SAGA PLC - Preliminary results for the year ended 31 Jan 2026

Saga plc’s FY2026 preliminary results highlight a strong investor update marked by robust company performance, improved financial results, and clear strategic progress. The group delivered an 11% increase in underlying revenue and a 19% rise in underlying profit before tax to £44.2 million, driven by exceptional growth in its travel division and a recovering insurance broking business. Trading EBITDA growth of 16%, alongside strong operating cash flow of £205.9 million, supported significant deleveraging, with net debt reduced by £93.3 million to £499.5 million and leverage improving to 3.7x. The transformation of the business model—particularly the shift to a capital-light, lower-risk insurance partnership with Ageas—has enhanced margins, simplified operations, and created more predictable income streams. Travel, now the primary profit driver, demonstrated strong demand, with cruise and holiday segments benefiting from higher load factors, increased per diems, and solid forward bookings. Saga’s growth strategy focuses on customer-centric operations, brand strength, and leveraging its position in the over-50s market, while continued cost discipline and refinancing have strengthened the balance sheet. The order book and forward bookings remain robust, underpinning confidence in FY2027 outlook, with expectations for further revenue growth, improved profitability, and continued debt reduction. Management reiterated confidence in achieving its £100 million profit target by 2030, supported by strong market fundamentals, resilient customer demand, and a streamlined operating model designed to drive sustainable long-term growth.