Saga Regulatory News (SAGA)

20 June 2023

Saga plc

AGM Trading Update

Growth momentum continues

Saga plc (Saga or the Group), the UK's specialist in products and services for people over 50, provides the following update on trading covering the period from 1 February 2023 to 19 June 2023.

Euan Sutherland, Saga Group Chief Executive Officer, commented:

"Four months into the financial year, we have continued to build on the momentum in our Cruise and Travel operations, while making further progress in our growth agenda through the development of our newer businesses. Year-end underlying profit is expected to be well ahead of the prior year.

"We have taken strong bookings for our ocean cruises with a load factor that is ahead of the same point in the prior year, and our River Cruise and Travel businesses are on track to return to profitability in line with previous guidance. In Insurance, market conditions, particularly in motor, continue to weigh on our Group result. We have secured a valuable partnership with Bupa that will not only improve our current private medical offering but also open up exciting new opportunities, and we plan to launch our new pet insurance later in the year. Meanwhile, we are also continuing with the sale process of our Insurance Underwriting business.

"We are developing a series of new products in Saga Money and preparing for the July launch of Saga Spaces, our new subscription-based online platform that will offer customers social interaction and a series of online services. At the same time, we have continued to develop Saga Media, which is performing ahead of expectations, and have made good progress in our data and digital strategy".

Group highlights

· Growth momentum continues to build in Cruise, Travel, Money and Media.

· The sale process for the Group's Insurance Underwriting business is ongoing, consistent with the ambition to reduce debt and move towards a more capital-light model.

Cruise

· The booked Ocean Cruise load factor for 2023/24 at 18 June 2023 was 79%, 7ppts ahead of the same point last year. At the same date, the per diem was £338, which was 6% ahead of the same point in 2022.

· The full year load factor projection is in line with previous guidance of at least 80% and we remain on-track to deliver £40m EBITDA per ship (excluding overheads). Due to expected seasonality in the late summer, this will be weighted towards the second half of the year.

· The launch of the 2024/25 Ocean Cruise season was the strongest on record, already having secured a booked load factor of 34% and per diem of £342 at 18 June 2023.

· The booked River Cruise load factor for 2023/24 at the same date was 74%, with a per diem of £293. This equated to revenue of £39m which was 37% ahead of the same point in the prior year.

Travel

· The booked revenue for 2023/24, at 18 June 2023, was £150m, 37% ahead of the same point in 2022 and largely driven by an uplift in touring.

· Travel is on track to return to an Underlying Profit Before Tax for the second half and full year, in line with previous guidance.

Insurance Broking

· In what continued to be a challenging market, total policy sales across all products, for the four months ended 31 May 2023, were 6% behind the prior year.

· The growth in sales of travel insurance continued over the same period, with policies 6%, and revenue 22%, ahead of the prior year.

· Private medical insurance (PMI) delivered revenue growth of 16% when compared with the prior year on a broadly stable policy count.

· To further enhance our PMI product, we are pleased to have secured a new partnership with Bupa. This move will not only improve our current proposition but also open up exciting new opportunities for a digital health and wellbeing offer for our customers.

· Within motor and home insurance, for the same four-month period:

o  Policy sales were 7% behind the prior year.

o  Customer retention remained strong at 85%, compared with 83% last year.

o  The margin per policy was £56, reflecting the market-wide inflationary environment and is expected to be around £55 for the first half, before returning to around £60 over the medium term in line with previous guidance.

Group liquidity

· In the financial year to date, a further £15.8m of ocean cruise ship debt was repaid and, after taking account of this, Available Cash, at 31 May 2023 was £149.5m.

Wider strategic progress

· An ambitious expansion plan is in place for Saga and we remain on track to deliver another year of growth in revenue and underlying profit.

· Saga Money will launch a series of new products in the second half of the year.

· Saga Exceptional, through Saga Media, continues to deliver audience numbers significantly ahead of its initial business case with more than 2.5m visits since it was launched in late January.

· We are planning the launch of Saga Spaces in July, a new subscription-based online platform that will offer customers social interaction and online services initially with a focus on health and wellbeing and including classes, health advice and 24/7 GP access.

· Progress in enhancing our data capabilities continues, including actions to improve customer consent and contactability across the Group and the development of a more personalised approach to marketing.

Annual General Meeting

The Annual General Meeting will be held at 11.00am today at the offices of Numis Securities Limited, 45 Gresham Street, London EC2V 7BF.

For further information, please contact:

Saga plc

Emily Roalfe, Head of Investor Relations and Treasury Tel: 07732 093 007

Email: emily.roalfe@saga.co.uk

Headland Consultancy

Susanna Voyle Tel: 07980 894 557

Will Smith Tel: 07872 350 428

Tel: 020 3805 4822

Email: saga@headlandconsultancy.com

Notes to editors

Saga is a specialist in the provision of products and services for people over 50. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award-winning products and services including cruises and holidays, insurance, personal finance and publishing. www.saga.co.uk

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