><\/p>\n On the refinancing, Hazell said the new 2031 corporate debt facility<\/strong> \u201cmaterially enhanced the Group\u2019s liquidity position, significantly increased covenant headroom, and provided funding certainty as we execute our growth plans.\u201d Watkins added the structure includes access to an additional \u00a3150 million<\/strong> of undrawn committed facilities.<\/p>\n Watkins said Saga\u2019s Travel businesses delivered \u00a387.2 million<\/strong> of underlying PBT, a 37%<\/strong> year-over-year increase. Management also emphasized organizational change, with Hazell noting the consolidation of Ocean Cruise, River Cruise, and Holidays leadership into a \u201csingle operation\u201d designed to improve efficiency and create a more consistent customer experience.<\/p>\n \u2192 This New ETF Aims to Capitalize on Surging AI Memory Chip Demand<\/a><\/p>\n Ocean Cruise<\/strong> posted an \u201cexceptional year,\u201d with revenue up 12%<\/strong>, load factor at 93%<\/strong> (up from 91%<\/strong>), and per diem rising to \u00a3394<\/strong> (up 10%<\/strong>). Underlying PBT increased 38%<\/strong> to \u00a367.3 million<\/strong>. Watkins said the cruise facilities were reduced by \u00a354.2 million<\/strong> over the year, contributing to lower finance costs within the Ocean segment.<\/p>\n Forward indicators were also positive. Watkins said booked load factors for 2026\/27 were 79%<\/strong>, with per diem of \u00a3447<\/strong>, 13%<\/strong> ahead of the same time last year. Hazell told analysts that as load factors move into the 90s, Saga still sees some room for improvement, and that per diem gains are supported not only by supply\/demand but also by \u201cthe quality of the proposition\u201d and itinerary changes.<\/p>\n Nigel Blanks<\/strong>, who Hazell introduced as having led the Travel business, said Saga\u2019s differentiation means there is \u201cno direct competitor,\u201d allowing the company to \u201cprice our products to maximize the return\u201d rather than competing in the mass-market cruise environment. Hazell added that Saga encourages early booking by offering \u201cour best prices to customers that book first,\u201d giving management earlier visibility into performance.<\/p>\n River Cruise<\/strong> revenue rose 8%<\/strong>, with load factor of 89%<\/strong> and per diem of \u00a3350<\/strong> (up 7%<\/strong>). Underlying PBT increased 48%<\/strong> to \u00a35.9 million<\/strong>. Watkins said the year included marginally higher capacity following the July launch of the Spirit of the Moselle<\/strong>. Forward bookings show a 73%<\/strong> load factor and per diems of \u00a3372<\/strong>, ahead of the same time last year.<\/p>\n In the Q&A, Hazell said River is \u201ca year or two behind the Ocean Cruise model\u201d as the product quality is built out, and noted that new ship additions can temporarily affect load factors as capacity is sold. He also said the next ship, Spirit of Lorelei<\/strong>, is due to arrive in 2027<\/strong>.<\/p>\n Holidays<\/strong> revenue increased 10%<\/strong>, supported by an 11%<\/strong> rise in passenger numbers. Marketing costs rose 17%<\/strong> to \u00a312.7 million<\/strong>, which Watkins said was intended to drive passenger growth in the current year and into the next. Underlying profitability improved to \u00a314 million<\/strong> from \u00a310.7 million<\/strong>. Hazell said customer satisfaction improved during the year, and management noted that current full-year booked revenue for 2026\/27 is 4%<\/strong> ahead of the prior year.<\/p>\n Management framed the year as a turning point for Insurance. Hazell said the sale of AICL and the rollout of the Ageas partnership has removed underwriting risk and reduced operational complexity. He said that once the transition completes next year, headcount for remaining insurance operations is expected to fall from \u201caround 2,000 people to fewer than 400,\u201d with most affected colleagues transferring to Ageas.