Saga PLC (LSE:SAGA) expects to deliver “significant” double-digit growth in full-year revenue and underlying profit ahead of market estimates.
The news came as the firm, which specialises in holidays and insurance for the over 50s, reported a 15% jump in revenue in the six months ended 31 July 2023 to £355.3 million from £309.8 million the year before.
Pre-tax losses narrowed to £77.8 million from £261.8 million while on an underlying basis pre-tax profit fell 45% to £8.0 million from £14.6 million.
Saga also said it has put the sale of its underwriting business on hold, believing there is potential to generate greater value once market conditions improve.
Euan Sutherland, chief executive officer, said growth in revenue reflected “the continued growth of our Cruise and Travel businesses, in addition to further debt reduction”.
"In Ocean Cruise, bookings are on track to achieve our targets for the full year, reflecting continued strong customer demand, while our River Cruise business has returned to profit with a 34% increase in guest numbers.”
Travel is also on track to return to profit for the full year,” he added.
"In Insurance, we continue to develop our business against the backdrop of a difficult inflationary market,” Sutherland said.
Saga also expects to repay the May 2024 bond when it falls due.
It also announced James Quin will be standing down as chief financial officer to focus on a portfolio career.
He will be replaced by Mike Hazell, who until recently was interim CFO at The Co-op Group,