REG - SAGA Plc - Preliminary results for the year ended 31 Jan 2026
Today 07:00
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RNS Number : 4875A SAGA PLC 15 April 2026
15 April 2026
Saga plc
Unaudited preliminary results for the year ended 31 January 2026
Transformational year positions Saga for sustained growth
Full year results exceeded guidance, driven by strength across Travel and
Insurance
Saga plc (Saga or the Group), the UK's specialist in products and services for
people over 50, announces its unaudited preliminary results for the year ended
31 January 2026.
Year ended 31 January 2026 31 January 2025 Change
Underlying Revenue1,2 £654.6m £588.6m 11%
Revenue(2) £660.0m £588.3m 12%
Trading EBITDA(1,2) £134.9m £116.0m 16%
Net finance costs(3) (£43.1m) (£26.7m) (61%)
Underlying Profit Before Tax(1,2) £44.2m £37.2m 19%
Profit/(loss) before tax(2) £2.1m (£160.2m) 101%
Available Operating Cash Flow(1) £205.9m £109.6m 88%
Net Debt(1) £499.5m £592.8m(4) 16%
Leverage Ratio(1) 3.7x 4.4x(4) 0.7x
( )
(1) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(2) From continuing operations
(3) Net finance costs exclude Travel and Insurance Underwriting finance costs
and Travel net fair value losses on derivatives
(4) Following the Group's corporate refinancing and subsequent revised
covenant definition, Net Debt and Leverage Ratio have been re-presented for 31
January 2025
Financial highlights
The Group delivered a strong set of results, underpinned by the performance of
the Travel and Insurance businesses, alongside continued execution of the
strategic plan.
· A strong financial performance, ahead of guidance. Underlying
Profit Before Tax(5,6) increased to £44.2m, up 19% from £37.2m in the
previous year, despite expected higher finance costs.
· Underlying Revenue(5,6) increased 11% to £654.6m, with growth
across both Travel and Insurance, resulting in a 16% increase in Trading
EBITDA(5,6).
· Net Debt(5) reduced significantly, falling by 16% to £499.5m.
Leverage Ratio(5) also improved, from 4.4x(7) to 3.7x.
· Reported profit before tax(6) of £2.1m, compared with a loss of
£160.2m last year.
· Profit and cash flow generation outperformed our expectations,
reinforcing the progress we are making towards our Underlying Profit Before
Tax(5) target of at least £100.0m by January 2030, and the corresponding
reduction in Leverage Ratio(5) to below 2.0x over the same period.
(5) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(6) From continuing operations
(7) Following the Group's corporate refinancing and subsequent revised
covenant definition, Net Debt and Leverage Ratio have been re-presented for 31
January 2025
Strategic progress
During the year, the Group made significant progress towards building a lower
risk, simplified business model, with the strength of the brand and customer
focus remaining at the heart of decision making. In doing so, the Group
delivered the following important strategic milestones:
· Corporate debt refinanced, with a new £335.0m term loan due in
January 2031, providing long-term financial headroom and flexibility to
support our growth plans.
· Sale of Insurance Underwriting business to Ageas(8) completed in
July 2025, removing all underwriting risk from the Group and reducing
complexity and volatility.
· Successfully launched our motor and home insurance partnership
with Ageas(8) marking a major step forward in the simplification of our
Insurance Broking operations with the support of a first-class insurance
partner.
· Consolidated our previously separate Cruise and Holidays
leadership teams into a single, customer-centric operation, that more
efficiently delivers a consistent customer experience across all our Travel
products.
· River Cruise continued to grow, with the launch of Spirit of the
Moselle in July 2025, which is already proving very popular with our guests.
· Expanded our partnership strategy, with the launch of our new
Saga Easy Access Savings Account in conjunction with NatWest Boxed.
· Series of new Publishing initiatives launched, designed to build
long-term brand and customer engagement, including our highly successful new
podcast, 'Experience is Everything', and the expansion of our carefully
targeted and informative newsletters.
(8) Wholly owned UK subsidiaries of Ageas SA/NV
Outlook
Following the performance delivered in 2025/26 and the strong forward bookings
in Travel, we look ahead to 2026/27 with confidence and expect to deliver
continued growth in both profit and cash generation. Underlying Profit Before
Tax(9)() is expected to take a further step forward, with the following
components:
· Travel - strong forward bookings, particularly in Ocean and River
Cruise, give confidence in further growth in Underlying Profit Before Tax(9).
· Insurance Broking - Underlying Profit Before Tax(9)() is expected
to be at least in line with 2025/26 and ahead of previous guidance, as the
Ageas(10) partnership becomes fully embedded.
Following strong cash generation in 2025/26, the Group has passed its peak
leverage, with further reductions in both Net Debt(9) and the Leverage
Ratio(9) expected in 2026/27.
The transition to the Ageas(10) partnership will complete during 2026/27, with
the full benefit of the simplified and lower risk model to be realised from
2027/28 onwards.
In Travel, we remain confident in driving continued success. 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. We are 100% hedged against our current foreign
exchange risk for both 2026/27 and 2027/28, and 100% and 75% hedged for oil
commodity risk respectively.
We remain confident in achieving at least £100.0m of annual Underlying Profit
Before Tax(9) and the Leverage Ratio(9) falling below 2.0x by January 2030.
Mike Hazell, Saga's Group Chief Executive Officer, said:
"This has been a transformational year for Saga. The restructuring of our
Insurance business, and the partnership with Ageas(10), derisks and simplifies
our operating model, creating a more stable platform for growth. Alongside
this, we continued to see growth across all our Travel businesses, driven in
particular by the newly combined management team's relentless focus on
delivering differentiated travel experiences designed with the needs of our
customers in mind.
"The result was an excellent trading performance that drove growth across all
our core businesses, and a strong financial performance, with Underlying
Profit Before Tax(9) and the Leverage Ratio(9) significantly ahead of our
original guidance.
"As we look ahead, our performance this year has further strengthened the
confidence we have in our medium-term targets of delivering underlying profits
of at least £100.0m by January 2030, and leverage below 2.0x. We will deliver
this by focussing on Saga's core strengths and the 75 years of experience we
have in designing, marketing and delivering products and services for people
over 50.
"I would like to thank all my Saga colleagues and our partners. Our successful
performance this year is a testament to their dedication, on a daily basis, to
deliver great products and service for our customers."
(9) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(10) Wholly owned UK subsidiaries of Ageas SA/NV
END
Management will hold a presentation for analysts and investors at 9.30am
today. The webcast can be accessed by registering at
www.investis-live.com/saga-group/69aedd30295940002c4a36a2/vbdfg
(http://www.investis-live.com/saga-group/69aedd30295940002c4a36a2/vbdfg) and a
copy of the presentation slides is available at
www.corporate.saga.co.uk/investors/results-reports-presentations/
(http://www.corporate.saga.co.uk/investors/results-reports-presentations/) .
A separate live presentation for retail investors will be held via the
Investor Meet Company platform on 16 April 2026 at 9.30am. The presentation is
open to all existing and potential investors. Questions can be submitted
pre-event via the Investor Meet Company dashboard up until 9.00am on 15 April
2026, or at any time during the live presentation. Investors can sign up to
Investor Meet Company for free and follow Saga plc via
www.investormeetcompany.com/saga-plc/register-investor
(http://www.investormeetcompany.com/saga-plc/register-investor) . Investors
who already follow Saga plc on the Investor Meet Company platform will
automatically be invited.
For further information, please contact:
Saga plc
Sharnj Sandhu, Interim Director of Investor Relations and
Treasury Tel: 07522 985 207
Email: sharnj.sandhu@saga.co.uk (mailto:sharnj.sandhu@saga.co.uk)
Headland Consultancy
Susanna Voyle
Tel: 07980 894 557
Will Smith
Tel: 07872 350 428
Tel: 020 3805 4822
Email: saga@headlandconsultancy.com (mailto:saga@headlandconsultancy.com)
Notes to editors
Saga is the specialist in the provision of products and services for people
over 50. Saga is one of the most recognised and trusted brands in the UK,
known for its high level of customer service and its high-quality,
award-winning products and services including cruises and holidays, insurance,
personal financial and publishing.
www.saga.co.uk (http://www.saga.co.uk)
Divisional performance
Our focus on putting our customers first has delivered a strong set of
Group-wide results. All our core businesses have performed well and we have
achieved growth in both the number of customers travelling with us and the
number of Insurance policies sold.
Travel - Strong customer demand continues to drive revenue growth
We simplified our Travel businesses, bringing them under one management team
this year, to create a single, more efficient and customer focussed operation.
The newly combined team delivered an outstanding performance. Underlying
Revenue(1) increased 11% to £504.1m and Underlying Profit Before Tax(1) rose
37% to £87.2m.
Ocean Cruise
· Ocean Cruise reported an Underlying Profit Before Tax(1) of
£67.3m, representing a 38% increase when compared with the £48.9m in the
previous year.
· Underlying Revenue(1) grew 12% to £265.6m, driven by a load
factor of 93% and a per diem of £394, which were 2ppts and 10% higher,
respectively, than last year, reflecting strong ongoing customer demand.
River Cruise
· River Cruise reported an Underlying Profit Before Tax(1) of
£5.9m, representing a 48% increase when compared with the £4.0m in the
previous year.
· Underlying Revenue(1) grew 8% to £53.4m, driven by a load factor
of 89%, which was the same as last year, despite the increased capacity from
the launch of Spirit of the Moselle in July 2025. The per diem was £350,
which was 7% higher than last year.
· Our newest purpose-built River Cruise ship, Spirit of the
Moselle, proved very popular with guests and reinforces the continued growth
potential we see for our River Cruise offering.
Holidays
· The Holidays business also performed well and reported an
Underlying Profit Before Tax(1) of £14.0m, a 31% increase from the prior
year. This was alongside a 10% increase in Underlying Revenue(1), to £185.1m.
· Total passenger numbers increased 11%, from 54.8k to 60.8k.
(1) Refer to the Alternative Performance Measures Glossary for definition and
explanation
Insurance Broking - Launch of Ageas(2) partnership and return to policy growth
· Insurance Broking performed ahead of expectations and reported an
Underlying Profit Before Tax(3,4) of £16.9m, a 17% increase when compared
with the £14.5m generated in the previous year.
· Our renewed focus on pricing and marketing has built positive
momentum across the year, with policy sales and policies in force both growing
for the first time in four years.
· Our 20-year Affinity Partnership with Ageas(2) successfully went
live in December 2025, beginning with motor insurance new business. This will
be followed by the launch of home insurance new business by the end of April
2026. This phased implementation will continue over the coming months,
culminating with renewals for both motor and home insurance going live later
in the year.
(2) Wholly owned UK subsidiaries of Ageas SA/NV
(3) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(4) From continuing operations
Other Businesses
· In Money, progress continued with the launch of a new savings
partnership with NatWest Boxed. Beginning with an Easy Access Savings Account,
which launched in January 2026, the partnership will open up new savings
options for our customers and build on our existing portfolio of
differentiated personal finance solutions for people over 50. While still in
its investment phase, this portfolio of products is an important part of our
wider customer offering and longer-term growth plan.
· Publishing, which is central to our customer engagement and
insight strategy, saw the launch of a new podcast series which, although only
available from December 2025, has already reached over 8m views to date,
alongside a broadening of our successful newsletter and digital content
offering. Our award-winning magazine has over 100k subscribers and the
magazine website attracted over 14.7m visits this year. We sent 9.7m
newsletters on average each month, which received strong feedback from our
customers and achieved market-leading open rates of up to 50%.
· Our 9.3m strong customer database remains one of our core
strategic assets. The depth of insight it provides into our target customer
group, and the unparalleled reach of the 7.8m contactable customer base within
it, serves as a powerful and unique driver for both our existing businesses
and also future opportunities.
Chairman's Statement
My parents started operating holidays for older people in the early 1950s when
they wanted to try and fill their seaside hotel in Folkestone in the off-peak
season. The holidays were an immediate success, and the idea of Saga was born.
I became Saga's 11(th) employee in 1965, its Managing Director in 1978 and
Chief Executive Officer (CEO) and Chairman six years later. So, I know Saga
well.
This year is our 75(th) birthday and it is particularly fitting that this is
also the year in which we returned to the FTSE 250. Saga is a business with a
great heritage and the progress we have made this year has been built on the
enduring principles that have long defined us. We have always worked hard to
understand older people better than anyone else and, over the years, that
understanding has allowed us to design products and services successfully to
meet the needs of our customers.
We have delivered an excellent set of financial results this year, reflecting
significant progress in embedding our new strategic plan. Underlying Profit
Before Tax(1) grew by 19% when compared with last year, revenues were up 12%
and the Leverage Ratio(1) fell to 3.7x.
Implementation of the plan was carried out at pace and resulted in a year of
significant transformation for Saga. The ability to change has always been
central to Saga's long-term success. Regularly reinventing ourselves, in order
to compete effectively and to stay relevant to each new generation of older
people entering our market, has always been essential.
Mike Hazell, our Group CEO, together with Mark Watkins, our Group Chief
Financial Officer, and the senior management team have been superb in refining
and implementing our business model in a way that allows us to meet our
customers' needs simply and effectively. Our partnership strategy is a
fundamental part of that simplification. By accessing the skills and
infrastructure of high-quality business partners to complement the core skills
we have in designing and marketing products for older people, we are unlocking
uniquely compelling customer propositions that neither partner could deliver
alone. As a result of the teams' disciplined execution of our plan in 2025/26,
I am confident in our future. All our businesses are performing well and we
have secured our long-term funding. Our lower-risk, more simplified business
model sets us up well to deliver our growth plan and significantly reduce our
debt.
Our Insurance business has had a very successful year. The sale of our
Insurance Underwriting business in July 2025, together with the launch of our
Ageas(2) motor and home Affinity Partnership in December 2025, meant that we
ended the year taking no underwriting risk and with our Insurance operations
significantly simplified. This new commission-based business model means that
we now have greater certainty of earnings, lower volatility and a less
capital-intensive path to growth, supported by one of the largest insurers in
Europe.
Our stronger balance sheet, together with the new partnership, gave us the
confidence to invest in pricing and marketing. As a result, both revenue and
Underlying Profit Before Tax(1) returned to growth after a number of
challenging years.
Travel is now the largest generator of profits in the Group. Implementing a
series of operational improvements and changes to our management structure led
to increased customer numbers and improved customer satisfaction. As we head
towards our 30(th) year of cruising, our Ocean and River Cruise businesses
continue to grow. Holidays are also continuing to grow. It is excellent that,
after a number of years, we have started offering holidays in the UK again,
the place our journey began 75 years ago.
2025/26 was a year in which we set out to grow our profits, reduce our debt
and re-engineer our business, to focus on a more simple, low risk, less
capital-intensive way of doing business. We have succeeded in achieving these
objectives and have gone into the new year confident in the delivery of our
medium-term targets. None of this would have been possible without the
exceptional commitment, expertise and sustained effort from all of Saga's
colleagues.
Sir Roger De Haan
Non-Executive Chairman
14 April 2026
P.S. I am delighted that, during the last year, Saga won many awards. Among
them: Best British Insurance Company, Best Customer Centric Culture, Editor of
the Year, Newsletter of the Year, Best Cruise Line for Luxury Holidays, Best
Travel Company for Luxury Holidays, Which? Recommended Provider for Ocean
Cruises and Transformation of the Year, plc awards. This, again, is testament
to the great team we have at Saga.
(1) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(2) Wholly owned UK subsidiaries of Ageas SA/NV
Group Chief Executive Officer's Strategic Review
75 years of doing things differently
I am delighted to update you on our strong performance in the 2025/26
financial year and the excellent progress we made in delivering our strategic
plan. The turnaround we started two years ago is now well advanced and the
early results of the action we have taken can be seen in our performance. We
have a long-term strategy, which is built on our deep understanding of our
customers, and the brand principles that have, for over three quarters of a
century, made Saga the UK's leading business for people over 50. Our
disciplined execution of this strategy, combined with a short-term focus on
trading performance, has meant that we have fundamentally changed the outlook
for the Group, addressing key structural challenges that were previously
holding the business back.
Nobody understands older people better than Saga, and we use our 75 years of
experience to differentiate our products and services from other businesses in
ways that matter to our customers. We work hard to do things differently for
customers whose needs and expectations we understand.
Strong financial performance exceeding expectations
In a transitional year for Saga, I am very pleased to be able to report a
strong set of financial results as we continued to successfully implement our
long-term strategic plan. An outstanding performance across our Travel
businesses, and a return to growth in our Insurance business, translated into
an Underlying Profit Before Tax(1,2) of £44.2m, a 19% increase on the prior
year.
The Group reported an 11% growth in Underlying Revenue(1,2) of £654.6m, with
growth across both Travel (11%) and Insurance Broking (13%). The profit before
tax from continuing operations of £2.1m (2025: loss of £160.2m) was impacted
by the exceptional restructuring costs we incurred this year and brings to an
end the series of statutory losses the Group has reported over the past seven
years.
Cash flow generation is a key measure for any business and the continued
reduction in our Net Debt(1) remained a key priority for the Group. Our strong
trading performance and profit translated into significant cash flow
generation and a substantial reduction in Net Debt(1), which fell to £499.5m
compared with £592.8m(3) in the prior year, with a Leverage Ratio(1) of 3.7x,
compared with 4.4x(3) last year.
