UK's Saga ahead of schedule on profit targets as cruise demand, insurance revamp boost earnings (updated)
15/04/2026 08:16
Adds details on medium-term targets in paragraph 1, outlook and context throughout, adds shares in paragraph 2 April 15 (Reuters) - British over-50s holiday and insurance group Saga SAGA.L was tracking ahead of plans to reach its medium-term targets, the company said on Wednesday, after booming demand for cruises and a restructuring of insurance operations lifted annual profit. Shares in the firm rose 8.6%. Global travel has been hit by the war in the Middle East, which has disrupted routes and hurt consumer sentiment across the board, with surging oil prices also racking up costs for businesses and consumers. However, Saga has minimal exposure to the region and demand for its ocean and river cruises has remained steady, with the company saying it was "fully locked in" against oil and energy shocks for the year, and about 75% for 2027-28. Saga reiterated its medium-term target of at least 100 million pounds ($135.6 million) in annual underlying profit by January 2030, and said that it was "already ahead of the planned trajectory" set out last year. "While mindful of the current uncertainty in the Middle East, we have minimal exposure to the region, with no Cruise itineraries and only limited Holidays bookings to Egypt, Cyprus and Turkey," the company said in a statement. Saga expects underlying profit to take "a further step forward" in fiscal 2026-27 after underlying profit before tax rose 19% to 44.2 million pounds for the year ended January 31, ahead of its forecasts. Revenue for the year grew 11% to 654.6 million pounds. ($1 = 0.7372 pounds) (Reporting by Rishab Shaju and Dhanush Vignesh Babu in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala) ((Rishab.shaju@thomsonreuters.com ; +91 9048142177))