<\/p>\n Watkins reported that Insurance underwriting is now classified as discontinued operations, and said the strong first-half performance supported a \u00a310 million<\/strong> pre-completion dividend; Saga also received \u00a311.4 million<\/strong> of proceeds on completion in July.<\/p>\n In continuing operations, Insurance Broking<\/strong> generated underlying PBT of \u00a316.9 million<\/strong>. Watkins said the business invested in policy growth ahead of the Ageas partnership launch, with three of four key products returning to growth after years of decline. He said Motor rose by 73,000<\/strong> policies, while Private Medical Insurance (PMI) and Travel grew by 41,000<\/strong>. He also walked through segment drivers:<\/p>\n Motor contribution before overheads decreased by \u00a34.6 million<\/strong> due to investment in pricing and marketing to support higher volumes.<\/p>\n<\/li>\n Home contribution increased by \u00a32.2 million<\/strong> on higher renewal margins.<\/p>\n<\/li>\n PMI rose by \u00a34.7 million<\/strong> on commissions and profit share.<\/p>\n<\/li>\n Travel insurance contribution decreased by \u00a30.9 million<\/strong> due to marketing investment.<\/p>\n<\/li>\n<\/ul>\n Hazell said the Ageas rollout began in December with motor new business, with home new business following \u201cthis month\u201d and renewals switching later in the year. He characterized the end-state as \u201ca simple, more stable and predictable commission-based income stream.\u201d<\/p>\n Watkins said confidence is \u201chigh\u201d for 2026\/27, citing resilient customers, strong forward travel bookings, and a lower-risk insurance model following the Ageas transaction. He said Saga\u2019s exposure to the Middle East is \u201cminimal,\u201d and that fuel and foreign exchange are \u201chedged well into 2027.\u201d<\/p>\n For 2026\/27, Watkins said the group expects:<\/p>\n Further underlying PBT growth in Ocean Cruise, with no dry docks planned<\/strong> in the year.<\/p>\n<\/li>\n Continued growth in River Cruise load factors and per diems, alongside increased Holidays passenger numbers.<\/p>\n<\/li>\n Insurance Broking profitability \u201cat least in line\u201d with 2025\/26 and above previous guidance as the Ageas partnership embeds.<\/p>\n<\/li>\n Finance costs \u201cmarginally lower\u201d than 2025\/26; effective blended pro forma rate expected at 7.6%<\/strong>.<\/p>\n<\/li>\n<\/ul>\n Watkins said underlying profitability is expected to \u201ctake a further step forward\u201d in 2026\/27, with net debt and leverage continuing to decline. In Q&A on net debt bridge items, he clarified that the \u00a386.9 million<\/strong> working capital inflow includes the \u00a360 million<\/strong> Ageas payment, which Saga excluded from net debt because the cash is expected to unwind as the renewal book transfers later in the year. He also noted an additional \u00a320 million<\/strong> is expected in the second half of the year, consistent with the partnership\u2019s previously communicated \u00a380 million<\/strong> total proceeds.<\/p>\n On capital allocation and leverage targets, Hazell said management is focused on continuing deleveraging and growth, but that \u201coptionality opens up\u201d as leverage falls, including potential future decisions on dividends and refinancing into a more efficient capital structure. Watkins added that Saga\u2019s current guidance does not assume the reintroduction of dividends.<\/p>\n Hazell also discussed early progress in Saga\u2019s savings partnership with NatWest, calling it a \u201cbig start\u201d to longer-term growth in personal finance offerings. He said the partnership launched \u201cproperly in January\u201d and has already taken over \u00a3200 million of deposits<\/strong>, while noting that profitability is expected to build in later years rather than immediately.<\/p>\n Saga exists to deliver exceptional experiences for our customers every day, whilst being a driver of positive change in our markets and communities.<\/p>\n The article “Saga H2 Earnings Call Highlights<\/a>” was originally published by MarketBeat.<\/p>\n<\/p><\/div>\n\n
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