Saga plc posted a 19% increase in underlying pre-tax profit for the year ended January 31, 2026, as the UK’s specialist provider of products and services for people over 50 described the year as a turning point in its financial recovery.
The group reported underlying profit before tax of £44.2 million, up from £37.2m the previous year, according to unaudited preliminary results published on Wednesday. Reported profit before tax stood at £2.1m, compared with a loss of £160.2m in the prior year.
Underlying revenue grew 11% to £654.6m, driven by gains across both travel and insurance broking. Trading EBITDA rose 16% to £134.9m, while net debt fell 16% to £499.5m, reducing the group’s leverage ratio from 4.4x to 3.7x.
Travel emerged as the group’s largest profit driver, with underlying profit before tax rising 37% to £87.2m. Ocean Cruise delivered the strongest gains, with underlying profit before tax climbing 38% to £67.3m on the back of a 93% load factor and a per diem of £394. River Cruise posted a 48% increase in underlying profit before tax to £5.9m, supported by the July 2025 launch of Spirit of the Moselle. The Holidays division recorded a 31% rise in underlying profit before tax to £14.0m, with passenger numbers up 11% to 60,800.
Insurance broking reported underlying profit before tax of £16.9m, a 17% year-on-year increase, as the division returned to policy growth for the first time in four years. A 20-year motor and home affinity partnership with Ageas (wholly owned UK subsidiaries of Ageas SA/NV) went live in December 2025, completing the group’s exit from underwriting risk following the July 2025 sale of its in-house insurer.
Group chief executive officer Mike Hazell said the year had fundamentally changed Saga’s outlook. “The restructuring of our Insurance business, and the partnership with Ageas, derisks and simplifies our operating model, creating a more stable platform for growth,” he said.
Hazell added that the group remained confident in its medium-term targets. “Our performance this year has further strengthened the confidence we have in our medium-term targets of delivering underlying profits of at least £100.0m by January 2030, and leverage below 2.0x,” he said.
The board did not recommend payment of a final dividend for the 2025/26 financial year, citing debt reduction as a priority. The group said it expects further profit and cash generation growth in 2026/27.
