Saga Group reports ‘outstanding’ year for travel businesses

Saga Group’s travel businesses had an “outstanding” year in 2024 with a 9% rise in revenue to almost £454 million.

 

The three travel arms of the over-50s specialist - ocean cruise, river cruise and holidays - all delivered profits in the 12 months to January 31.

 

However, the overall group reported a 29% year-on-year rise in annual pre-tax losses to £160.2 million despite 25% underlying profit growth to £47.8 million driven by continued demand for ocean cruises. 

 

The company’s two-ship ocean cruise arm saw underlying pre-tax profits rise by 38% over 2023 to almost £49 million as revenue grew by 10% to £236.7 million in what was described as an “exceptional year”.

 

Saga’s river cruise business reported a 33% increase in underlying pre-tax profits to £4 million as revenue grew by 13% to £49.4 million.

 

The company’s tour operations delivered “significant growth” with underlying pre-tax profits up to £10.7 million from £1.5 million the previous year. Revenue was up by 19% to £167.8 million as passenger numbers grew by 9% to 54,800.

 

Saga Group said: “Building on the progress we made in 2024-25, the coming year will be one of transition. 

 

“Our travel businesses will deliver further growth, supported by their strong forward bookings position.” 

 

Alongside this, the company will continue to prepare for the sale of its insurance underwriting business and a move to a new partnership arrangement with Ageas. 

 

“A material increase in financing costs in 2025-26 will mean that we expect the group to generate an underlying profit before tax below that of 2024-25, before returning to growth thereafter,” Saga noted.

 

“At the same time, we expect to make further progress in reducing net debt during the course of 2025/26, with the reduction expected to accelerate thereafter.

 

“Our vision is to be the most-trusted brand for older people in the UK, supported by the quality of products and the service we deliver to our customers. 

 

“The actions taken over the past 12 months put us in a strong position to deliver this vision and, in turn, create sustainable growth and value for our shareholders. 

 

“We are delivering on the commitments we made and are confident that our growth strategy, built on detailed five-year plans, will take underlying profit to at least £100 million.”

 

Chairman Sir Roger De Haan said: “Our travel businesses are all performing well and continuing to grow. 

 

“Our excellent ocean cruise business continues to progress with increasing success, delivering outstanding occupancy levels, alongside growing ticket prices, as a result of our unique customer proposition, exceptional customer service and continued strong demand. 

 

“We have continued to narrow the gap between the experience we deliver on our river cruises with those provided on our ocean cruises. This approach is reflected in our occupancy and ticket prices for river cruise, which have also continued to grow year on year.

 

“Our holidays business had an excellent year and, on a comparable basis, revenue and passenger numbers increased significantly when compared with the previous year.”

 

Group chief executive Mike Hazell added: "I’m very pleased with the progress Saga has made over the past 12 months. 

 

“From a trading perspective, we delivered a strong performance, with total underlying profit before tax up 25% and ahead of previous guidance. 

 

“This was driven by the strength of our travel businesses, with especially high levels of customer demand for our differentiated ocean and river cruise offers.

 

"In addition, we took the significant strategic action necessary to reposition the group for future growth. 

 

“The foundations for growth are now in place and we are already making tangible progress. By continuing to be a delivery-focussed business, with our customers always front of mind, I am confident that the plans we have in place will step change our financial performance within the next five years.”