This article first appeared on GuruFocus .
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Underlying Revenue Growth:Increased by 11% compared to the prior period.
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Underlying Profit Before Tax (PBT):GBP44.2 million, 19% higher than the previous year.
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Operating Cash Flow:GBP205.9 million, an 88% increase from the prior year.
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Net Debt:Reduced by GBP93.3 million to GBP499.5 million.
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Leverage Ratio:Reduced to 3.7 times from 4.4 times the previous year.
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Ocean Cruise Revenue Growth:12% increase with a load factor of 93% and per diem of GBP394.
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River Cruise Revenue Growth:8% increase with a load factor of 89% and per diem of GBP350.
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Holidays Revenue Growth:10% increase with an 11% rise in passenger numbers.
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Insurance Broking Underlying PBT:GBP16.9 million, with growth in policy volumes.
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Travel Businesses Underlying PBT:GBP87.2 million, a 37% increase from the previous year.
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Release Date: April 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Saga PLC ( FRA:65J ) reported a transformational year with strong full-year results, exceeding expectations.
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The company completed refinancing, enhancing liquidity and providing funding certainty for growth plans.
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Travel has become the largest and fastest-growing profit driver, with consolidated leadership for better customer focus.
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Net debt was significantly reduced by GBP93.3 million, improving the leverage ratio from 4.4 to 3.7 times.
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Saga PLC launched new innovative products, including a savings partnership with NatWest and a new podcast, enhancing brand strength.
Negative Points
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Higher finance costs were incurred due to successful refinancing at the beginning of the year.
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Investment income was slightly lower as the group carried less cash than the prior year.
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The insurance broking business faced increased marketing costs to support policy growth.
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The River Cruise business, while growing, is still behind Ocean Cruise in terms of load factors.
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The company is still in the process of transitioning its insurance operations, which involves significant restructuring.
Q & A Highlights
Q: Can you elaborate on the pricing strategy for Ocean Cruise and the potential for maintaining the GBP50 uplift in per diem? A: Mike Hazell, CEO, explained that the growth in load factors and per diems is driven by demand and the quality of the proposition. The company invests in enhancing the proposition, which supports per diem growth. Nigel Blanks, CEO of Saga Travel, added that the unique differentiation of their product allows them to price effectively without direct competition.
Q: Regarding River Cruise, is it possible to achieve load factors north of 90% in the medium term? A: Mike Hazell noted that River Cruise is on a slower growth trajectory compared to Ocean Cruise but is seeing improvements in customer satisfaction, load factors, and per diems. The addition of new ships will impact load factors, but the model is scalable, and further capacity is expected.
Q: What are the expectations for the NatWest partnership over the next 12 to 18 months? A: Mike Hazell stated that the partnership with NatWest is a significant part of their growth plan in personal finance. The focus this year is on establishing the partnership and ensuring a positive customer experience. The partnership has started well, with over GBP200 million in deposits since its launch.
Q: With the current cash position, are there opportunities for early debt repayment or other financial strategies? A: Mark Watkins, CFO, mentioned that optimizing the gross debt position is a consideration, including the potential for early repayment of deferred COVID cruise loans. The company is focused on delivering business performance and deleveraging before making broader capital allocation decisions.
Q: Can you discuss the potential for cost efficiencies in the coming years? A: Mike Hazell highlighted that significant cost restructuring has already been done, making the company leaner and more agile. While they will continue to focus on efficiencies, the current emphasis is on value-adding growth rather than further cost-cutting.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
