Shares in Saga PLC (LSE:SAGA) were little moved by the publication of final results on Wednesday, nor the imposition of new US tariffs this week, nor a warning that profits will be lower this coming year, as the provider of holidays and other services for the over-50s continued its slow turnaround.
It still reported a loss before tax of £160.2 million for the year ended 31 January 2025, which was 29% larger than the previous year's. This reflected restructuring costs and asset write-downs, including non-cash impairments to goodwill associated with a new insurance broking partnership agreed with Ageas.
On an underlying basis, the London-listed company reported a profit of £47.8 million, up 25%, with trading EBITDA up 18% to £137.1 million, as underlying revenue grew 5% to £768.2 million.
Chief executive Mike Hazell said he was pleased with the progress made over the past 12 months, saying the underlying profit was ahead of previous guidance, driven by the strength of the Travel businesses, with especially high levels of customer demand for ocean and river cruise offers.
He also highlighted strategic actions "to reposition the group for future growth", including completing a strategic review, successfully signing the new 20-year insurance partnership with Ageas and agreed the sale of Saga's insurance underwriting business.
"These achievements materially reduce the risk and complexity of the Insurance business going forward and, when combined with our continued strong trading performance, meant that we were able to complete the refinancing of our long-term corporate debt, replacing our 2026 debt maturities with new long-term credit facilities," he said.
On the outlook, Hazell said the new year "will be one of transition", with Travel expected to deliver further growth, preparations continuing for the sale of the underwriting business, and the move to the new partnership arrangement with Ageas.
Underlying profits are expected to be below the past year due to a "material" increase in financing costs.
The shares dropped almost 5% in early trading but were back on an even keel within the first hour on Wednesday.