Saga plc Selects PwC as External Auditor for FY Ending January 2028 After Comprehensive Tender

Completion of Formal Audit Tender and Board Endorsement

In its 2026 Annual Report and Accounts, Saga plc announced the initiation of a formal audit tender process, which has now concluded under the Audit and Risk Committee's guidance. The Board of Directors has approved PwC's proposed appointment as the company’s independent external auditor, marking an important governance milestone for the leisure and travel services provider. The rigorous tender process reflects Saga’s commitment to a competitive and comprehensive evaluation of audit firms, ensuring shareholders benefit from a detailed assessment of external audit options.

Such a tender process demands extensive analysis of candidate firms’ technical proficiency, industry experience, quality assurance measures, and overall value. The Board’s endorsement of PwC indicates the firm satisfied the criteria established by the Audit and Risk Committee, the body responsible for overseeing financial reporting and audit matters. Multiple firms participated, confirming the evaluation was competitive and based on genuine alternatives before final selection.

KPMG's Service and Transition Plan

KPMG LLP has served as Saga’s independent external auditor since 2017, providing nine consecutive years of audit and assurance services. The Board expressed gratitude for KPMG’s "longstanding service, insight and highly valued contribution" during this period. KPMG will continue as auditor for the financial year ending 31 January 2027, ensuring audit continuity and a seamless transition to PwC.

The phased transition, with KPMG completing one final year before PwC assumes responsibility, aligns with standard governance practices for auditor changes at public companies. This approach facilitates orderly handover of audit documentation, findings, and historical context concerning Saga’s financial reporting and internal controls. The Board’s acknowledgement of KPMG’s role underscores a collaborative transition process and preserves professional relationships vital for effective knowledge transfer.

PwC's Future Audit Role

PricewaterhouseCoopers LLP, a leading global professional services firm, will take over external audit duties for Saga starting with the financial year ending 31 January 2028. This appointment requires formal shareholder approval at the 2027 Annual General Meeting, in compliance with the Companies Act 2006 and stock exchange regulations. The Board has expressed confidence in PwC’s ability to provide high-quality audit and assurance services moving forward.

PwC offers extensive global resources, technical expertise, and sector-specific knowledge relevant to leisure, travel, and consumer services. Their selection ensures continuity of audit quality from a major professional services firm, maintaining rigorous quality controls and professional standards. The transition will commence after shareholder consent at the 2027 AGM, establishing a clear timeline for the audit responsibility change.

Shareholder Approval and Governance Compliance

The appointment of PwC is subject to shareholder approval at the 2027 Annual General Meeting, reflecting the governance principle that shareholders, as company owners, must consent to external auditor appointments responsible for financial statement oversight. Saga’s recommendation of PwC to shareholders demonstrates adherence to best practice governance and regulatory requirements for public companies.

The AGM offers shareholders an opportunity to review the tender outcome and the Board’s rationale, promoting transparency in a decision critical to audit quality and independence. UK listing rules and company law mandate shareholder approval for auditor appointments, reinforcing shareholders’ role in safeguarding financial reporting integrity. Saga’s compliance with these standards affirms its commitment to investor and stakeholder confidence in its financial disclosures.

Audit Tender Process Participation and Quality

The Board noted that all firms involved in the audit tender showed strong commitment and delivered "high quality" proposals throughout the evaluation. While the announcement does not disclose the number or identities of unsuccessful bidders, confidentiality norms in audit selection were maintained. The participation of multiple qualified firms indicates Saga’s attractiveness as an audit client and a competitive tender environment.

The high quality of submissions lends credibility to the final selection, confirming the Board had genuine alternatives for consideration. The Board’s recognition of all participants’ professionalism reflects a collaborative approach, important for maintaining constructive industry relationships despite competitive dynamics.

Saga plc’s Corporate Profile and Governance Standards

Saga plc is a publicly listed company specializing in leisure and travel services primarily for customers aged over 50. The formal audit tender process aligns with its obligations under the UK Corporate Governance Code and financial reporting regulations. Transparent disclosure of the tender outcome via an RNS announcement evidences Saga’s commitment to regulatory compliance and governance best practices.

This governance activity significantly impacts the quality, independence, and continuity of external assurance over Saga’s financial reporting. Headquartered at 3 Pancras Square, London, Saga operates within the UK financial ecosystem, adhering to listing rules, Companies House requirements, and FCA regulations. The engagement of major professional services firms as auditors highlights the importance Saga places on audit quality and independence.

Auditor Transition Timeline and Execution

The auditor transition timeline is designed to ensure proper notice and orderly changeover. KPMG will finalize audit work for the year ending 31 January 2027, providing a full financial year to conclude its engagement and document outstanding matters. Shareholder approval at the 2027 AGM will precede PwC’s assumption of audit duties for the year ending 31 January 2028, ensuring timely consent.

This staggered transition follows standard practice, allowing knowledge transfer, handover of audit files, and PwC’s familiarization with Saga’s accounting policies and control environment. Although the exact AGM date is unspecified, shareholders will receive formal notice per legal requirements, typically at least 21 days prior. This arrangement guarantees business continuity and minimizes gaps in audit oversight during the transition.

UK Audit Tender Market Context

Saga’s audit tender occurs amid broader regulatory emphasis on auditor independence, competition, and shareholder involvement in auditor appointments. The Financial Reporting Council and Financial Conduct Authority have prioritized audit quality and rotation to mitigate risks of complacency in long-term auditor relationships. Saga’s tender following KPMG’s nine-year tenure aligns with these regulatory and governance expectations.

Audit tendering among large listed companies has grown due to regulatory focus on independence and benefits of competitive audit reviews. The audit market remains concentrated among the "Big Four" firms—Deloitte, EY, KPMG, and PwC—alongside select mid-tier firms. Saga’s choice of PwC reflects a transition within this concentrated market, potentially influenced by PwC’s competitive positioning, sector expertise, and audit quality approach.