Our performance during the year places us well on the path towards our
medium-term targets of at least £100.0m Underlying Profit Before Tax(1) by
January 2030 and a resulting Leverage Ratio(1) of less than 2.0x. Indeed, we
are already ahead of the planned trajectory we set out last year.
Significant strategic transformation
Our strategic transformation is now well underway. Since setting out our plan
at the start of the 2025/26 financial year, our key focus has been on its
delivery, which we have been executing at pace. Our plan is on track and we
finished the year with a simplified, more focussed, capital-light business
that is well placed to continue growing both customer numbers and
profitability.
We have now restructured our Insurance business model and, in doing so, have
significantly reduced the risk and complexity that previously impacted our
performance. The sale of our Insurance Underwriting business in July 2025
meant that we no longer take any underwriting risk. This, combined with the
launch of our 20-year motor and home insurance Affinity Partnership with
Ageas(4) in December 2025, allows us to reduce the level of technical,
operational and regulatory activity that we undertake directly, and leverages
the capabilities and infrastructure that our new insurance partner, Ageas(4),
provides. With this more robust model in place, we are now in a good position
to grow.
Travel is now the largest driver of profits in the Group and is central to our
growth plans. In March 2025, we combined our Cruise and Holidays management
teams, creating a single, more effective and customer-centric operation. The
full benefits of this change will take time to mature but we have already seen
a significant improvement in performance and customer satisfaction,
demonstrated through the 11% year-on-year increase in Underlying Revenue(1)
from £453.9m to £504.1m and a corresponding 37% increase in Underlying
Profit Before Tax(1) from £63.6m to £87.2m.
Our long-term strategic principles
Saga has been designing products and services for older people throughout the
last 75 years. The deep understanding of our customer group, together with the
experience we have in meeting their distinct needs, is at the heart of our
strategy. Our businesses are supported by our award-winning multi-platform
Publishing arm, and these combine to create a sophisticated marketing
operation built on data that is unique to Saga and a critical driver of our
business decisions.
By maintaining these key principles, and by embedding a culture and discipline
across the business that put our customers at the forefront of decision
making, we deliver products and services in a way that is different to other
businesses.
(1) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(2) From continuing operations
(3) Following the Group's corporate refinancing and subsequent revised
covenant definition, Net Debt and Leverage Ratio have been re-presented for 31
January 2025
4 Wholly owned UK subsidiaries of Ageas SA/NV
Shorter-term strategic priorities
These enduring principles guide our decision making, providing longer-term
direction alongside shorter-term priorities from which we build our plans. Our
current strategic priorities comprise four key pillars.
1. Maximising the growth of our existing businesses
As we deliver our transformation and create solid foundations for long-term
growth, we are driving the performance of our core businesses, all of which
are now growing. The decisions taken in each of our businesses are now made
with long-term sustainable growth in mind and are consistent with our clear
brand principles.
2. Driving incremental growth through new business lines and products
We believe that Saga will, in the future, offer a broader range of products
and services than it offers today, meeting the needs of older people in ways
that mass market operators do not. Our priority is to complete the delivery of
our turnaround plan, which will create the solid financial platform for
achieving our medium-term targets. Alongside this, we will continue to lay the
groundwork for new products and services.
3. Growing our customer base and deepening those relationships
Central to our success is the understanding we have of our customers. This
understanding influences every aspect of our decision making. Our customer
database is at the heart of our operation, providing us unrivalled reach. By
growing the number of customers we have and the audience we engage with, we
also increase our potential and improve our understanding of the people we
serve.
4. Reducing debt, while simplifying our operations
Our new simplified business model creates more predictable revenues and cash
flow generation and builds on our core strengths. Our growth plan leverages
our skills and our existing asset base to deliver capital-light profit growth
that, in turn, accelerates debt reduction and deleveraging.
An update on our progress during the year across each of our businesses is set
out below.
Travel
Having combined our Cruise and Holidays leadership teams in March 2025, we now
have a more effective and cost-efficient Travel business that is delivering a
consistent customer experience across all of our travel products.
Cruise
Our Ocean Cruise holidays have continued to be extremely popular. Our smaller,
purpose-built Ocean Cruise ships offer an experience uniquely tailored to our
guests' needs. We only depart from UK ports, and with every guest being
provided a chauffeur service to and from their home, we remove the stress of
flying, providing a seamless door to deck service. Onboard, our truly
all-inclusive experience means that we give guests the peace of mind to enjoy
their holiday without the fear of additional charges.
The results show strong repeat rates, with 64% of our guests booking a further
cruise with us. Our guests return because of the quality of their holidays
with us and we see consistently high levels of customer satisfaction. Our
transactional net promoter score (tNPS) reached an all-time end-of-year high
of 83, compared with 82 last year.
This customer focussed approach translated into another outstanding financial
performance. Underlying Revenue(5) grew by 12%, to £265.6m and Underlying
Profit Before Tax(5) increased 38%, to £67.3m.
We are also driving strong forward bookings for the year ahead. At 12 April
2026, the load factor for 2026/27 departures was 79%, in line with the same
point in the prior year, and the per diem was £447, 13% ahead.
Our River Cruise business is also burgeoning. Building on our experience in
Ocean Cruise, we now have four ships offering boutique river cruises on
European rivers. Led by the same management team, and with the attention to
detail that our Ocean Cruise guests have come to expect, we are generating a
strong demand and driving significantly improved customer satisfaction.
Varying river water levels in Europe did pose some disruption this year,
however by continuing to enhance our product and service experience we still
managed to increase our tNPS from 60 to 69.
In July 2025, we launched the Spirit of the Moselle. This was part of our
continued rollout of Spirit-class ships that are purpose-built for our guests,
delivering consistently high quality. Spirit of the Moselle has already proved
very popular and we will be adding further Spirit-class vessels to the fleet
over the coming years. Spirit of Lorelei will launch in 2027.
We see great potential in our River Cruise business. In 2025/26, revenue from
our Rivers operation grew by 8%, with Underlying Profit Before Tax(5) rising
to £5.9m, from £4.0m last year. Bookings for 2026/27, at 12 April 2026, were
ahead of the same point last year, with a load factor of 73% and a per diem of
£372, 5ppts and 3% higher, respectively.
Holidays
Our Holidays business benefited during the year from the operational changes
we made over the past couple of years, and the more consistent customer focus
the newly combined Travel management team have brought.
Our holidays are designed with older customers in mind. Hotels are carefully
selected, and itineraries built to reflect the range of pace, comfort and
accessibility that people over 50 prefer.
Product design and innovation are at the forefront of our plans. Our
nationwide chauffeur service is extremely popular and is now included with all
our holidays and we continue to expand our range of special interest holidays.
This year, we have reintroduced a range of UK holidays, including our unique
university and college stays that provide an alternative to traditional hotels
and an excellent way to explore the UK in the summer, particularly for solo
travellers.
The demand for our holidays has been strengthening. Passenger numbers
increased in 2025/26 by 11% compared with the prior year and Underlying Profit
Before Tax(5) increased 31%, from £10.7m to £14.0m.
We believe that, with our market-leading brand, compelling holiday ideas and
our customer focussed mindset (that continues to win us both Travel awards and
customer loyalty), we are well positioned to continue this growth. Forward
bookings for 2026/27, at 12 April 2026, were ahead of the same point last
year, with 51.6k passengers, compared with 51.5k, and revenue of £165.9m, a
4% increase.
5 Refer to the Alternative Performance Measures Glossary for definition and
explanation
Insurance
Our Insurance business has had a transformational year, as we simplified the
operations and adopted a lower risk, less complex business model following the
sale of our Underwriting business and the start of our 20-year motor and home
insurance partnership with Ageas(6) (the Affinity Partnership). The sale of
Acromas Insurance Company Limited in July 2025 means that we no longer take
any underwriting risk, and the launch of the Affinity Partnership in December
2025 removed significant complexity from our business and teams us up with one
of the most successful insurance businesses in Europe. This new
commission-based model means that Ageas(6) takes responsibility for the motor
and home insurance operations and the administration of policies, while Saga
focusses on our core sales and marketing strength, working with Ageas(6) on
product design and the customer journey. Once we have fully transferred our
motor and home business to Ageas(6), the pricing and underwriting risk will
sit with Ageas(6) and Saga will earn a commission-based income stream. The
customer relationship will remain with Saga.
As we worked towards this transition during the course of 2025/26, with the
benefit of a stronger balance sheet and a clear strategy ahead of us, we were
able to invest in growth by improving our pricing and refocussing our
marketing strategy. For the first time in four years, we were able to deliver
an increase in total policy sales, with three out of our four insurance
product lines growing. While home insurance performed ahead of expectations,
the challenging market conditions and the drop in last year's policy sales
drove fewer renewal opportunities and produced a 19% drop in home policies in
force. However, alongside this, policies in force for motor insurance grew by
12%, and private medical insurance sales grew by 7%. Our refreshed travel
insurance product and the associated marketing campaign proved hugely
successful and supported a 34% increase in policies in force.
Looking ahead to 2026/27, our priority is to complete the final phase of the
Affinity Partnership implementation. Home new business is due to launch by the
end of April 2026 and policy renewals for both motor and home are due to go
live later in the year.
6 Wholly owned UK subsidiaries of Ageas SA/NV
Other Businesses
In Publishing, we continued to communicate with many more of our customers,
and more regularly, by expanding the ways in which we engage with them. A key
development has been the launch of our new podcast, 'Experience is
Everything', which extends our platform and deepens our relationship with both
our existing and new customers. It also adds to the frequency and quality of
interactions we have with our customers through our award-winning Saga
Magazine, newsletters and website.
In Money, we launched a new partnership with NatWest Boxed, which will enable
the development of a suite of innovative savings products tailored for people
over 50. This partnership combines NatWest's scale and expertise with our deep
customer insight and supports our strategy of broadening Saga Money's product
range, while extending our capital-light revenue streams. Money reported an
Underlying Profit Before Tax(7) of £0.7m, in line with the prior year.
Our people and culture
Our culture remains of fundamental importance to our performance. In our most
recent survey, colleague engagement improved from 7.9 to 8.1 out of 10. This
would be a strong result in any year, but in a year when we experienced such
change in our operations, it is a testament to the culture we have embedded
and a measure of the understanding our colleagues have in the changes we are
making. I was delighted that our focus on creating an inclusive and supportive
working environment was recognised externally, when Saga was ranked 6(th) in
the UK's Best Employers 2025 list by the Financial Times.
Strong platform for long-term sustainable growth
We have had a very successful year, delivering an excellent trading
performance and laying the foundations for long-term sustainable growth. Saga
is a fantastic brand, recognised and trusted by its customers throughout the
UK. Our success is built on this trust. This is not something we take for
granted but we continually try to enhance. Our colleagues are central to this
and are the people that bring this to life day in, day out. The progress we
made this year is down to their hard work and dedication and my thanks go out
to all of them.
As we head into our new year, we are in a good position. Our businesses are
all performing well and we continue the delivery of our plan that is
transforming the outlook for the Group. Last year, we laid out our medium-term
targets of at least £100.0m Underlying Profit Before Tax(7) by January 2030,
and a resulting Leverage Ratio(7) of below 2.0x by that time. One year on, we
are already tracking ahead of our planned trajectory and we remain all the
more confident of reaching and exceeding these targets.
Mike Hazell
Group Chief Executive Officer
14 April 2026
Group Chief Financial Officer's Review
I am pleased to report that, for the 12 months ended 31 January 2026, the
Group delivered a strong set of financial results, returning the Group to
profit for the first time in eight years. From continuing operations,
Underlying Profit Before Tax(1) was £44.2m, 19% higher than the year before,
despite higher finance costs as expected, reflecting a strong trading
performance across both Travel and Insurance Broking.
Our Travel businesses had an excellent year, each delivering a step change in
earnings. In Ocean Cruise, continued customer demand supported consistently
high load factors and growing per diems, resulting in a 38% increase in
Underlying Profit Before Tax(1), to £67.3m. River Cruise also performed
strongly, reporting a 48% increase in Underlying Profit Before Tax(1), to
£5.9m, driven by growing demand and the addition of our newest River Cruise
ship, Spirit of the Moselle in July 2025. Holidays reported an Underlying
Profit Before Tax(1) of £14.0m, up 31% from £10.7m in 2024/25, supported by
increased passenger numbers and the efficiency savings from the combination of
our Travel businesses under a single management team.
Insurance Broking also performed well, and traded ahead of expectations, with
three of our four insurance products returning to policy growth. As a result,
Underlying Profit Before Tax(1,2) grew 17% year-on-year, to £16.9m.
The Group reported a profit before tax from continuing operations of £2.1m,
compared with a loss before tax of £160.2m in the prior year, which included
an impairment of Insurance Broking goodwill of £138.3m.
At the start of the year, we completed the refinancing of the Group's
corporate debt with a £335.0m term loan due in January 2031, providing a more
stable long-term funding structure. To manage interest rate exposure, the
Group fully hedged the term loan using interest rate derivatives, with hedging
in place until August 2028.
Debt reduction continues to be a key strategic priority for the Group and the
strong trading performance in Travel and Insurance Broking, resulted in strong
cash generation, alongside the net proceeds from the sale of our Insurance
Underwriting business to Ageas(3), which delivered £21.4m more cash than
originally expected, due to the business performance, prior to the sale
completion being better than anticipated. Net Debt(1) at 31 January 2026
reduced to £499.5m, £93.3m lower than the £592.8m(4) reported at the same
point last year, with the Leverage Ratio(1) improving to 3.7x. Both the Net
Debt(1) and Leverage Ratio(1) exclude the £60.0m received from Ageas(3) as a
result of the Affinity Partnership, which will temporarily further reduce Net
Debt(1) in the short term, pending a corresponding unwinding of working
capital in 2026/27.
The Group remained highly cash-generative, delivering Available Operating Cash
Flow(1) of £205.9m, compared with £109.6m in the prior year, supported by
stronger cash generation in Ocean Cruise and the £60.0m receipt from Ageas(3)
following the launch of the Insurance Broking Affinity Partnership. The
Group's available liquidity at year end comprised £189.7m of Available
Cash(1), the £116.6m undrawn delayed-draw term loan (DDTL) provided by HPS
Funds(5) and the £33.4m undrawn Revolving Credit Facility (RCF).
Following the momentum over the past 12 months, there is a clear opportunity
for material growth in the future. With performance ahead of expectations, we
remain confident in delivering at least £100.0m of annual Underlying Profit
Before Tax(1), while reducing the Leverage Ratio(1) to below 2.0x, by January
2030.
(1) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(2) From continuing operations
(3) Wholly owned UK subsidiaries of Ageas SA/NV
(4) Following the Group's corporate refinancing and subsequent revised
covenant definition, the Net Debt and Leverage Ratio have been re-presented at
31 January 2025
5 Certain funds, entities (or affiliates or subsidiaries of such funds or
entities) and/or accounts managed, advised or controlled by HPS Investment
Partners, LLC or its subsidiaries
Operating performance
Group income statement
£m 12m to January 2026 12m to January 2025
Continuing operations Discontinued operations Total Change Continuing operations Discontinued operations Total
Underlying Revenue(6) 654.6 60.4 715.0 (6.9%) 588.6 179.6 768.2
Underlying Profit Before Tax(6)
Travel 87.2 - 87.2 37.1% 63.6 - 63.6
Insurance Broking (earned) 16.9 (0.4) 16.5 14.6% 14.5 (0.1) 14.4
Insurance Underwriting - 15.6 15.6 45.8% 10.7 10.7
Total Insurance 16.9 15.2 32.1 27.9% 14.5 10.6 25.1
Other Businesses and Central Costs (16.8) - (16.8) (18.3%) (14.2) - (14.2)
Net finance costs(7) (43.1) - (43.1) (61.4%) (26.7) - (26.7)
Underlying Profit Before Tax(6) 44.2 15.2 59.4 24.3% 37.2 10.6 47.8
Impairment of Insurance Broking goodwill - - - 100.0% (138.3) - (138.3)
Other exceptional items (42.1) (12.8) (54.9) (8.5%) (59.1) 8.5 (50.6)
Profit/(loss) before tax 2.1 2.4 4.5 103.2% (160.2) 19.1 (141.1)
Income tax credit/(expense) 2.0 (2.9) (0.9) 96.2% (18.5) (5.3) (23.8)
Profit/(loss) for the year 4.1 (0.5) 3.6 102.2% (178.7) 13.8 (164.9)
Earnings/(loss) per share
Underlying Earnings Per Share(6) 30.6p 10.5p 41.1p 77.2% 18.1p 5.1p 23.2p
Earnings/(loss) per share 2.9p (0.4p) 2.5p 102.1% (127.2p) 9.8p (117.4p)
The Group's business model is based on providing high-quality and
differentiated products to its target demographic, predominantly focussed on
travel and insurance. The Travel businesses comprise Ocean Cruise, River
Cruise and Holidays. The Insurance business operates mainly as a broker,
sourcing underwriting capacity from selected third-party insurance companies,
and, for motor and home, also from the Group's in-house underwriter until the
sale of Acromas Insurance Company Limited (AICL) to Ageas(8), which completed
on 1 July 2025. Other Businesses include Money, Publishing and CustomerKNECT,
a mailing and printing business.
