UK's Saga misses preliminary FY adjusted pretax profit estimates

Saga

15/04/2026 07:10

Overview

UK over-50s specialist's preliminary full-year revenue grew 12% yr/yr, driven by Travel and Insurance

Adjusted pretax profit rose 19% yr/yr but missed analyst expectations

Company reduced net debt by 16% after Insurance Underwriting sale and Ageas partnership launch

Outlook

Saga expects continued growth in profit and cash generation in 2026/27

Company expects further reductions in net debt and leverage ratio in 2026/27

Saga maintains target of at least £100 mln underlying profit before tax by January 2030

Result Drivers

TRAVEL DEMAND - Growth in Travel division driven by higher Ocean and River Cruise load factors, increased per diem rates, and more Holidays passengers

INSURANCE BROKING RECOVERY - Insurance Broking returned to growth with higher policy sales and policies in force, supported by pricing, marketing, and Ageas partnership

SIMPLIFIED OPERATING MODEL - Sale of Insurance Underwriting business and management consolidation reduced risk and complexity, supporting profit and cash flow growth

Company press release: ID:nRSO4875Aa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
GBP 660 mln
FY Adjusted Pretax Profit
Miss
GBP 44.2 mln
GBP 48.13 mln (3 Analysts)
FY Adjusted Free Cash Flow
GBP 205.9 mln
FY Net Debt
GBP 499.5 mln
FY Pretax Profit
GBP 2.1 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

Wall Street's median 12-month price target for Saga PLC is GBp615.00, about 5.7% above its April 14 closing price of GBp582.00

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)