Saga (SAGA) investor relations material

Executive summary

• Delivered a strong first half with underlying revenue up 14% to £366.3m and trading EBITDA up 35% to £90.9m, driven by robust growth in travel and insurance.

• Underlying Profit Before Tax rose 98% year-over-year to £46.6m; statutory PBT from continuing operations increased from £3.7m to £28m.

• Strategic transformation progressing well, with simplification, customer focus, and digital investments supporting growth and resilience.

• Upgraded full-year underlying PBT guidance to £65–70m, over 50% higher than last year, with medium-term targets (£100m profit, leverage <2x) expected ahead of January 2030.

• Net debt reduced by £86m year-over-year to £429.1m; leverage ratio improved from 4.3x to 2.7x.

Financial highlights

• Underlying revenue rose 14% year-over-year to £366.3m; trading EBITDA up 35% to £90.9m.

• Underlying PBT nearly doubled to £46.6m; profit before tax from continuing operations up over 500%.

• Underlying available operating cash flow up 27% to £101m, reflecting strong cash generation and reduced capex.

• Net debt at £429.1m, down from £515.1m a year ago; leverage ratio improved to 2.7x from 4.3x.

• Underlying Basic EPS nearly doubled to 33.5p from 16.8p.

Outlook and guidance

• Full-year underlying PBT expected at £65–70m, above consensus of £60.4m.

• Net debt and leverage to remain broadly flat due to one-off cash items and working capital seasonality.

• Ocean Cruise expected to maintain strong growth; River Cruise full-year profit to be lower due to low water levels and seasonality.

• Holidays and passenger numbers expected in line with prior year; insurance broking PBT to be higher.

• Medium-term targets of at least £100m underlying PBT and leverage ratio below 2.0x likely to be achieved ahead of January 2030.