Underlying Revenue(6)
Underlying Revenue(6) decreased 6.9% to £715.0m (2025: £768.2m), mainly due
to lower revenue in the Group's discontinued Insurance Underwriting business.
Underlying Profit Before Tax(6)
The Group generated a total Underlying Profit Before Tax(6) of £59.4m in the
current year, compared with £47.8m in the prior year. This is primarily due
to:
· £23.6m increase in Travel, moving to an Underlying Profit Before
Tax(6) of £87.2m (2025: £63.6m), with £18.4m driven by Ocean Cruise;
· Underlying Profit Before Tax(6) in Insurance Broking of £16.5m
(2025: £14.4m); and
· Underlying Profit Before Tax(6) in Insurance Underwriting of
£15.6m (2025: £10.7m).
Net finance costs(7) in the year were £43.1m (2025: £26.7m), which excludes
finance costs within the Travel business of £15.4m (2025: £18.4m) and
Insurance Underwriting business of £3.0m (2025: £8.8m). The increase, as
expected, was predominantly driven by the refinancing of the Group's corporate
debt at the beginning of the year at materially higher interest rates.
Profit/(loss) before tax
The profit before tax for the year, of £4.5m, includes a net negative of
other exceptional items of £54.9m, consisting of:
Continuing operations
· costs relating to the transition to the 20-year partnership for motor
and home insurance with Ageas(8) (the Affinity Partnership) of £13.9m;
· restructuring costs of £21.5m;
· costs and fees associated with the Group's previous corporate debt,
including accelerated amortisation of fees relating to the loan facility
provided by Roger De Haan, totalling £7.6m;
· fair value losses of £0.7m on derivatives;
· a negative International Financial Reporting Standard (IFRS) 16
'Leases' accounting adjustment of £0.9m on River Cruise ships;
· £0.5m Ocean Cruise dry dock costs;
· impairments to non-financial assets of £1.9m;
· foreign exchange losses on River Cruise ship leases of £0.8m;
· a net negative modification to Travel breakage policy of £2.6m;
· onerous contract provisions net positive of £1.3m on three-year
fixed-price policies; and
· release of deferred income associated with motor and home three-year
fixed-price policies of £7.0m.
Discontinued operations
· onerous contract provisions net negative of £4.3m on insurance
contracts under IFRS 17 'Insurance Contracts';
· restructuring costs of £0.4m;
· loss on disposal of subsidiaries of £10.2m, relating to the disposal
of the Insurance Underwriting business, which includes the release of the
positive written to earned adjustment following the sale of the Insurance
Underwriting business of £3.6m;
· a £0.1m negative change in discount rate on non-periodical payment
order (PPO) insurance liabilities; and
· fair value gains on debt securities of £2.2m.
The loss before tax in the prior year, of £141.1m, includes a £138.3m
impairment to Insurance Broking goodwill and a net negative of other
exceptional items of £50.6m, consisting of:
Continuing operations
· impairments to non-financial assets, other than goodwill, of £24.5m,
including software assets that no longer drive economic benefit to the Group
following the transition to the Insurance Broking partnership with Ageas(8);
· restructuring costs of £28.4m, including a provision for the
expected costs of restructuring the Group's Insurance Broking operations,
ahead of the Ageas(8) partnership becoming operational;
· costs and amortisation of fees relating to the loan facility provided
by Roger De Haan of £3.5m;
· fair value losses of £0.3m on derivatives;
· a negative IFRS 16 lease accounting adjustment of £0.5m on River
Cruise ships;
· £1.7m additional Ocean Cruise dry dock costs and customer
compensation relating to Spirit of Adventure;
· profit share due to AXA on cessation of the private medical insurance
(PMI) contract of £2.6m;
· foreign exchange gains on River Cruise ship leases of £0.6m; and
· onerous contract provisions net positive of £1.8m on three-year
fixed-price policies.
Discontinued operations
· impairments to non-financial assets of £6.3m;
· restructuring costs of £3.9m;
· onerous contract provisions net positive of £13.0m on insurance
contracts under IFRS 17;
· fair value gains on debt securities of £5.1m; and
· a £0.6m positive change in discount rate on non-PPO insurance
liabilities.
Income tax
The Group's income tax expense for the year was £0.9m (2025: £23.8m),
representing a positive tax effective rate of 20.0% (2025: negative 850.0%),
excluding the Insurance Broking goodwill impairment charge. In both the
current and prior periods, the difference between the Group's tax effective
rate and the standard rate of corporation tax was mainly due to the Group's
Ocean Cruise business being in the tonnage tax regime. In addition, in the
current year and prior year, it is also due to all temporary differences at 31
January 2026 and 31 January 2025 not being considered recoverable and,
therefore, no deferred tax assets were recognised for these temporary
differences. This is the result of the change in mix of profitability within
the Group, where the majority of the Group's profits now come from the Ocean
Cruise business, whereas the Insurance Broking business has been in decline.
There was also an adjustment in the current year for the under-provision of
prior-year tax of £0.9m debit (2025: £nil). Excluding the impact of the
Ocean Cruise business being in the tonnage tax regime, the Insurance goodwill
impairment, the adjustments to prior-year tax and the non-recognition of net
deferred tax assets, the tax effective rate for the current year is 16.0%
(2025: 21.4%).
Earnings/(loss) per share
The Group Underlying Basic Earnings Per Share(6) was 41.1p (2025: 23.2p). The
Group's reported basic earnings per share was 2.5p (2025: loss of 117.4p).
(6) Refer to the Alternative Performance Measures Glossary for definition and
explanation
7 Net finance costs exclude Travel and Insurance Underwriting finance costs
and Travel net fair value losses on derivatives
8 Wholly owned UK subsidiaries of Ageas SA/NV
Travel
12m to January 2026 12m to January 2025
£m Ocean Cruise River Cruise Holidays Total Travel Change Ocean Cruise River Cruise Holidays Total Travel
Underlying Revenue(9) 265.6 53.4 185.1 504.1 11.1% 236.7 49.4 167.8 453.9
Gross profit 114.2 16.6 46.1 176.9 14.5% 97.7 15.1 41.7 154.5
Marketing expenses (15.0) (6.3) (12.7) (34.0) (11.8%) (13.8) (5.7) (10.9) (30.4)
Other operating expenses (16.6) (4.9) (20.8) (42.3) 3.0% (16.6) (5.8) (21.2) (43.6)
Investment return - 0.5 1.5 2.0 33.3% - 0.4 1.1 1.5
Finance costs (15.3) - (0.1) (15.4) 16.3% (18.4) - - (18.4)
Underlying Profit Before Tax(9) 67.3 5.9 14.0 87.2 37.1% 48.9 4.0 10.7 63.6
Average revenue per passenger (£) 6,009 3,051 3,044 4,115 3.7% 5,543 2,923 3,062 3,968
Ocean Cruise load factor 93% 93% 2ppts 91% 91%
Ocean Cruise per diem (£) 394 394 10.4% 357 357
Ocean Cruise capacity days ('000) 704 704 (0.1%) 705 705
Ocean Cruise revenue per capacity day (£) 377 377 12.4% 336 336
River Cruise load factor 89% 89% - 89% 89%
River Cruise per diem (£) 350 350 7.4% 326 326
River Cruise capacity days ('000) 147 147 0.7% 146 146
River Cruise revenue per capacity day (£) 363 363 7.4% 338 338
Passengers ('000) 44.2 17.5 60.8 122.5 7.1% 42.7 16.9 54.8 114.4
Ocean Cruise
The Ocean Cruise business owns two Ocean Cruise ships, Spirit of Discovery and
Spirit of Adventure.
The business achieved a load factor of 93% (2025: 91%) and a per diem of £394
(2025: £357). These two factors, when combined, equated to Underlying
Revenue(9) growth of 12.2% and a 37.6% increase in profitability, from an
Underlying Profit Before Tax(9) of £48.9m in the prior year, to £67.3m in
the current year.
River Cruise
At the beginning of the year, the River Cruise business had 10-year charters
in place for two boutique purpose-built River Cruise ships, Spirit of the
Rhine and Spirit of the Danube, alongside one other shorter-term charter. In
July 2025, the business took delivery of its third boutique purpose-built
River Cruise ship, Spirit of the Moselle, which is also a 10-year charter.
The business achieved a load factor of 89% (2025: 89%) and a per diem of £350
(2025: £326). This resulted in Underlying Revenue(9) growth of 8.1% and a
47.5% increase in Underlying Profit Before Tax(9), to £5.9m (2025: £4.0m).
Holidays
The Holidays business, which includes both the Saga Holidays and Titan brands,
increased volumes when compared with the prior year, with passenger numbers
increasing from 54.8k to 60.8k. The revenue per passenger was broadly flat at
£3,044 (2025: £3,062), driven by a passenger preference towards travel to
Europe over long-haul destinations due to the current geopolitical
environment.
This led to Underlying Revenue(9) growth of 10.3% and an increase in
profitability, from an Underlying Profit Before Tax(9) of £10.7m in the prior
year, to £14.0m in the current year.
Forward Travel sales
Ocean Cruise bookings for 2026/27 continue to show sustained momentum, with a
load factor in line with the same point last year. The per diem for 2026/27 is
ahead of the same period last year, by 12.6%, reflecting continued customer
demand.
River Cruise also continues to perform well. For 2026/27, the load factor is
5ppts ahead of the same point last year, driven by a stable first-half
performance and a stronger second half. Customer demand is particularly strong
for Spirit of the Danube, with the newest addition to the fleet, Spirit of the
Moselle, also seeing encouraging uptake. The per diem for the full year is
3.0% ahead, reflecting strong customer demand.
Holidays bookings for 2026/27 remain ahead of the same point last year, with
revenue up 4.0% and passengers up 0.2%. Within this, hosted stays continue to
grow year-on-year.
Travel bookings for 2027/28, across Cruise and Holidays, reflect a strong
revenue position that is 2.3% ahead of the same time last year.
Current year departures
12 April 2026 Change 13 April 2025
Ocean Cruise revenue (£m) 256.2 16.4% 220.1
Ocean Cruise load factor 79% - 79%
Ocean Cruise per diem (£) 447 12.6% 397
River Cruise revenue (£m) 52.6 27.1% 41.4
River Cruise load factor 73% 5ppts 68%
River Cruise per diem (£) 372 3.0% 361
Holidays revenue (£m) 165.9 4.0% 159.5
Holidays passengers ('000) 51.6 0.2% 51.5
(9) Refer to the Alternative Performance Measures Glossary for definition and
explanation
Insurance
Insurance Broking
The Insurance Broking business provides tailored insurance products,
principally motor, home, PMI and travel insurance. Its role is to price the
policies and source the lowest risk price, whether through the panel of motor
and home underwriters or through solus arrangements for PMI and travel
insurance.
Until its sale to Ageas(10) on 1 July 2025, the Group had an in-house insurer,
AICL, sitting on the motor and home panels, which competed for that business
with other panel members on equal terms. AICL offered its underwriting
capacity on the home panel through a coinsurance deal with a third party, so
the Group took no underwriting risk for that product. Even if underwritten by
a third party, the offering is presented as a Saga product and the Group
manages the customer relationship. AICL continues to sit on the motor and home
panels following its sale.
12m to January 2026 12m to January 2025
£m Motor broking Home broking Other broking Total Change Motor broking Home broking Other broking Total
Gross Written Premiums(11) 279.6 132.9 139.5 552.0 (4.0%) 294.2 155.1 125.5 574.8
Broker revenue 7.0 11.8 46.0 64.8 9.5% 13.1 6.2 39.9 59.2
Instalment revenue 5.0 3.2 - 8.2 20.6% 3.3 3.5 - 6.8
Add-on revenue 8.2 5.9 - 14.1 (6.0%) 7.2 7.7 0.1 15.0
Other revenue 30.6 14.0 0.7 45.3 24.1% 25.2 15.7 (4.4) 36.5
Written Underlying Revenue(11) 50.8 34.9 46.7 132.4 12.7% 48.8 33.1 35.6 117.5
Written gross profit 45.8 34.9 48.3 129.0 9.3% 42.1 33.1 42.8 118.0
Marketing expenses (16.5) (5.6) (10.4) (32.5) (55.5%) (9.1) (6.0) (5.8) (20.9)
Written Gross Profit After Marketing Expenses(11) 29.3 29.3 37.9 96.5 (0.6%) 33.0 27.1 37.0 97.1
Other operating expenses (79.9) 3.7% (83.0)
Written Underlying Profit Before Tax(11) 16.6 17.7% 14.1
Written to earned adjustment (0.1) (133.3%) 0.3
Earned Underlying Profit Before Tax(11) 16.5 14.6% 14.4
Policies in force 675k 412k 207k 1,294k 1.6% 602k 506k 166k 1,274k
Policies sold 734k 441k 211k 1,386k 2.6% 655k 528k 168k 1,351k
Reconciliation to continuing operations:
Earned Underlying Profit Before Tax(11) 16.5 14.6% 14.4
Written Underlying Profit Before Tax(11) from discontinued operations 0.3 (25.0%) 0.4
Written to earned adjustment 0.1 133.3% (0.3)
Underlying Profit Before Tax(11) from continuing operations 16.9 16.6% 14.5
Insurance Broking written Underlying Profit Before Tax(11), which excludes the
impact of the written to earned adjustment deferring the revenue on policies
underwritten over the term of the policy, increased to £16.6m, from £14.1m
in the prior year. Underlying Profit Before Tax(11) from continuing operations
increased to £16.9m from £14.5m. The written to earned adjustment is no
longer required following the sale of the Insurance Underwriting business to
Ageas(10) on 1 July 2025, as the Group ceased to underwrite any insurance
policies, so it no longer has to spread revenue on underwritten policies over
the life of the insurance policy.
A key metric for the Insurance Broking business is Written Gross Profit After
Marketing Expenses1(1) before deducting overheads. This reduced from £97.1m
in the prior year, to £96.5m in the current year, mainly due to lower new
business margins on motor and lower volumes on home. This was partially offset
by higher renewal margins on motor and home and by an improved performance of
the PMI product. Written Gross Profit After Marketing Expenses(11) fell by
£3.7m in motor, partially offset by increases in home of £2.2m and other
broking of £0.9m.
For motor and home insurance, in terms of the total Written Gross Profit After
Marketing Expenses(11), the new business proportion reduced by £14.3m and the
renewal proportion increased by £12.8m.
The three-year fixed-price product remains significant, with 422k policies
sold in the current year, compared with 518k policies in the prior year. This
represented 36% of total motor and home policies (2025: 44%), with 27% of
direct new business customers taking the product (2025: 29%). These policies
remain highly attractive to our customer base.
The average gross margin per policy for motor and home combined, calculated as
Written Gross Profit After Marketing Expenses(11) divided by the number of
policies sold, reduced to £49.9 in the current year, compared with £50.8 in
the prior year.
In addition, customer retention for motor and home increased from 77% to 85%,
overall motor and home policies in force decreased 2% when compared with 31
January 2025, and direct new business sales decreased 12ppts to 33% as the
Group rebalanced volumes towards price-comparison website distribution
channels.
Written profit and gross margin per policy for motor and home are stated after
allowing for deferral of part of the revenues from three-year fixed-price
products, which is then recognised in profit or loss when the option to renew
those policies at a predetermined fixed price is exercised or lapses,
recognising the inflation risk inherent in these products. At 31 January 2026,
£1.8m (2025: £8.9m) of income had been deferred in relation to three-year
fixed-price products. The reduction is due to the Affinity Partnership with
Ageas(10), with the responsibility of the renewal of Saga-branded motor and
home policies transferring to Ageas(10), meaning that all previously deferred
revenues on three-year fixed-price products will be released prior to renewals
going live as part of the Affinity Partnership.
Motor broking
Gross Written Premiums(11) decreased 5.0% due to a 15.2% decrease in average
premiums, partially offset by a 12.1% increase in core policies sold.
Written Gross Profit After Marketing Expenses(11) was £29.3m (2025: £33.0m),
contributing £39.9 per policy (2025: £50.4 per policy). Lower new business
margins and a 4.8% reduction in renewal policies sold were partially offset by
an increase in renewal margins and an 80.3% increase in new business policies
sold.
Home broking
Gross Written Premiums(11) decreased 14.3% due to a 16.5% reduction in core
policies sold, partially offset by a 2.5% increase in average premiums.
Written Gross Profit After Marketing Expenses(11) was £29.3m (2025: £27.1m),
equating to £66.4 per policy (2025: £51.3 per policy). The increase in
written gross profits was mainly due to higher renewal margins.
Other broking
Other broking primarily comprises PMI and travel insurance.
Gross Written Premiums(11) increased 11.2% as a result of an increase in
policy sales to 176k (2025: 131k) in travel insurance and to 33k (2025: 30k)
in PMI.
The PMI product performed well, with commissions and profit share leading to
Written Gross Profit After Marketing Expenses(11) increasing by £4.7m.
Written Gross Profit After Marketing Expenses(11) relating to travel insurance
products decreased by £0.9m, mainly as a result of a reduction to new
business margins.
