Saga PLC (LSE:SAGA) on Tuesday said it expects to report more than doubled underlying full-year profit and a healthy uptick in sales as the rebound in travel continues.
The specialist in products and services for people over 50 was updating investors on trading covering the period from 1 August 2023 to 29 January 2024.
It expects to report revenue growth of between 10-15% for the 2023/24 financial year, with Ocean Cruise sales growth forecast to be around 30% year on year, reflecting a load factor of 87% and per diem of £331, both significantly ahead of the prior year.
As a result, and in line with previous guidance, Saga expects to exceed its target of £40.0 million Ocean Cruise trading EBITDA per ship.
Saga last week confirmed plans to unlock finance through new arrangements in its cruise ship business. It reiterated these plans in today's statement, saying it is "exploring opportunities to optimise the business, including potential partnership arrangements".
River Cruise is expected to return to underlying profit in the full year, supported by a load factor of 85% and a per diem of £285.
Travel revenue growth is expected to be between 40-45%, with 58,000 passengers, an increase of more than 20% when compared with the prior year.
Travel, when combined with River Cruise, is on track to return to pre-pandemic underlying pretax profit, the firm said.
In Insurance Broking, both policies in force and policy sales across all products are expected to be around 9% lower than in the prior year.
Central costs are expected to be significantly lower than last year, at around £30 million, compared with £37.7 million the year before.
Looking ahead, chief executive Mike Hazell said: “The year ahead will see a continuation of these trends across our business.”
“Bookings for the new seasons in Cruise and Travel are robust, showing good overall progress. The dynamics in Insurance remain challenging.”