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Highlights
- SAGA’s revenue rose 9% to GBP 328.2m in H1 2025, supported by the performance of the Travel segment.
- Net debt decreased 17% YoY to GBP 515.1m, alongside an improvement in the leverage ratio.
- Profit before tax improved to GBP 3.7m, compared with a loss of GBP 116.9m in the prior year.
Saga plc (LSE:SAGA), the UK-based specialist in products and services for people over 50, published its interim results for the six months ending 31 July 2025 (H1 2025.) The group reported first-half results ahead of expectations, with revenue and profitability supported by Travel, and progress made on its strategic objectives.
For the period, revenue increased 9% to GBP 328.2m from GBP 300.6m in the prior year, while underlying revenue rose 7% to GBP 320.5m. Trading EBITDA was up 8% at GBP 67.5m. Underlying profit before tax came in at GBP 23.5m, down from GBP 24.8m in the prior year, reflecting higher financing costs. Profit before tax improved to GBP 3.7m, compared with a GBP 116.9m loss in the same period last year.
Available operating cash flow rose to GBP 89.4m, an increase of 64% year-on-year. Net debt was reduced by GBP 102.1m to GBP 515.1m, with the group’s leverage ratio falling to 4.3x from 4.8x.
Saga highlighted several key steps in advancing its strategy during the half-year. The group refinanced its debt with a new GBP 335.0m term loan due in 2031, enabling repayment of the GBP 250.0m bond and GBP 75.0m drawings under the Roger De Haan loan facility. The sale of its Insurance Underwriting business to Ageas was completed on schedule, delivering GBP 17.0m higher net cash than previously guided.
In Travel, Saga launched a new river cruise ship, Spirit of the Moselle, and consolidated its leadership team to drive efficiency and enhance customer service. In Insurance, the group reorganized its broking leadership in preparation for a 20-year partnership with Ageas, due to go live in Q4 2025. A savings partnership with NatWest Boxed is also expected to launch in Q4.
Saga expects full-year underlying profit before tax to be in line with the prior year, despite increased financing costs. Forward bookings in Travel are reported as favorable, while Insurance is expected to benefit from the Ageas partnership in the medium term. Debt reduction remains a priority, with the group reiterating its target of achieving at least GBP 100.0m in underlying profit before tax and a leverage ratio below 2.0x by January 2030.