(10) Wholly owned UK subsidiaries of Ageas SA/NV
(11) Refer to the Alternative Performance Measures Glossary for definition and
explanation
Insurance Underwriting (classified as a discontinued operation)
12m to January 2026 12m to January 2025
£m Gross Re Net Gross change Gross Re Net
insurance insurance
Insurance Underlying Revenue(12) A 64.2 (4.7) 59.5 (67.0%) 194.5 (17.1) 177.4
Incurred claims (current year) B (50.5) 2.8 (47.7) 64.7% (143.1) (5.3) (148.4)
Claims handling costs in relation to incurred claims C (6.3) - (6.3) 64.6% (17.8) - (17.8)
Changes to liabilities for incurred claims (prior year) D 17.8 (3.7) 14.1 (66.1%) 52.5 (41.2) 11.3
Other incurred insurance service expenses E (4.8) - (4.8) 61.3% (12.4) - (12.4)
Insurance service result 20.4 (5.6) 14.8 (72.3%) 73.7 (63.6) 10.1
Net finance (expense)/income from (re)insurance (excludes impact of change in (4.9) 1.9 (3.0) 70.8% (16.8) 8.0 (8.8)
discount rate on non-PPO liabilities)
Investment return (exclude fair value gains on debt securities) 3.8 - 3.8 (59.6%) 9.4 - 9.4
Underlying Profit Before Tax(12) 19.3 (3.7) 15.6 70.9% 66.3 (55.6) 10.7
Reported loss ratio (B+D)/A 50.9% 56.5% (4.3ppts) 46.6% 77.3%
Expense ratio (C+E)/A 17.3% 18.7% (1.8ppts) 15.5% 17.0%
Reported combined operating ratio (COR) (B+C+D+E)/A 68.2% 75.1% (6.1ppts) 62.1% 94.3%
Current year COR (B+C+E)/A 96.0% 98.8% (6.9ppts) 89.1% 100.7%
Number of earned policies 163k (66.5%) 487k
The Group's in-house underwriter, AICL, was sold to Ageas(13) on 1 July 2025
but continues to underwrite around 60% of the motor business sold by Insurance
Broking, alongside a smaller proportion of business on other panels. Alongside
this, AICL underwrites a portion of Saga's home panel.
Gross insurance Underlying Revenue(12) in the current year decreased 67.0% to
£64.2m (2025: £194.5m), reflecting a 66.5% reduction in the number of earned
policies underwritten by AICL while being part of the Group, due to the sale
of AICL to Ageas(13) on 1 July 2025. This was also a 1.4% decrease in average
earned premiums.
The gross insurance service result was in line with expectations, with a
6.9ppt decrease in the current year gross combined operating ratio (COR) to
96.0% (2025: 89.1%). After allowing for reinsurance arrangements, this
increased slightly to 98.8% (2025: 100.7%). The improved net year-on-year
result reflects the entering of a new profitable quota share aggregation
period, with the motor surplus generated during the current year shared with
reinsurance partners.
(12) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(13) Wholly owned UK subsidiaries of Ageas SA/NV
Other Businesses and Central Costs
12m to January 2026 12m to January 2025
£m Other Businesses Central Costs Total Change Other Businesses Central Costs Total
Underlying Revenue(14)
Money 6.1 - 6.1 8.9% 5.6 - 5.6
Publishing and CustomerKNECT 11.3 - 11.3 (18.7%) 13.9 - 13.9
Other - 1.5 1.5 100.0% - - -
Total Underlying Revenue 17.4 1.5 18.9 (3.1%) 19.5 - 19.5
Gross profit 5.4 3.6 9.0 (30.8%) 6.9 6.1 13.0
Operating expenses (5.1) (23.8) (28.9) 6.5% (6.5) (24.4) (30.9)
Investment income - 3.1 3.1 (16.2%) - 3.7 3.7
Net finance costs - (43.1) (43.1) (61.4%) - (26.7) (26.7)
Underlying Profit/(Loss) Before Tax(14) 0.3 (60.2) (59.9) (46.5%) 0.4 (41.3) (40.9)
The Group's Other Businesses include Money, Publishing and CustomerKNECT.
Underlying Profit Before Tax(14) for Other Businesses, when combined, reduced
by £0.1m, from a £0.4m Underlying Profit Before Tax(14) in the prior year to
£0.3m in the current year.
Central operating expenses reduced to £23.8m (2025: £24.4m). Gross
administration costs, before Group recharges, decreased by £2.1m in the year.
Net costs increased by a further £1.5m due to lower Group recharges to the
business units.
Net finance costs in the year were £43.1m (2025: £26.7m), which excludes
finance costs within the Travel businesses of £15.4m (2025: £18.4m) and
Insurance Underwriting business of £3.0m (2025: £8.8m). The increase was
predominantly driven by the refinancing of the Group's corporate debt at the
beginning of the year at materially higher interest rates.
(14) Refer to the Alternative Performance Measures Glossary for definition and
explanation
Cash flow and liquidity
Available Operating Cash Flow(15)
£m 12m to Jan 2026 Change 12m to Jan 2025
Group Trading EBITDA(15) 153.1 11.7% 137.1
Less Trading EBITDA(15) from restricted businesses (39.7) (15.7%) (34.3)
Group Trading EBITDA(15,16) from unrestricted businesses 113.4 10.3% 102.8
Working capital and non-cash items 86.9 >500.0% 2.2
Dividends and intercompany repayments from restricted businesses 26.2 13.9% 23.0
Capital expenditure funded with Available Cash(15) (20.6) (12.0%) (18.4)
Available Operating Cash Flow(15) 205.9 87.9% 109.6
Restructuring costs (42.4) (99.1%) (21.3)
Interest and financing costs (67.1) (55.0%) (43.3)
Business disposals 68.8 100.0% -
Tax receipts 2.7 (64.0%) 7.5
Other payments (11.9) (105.2%) (5.8)
Change in cash flow from operations 156.0 234.0% 46.7
Change in bond debt (250.0) (66.7%) (150.0)
Change in loan facilities debt 260.0 246.7% 75.0
Change in Ocean Cruise ship debt (55.6) 10.6% (62.2)
Cash at 1 February 79.3 (53.3%) 169.8
Available Cash(15) at 31 January 189.7 139.2% 79.3
£m 12m to Jan 2026 Change 12m to Jan 2025
Available Operating Cash Flow(15) by business unit
Ocean Cruise 124.5 34.7% 92.4
River Cruise 2.6 85.7% 1.4
Holidays 13.7 8.7% 12.6
Insurance Broking 79.5 >500.0% 8.1
Insurance Underwriting 10.0 11.1% 9.0
Other Businesses and Central Costs (24.4) (75.5%) (13.9)
Available Operating Cash Flow(15) 205.9 87.9% 109.6
Available Operating Cash Flow(15) is made up of the cash flows from
unrestricted businesses and the dividends paid by, and intercompany repayments
from, restricted companies, less any cash injections to those businesses.
Unrestricted businesses include the Group's Ocean Cruise business, Insurance
Broking (excluding specific ring-fenced funds to satisfy Financial Conduct
Authority regulatory requirements) and Other Businesses and Central Costs.
Restricted businesses include River Cruise, Holidays and Insurance
Underwriting.
As a result of an increase in cash generation from Ocean Cruise and Insurance
Broking, Available Operating Cash Flow(15) increased from £109.6m in the
prior year to £205.9m the current year.
The Ocean Cruise business reported an Available Operating Cash Flow(15) of
£124.5m (2025: £92.4m), with an increase in advance customer receipts of
£12.6m (2025: £12.0m), net trading income of £108.3m (2025: £97.3m) and
repayment of cash collateralised Association of British Travel Agents (ABTA)
bonding of £11.5m (2025: £11.5m drawdown), partially offset by capital
expenditure of £7.9m (2025: £5.4m), associated with a scheduled dry dock for
Spirit of Discovery. Net of interest costs of £12.9m (2025: £15.8m) and
exceptional costs of £0.6m (2025: £1.7m), the Ocean Cruise business reported
a net cash inflow, before capital repayments on the ship debt, of £111.0m for
the year, compared with £74.9m in the prior year.
The River Cruise business provided an intercompany loan to the Group of £2.6m
in the year (2025: £1.4m), which was agreed with the Civil Aviation Authority
(CAA). For any further excess cash to be paid back to the Group, dividends
will only be paid following an approval process with the CAA. The business
continues to be under an escrow trust arrangement as part of its CAA licence.
At 31 January 2026, the business held cash of £22.7m, of which £12.0m was
held in escrow. The business must hold a minimum of £1.7m of cash outside of
escrow within the business, as agreed with the CAA.
The Holidays business repaid the Group £13.7m during the year (2025:
£12.6m). The increase is due to the improved trading performance in the
current year compared with the prior year, resulting in an increase in
repayment of intercompany loans to the Group during the current year.
The Insurance Broking business reported an Available Operating Cash Flow(15)
of £79.5m (2025: £8.1m), which includes £60.0m (2025: £nil) of upfront
consideration as part of the Ageas(17) Affinity Partnership. The remaining
increase of £11.4m is the result of an increase in working capital of £7.5m,
which was driven by the receipt of £7.5m from AICL relating to a stop loss
agreement between AICL and Saga Services Limited. In addition, there was a
reduction in capital expenditure in the current year of £6.1m. This was
partially offset by a reduction in EBITDA in the current year of £2.2m.
The Insurance Underwriting business paid dividends to the Group of £10.0m
(2025: £9.0m), prior to the sale to Ageas(17), relating to excess solvency
capital.
Other cash flow movements
Interest and financing costs increased in the current year, predominantly
driven by the refinancing of the Group's corporate debt at the beginning of
the year at materially higher interest rates.
The Group continued to make the agreed payments to the defined benefit pension
fund as part of the deficit recovery plan of £5.8m (2025: £5.8m), which are
now paid quarterly compared with the previous annual contributions. In
addition, the Group funded ring-fenced, restricted designated bank accounts,
using Available Cash(15) totalling £6.1m, over which charges have been
granted in favour of the pension trustees, both of which are included within
other payments.
In the current year, the Group drew its £335.0m term loan (see change to
facilities within the Financing section for further details) and used the
funds to repay in full and cancel its £250.0m corporate bond, repay the
£75.0m drawn proportion, and cancel the £85.0m loan facility, provided by
Roger De Haan. The Group continued to make capital repayments against its
Ocean Cruise ship debt facilities, with payments totalling £25.5m (2025:
£30.6m) on Spirit of Discovery's debt facility and £30.1m (2025: £31.6m) on
Spirit of Adventure's debt facility.
(15) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(16) Trading EBITDA includes the line-item impact of IFRS 16 with the
corresponding impact to net finance costs included in net cash flows
used in financing activities
(17) Wholly owned UK subsidiaries of Ageas SA/NV
Statement of financial position
Goodwill
At 31 January 2026, the carrying value of the Group's goodwill associated with
the Insurance Broking business was £206.4m (31 January 2025: £206.4m).
Trading performance in the current year was ahead of expectations, therefore,
following the annual test of goodwill for impairment, the Directors concluded
that no impairment was required at 31 January 2026.
Carrying value of Ocean Cruise ships
At 31 January 2026, the carrying value of the Group's Ocean Cruise ships was
£555.6m (31 January 2025: £570.6m). Trading performance in the current year
was very positive, and, with strong bookings for 2026/27, the Directors
concluded that there were no indicators of impairment at 31 January 2026.
Investment portfolio
Prior to its sale to Ageas(18) on 1 July 2025, the majority of the Group's
financial assets were held by its Insurance Underwriting entity and
represented premium income received and invested to settle claims and meet
regulatory capital requirements.
As a result of the sale of the Group's Insurance Underwriting business, the
amount held in invested funds decreased by £253.1m to £nil (31 January 2025:
£253.1m). At 31 January 2026, 100% of the financial assets held by the Group
were invested with counterparties with a risk rating of BBB or above,
consistent with the prior year end, reflecting the relatively stable credit
risk rating of the Group's investment holdings.
Credit risk rating
AAA AA A BBB Unrated Total
At 31 January 2026 £m £m £m £m £m £m
Derivative assets - - 1.1 - - 1.1
Total financial assets - - 1.1 - - 1.1
Credit risk rating
AAA AA A BBB Unrated Total
At 31 January 2025 £m £m £m £m £m £m
Investment portfolio
Deposits with financial institutions - 1.0 10.5 - - 11.5
Debt securities 22.8 53.2 52.4 50.3 - 178.7
Money market funds 62.9 - - - - 62.9
Total invested funds 85.7 54.2 62.9 50.3 - 253.1
Derivative assets 0.2 0.9 - - 1.1
Total financial assets 85.7 54.4 63.8 50.3 - 254.2
Insurance reserves
Analysis of insurance contract liabilities at 31 January 2026 and 31 January
2025 is as follows:
At 31 January 2026 At 31 January 2025
£m Gross Reinsurance assets Net Gross Reinsurance assets Net
Incurred claims - estimate of the present value of future cash flows - - - 235.9 (88.9) 147.0
Incurred claims - risk adjustment - - - 33.7 (28.2) 5.5
Remaining coverage - excluding loss component - - - 46.3 9.3 55.6
Remaining coverage - loss component - - - 1.8 - 1.8
Total - - - 317.7 (107.8) 209.9
The Group's total insurance contract liabilities, net of reinsurance assets,
decreased by £209.9m in the year to 31 January 2026 from the previous year
end, entirely due to the sale of the Group's Insurance Underwriting business
to Ageas(18) on 1 July 2025. At 31 January 2025, these balances were included
within liabilities directly associated with assets held for sale.
Financing
At 31 January 2026, the Group's Net Debt(19) was £499.5m, £93.3m lower than
at the start of the financial year.
Net Debt(19) is analysed as follows:
£m Maturity date(20) 31 January 2026 31 January 2025
5.5% Corporate bond July 2026 - 250.0
Loan facility provided by Roger De Haan April 2026 - 75.0
Term loan January 2031 335.0 -
DDTL January 2031 - -
RCF January 2029 - -
Spirit of Discovery Ocean Cruise ship loan June 2031 117.5 143.0
Spirit of Adventure Ocean Cruise ship loan September 2032 171.7 201.8
Pre-IFRS 16 lease liabilities 5.0 2.3
Less Available Cash(19,21) (189.7) (79.3)
Add upfront Ageas(18) partnership proceeds 60.0 -
Net Debt(19) 499.5 592.8
Net Debt(19) includes an add back of the £60.0m of upfront Ageas(18)
partnership proceeds due to a restriction within the Group's facilities with
HPS Funds(22), where the proceeds from the Ageas(18) partnership cannot be
recognised within Net Debt(19) until the working capital unwind associated
with moving motor and home to the partnership model has fully occurred.
Financial covenant compliance
The Group's Leverage Ratio(19), at 31 January 2026, was 3.7x (31 January 2025:
4.4x(23)), within the 8.0x covenant under the corporate facilities at 31
January 2026.
£m 31 January 31 January 2025
2026
Net Debt(19) 499.5 592.8(23)
Consolidated Pro Forma EBITDA(19) 133.3 134.6
Leverage Ratio(19) 3.7x 4.4x(23)
The Group also has financial covenants associated with its Ocean Cruise ship
debt facilities, being a debt service cover ratio and an interest cover ratio.
The debt service cover ratio, at 31 January 2026, was 1.9x (31 January 2025:
1.4x), in excess of the 1.2x covenant (31 January 2025: 1.0x) under the Ocean
Cruise ship debt facilities at the same date. The interest cover ratio, at 31
January 2026, was 12.2x (31 January 2025: 7.9x), in excess of the 2.0x
covenant under the ship debt facilities at the same date.
£m 31 January 31 January 2025
2026
ST&H Group consolidated pro forma Trading EBITDA(19) 126.8 103.9
ST&H Group consolidated debt service 66.0 75.3
Debt service cover ratio 1.9x 1.4x
£m 31 January 31 January 2025
2026
ST&H Group consolidated pro forma Trading EBITDA(19) 126.8 103.9
ST&H Group consolidated total net cash interest expenses 10.4 13.1
Interest cover ratio 12.2x 7.9x
Change to facilities
At the start of the financial year, the Group repaid in full its £250.0m
corporate bond and the £75.0m drawings under the £85.0m loan facility
provided by Roger De Haan, which was also cancelled at the same time, and
cancelled the existing £50.0m RCF. These repayments were funded using the new
£335.0m term loan secured from HPS Funds(22).
Since issuing its interim results, the Group extended its RCF for an
additional year, extending the contractual maturity to January 2029. There
have been no other changes to the facility and the RCF remains available to
support working capital and general corporate purposes and remained undrawn at
31 January 2026.
The Group also made scheduled repayments on its Ocean Cruise ship debt
facilities in March 2025 and September 2025 for Spirit of Adventure and in
June 2025 and December 2025 for Spirit of Discovery, totalling £30.1m and
£25.5m respectively.
Pensions
The Group's defined benefit pension scheme liability, as measured on an
International Accounting Standard 19R basis, decreased by £14.4m to a £25.4m
liability at 31 January 2026 (31 January 2025: £39.8m).
31 January 31 January 2025
£m 2026
Fair value of scheme assets 204.1 200.1
Present value of defined benefit obligation (229.5) (239.9)
Defined benefit pension scheme liability (25.4) (39.8)
The movements observed in the scheme's assets and obligations were impacted by
macroeconomic factors during the year, where actual inflation levels reduced
compared with recent years, high-quality long-term corporate bond yields
remained volatile and there continues to be rising cost of living pressures.
The present value of defined benefit obligations decreased by £10.4m to
£229.5m, primarily as a result of increases in bond yields over the year. The
fair value of scheme assets increased by £4.0m, to £204.1m, largely driven
by the recovery plan and Section 75 contributions.
