Saga’s cruise growth potential attracts outside investment 

Saga’s potential for growth in the cruise sector has attracted strategic financial interest from UK investment firm Kelso Group Holdings.

 

The company has acquired 400,000 shares in the over-50s cruise, travel and financial services group at an average price of 386.5p.

 

Saga’s market capitalisation was £551.5 million as of close of business yesterday (Monday), having recently exceeded its net debt for the first time in more than five years. 

 

Kelso pointed out that Saga’s ocean and river cruise divisions alone have seen revenues rise more than fourfold since 2014 with earnings [ebitda] now approaching £100 million.

 

The firm added: “Kelso notes the success of Viking Holdings Inc (market cap of $32 billion), the only other travel company in ocean and river cruises that uniquely serves the over-55s market, which has nearly tripled in value since its US listing in April 2024. 

 

“Kelso also observes the share price performance of listed peers in the cruise sector, notably Royal Caribbean whose share price has risen c.8x from its low in 2022 and Carnival whose shares have risen c.4x in the same period, all of which trade on significant premiums to Saga, driven by upgraded guidance during 2025 illustrating the strength of the cruise market.”

 

Kelso added: “Saga is a proven and trusted brand selling into the UK over-50s demographic which Kelso believes is a highly attractive segment. 

 

“Furthermore, Saga is asset-backed, primarily by its ocean cruise ships launched in 2019/20, which as at January 2025 had a combined cost of £662.7 million, currently held at a book value of £570.6 million, higher than Saga’s current market capitalisation.”

 

Kelso chairman Sir Nigel Knowles said: “We believe Saga’s management have done an excellent job turning Saga around in the last five years and materially reducing the debt while growing pre-tax profit. 

 

"The importance of [non-executive chairman] Sir Roger De Haan’s personal backing through significant equity and loan commitments during those hard times should not be forgotten acknowledging that the loans have now been repaid. 

 

“We believe Saga has the ability, with its focus on travel with ancillary financial services, to return to being a multi-billion pound company.”