Saga PLC - London-based provider of insurance and travel services for people aged 50 and over - Expects to report revenue growth of between 10% and 15% for the financial year ending on Wednesday, as well as underlying pretax profit more than doubled from the year before. For financial 2023, Saga had booked GBP581.1 million in revenue and GBP21.5 million in underlying pretax profit. Saga on Tuesday says Ocean Cruise revenue growth is estimated to be 30% with an 87% load factor. Saga repeats that it is considering ways to "optimise" the Ocean Cruise business, including with partnerships.
Meanwhile, Travel revenue growth in the year just ending is estimated to be 40% to 45%. Less positively, Insurance Broking policy sales are expected to be down 9%, though Insurance Underwriting is expected to report an underlying pretax profit in the low single digits with an improved combined operating ratio.
"Our Cruise and Travel businesses have had an outstanding year, having taken around 120,000 passengers on holiday, with customers continuing to be drawn to the strength of the Saga brand and offer. As a result, these businesses will return to profitability, in line with expectations. In Insurance, the market-wide inflationary environment and declining policy volumes are continuing to impact our performance," says Chief Executive Mike Hazell.
It is Hazell's first trading update as CEO, having just replaced Euan Sutherland.
Looking ahead to financial 2025, Saga says Ocean Cruise booked load factor is 66%, up from 62% at the same point a year ago.
Current stock price: 148.09 pence, up 2.1% on Tuesday morning in London
12-month change: down 21%
By Tom Waite, Alliance News editor
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Saga (SAGA)