Net assets
Since 31 January 2025, total assets decreased by £312.7m and total
liabilities decreased by £324.7m, resulting in an overall increase in net
assets of £12.0m.
The reduction in total assets is primarily due to:
· a decrease in property, plant and equipment of £14.5m;
· a decrease in assets held for sale of £425.9m following the sale
of the Insurance Underwriting business in the current year; and
· an increase in cash and short-term deposits of £127.8m, mainly
as a result of the strong trading performance of the Group in the current
year, along with the proceeds received in respect of the sale of the Insurance
Underwriting business and the Ageas(18) partnership.
The decrease in total liabilities largely reflects:
· a decrease in liabilities held for sale of £346.9m following the
sale of the Insurance Underwriting business in the current year;
· a decrease of £38.7m in financial liabilities, which is mainly
due to a reduction of £54.3m in bonds, bank loans and other loans, as a
result of the repayment of £55.6m of capital repayments on Spirit of
Discovery and Spirit of Adventure facilities. This has been partially offset
by an increase of £12.3m in lease liabilities following delivery of the River
Cruise ship, Spirit of the Moselle, in the first half of the current year;
· a decrease of £14.4m in the retirement benefit scheme liability;
and
· an increase of £75.4m in contract liabilities due to the receipt
of £60.0m of upfront partnership proceeds from Ageas(18) and improved future
bookings outlook in Travel.
(18) Wholly owned UK subsidiaries of Ageas SA/NV
(19) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(20) Maturity date represents the date the principal must be repaid, other
than the Ocean Cruise ship loans, which are repaid in instalments
(21) Refer to Note 12 of the financial statements for information as to how
this reconciled to a statutory measure of cash
(22) Certain funds, entities (or affiliates or subsidiaries of such funds or
entities) and/or accounts managed, advised or controlled by HPS Investment
Partners, LLC or its subsidiaries
(23) Following the Group's refinancing and revised covenant definition, Net
Debt and Leverage Ratio have been updated for 31 January 2025
Going concern
The Directors have assessed the Group's ability to continue as a going concern
over the period to 30 April 2027, being at least 12 months from the date of
issue of these unaudited preliminary results. This assessment considered the
Group's current liquidity position, financial forecasts, debt facilities,
covenant compliance and principal risks. The review included both the
Board‑approved base case and a severe but plausible stressed scenario.
Under the base case, the Group maintains Available Cash(24) in excess of
internal minimum liquidity requirements throughout the assessment period. No
drawdown of the Group's £33.4m RCF or £116.6m DDTL facility is required, and
the Group remains in compliance with all financial covenants linked to its
debt facilities.
The stressed scenario models multiple downside risks occurring concurrently
across the assessment period. These include lower trading performance across
Ocean Cruise, River Cruise and Holidays, reflecting a reduction in load
factors for Ocean Cruise from 93% for the year ended 31 January 2026 to 88%
over the assessment period, a 1-2% reduction in per diems in River Cruise and
softer customer volumes in our Holidays business; lower‑than‑planned
benefit realisation and increased operating pressures within Insurance
Broking; and a competitive savings market combined with weaker demand for our
other products in the Money division.
The scenario additionally incorporates a cyber‑related operational
disruption affecting both Cruise and Insurance, as well as certain adverse
non‑trading cash impacts, including higher ABTA bonding requirements.
Together, these stresses reduce profitability and cash generation relative to
the base case.
In forming their conclusion, the Directors considered the Group's exposure to
the crisis in the Middle East and the increased volatility in global energy
markets. Saga is 100% hedged against foreign exchange risk for both 2026/27
and 2027/28 and is 100% and 75% hedged for commodity risk, respectively.
However, the Group remains directly exposed to risks associated with supply
constraints for marine fuel in its Cruise operations and, indirectly, to jet
fuel through the Holidays business unit's partnerships with airlines.
Additional reverse stress testing indicates that, in 2026/27, Saga could
withstand a reduction in planned EBITDA of more than 50% before breaching its
leverage covenant and losing access to currently undrawn debt facilities.
The Directors also considered additional downside risks not explicitly
modelled, including regulatory, operational and economic uncertainties. These
were assessed as either remote within the going concern period or mitigated
through existing controls and contingency planning.
Having reviewed the forecasts, stress testing and associated risk analysis,
the Directors are satisfied that the Group can expect to remain in compliance
with its debt covenants and retain access to currently undrawn facilities even
under the stressed scenario. Noting that it is not possible to accurately
predict all possible future risks to the Group's trading, based on this
analysis and the scenarios modelled, they have concluded that the Group has
adequate resources to continue in operational existence for the foreseeable
future and that there are no material uncertainties that may cast significant
doubt on the Group's ability to continue as a going concern. Accordingly,
these unaudited preliminary results to 31 January 2026 have been prepared on a
going concern basis.
(24) Refer to the Alternative Performance Measures Glossary for definition and
explanation
Dividends and financial priorities for 2026/27
Dividends
Given the Group's priority of reducing Net Debt(25), the Board of Directors
does not recommend payment of a final dividend for the 2025/26 financial year,
nor would this currently be permissible under financing arrangements and while
the ship debt facility deferred amounts are outstanding.
Financial priorities for 2026/27
The Group's financial priorities for the current financial year are to reduce
Net Debt(25) via capital-light growth, continue to build on the momentum in
our Travel businesses and Insurance Broking ahead of the full transition to
the partnership with Ageas(26).
Mark Watkins
Group Chief Financial Officer
14 April 2026
(25) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(26) Wholly owned UK subsidiaries of Ageas SA/NV
Principal risks and uncertainties
The principal risks and uncertainties (PRUs) shown below are the principal
risks facing the Group, including those that would threaten its business
model, future performance, solvency, or liquidity. The table also includes the
mitigating actions being taken to manage these risks. The trend denotes the
anticipated future direction of each risk after mitigation, which is
influenced by known key external or internal factors. Saga takes a 'bottom-up'
and 'top-down' approach to developing and reviewing its PRUs, which occurs at
least twice a year with oversight from the Operating Board and the plc Board.
Each PRU has been aligned to the most relevant strategic priorities.
Key to growth plan elements
1. Maximising the growth of our existing businesses
2. Driving incremental growth through new business line and products
3. Growing our customer base and deepening those relationships
4. Reducing debt, while simplifying our operations
Risk Risk trend Risk category Link to strategy Mitigation
Demand and competitiveness Stable Operational and Insurance 1 Our businesses use deep customer insight and market testing to support
decision making, tailoring products for our customers and setting pricing
Demand for our products and our ability to deliver those products relative to demand and wider market dynamics.
competitively to our target market is fundamental to our business. Failure to
drive and maintain demand would represent a risk to performance and, in the
long-term, business viability.
Delivery and execution Stable Operational 1, 2 and 3 Coherent change planning and prioritisation is at the core of our planning and
can be evidenced in the successful delivery of change to date. Robust change
Our business is undergoing a transformation that is expected to simplify our governance ensures achievement of significant strategic change initiatives.
business, grow our customers and reduce our debt. As with any change, there is
a risk that failure to successfully implement this change impacts our ability
to deliver the transformation and impacts future performance.
Supply chain and partner risk Stable Operational 1, 2 and 3 A robust supplier risk management framework is in place to ensure third-party
partners are appropriately selected and monitored, including their operational
Saga relies on multiple suppliers and partners to conduct business. There is a and financial resilience.
risk of customer impact, business interruption, financial loss and
reputational damage arising from the performance or potential failure of such
parties.
Regulatory and legislative action Stable Operational 1 Robust controls, governance and reporting are in place to ensure regulatory
and legislative compliance and good customer experiences and outcomes are
Saga operates in regulated markets and is subject to regular reporting and achieved.
scrutiny. Failure to comply with regulations and legislation, including GDPR,
could result in regulatory sanction, remediation, penalties or loss of
customer confidence.
Cyber Stable Operational 1 We have a dedicated Information Security Team, with robust systems and
controls. A proactive vulnerability management programme is in place,
The ever-evolving external threat environment means that, like most including controls to actively detect and respond to incidents, industry
businesses, Saga is exposed to the risk of potential cyber security breaches. benchmarking and external penetration testing to maintain security posture.
The result of a material breach could result in system lockdowns, ransom
demands and/or compromise of substantial data, leading to business disruption,
customer/colleague compensation and regulatory sanctions.
Concentration risk and exposure to Travel market disruption Worsening Operational 1 As a portfolio group, we have a natural level of diversification in comparison
to other businesses, with the Travel business also being diversified across
While a portfolio business, the majority of our profits for the next few years Ocean Cruise, River Cruise and Holidays. In addition, our diversification
will be driven by the profitability of our Travel businesses, which could be strategy is to grow our businesses, products and services in line with our
impacted by significant travel disruption. partnership model.
Liquidity risk Stable Financial 2 and 4 Robust financial controls and reporting is in place to assess liquidity and
support early identification of potential risks to Group liquidity from
The Group relies on several sources of funding for its long-term liquidity and business performance or interruption. We maintain access to sufficient undrawn
is also reliant on shorter-term trade financing, e.g. Association of British facilities that can support liquidity to the extent that trade finance is
Travel Agents bonding and merchant acquiring to support its working capital removed.
needs. As such, Saga is exposed to the risks associated with repaying or
refinancing this funding as it reaches maturity.
Fraud and financial crime Stable Operational 1 Financial crime framework and robust controls in place, which are rigorously
monitored and reported on.
There is a risk that failures of processes, systems or people result in a
reduced ability to prevent or detect fraud and financial crime risk. This
could result in increased financial losses, regulatory censure and
reputational damage.
Culture and talent Stable Operational 1, 2 and 4 Competitive employment packages with continued investment in pay, wellbeing
and talent management to attract, develop and retain capability in key roles,
Having the right culture, people and skills is fundamental to the success of develop future leaders and drive internal career progression.
our business. Failure to embed our culture or attract, develop and retain our
talent would represent a risk to the delivery of our strategy.
Environmental, Social and Governance (ESG) Stable Strategic and operational 1 and 3 Defined strategy and metrics, with appropriate governance, monitoring and
reporting in place to ensure we meet regulatory disclosures and maintain
There is a risk that Saga does not maintain compliance with increasing current ratings.
ESG-related regulation or fails to deliver on its stated ESG strategy in line
with stakeholder expectations, due to a lack of resource and/or business
engagement, causing reputational, customer and financial impacts.
Consolidated income statement
for the year ended 31 January 2026
2026 2025
(unaudited)
Note £m £m
Continuing operations
Revenue 3 660.0 588.3
Cost of sales 3 (341.1) (308.8)
Gross profit 318.9 279.5
Administrative and selling expenses (252.9) (231.8)
Increase in credit loss allowance (0.9) (1.8)
Impairment of non-financial assets (0.5) (162.8)
Gain on lease modification - 0.2
Net profit on disposal of property, plant and equipment and software - 0.9
Investment income 6.1 6.1
Finance costs (68.6) (50.5)
Profit/(loss) before tax from continuing operations 2.1 (160.2)
Income tax credit/(expense) 4 2.0 (18.5)
Profit/(loss) from continuing operations 4.1 (178.7)
(Loss)/profit from discontinued operations, net of tax(1) 18a (0.5) 13.8
Profit/(loss) for the year 3.6 (164.9)
Attributable to:
Equity holders of the parent 3.6 (164.9)
Earnings/(loss) per share:
Basic 6 2.5p (117.4p)
Diluted 6 2.4p (117.4p)
Earnings/(loss) per share from continuing operations:
Basic 6 2.9p (127.2p)
Diluted 6 2.8p (127.2p)
(1) The results of discontinued operations, comprising the post-tax profit,
are shown as a single amount on the face of the income statement. An analysis
of this amount is presented in Note 18a
Consolidated statement of comprehensive income
for the year ended 31 January 2026
Note 2026 2025
(unaudited)
£m £m
Proft/(loss) for the year 3.6 (164.9)
Other comprehensive income
Other comprehensive income that may be reclassified to the income statement in
subsequent periods from continuing operations
Net (losses)/gains on hedging instruments during the year 11 (4.5) 6.0
Recycling of previous losses/(gains) to income statement on matured hedges 11 1.6 (3.3)
Total net (losses)/gains on cash flow hedges (2.9) 2.7
Associated tax effect - (0.3)
Total other comprehensive (losses)/gains with recycling to income statement (2.9) 2.4
from continuing operations
Other comprehensive income that will not be reclassified to the income
statement in subsequent periods from continuing operations
Remeasurement gains on defined benefit plan 7.5 4.6
Associated tax effect - (12.0)
Total other comprehensive gains/(losses) without recycling to income statement 7.5 (7.4)
from continuing operations
Total other comprehensive income/(losses) from continuing operations 4.6 (5.0)
Total comprehensive income/(losses) for the year 8.2 (169.9)
Attribute to:
Equity holders of the parent 8.2 (169.9)
Arising from:
Continuing operations 8.7 (183.7)
Discontinued operations (0.5) 13.8
8.2 (169.9)
Consolidated statement of financial position
for the year ended 31 January 2026
2026 2025
(unaudited)
Note £m £m
Assets
Goodwill 7 206.4 206.4
Intangible assets 8 33.0 34.3
Property, plant and equipment 9 568.3 582.8
Right-of-use assets 10 35.1 24.9
Financial assets 11 1.1 12.6
Current tax assets - 0.4
Inventories 8.4 8.3
Trade and other receivables 143.3 143.7
Trust and escrow accounts 12.0 8.8
Cash and short-term deposits 12 257.0 129.2
Assets held for sale 18 11.0 436.9
Total assets 1,275.6 1,588.3
Liabilities
Retirement benefit scheme liability 13 25.4 39.8
Provisions 23.6 21.7
Financial liabilities 11 651.4 690.1
Contract liabilities 252.2 176.8
Trade and other payables 253.3 255.3
Liabilities directly associated with assets held for sale - 346.9
Total liabilities 1,205.9 1,530.6
Equity
Issued capital 16 21.7 21.5
Share premium 648.3 648.3
Own shares held reserve (1.6) (1.4)
Retained deficit (604.7) (620.2)
Share-based payment reserve 9.4 10.0
Hedging reserve (2.2) (0.5)
Cost of hedging reserve (1.2) -
Total equity 69.7 57.7
Total equity and liabilities 1,275.6 1,588.3
Consolidated statement of changes in equity
for the year ended 31 January 2026
Attributable to the equity holders of the parent (unaudited)
Issued capital Share premium Own shares held reserve Retained (deficit)/ Share-based payment reserve Hedging reserve Cost of hedging reserve Total equity
earnings
£m £m £m £m £m £m £m £m
At 1 February 2025 21.5 648.3 (1.4) (620.2) 10.0 (0.5) - 57.7
Profit for the year from continuing operations - - - 4.1 - - - 4.1
Loss for the year from discontinued operations - - - (0.5) - - - (0.5)
Profit for the year - - - 3.6 - - - 3.6
Other comprehensive gains/(losses) excluding recycling from continuing - - - 7.5 - (4.5) - 3.0
operations
Recycling of previous losses to the income statement from continuing - - - - - 1.6 - 1.6
operations
Total comprehensive income/(losses) - - - 11.1 - (2.9) - 8.2
Issue of share capital (Note 16) 0.2 - (0.2) - - - - -
Transfer between reserves - - - - - 1.2 (1.2) -
Share-based payment charge - - - - 3.9 - - 3.9
Transfer upon vesting of share options - - - 4.4 (4.5) - - (0.1)
At 31 January 2026 21.7 648.3 (1.6) (604.7) 9.4 (2.2) (1.2) 69.7
Attributable to the equity holders of the parent
Issued capital Share premium Own shares held reserve Retained (deficit)/ Share-based payment reserve Hedging reserve Cost of hedging reserve Total equity
earnings
£m £m £m £m £m £m £m £m
At 1 February 2024 21.3 648.3 (1.2) (452.5) 10.5 (2.9) - 223.5
Loss for the year from continuing operations - - - (178.7) - - - (178.7)
Profit for the year from discontinued operations - - - 13.8 - - - 13.8
Loss for the year - - - (164.9) - - - (164.9)
Other comprehensive (losses)/gains excluding recycling from continuing - - - (7.4) - 5.2 - (2.2)
operations
Recycling of previous gains to the income statement from continuing operations - - - - - (2.8) - (2.8)
Total comprehensive (losses)/income - - - (172.3) - 2.4 - (169.9)
Issue of share capital (Note 16) 0.2 - (0.2) - - - - -
Share-based payment charge (Note 17) - - - - 4.2 - - 4.2
Transfer upon vesting of share options - - - 4.6 (4.7) - - (0.1)
At 31 January 2025 21.5 648.3 (1.4) (620.2) 10.0 (0.5) - 57.7
Consolidated statement of cash flows
for the year ended 31 January 2026
2026 2025
(unaudited)
Note £m £m
Profit/(loss) before tax from continuing operations 2.1 (160.2)
Profit before tax from discontinued operations 18a 2.4 19.1
Profit/(loss) before tax 4.5 (141.1)
Depreciation, impairment and profit on disposal, of property, plant and 31.7 29.8
equipment and right-of-use assets
Amortisation and impairment of intangible assets and goodwill 7.1 176.8
Loss on disposal of assets held for sale 18a 10.2 -
Impairment of assets held for sale 18b - 0.4
Gain on lease modification - (0.2)
Share-based payment transactions 3.9 4.2
Net finance expense from insurance contracts 14 5.3 15.5
Net finance income from reinsurance contracts 14 (2.2) (7.3)
Finance costs 68.6 50.5
Interest income from investments (10.8) (17.3)
(Increase)/decrease in trust and escrow accounts (3.2) 29.1
Movements in other assets and liabilities 38.4 (1.2)
153.5 139.2
Investment income interest received 13.0 12.1
Interest paid (49.9) (41.7)
Income tax received 0.4 3.6
Net cash flows from operating activities 117.0 113.2
Investing activities
Proceeds from sale of property, plant and equipment and 1.0 0.9
right-of-use assets
Purchase of, and payments for the construction of, property, plant and (16.1) (20.1)
equipment, and intangible assets
Disposal of financial assets 36.8 45.5
Purchase of financial assets - (11.5)
Disposal of subsidiary 18a 68.8 -
Cash and cash equivalents disposed of with subsidiary 18a (84.4) -
Net cash flows from investing activities 6.1 14.8
Financing activities
Payment of principle portion of lease liabilities (6.3) (7.3)
Proceeds from new borrowings 15 335.0 95.0
Repayment of borrowings 15 (380.6) (232.2)
Debt issue costs 15 (17.6) -
Net cash flows used in financing activities (69.5) (144.5)
Net increase/(decrease) in cash and cash equivalents 53.6 (16.5)
Cash and cash equivalents at the start of the year 203.1 219.6
Cash and cash equivalents at the end of the year 13 256.7 203.1
Included in the above are cash flows from discontinued operations. An
analysis of these can be found in Note 18a.
