Saga, the travel and insurance group for the over-50s, has raised its full-year profit guidance after underlying pre-tax profit almost doubled in the first half.
It now expects underlying profit before tax of £65 million to £70 million for the current year, up from £44.2 million last year.
The company also expects to hit its medium-term targets of £100 million in underlying profit and leverage below 2x before the January 2030 deadline it set in April 2025.
Leverage, the ratio of net debt to earnings, has already fallen to 2.7x from 3.7x in January.
Cruises lead the way
Underlying pre-tax profit rose 98% to £46.6 million in the six months to 31 July, on underlying revenue up 14% at £366.3 million.
Travel profit climbed 45% to £60.3 million, with ocean cruising contributing £47.7 million.
Average daily revenue per ocean cruise passenger rose 13% to £440 as Saga relied less on discounting.
Insurance broking profit jumped 75% to £15.9 million, helped by fatter margins on home insurance.
Statutory pre-tax profit rose to £28 million from £3.7 million.
Debt falls
Net debt dropped by £70.4 million since January to £429.1 million.
Underlying available operating cash flow, the cash the group is free to use, rose 27% to £101 million.
Debt and leverage are expected to stay broadly flat over the full year before falling again.
There is no interim dividend.
Softer second half
Low river levels in Europe and the Middle East conflict will weigh on the second half, though Saga expects profit for the period to at least match last year.
River cruise bookings for this year stand at 81% of capacity, down from 88% a year ago.
Holiday bookings for 2027/28 are 10% lower by revenue, reflecting a later programme launch and the conflict.
Elsewhere, the NatWest Boxed savings tie-up has pulled in more than £2.1 billion of deposits since launching in December.
A pet insurance product with Allianz UK arrives later this year.
Eighteen months into a five-year plan, Saga is already two-thirds of the way to its profit target.
