Saga plc (LSE:SAGA) raised its full-year profit guidance after reporting higher revenue and earnings for the six months ended 31 July 2026, supported by its cruise, holidays, insurance and financial services operations.
Underlying revenue increased 14% to £366.3 million, while trading EBITDA rose 35% to £90.9 million.
Underlying profit before tax increased to £46.6 million, almost double the level reported for the comparable period.
Net debt decreased by £70.4 million during the period, reducing the group’s leverage ratio to 2.7 times.
Full-Year Profit Guidance Raised to £65-70 Million
Following the first-half performance, Saga upgraded its expectations for the full financial year.
The company now expects underlying profit before tax of between £65 million and £70 million.
Management also said it expects to achieve its medium-term targets for higher profitability and lower leverage earlier than its original January 2030 timetable.
Cruise and Holidays Support First-Half Performance
Saga reported continued demand across its cruise and holidays businesses during the first half, contributing to the increase in group revenue and earnings.
The company is continuing to restructure its operations around a business model that makes greater use of partnerships in areas including insurance and financial services.
The transition of new motor and home insurance business to Ageas has now been completed.
Saga Adds Allianz UK Pet Insurance Partnership
Saga also entered into a new pet insurance arrangement with Allianz UK as it continues to develop its partnership-based insurance operations.
In financial services, the company reported customer uptake of savings products offered through its relationship with NatWest.
Saga is also expanding its use of media content, including podcasts, as part of its engagement with customers.
Saga Continues Business Transformation
Saga provides products and services primarily for people aged over 50 across cruises, holidays, insurance, personal finance and publishing.
Its travel operations include ocean and river cruises alongside holidays, while its insurance and financial services activities increasingly operate through partnerships with third-party providers.
The company said its current strategy is focused on simplifying its operations, reducing risk and lowering leverage while developing its products and services for its customer base.
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