Notes to the consolidated financial statements
1 Corporate information
Saga plc (the Company) is a public limited company incorporated and domiciled
in the United Kingdom under the Companies Act 2006 (registration number
08804263). The Company is registered in England and its registered office is
located at 3 Pancras Square, London N1C 4AG.
Saga offers a wide range of products and services to its customer base, which
include package and cruise holidays, general insurance products, personal
finance products and a range of media content, including a monthly
subscription magazine.
The consolidated financial statements of Saga plc and the entities controlled
by the Company (its subsidiaries, collectively the Group) for the year ended
31 January 2026 will be approved by the Board of Directors and reported on by
the auditors, KPMG LLP (KPMG), in April 2026. Accordingly, the financial
information for the year ended 31 January 2026 is presented unaudited in this
preliminary announcement.
2.1 Basis of preparation
The results in this preliminary announcement have been taken from the Group's
2026 unaudited Annual Report and Accounts. The unaudited consolidated
financial statements of the Group have been prepared in accordance with
UK-adopted international accounting standards.
The basis of preparation, basis of consolidation and summary of material
accounting policies applicable to the Group's consolidated financial
statements will be published in the Notes to the consolidated financial
statements in the 2026 Annual Report and Accounts.
The unaudited consolidated financial statements have been prepared on a going
concern basis and on a historical cost basis, except as otherwise stated. The
Group has reviewed the appropriateness of the going concern basis in preparing
the unaudited financial statements, details of which are included below. Based
on those assumptions, the Directors have concluded that it remains appropriate
to adopt the going concern basis in preparing the financial statements.
The preliminary announcement for the year ended 31 January 2026 does not
constitute the Company's consolidated statutory accounts for the years ended
31 January 2026 or 31 January 2025.
The financial information for the year ended 31 January 2025 is derived from
the consolidated statutory accounts for the year ended 31 January 2025 which
have been delivered to the registrar of companies. KPMG reported on the
consolidated financial statements for the full year ended 31 January 2025;
their report was: (i) unqualified, (ii) did not include a reference to any
matters to which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under Section
498(2) or Section 498(3) of the Companies Act 2006. The consolidated statutory
accounts for 31 January 2026 will be finalised on the basis of the financial
information presented by the Directors in this preliminary announcement and
will be delivered to the registrar of companies in due course.
a) Going concern
The Directors have assessed the Group's ability to continue as a going concern
over the period to 30 April 2027, being at least 12 months from the date of
issue of these unaudited preliminary results. This assessment considered the
Group's current liquidity position, financial forecasts, debt facilities,
covenant compliance and principal risks. The review included both the
Board‑approved base case and a severe but plausible stressed scenario.
Under the base case, the Group maintains Available Cash(2) in excess of
internal minimum liquidity requirements throughout the assessment period. No
drawdown of the Group's £33.4m Revolving Credit Facility (RCF) or £116.6m
delayed‑draw term loan (DDTL) facility is required, and the Group remains in
compliance with all financial covenants linked to its debt facilities.
The stressed scenario models multiple downside risks occurring concurrently
across the assessment period. These include lower trading performance across
Ocean Cruise, River Cruise and Holidays, reflecting a reduction in load
factors for Ocean Cruise from 93% for the year ended 31 January 2026 to 88%
over the assessment period, a 1-2% reduction in per diems in River Cruise and
softer customer volumes in our Holidays business; lower‑than‑planned
benefit realisation and increased operating pressures within Insurance
Broking; and a competitive savings market combined with weaker demand for our
other products in the Money division.
The scenario additionally incorporates a cyber‑related operational
disruption affecting both Cruise and Insurance, as well as certain adverse
non‑trading cash impacts, including higher Association of British Travel
Agents bonding requirements. Together, these stresses reduce profitability and
cash generation relative to the base case.
In forming their conclusion, the Directors considered the Group's exposure to
the crisis in the Middle East and the increased volatility in global energy
markets. Saga is 100% hedged against foreign exchange risk for both 2026/27
and 2027/28 and is 100% and 75% hedged for commodity risk respectively.
However, the Group remains directly exposed to risks associated with supply
constraints for marine fuel in its Cruise operations and, indirectly, to jet
fuel through the Holidays business unit's partnerships with airlines.
Additional reverse stress testing indicates that, in 2026/27, Saga could
withstand a reduction in planned EBITDA of more than 50% before breaching its
leverage covenant and losing access to currently undrawn debt facilities.
The Directors also considered additional downside risks not explicitly
modelled, including regulatory, operational and economic uncertainties. These
were assessed as either remote within the going concern period or mitigated
through existing controls and contingency planning.
Having reviewed the forecasts, stress testing and associated risk analysis,
the Directors are satisfied that the Group can expect to remain in compliance
with its debt covenants and retain access to currently undrawn facilities even
under the stressed scenario. Noting that it is not possible to accurately
predict all possible future risks to the Group's trading, based on this
analysis and the scenarios modelled, they have concluded that the Group has
adequate resources to continue in operational existence for the foreseeable
future and that there are no material uncertainties that may cast significant
doubt on the Group's ability to continue as a going concern. Accordingly,
these unaudited preliminary results to 31 January 2026 have been prepared on a
going concern basis.
(2) Refer to the Alternative Performance Measures Glossary for definition and
explanation
2.2 Summary of material accounting policies
There have been no significant changes to the accounting policies of the Group
during the year ended 31 January 2026. Full details of the accounting policies
of the Group will be published in the Annual Report and Accounts for the year
ended 31 January 2026 available at www.corporate.saga.co.uk
(http://www.corporate.saga.co.uk) .
2.3 Standards issued but not yet effective
The following is a list of standards, and amendments to standards, that were
in issue but not effective, or adopted, at 31 January 2026.
a) International Financial Reporting Standard (IFRS) 18 'Presentation
and Disclosures in Financial Statements'
IFRS 18 includes requirements for all entities applying IFRS for the
presentation and disclosure of information in financial statements. IFRS 18
will replace International Accounting Standard (IAS) 1 'Presentation of
Financial Statements'. IFRS 18 introduces three defined categories for income
and expenses: operating, investing and financing. This is to improve the
structure of the income statement, and requires all companies to provide new
defined subtotals, including operating profit. The standard is effective for
annual reporting periods beginning on, or after, 1 January 2027. The impact of
this standard on the Group's financial statements is still being assessed. The
standard has been endorsed by the UK Endorsement Board.
b) Amendments to IFRS 9 and IFRS 7 regarding the classification and
measurement of financial instruments
The amendments address matters identified during the post-implementation
review of the classification and measurement requirements of IFRS 9 'Financial
Instruments'. The amendments are effective for annual reporting periods
beginning on, or after, 1 January 2026 and have been endorsed by the UK
Endorsement Board.
The amendments clarify that assets and liabilities should be derecognised on
the settlement date rather than the date a payment instruction is initiated.
The resulting restatement of cash balances at 31 January 2026 is expected to
reduce cash and short-term deposits by approximately £15.4m, and overdrafts
by £0.3m; and to increase trade receivables by £10.3m and reduce contract
liabilities by £4.8m.
c) Annual improvements to IFRS - Volume 11
The amendments include clarifications, simplifications, corrections and
changes aimed at improving the consistency of several IFRS. The amendments are
effective for annual periods beginning on or after 1 January 2026, with
earlier application permitted. The amendments are not expected to have a
material impact on the Group's financial statements. These improvements have
been endorsed by the UK Endorsement Board.
2.4 First-time adoption of new standards and amendments
The following is a list of standards, and amendments to standards, that became
effective, or were adopted, for the first time during the year ended 31
January 2026.
a) Lack of exchangeability (amendments to IAS 21 'The Effects of
Changes in Foreign Exchange Rates')
The amendments contain guidance to specify when a currency is exchangeable and
how to determine the exchange rate when it is not. The amendments are
effective for annual reporting periods beginning on, or after, 1 January 2025.
The amendments had no effect on the Group's financial statements.
2.5 Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires the Group to select
accounting policies and make estimates and assumptions that affect items
reported in the primary consolidated financial statements and Notes to the
consolidated financial statements.
The major areas of judgement used as part of accounting policy application are
summarised below:
Accounting policy references below are to the Notes to the Annual Report and
Accounts for the year ended 31 January 2026.
a) Significant judgements
Acc. policy Items involving judgement Critical accounting judgement
2.3a Revenue recognition - identification of performance obligations arising from Management exercised judgement in identifying separate performance obligations
insurance policies brokered by the Group arising from insurance policies brokered by the Group, namely:
· where the insurance contract was also underwritten by the
Group, the judgement that the arrangement of the insurance policy was a
service (performance obligation) that was distinct from the insurance
underwriting service. The revenue allocated to the arrangement performance
obligation is recognised earlier than the revenue that is allocated to the
insurance underwriting service (relates to discontinued operations); and
· the judgement that the option to fix the customer's premium at
renewal for insurance policies bundled with the three-year fixed-price promise
is a separate performance obligation to the arrangement of the related
insurance policy. This results in the deferral of a portion of revenue from
policy years one and two to policy years two and three.
Please refer to Note 2.3a for further information on the Group's approach to
revenue recognition for each performance obligation.
2.3r Classification of the Group's risk transfer arrangements as reinsurance This judgement was made by applying the principles of IFRS 17.
contracts
The Group's excess of loss and funds-withheld quota share reinsurance
arrangements, relating to its motor underwriting line of business, were deemed
to transfer significant insurance risk to the reinsurers. They were,
therefore, classified as reinsurance contracts under IFRS 17.
2.3j Disposal groups and discontinued operations To be classified as held for sale, an asset must be available for immediate
sale in its present condition, subject only to terms that are usual and
customary for the sale of such assets, and the sale must be highly probable. A
sale is considered to be highly probable when management is committed to a
plan to sell an asset, an active programme to locate a buyer and complete the
plan has been initiated, at a price that is reasonable in relation to its
current fair value, and there is an expectation that the sale will be
completed within one year from the date of classification.
On 16 December 2024, subsidiaries of the Group entered into a share purchase
agreement with Ageas (UK) Limited (Ageas UK) under which the Group agreed to
sell to Ageas UK, and Ageas UK agreed to purchase, the entire issued share
capital of Acromas Insurance Company Limited (AICL). At 31 January 2025,
management exercised judgement in determining that the criteria for
classification of the AICL disposal group as held for sale and as a
discontinued operation had been met.
2.3h Impairment testing of goodwill and other major classes of assets Goodwill
The Group determines whether goodwill needs to be impaired at least annually,
and twice-yearly if indicators of impairment exist at the interim reporting
date of 31 July.
As a result of the impact of the General Insurance Pricing Practices (GIPP)
market study, performed by Financial Conduct Authority (FCA), on trading in
recent years, and against the background of a highly competitive motor
insurance market, the Group saw a fall in policy volumes in the year to 31
January 2025. In the year to 31 January 2025, high net rate inflation from the
Group's underwriting panel continued to have an adverse impact on the expected
future profitability of the Insurance business. In December 2024, the Group
announced it had entered into a binding agreement with wholly owned
subsidiaries in the UK of Ageas SA/NV (Ageas), to establish a 20-year
partnership for motor and home insurance (the Affinity Partnership) which is
expected to impact future cash flows of the business. Management judged these
trading impacts to constitute indicators of impairment and, therefore,
conducted full impairment reviews of the Insurance Broking CGU at 31 July 2024
and 31 January 2025. As a result of these reviews, management considered it
necessary to impair the goodwill allocated to the Insurance Broking CGU by
£138.3m at 31 July 2024 and £nil at 31 January 2025.
At 31 July 2025, trading forecasts showed improved cash flows and policy
volumes from those previously modelled. In addition, the Group's pre-tax
discount rate previously used for the Insurance Broking CGU fell, acting to
increase the headroom in any assessment. Management considered other
indicators of possible impairment set out in IAS 36 'Impairment of Assets',
including the economic outlook and movements in Saga's market capitalisation.
No such indicators were identified. Based on the above, management did not
judge a formal goodwill impairment assessment was required at 31 July 2025.
At 31 January 2026 a full goodwill impairment assessment was conducted, as
required by IAS 36. The outlook and cash flows modelled for the Insurance
Broking business, combined with a decrease in the pre-tax discount rate, to
provide headroom against the carrying value of the goodwill balance. No
impairment was, therefore, considered necessary.
Property, plant and equipment
In the years ended 31 January 2025 and 31 January 2026, management exercised
its judgement in considering it unnecessary to conduct an impairment review of
the Group's two Ocean Cruise ships since no indicators of impairment were
identified.
In the year ended 31 January 2025, management exercised its judgement in
relation to the impairment of plant and equipment assets and performed an
impairment review of the recoverable amount of plant and equipment assets used
by the Group. As a result of this review, management deemed it necessary to
impair plant and equipment assets by £0.1m in the Central Costs division in
the year ended 31 January 2025. Please refer to Note 17a for further detail.
In the year ended 31 January 2026, management exercised its judgement in
relation to the impairment of plant and equipment used by the Group's
Insurance Broking, and mailing and printing businesses, following a review of
plant and equipment assets. As a result of this review, management deemed it
necessary to impair plant and equipment assets by £0.7m in those businesses.
Please refer to Note 17a for further detail.
Right-of-use assets
In the years to 31 January 2025 and 31 January 2026, management exercised its
judgement in considering it unnecessary to conduct an impairment review of
right-of-use River Cruise ship assets, since no indicators of impairment were
identified.
In the year ended 31 January 2026, management exercised its judgement in
relation to the impairment of right-of-use assets used by the Group's mailing
and printing business, following a review of plant and equipment assets. As a
result of this review, management deemed it necessary to impair plant and
equipment assets by £0.8m in that business. Please refer to Note 18a for
further detail.
Property assets held for sale
In the years to 31 January 2025 and 31 January 2026, in light of the Group
obtaining updated freehold property market valuation reports, management
exercised judgement in relation to the impairment of property assets held for
sale. As a consequence of the remeasurement of the properties to the lower of
fair value less cost to sell and the carrying value, management concluded that
a net impairment charge of £nil (2025: £0.4m) should be recognised
accordingly. Please refer to Note 38b for further detail.
Intangible assets
In the year ended 31 January 2025, following the Group's decision to divest
itself of the underwriting and claims handling sections of its Insurance
business (Note 38a), management exercised its judgement in relation to the
impairment of software assets and performed an impairment review
of the recoverable amount of software assets used by the Insurance Broking
division. As a result of this review, management deemed it necessary to impair
software assets by £21.3m in the Insurance Broking continuing operations
business and by £4.0m in relation to the intangible fixed assets held by the
disposal group (Note 38a). The latter impairment charge related to the
software assets of the claims handling section of the Insurance business,
which were impaired in full. Please refer to Note 16b for further detail.
In addition, management assessed the recoverable amount of software assets at
31 January 2025 and concluded that an impairment of £2.8m was required in the
Group's Central Costs division.
In the year ended 31 January 2026, management assessed the recoverable amount
of software assets and concluded that an impairment of £0.3m was required in
the Group's Insurance Broking division.
2.3r Insurance contract liabilities (and related reinsurance contract assets) Eligibility of reinsurance contracts for the premium allocation approach (PAA)
(discontinued operations)
Some of the Group's groups of reinsurance contracts had a coverage period of
more than 12 months, including the motor quota share arrangement, which had a
three-year coverage period. Management applied judgement in concluding that
these groups were eligible for the PAA on the basis that, at initial
recognition, it expected that the measurement of the asset for remaining
coverage under the PAA would not differ materially to that under the IFRS 17
general measurement model.
