Saga PLC's (LSE:SAGA) cruise businesses returned to profit last year thanks to a strong rebound in travel demand.
The ocean cruise wing generated an underlying pre-tax profit of £35.5 million in the year to January, against a £0.7 million loss previously, the specialist in products and services for people over 50 reported on Wednesday.
River cruises scored a £3 million underlying pre-tax profit, compared to a £5.1 million loss beforehand.
Losses narrowed by 53% to £129.0 million as a result, while Saga reported underlying pre-tax profits soared by 146% to £38.2 million.
Chief executive Mike Hazell said this was fuelled by a far better year than expected for Saga’s ocean cruise business, while its river cruise and travel wings returned to profit.
“Looking ahead, forward bookings are strong, with all three of these businesses significantly ahead of the same point in the prior year,” he said.
Saga announced it was accelerating the search for prospective partners for both the firm’s cruise and insurance businesses as a result, to ensure “long-term success”.
“Our decision to accelerate our partnership strategy will provide us with a capital-light route to growth, reducing debt and delivering long-term sustainable value for all our stakeholders,” Hazell added.
Underlying revenue for the year climbed 13% to £732.7 million, while debt was reduced by 10% to £637.2 million.
Saga’s insurance business was hit by challenging conditions from the likes of inflationary headwinds, the firm added, prompting a 53% drop in underlying profit to £38.4 million.