Saga PLC (LSE:SAGA) swung back into full-year profit on an underlying basis as revenue grew strongly due to continued Cruise and Travel recovery following the Covid-19 pandemic.
Revenue for the year ended 31 January 2023 advanced 54% to £581.1mln from £377.2mln a year prior with underlying pre-tax profit of £21.5mln compared to a loss of £6.7mln in the comparative period.
The insurance company, which focuses on the over-50s, posted a reported loss before tax of £254.2mln, widened from £23.5mln, reflecting a £269.0mln impairment of insurance goodwill reported at the half-year stage.
Euan Sutherland, Saga's chief executive officer, said despite a “particularly challenging external backdrop, Saga made progress against its strategy while achieving significant revenue growth and returning to underlying profit”.
He noted that the Ocean Cruise business continued to see strong customer demand and bookings for 2023/24 are on track to meet targets, while in Travel, bookings are significantly ahead of the same point last year and “that business will return to profit this year”.
Saga said it remains in discussions in relation to the possible sale of its Insurance Underwriting business.