Liability for incurred claims
This judgement related to the estimation of future claims costs in relation to
areas of uncertainty. It was relevant to both components of the IFRS 17
liability for incurred claims:
· The estimate of the present value of future cash flows
· The risk adjustment
The approach to determining the risk adjustment within the liability for
incurred claims is a key area of judgement. Under IFRS 17, the risk adjustment
reflects the compensation required for bearing uncertainty about the amount
and timing of the cash flows that arise from non-financial risk.
The Group determined the risk adjustment at the level of each IFRS 17
portfolio of insurance contracts, the most material of which was the motor
portfolio, using a confidence level technique (also referred to as a Value at
Risk (VaR) approach). Following this approach, the total liability for
incurred claims (net of reinsurance) was set at the 85% confidence level
(ultimate basis), with the net risk adjustment being the difference between
this total net liability for incurred claims and the net estimate of the
present value of future cash flows. The gross risk adjustment was derived in a
similar way, with the reinsurance risk adjustment being the difference between
the gross and net risk adjustments. This approach, and in particular, the use
of the 85% confidence level, resulted in a risk adjustment that met the IFRS
17 requirements as a key judgement.
As the risk adjustment was determined at the level of each IFRS 17 portfolio,
the confidence level referred to above did not reflect diversification of risk
across these portfolios.
A further key area of judgement related to the discount rate that was applied
to the estimate of future cash flows. Under IFRS 17, the discount rate used
should reflect the liquidity characteristics of the insurance liabilities.
Assessing the liquidity characteristics of the liabilities requires
significant judgement. Management concluded that cash flows relating to the
liability for incurred claims were illiquid and, therefore, the discount rate
should include an illiquidity premium above the risk-free rate.
2.3u Restructuring provision Management exercised judgement in identifying which costs should be included
in the measurement of the restructuring provision. In addition, judgement is
required of the best estimate of those costs.
b) Significant estimates
All estimates are based on management's knowledge of current facts and
circumstances, assumptions based on that knowledge and predictions of future
events and actions. Actual results may, therefore, differ from those
estimates.
The table below sets out those items the Group considers to have a significant
risk of resulting in a material adjustment to the carrying amounts of assets
and liabilities, together with the relevant accounting policy.
Accounting policy references below are to the Notes to the Annual Report and
Accounts for the year ended 31 January 2026.
Acc. Policy Items involving estimation Sources of estimation uncertainty
2.3ai Revenue recognition - three-year fixed-price product The standalone selling price of the option to fix within the Group's
three-year fixed-price feature offered by the Insurance Broking division was
estimated using the expected cost plus a margin approach, as set out in
paragraph 79 (b) of IFRS 15.
An allowance was also made for the likelihood that the option will be
exercised by factoring in the expected rate of renewal at the first and second
renewal dates. The amount of revenue deferred upon initial recognition is,
therefore, reduced to the extent that it is estimated that customers will not
exercise the option because they either decide not to renew or they make a
claim that releases the Group from its obligation to fix the customer price.
2.3f and 2.3i Useful economic lives and residual values of software intangible assets and The useful economic lives and residual values of software assets classified as
Ocean Cruise ships intangible assets (Note 15) and Ocean Cruise ship assets classified as
property, plant and equipment (Note 17) are assessed upon the capitalisation
of each asset and, at each reporting date, are based upon the expected
consumption of future economic benefits of the asset. Estimated residual
values and useful lives are reviewed annually. Changes in the expected useful
life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation or
depreciation period or method, as appropriate, and are treated as changes in
accounting estimates. In relation to the annual review of estimated residual
values and useful lives of Ocean Cruise ships, potential environmental
regulatory changes are also considered.
2.3h Goodwill impairment testing The Group determines whether goodwill needs to be impaired on an annual basis,
or more frequently as required. This requires an estimation of the
value-in-use of the CGUs to which goodwill is allocated. The value-in-use
calculation requires the Group to estimate the future cash flows expected to
arise from the CGUs, discounted at a suitably risk-adjusted rate to calculate
present value.
The impact of changes to pricing rules set by the FCA following the completion
of the GIPP market study, particularly the highly competitive motor insurance
market and the adverse impact on profit before tax in the prior year, and the
transition to a partnership model of operation for the Insurance Broking
business, increased the estimation uncertainty in the Insurance Broking CGU.
The outcome of the impairment reviews conducted concluded that an impairment
charge of £138.3m be recognised against the Group's Insurance Broking CGU at
31 July 2024. No further impairment was required at 31 January 2025, 31 July
2025 or 31 January 2026.
Sensitivity analysis was undertaken to determine the effect of changing the
discount rate, the terminal value and future cash flows on the present value
calculation, as shown in Note 16a.
2.3r Valuation of insurance contract liabilities (and related reinsurance contract Estimates of future cash flows to fulfil liabilities for incurred claims
assets) (discontinued operations)
For insurance contracts, estimates had to be made for the expected cost of
claims known but not yet settled (case reserves) and for the expected cost of
IBNR claims, at the reporting date. It can take a significant period of time
before the ultimate claims cost can be established with certainty.
The ultimate cost of incurred claims was estimated by using a range of
standard actuarial claims projection techniques, such as the Chain-Ladder and
Bornhuetter-Ferguson methods. The main assumption underlying these techniques
was that past claims development experience can be used to project future
claims development and hence ultimate claims costs. As such, these methods
extrapolated the development of paid and incurred losses, average costs per
claim and claim volumes based on the observed development of earlier years.
Historical claims development was primarily analysed by accident year,
geographical area, significant business line and peril. Additional qualitative
judgement was used to assess the extent to which past trends may not have
applied in the future (e.g. to reflect one-off occurrences, changes in
external or market factors such as public attitudes to claiming, economic
conditions, levels of claims inflation, judicial decisions and legislation, as
well as internal factors such as portfolio mix, policy features and claims
handling procedures) in order to arrive at the best estimate of the ultimate
cost of claims.
The estimate of future cash flows arising from PPO liabilities required an
assumption for carer wage inflation. This assumption was set at 1.5% above the
discount rate applied to liabilities for incurred claims (see below).
Discount rate applied to liabilities for incurred claims
All the Group's liabilities for incurred claims (and related reinsurance
assets) were discounted.
The determination of the discount rate applied to liabilities for incurred
claims was an estimate. This discount rate reflected the current risk-free
interest rate in the currency of the insurance liabilities, being GBP, plus an
illiquidity premium. Such a discount rate was not observable and, therefore,
had to be estimated. The discount rate was estimated by removing from the
yield curve of a portfolio of GBP-denominated corporate bonds an estimate of
the components of that yield that related to expected and unexpected credit
losses. The portfolio of corporate bonds used reflected the debt securities
that the Group held to support its insurance liabilities.
Following this approach, the GBP discount rate curves that were applied to
liabilities for incurred claims were as follows:
1 year 3 years 5 years 10 years 20 years 30 years
31 January 2025 4.5% 4.4% 4.5% 4.9% 5.5% 5.6%
The sensitivity of this assumption is shown in Note 20(a)(iii).
Risk adjustment
The confidence level technique used by the Group to determine the risk
adjustment required estimation of the probability distribution of the present
value of future cash flows arising from liabilities for incurred claims,
including estimates of possible favourable and unfavourable outcomes. These
probability distributions were estimated both gross and net of reinsurance.
2.3t Valuation of pension benefit obligation The cost of defined benefit pension plans, and the present value of the
pension obligation, are determined using actuarial valuations. Actuarial
valuations involve making assumptions about discount rates, expected rates of
return on assets, future salary increases, mortality rates and future pension
increases. Due to the complexity of the valuation, the underlying assumptions
and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting
date.
All significant assumptions and estimates involved in arriving at the
valuation of the pension scheme obligation are set out in Note 27.
2.3u Valuation of restructuring provision The Group recognises a restructuring provision when a detailed plan identifies
the business, or part of the business concerned, together with the location
and number of employees affected. This requires detailed estimation of the
associated costs, the timeline of the restructuring programme and the
employees affected.
The sensitivity of this assumption is shown in Note 20(a)(iii).
Risk adjustment
The confidence level technique used by the Group to determine the risk
adjustment required estimation of the probability distribution of the present
value of future cash flows arising from liabilities for incurred claims,
including estimates of possible favourable and unfavourable outcomes. These
probability distributions were estimated both gross and net of reinsurance.
2.3t
Valuation of pension benefit obligation
The cost of defined benefit pension plans, and the present value of the
pension obligation, are determined using actuarial valuations. Actuarial
valuations involve making assumptions about discount rates, expected rates of
return on assets, future salary increases, mortality rates and future pension
increases. Due to the complexity of the valuation, the underlying assumptions
and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting
date.
All significant assumptions and estimates involved in arriving at the
valuation of the pension scheme obligation are set out in Note 27.
2.3u
Valuation of restructuring provision
The Group recognises a restructuring provision when a detailed plan identifies
the business, or part of the business concerned, together with the location
and number of employees affected. This requires detailed estimation of the
associated costs, the timeline of the restructuring programme and the
employees affected.
3 Segmental information
For management purposes, the Group is organised into business units based on
their products and services. The Group has three reportable operating segments
as follows:
· Travel: comprises the operation and delivery of Ocean and River Cruise
holidays (Cruise), as well as package tour and other holiday products
(Holidays). The Group owns and operates two Ocean Cruise ships. All other
holiday and River Cruise products are packaged together with third-party
supplied accommodation, flights and other transport arrangements. The segment
is analysed into three product sub-segments:
o Ocean Cruise
o River Cruise
o Holidays
· Insurance: comprises the provision of general insurance products.
Insurance Broking segment revenue is derived primarily from insurance broking
and commission receivable in connection with the sale or renewal of insurance
policies.
The results of the Group's underwriting and claims handling businesses have
been classified as discontinued operations following the disposal of the
Group's Insurance Underwriting business and are no longer shown in the tables
below (see Note 18a for further details).
· Other Businesses and Central Costs: comprises the Group's other
businesses and its central cost base. The other businesses primarily include
Saga Money (the personal finance product offering), Saga Publishing, and the
Group's mailing and printing business, CustomerKNECT.
Segment performance is evaluated using the Group's key performance measure of
Underlying Profit Before Tax(3). Items not included within a specific segment
relate to transactions that do not form part of the ongoing segment
performance or are managed at a Group level.
All revenue is generated solely in the UK.
Transfer prices between operating segments are set on an arm's-length basis,
in a manner similar to transactions with third parties. Segment income,
expenses and results include transfers between business segments that are then
eliminated on consolidation.
Goodwill, bonds, the term loan and the loan facility provided by Roger De Haan
are not included within segments as they are managed on a Group basis.
2026 (unaudited) Travel
Ocean Cruise River Cruise £m Holidays £m Total £m Insurance Broking Other Adjustments Total
£m £m Businesses
£m
£m
and Central
Costs
£m
Continuing operations
Revenue 264.0 53.1 184.0 501.1 139.9 24.8 (5.8) 660.0
Cost of sales (152.0) (36.4) (138.1) (326.5) (1.7) (13.1) 0.2 (341.1)
Gross profit/(loss) 112.0 16.7 45.9 174.6 138.2 11.7 (5.6) 318.9
Administrative and selling expenses (31.5) (11.1) (36.3) (78.9) (128.0) (52.2) 5.3 (253.8)
Impairment of non-financial assets (0.1) - - (0.1) (0.4) - - (0.5)
Investment income - 0.5 1.5 2.0 1.0 13.1 (10.0) 6.1
Finance costs (16.0) (2.1) (0.2) (18.3) - (50.6) 0.3 (68.6)
Profit/(loss) before tax 64.4 4.0 10.9 79.3 10.8 (78.0) (10.0) 2.1
Reconciliation to Underlying Profit/(Loss) Before Tax(3)
Profit/(loss) before tax 64.4 4.0 10.9 79.3 10.8 (78.0) (10.0) 2.1
Net fair value loss/(gain) on derivative financial instruments 0.7 (0.1) 0.1 0.7 - - - 0.7
Impairment of non-financial assets 0.1 - - 0.1 0.4 1.4 - 1.9
Amortisation of fees and costs relating to the Group's previous corporate debt - - - - - 7.6 - 7.6
Restructuring costs - - 2.3 2.3 0.1 19.1 - 21.5
Foreign exchange movement on River Cruise lease liabilities - 0.8 - 0.8 - - - 0.8
Affinity Partnership transition - - - - 13.9 - - 13.9
Release of deferred revenue on three-year fixed-price product - - - - (7.0) - - (7.0)
Onerous contract provision - - - - (1.3) - - (1.3)
Modification of Travel breakage policy 1.6 0.3 0.7 2.6 - - - 2.6
Ocean Cruise dry dock costs 0.5 - - 0.5 - - - 0.5
IFRS 16 lease accounting adjustment on River Cruise vessels - 0.9 - 0.9 - - - 0.9
Underlying Profit/(Loss) Before Tax(3) 67.3 5.9 14.0 87.2 16.9 (49.9) (10.0) 44.2
2025 (re-presented(4)) Travel
Ocean Cruise River Cruise £m Holidays £m Total £m Insurance Broking Other Adjustments Total
£m £m Businesses
£m
£m
and Central
Costs
£m
Continuing operations
Revenue 236.7 49.4 167.8 453.9 114.4 24.6 (4.6) 588.3
Cost of sales (140.6) (33.3) (126.1) (300.0) - (8.8) - (308.8)
Gross profit/(loss) 96.1 16.1 41.7 153.9 114.4 15.8 (4.6) 279.5
Administrative and selling expenses (30.5) (11.0) (33.8) (75.3) (119.8) (43.1) 4.6 (233.6)
Impairment of non-financial assets - - - - (21.3) (3.2) (138.3) (162.8)
Gain on lease modification - - - - - 0.2 - 0.2
Net profit on disposal of property, plant and equipment - - 0.9 0.9 - - - 0.9
Investment income - 0.5 1.0 1.5 0.9 3.7 - 6.1
Finance costs (18.4) (1.5) (0.3) (20.2) - (30.3) - (50.5)
Profit/(loss) before tax 47.2 4.1 9.5 60.8 (25.8) (56.9) (138.3) (160.2)
Reconciliation to Underlying Profit/(Loss) Before Tax(3)
Profit/(loss) before tax 47.2 4.1 9.5 60.8 (25.8) (56.9) (138.3) (160.2)
Net fair value loss on derivative financial instruments - - 0.3 0.3 - - - 0.3
Impairment of Insurance Broking goodwill - - - - - - 138.3 138.3
Impairment of other non-financial assets - - - - 21.3 3.2 - 24.5
Amortisation of fees and costs on Roger De Haan loan facility - - - - - 3.5 - 3.5
Restructuring costs - - 0.9 0.9 18.2 9.3 - 28.4
Foreign exchange movement on River Cruise lease liabilities - (0.6) - (0.6) - - - (0.6)
Onerous contract provision - - - - (1.8) - - (1.8)
Profit share on cessation of private medical insurance (PMI) contract - - - - 2.6 - - 2.6
Ocean Cruise customer compensation and dry dock costs 1.7 - - 1.7 - - - 1.7
IFRS 16 lease accounting adjustment on River Cruise vessels - 0.5 - 0.5 - - - 0.5
Underlying Profit/(Loss) Before Tax(3) 48.9 4.0 10.7 63.6 14.5 (40.9) - 37.2
Analysis of total assets less liabilities by segment:
2026 2025
(unaudited)
£m £m
Travel 91.8 129.1
Insurance (55.9) 9.8
Other Businesses and Central Costs 152.2 38.1
Adjustments (118.4) (119.3)
69.7 57.7
Discontinued operations assets and liabilities held for sale (Note 18a) are
included within the Insurance segment total assets less liabilities figure
above.
Total assets less liabilities detailed as adjustments relates to the following
unallocated items:
2026 2025
(unaudited)
£m £m
Goodwill (Note 7) 206.4 206.4
Bond, term loan and the loan facility provided by Roger De Haan (324.8) (325.7)
(118.4) (119.3)
a) Disaggregation of revenue
The following table provides a disaggregation of the Group's revenue by major
product line, analysed by its core operating segments.
2026 (unaudited)
Major product lines Travel Insurance Other Total
£m £m Businesses £m
and Central
Costs
£m
Continuing operations
Ocean Cruise 264.0 264.0
River Cruise 53.1 53.1
Holidays 184.0 184.0
Motor broking 52.9 52.9
Home broking 39.4 39.4
Other broking 47.6 47.6
Money 6.1 6.1
Publishing and CustomerKNECT 11.3 11.3
Other 1.6 1.6
501.1 139.9 19.0 660.0
2025
Major product lines Travel Insurance Other Total
£m £m Businesses £m
and Central
Costs
£m
Continuing operations
Ocean Cruise 236.7 236.7
River Cruise 49.4 49.4
Holidays 167.8 167.8
Motor broking 45.9 45.9
Home broking 31.8 31.8
Other broking 36.7 36.7
Money 5.6 5.6
Publishing and CustomerKNECT 13.9 13.9
Other 0.5 0.5
453.9 114.4 20.0 588.3
(3) Refer to the Alternative Performance Measures Glossary for definition and
explanation
(4) The comparative information for the year to 31 January 2025 has been
re-presented from that previously published due to the Group's decision to
divest itself of the underwriting and claims handling sections of its
Insurance business
4 Income tax
The major components of the income tax (credit)/expense are:
2026 2025
(unaudited)
£m £m
Continuing operations
Consolidated income statement
Current income tax
Current income tax credit (2.2) (0.5)
Adjustments in respect of previous years 0.2 0.9
(2.0) 0.4
Deferred tax
Relating to origination and reversal of temporary differences - 19.0
Adjustments in respect of previous years - (0.9)
- 18.1
Tax (credit)/expense in the income statement relating to continuing operations (2.0) 18.5
The Group's tax credit relating to continuing operations for the year was
£2.0m (2025: £18.5m expense) representing a tax effective rate of negative
95.3% before the impairment of goodwill of £nil (2025: negative 84.5%). In
both the current and prior years, the difference between the Group's tax
effective rate and the standard rate of corporation tax was mainly due to the
Group's Ocean Cruise business being in the tonnage tax regime. In addition, it
is also due to £138.3m (2025: £111.6m) of corporation tax losses carried
forward at the end of the financial year not being considered recoverable and,
therefore, no deferred tax asset was recognised for these losses.
Adjustments in respect of previous years include an adjustment for the
over-provision of tax in prior years of £0.2m (2025: £nil).
Reconciliation of net deferred tax assets
2026 2025
(unaudited)
£m £m
At 1 February - 34.8
Tax expense recognised in the income statement from continuing operations - (18.1)
Tax expense recognised in other comprehensive income (OCI) from continuing - (12.3)
operations
Deferred tax expense attributable to discontinued operations - (4.8)
Amounts transferred to assets held for sale - 0.4
At 31 January - -
The Group has tax losses which arose in the UK of £138.3m (2025: £111.6m)
that are available indefinitely for offsetting against future taxable profits
of the continuing operations of the Group. Deferred tax assets have not been
recognised in respect of these losses as management have assessed there are
less likely than not to be sufficient future taxable profits to utilise these
tax losses. The tax losses have arisen due to the Group's Ocean Cruise
business being in the tonnage tax regime and thus excluded from corporate tax,
meaning that taxable profits in the Group's non-Ocean Cruise businesses would
be required to recognise deferred tax assets, and there are no other tax
planning opportunities or other evidence of recoverability in the near future.
In addition, all other net timing differences were considered not to be
recoverable, therefore no deferred tax assets have been recognised in respect
of the continuing business at 31 January 2026 (2025: none), for the same
reason that deferred tax assets were not recognised on tax losses. If the
Group were able to recognise all unrecognised deferred tax assets then profit
for the year would be £2.2m lower (2025: £34.4m higher) and movements
through OCI would be £1.2m lower (2025: £10.8m higher).
The Group is in scope of the Pillar Two rules because its consolidated
revenue exceeded the annual €750m threshold in two of the last four
financial years. The Group has applied the mandatory deferred tax exemption as
prescribed by the International Accounting Standards Board's amendments to
IAS12 'Income Taxes'. A significant amount of the Group's profits are within
the charge to tonnage tax and, therefore, the Group considers the financial
impact of Pillar Two to be limited.
5 Dividends
The Board of Directors does not recommend the payment of a final dividend for
the 2025/26 financial year (2025: nil pence per share). For the current and
prior year, no interim or final dividends were declared, or paid, during the
year.
The distributable reserves of Saga plc are £239.9m at 31 January 2026, which
are equal to the retained earnings reserve. If necessary, its subsidiary
companies hold significant reserves from which a dividend could be paid.
Subsidiary distributable reserves are available immediately, with the
exception of companies within the River Cruise and Holidays businesses, which
require regulatory approval before any dividends can be declared and paid.
Under the terms of the Ocean Cruise ship debt facilities, dividends remain
restricted until the ship debt principal repayments that were deferred as part
of the ship debt repayment holiday are fully repaid (Note 15). In addition,
under the terms of the RCF and the term loan provided by certain funds,
entities (or affiliates or subsidiaries of such funds or entities) and/or
accounts managed, advised or controlled by HPS Investment Partners, LLC or its
subsidiaries (HPS Funds), dividends also remain restricted while leverage is
above 3.25x.
6 Earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the loss after tax
for the year attributable to ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the period.
Diluted loss per share is calculated by also including the weighted average
number of ordinary shares that would be issued on conversion of all
potentially dilutive options.
There were no other transactions involving ordinary shares, or potential
ordinary shares, between the reporting date and the date of authorisation of
these financial statements.
The calculation of basic and diluted earnings/(loss) per share is as follows:
2026 2025
(unaudited)
£m £m
Profit/(loss) attributable to ordinary equity holders 3.6 (164.9)
Profit/(loss) from continuing operations 4.1 (178.7)
Weighted average number of ordinary shares 'm
Ordinary shares at 1 February 140.5 139.8
Deferred Bonus Plan (DBP) share options exercised 0.3 0.2
Restricted Share Plan (RSP) share options exercised 1.2 0.5
Other share options exercised 0.4 -
Weighted average number of ordinary shares for 142.4 140.5
basic earnings/(loss) per share
Dilutive options
DBP share options not yet vested 1.1 -
RSP share options not yet vested 3.6 -
Weighted average number of ordinary shares for 147.1 140.5
diluted earnings/(loss) per share
Basic earnings/(loss) per share 2.5p (117.4p)
Basic earnings/(loss) per share from continuing operations 2.9p (127.2p)
Diluted earnings/(loss) per share 2.4p (117.4p)
Diluted earnings/(loss) per share from continuing operations 2.8p (127.2p)
The table below reconciles between basic earnings/(loss) per share and
Underlying Basic Earnings Per Share(5).
2026 2025
(unaudited)
Basic earnings/(loss) per share 2.5p (117.4p)
Adjusted for:
Net fair value loss on derivative financial instruments 0.5p 0.3p
Impairment of Insurance Broking goodwill - 98.4p
Impairment of other non-financial assets 1.3p 25.6p
Onerous contract provision 2.1p (12.3p)
Profit share on cessation of PMI contract - 2.2p
Amortisation of fees and costs relating to the Group's previous corporate debt 5.3p 3.0p
Loss on disposal of subsidiaries 9.6p -
Affinity Partnership transition 9.8p -
Release of deferred revenue on three-year fixed-price product (4.9p) -
Write-off of written to earned adjustment (2.5p) -
Foreign exchange movement on River Cruise lease liabilities 0.6p (0.5p)
Fair value gains on debt securities (1.5p) (4.3p)
Changes in underwriting discount rates on non-PPO liabilities 0.1p (0.5p)
Restructuring costs 15.3p 26.9p
Modification of Travel breakage policy 1.9p -
Ocean Cruise customer compensation and dry dock costs 0.4p 1.4p
IFRS 16 lease accounting adjustment on River Cruise vessels 0.6p 0.4p
Underlying Basic Earnings Per Share(5) 41.1p 23.2p
(5) Refer to the Alternative Performance Measures Glossary for definition and
explanation
7 Goodwill
Goodwill acquired through business combinations was allocated to Cash
Generating Units (CGUs) for the purpose of impairment testing. The carrying
value of goodwill by CGU is as follows:
2026 2025
(unaudited)
£m £m
Insurance Broking 206.4 206.4
206.4 206.4
The Group tests all goodwill balances for impairment at least annually, and
twice-yearly if indicators of impairment exist at the interim reporting date
of 31 July. The impairment test compares the recoverable amount of each CGU to
the carrying value of its net assets including the value of the allocated
goodwill.
As a result of the impact of the FCA's GIPP market study on trading in recent
years, and against the background of a highly competitive motor insurance
market, the Group saw a fall in policy volumes in the year to 31 January 2025.
In the year to 31 January 2025, high net rate inflation from the Group's
underwriting panel continued to have an adverse impact on the expected future
profitability of the Insurance business. In December 2024, the Group announced
it had entered into a binding agreement with Ageas, to establish the Affinity
Partnership, which is expected to impact future cash flows of the business.
Management considered these trading impacts to constitute indicators of
impairment and, therefore, conducted full impairment reviews of the Insurance
Broking CGU at 31 July 2024 and 31 January 2025. At 31 July 2024, the Group
determined that the recoverable amount of the goodwill was below the carrying
value, and so the Directors took the decision to impair the goodwill by
£138.3m, based on a probability-weighted assessment of the base and stressed
forecast cash flows modelled.
At the assessment conducted at 31 January 2025, forecast cash flows consistent
with the latest five-year plan and further stress tests, were modelled. After
applying a probability weighting to the base and stressed forecast cash flows
modelled, management concluded that no further impairment of goodwill was
required at 31 January 2025, leaving the total impairment charge for the year
at £138.3m.
At 31 July 2025, trading forecasts showed improved cash flows and policy
volumes from those modelled at the assessment conducted at 31 January 2025. In
addition, the Group's pre-tax discount rate previously used for the Insurance
Broking CGU had improved. The decrease in the pre-tax discount rate acted to
increase the headroom in any assessment. The long-term outlook for inflation
stood at 2%, consistent with the Terminal Growth rate assumption for the
business modelled at 31 January 2025 and at 31 July 2024. Management
considered other indicators of possible impairment set out in IAS 36,
including the economic outlook and movements in Saga's market capitalisation.
No such indicators were identified. Based on the above, management did not
believe a formal goodwill impairment assessment was required at 31 July 2025.
At the assessment conducted at 31 January 2026, the recoverable amount of the
Insurance Broking CGU was determined based on a value-in-use calculation using
nominal cash flow projections from the Group's latest five-year financial
forecasts to 2030/31, which were derived using past experience of the Group's
trading, combined with the anticipated impact of changes in macroeconomic and
regulatory factors and the expected impact of the transition to the Affinity
Partnership. A terminal value was calculated using the Gordon Growth Model
based on the fifth year of those projections and a terminal growth rate
calculated using an assumption of 2.0% (July 2024: 2.0%; January 2025: 2.0%)
as the expected long-term target rate of inflation for the UK economy based on
the November 2025 Monetary Policy Report published by the Bank of England. The
cash flows were then discounted to present value using a suitably
risk-adjusted nominal discount rate based on a market-participant view of the
cost of capital and debt relevant to the insurance industry.
At 31 January 2026, the pre-tax discount rate used for the Insurance Broking
CGU was 12.2% (July 2024: 14.7%; January 2025: 13.3%). The Group's five-year
financial forecasts incorporated the modelled impact of the change to a new
partnership operating model for the motor and home products. As per IAS 36.44,
incremental cash flows directly attributable to growth initiatives not yet
enacted at the statement of financial position date were then removed for the
purpose of the value-in-use calculation.
The Group also considered the impact of downside stresses, both in terms of
adverse impacts to the cash flow projections and to the discount rate. For the
cash flow stress test, the Group modelled the impact of a possible reduction
in the level of benefits expected to be achieved from the Affinity
Partnership, in combination with a more cautious terminal growth rate based on
a more conservative assumption of 1.5% (July 2025: 1.5%; January 2025: 1.5%)
as the outlook for growth in the UK economy. For the discount rate stress
test, the Group applied risk premia of +0.7ppts at 31 January 2026 (July 2024:
+0.5ppts; January 2025: +0.4ppts).
The (deficit)/headroom of the Insurance Broking CGU against the carrying value
of goodwill at the time of the review of £206.4m at 31 January 2026 and
£206.4m at 31 January 2025 (after recognising an impairment charge of
£138.3m at 31 July 2024), was as follows:
(Deficit)/headroom £m
Base scenario Cash flow stress test scenario Discount rate stress test scenario
31 Jan 2026 31 Jan 2025 31 Jan 2026 31 Jan 2025 31 Jan 2026 31 Jan 2025
(unaudited) (unaudited) (unaudited)
Insurance Broking 74.9 33.4 22.4 (19.2) 58.2 25.9
The (deficit)/headroom calculated is sensitive to the discount rate and
terminal growth rate assumed, and to changes in the projected cash flows of
the CGU. Inherent uncertainty involved in forecasting cashflows under a new
partnership model increase the range of possible cash flow outcomes in
management's modelling. A quantitative sensitivity analysis for each of these
at 31 January 2026,and its impact on the base scenario headroom against the
carrying value of goodwill at the time of the review of £206.4m, is as
follows:
Pre-tax discount rate Terminal growth rate Cash flow (annual)
+1.0ppt -1.0ppt £m +1.0ppt -1.0ppt £m +10% -10%
£m £m £m £m
Insurance Broking (22.7) 27.8 27.2 (21.1) 31.1 (31.1)
It would take an increase in the pre-tax discount rate of 4.4 percentage
points to reduce the headroom to £nil; a reduction in the terminal growth
rate to -3.3%, or a reduction in base case cashflows of 24.1%.
8 Intangible assets
During the year, the Group capitalised £6.0m (2025: £12.1m) of software
assets; disposed of assets with a net book value of £0.2m (2025: £nil);
reclassified from assets held for sale, assets with a net book value of £nil
(2025: none); and charged £7.1m of amortisation and impairment to its other
intangible assets (2025: £38.5m). In the prior year, the Group also
reclassified to assets held for sale, assets with a net book value of £nil.
Impairment review of other intangible assets
In the year to 31 January 2026, following the Group's disposal of the
underwriting and claims handling sections of its Insurance business (Note 18a)
and the impact of this on its Insurance Broking business, management concluded
that this constitutes an indicator of impairment and duly conducted an
impairment review of the software assets of this business. The outcome of this
impairment review concluded that an impairment charge of £0.3m should be
recognised against the software assets held by the Group's Insurance Broking
division at 31 January 2026. This was charged to administrative and selling
expenses.
In the prior year, following the Group's decision to divest itself of the
underwriting and claims handling sections of its Insurance business (Note
18a), management concluded that this constitutes an indicator of impairment
and duly conducted an impairment review of the Group's other intangible fixed
assets. The outcome of this impairment review concluded that an impairment
charge of £4.0m should be recognised against the intangible fixed assets held
by the disposal group at 31 January 2025 (Note 18a). The impairment charge
related to the software assets of the claims handling section of the Insurance
business, which were impaired in full.
As a result of the announcement above, and subsequent impairment review,
management concluded that an impairment charge of £21.3m should be recognised
against the internally generated software assets relating to Guidewire (the
Group's Insurance Broking, policy administration and billing platform at 31
January 2025. This was charged to administrative and selling expenses. The
Guidewire software assets did not form part of the intangible fixed assets
held by the disposal group.
In addition, management assessed the recoverable amount of software assets at
31 January 2025 and concluded that an impairment of £2.8m was required in the
Group's Central Costs division. This was charged to administrative and selling
expenses.
With the exception of the above, the Group did not consider it necessary to
conduct an impairment review of other intangible assets at 31 January 2026,
since no other indicators of impairment existed.
9 Property, plant and equipment
During the year, the Group capitalised assets with a cost of £10.4m (2025:
£6.9m); disposed of assets with a net book value of £0.2m (2025: £0.2m);
and charged £24.7m of depreciation and impairment to its property, plant and
equipment (2025: £23.3m). In the prior year, the Group also reclassified from
assets held for sale, assets with a net book value of £6.0m.
Property, plant and equipment assets capitalised in the year ended 31 January
2026 relate to Ocean Cruise ships (£7.8m), and plant and equipment (£2.6m).
Property, plant and equipment assets capitalised in the year ended 31 January
2025 related to Ocean Cruise ships (£5.8m), and plant and equipment (£1.1m).
Impairment review of property, plant and equipment
In the year to 31 January 2026, following the Group's disposal of the
underwriting and claims handling sections of its Insurance business (Note 18a)
and the impact of this on its Insurance Broking, and mailing and printing
divisions, management concluded that this constitutes an indicator of
impairment and duly conducted an impairment review of the assets of this
business. The outcome of this impairment review concluded that an impairment
charge of £0.7m should be recognised against the plant and equipment assets
held by the Group at 31 January 2026. This was charged to administrative and
selling expenses (£0.1m) and cost of sales (£0.6m).
In the prior year, management assessed the recoverable amount of plant and
equipment assets at 31 January 2025 and concluded that an impairment charge of
£0.1m was required in the Group's Central Costs division. This was charged to
administrative and selling expenses.
With the exception of the above, the Group did not consider it necessary to
conduct an impairment review of property, plant and equipment assets at 31
January 2026, since no other indicators of impairment existed.
10 Right-of-use assets
During the year, the Group capitalised assets with a cost of £17.9m (2025:
£8.0m); disposed of assets with a net book value of £nil (2025: £nil);
reduced net book value for effect of modification of lease terms by £0.1m
(2025: £0.3m); and charged £7.6m of depreciation and impairment to its
right-of-use assets (2025: £7.4m).
Right-of-use assets capitalised in the year ended 31 January 2026 relate to
the River Cruise ship, Spirit of the Moselle (£13.9m) and vehicles (£4.0m).
Right-of-use assets capitalised in the year ended 31 January 2025 related to
the River Cruise ship, Spirit of the Douro (£7.3m), vehicles (£0.4m) and IT
hardware (£0.3m).
The total cash outflow for leases amounted to £9.2m (2025: £9.4m).
In the year ended 31 January 2026, the modification of lease terms relating to
long leasehold land and buildings resulted in a gain of £nil (2025: £0.2m)
being reported in the income statement in the year.
At 31 January 2026, the value of lease liabilities contracted for, but not
provided for, in the financial statements in respect of right-of-use assets
amounted to £13.5m (2025: £22.5m). For the current year, these commitments
relate to Spirit of the Lorelei. The lease commitments in the prior year
related to the River Cruise vessels, Spirit of the Moselle and Spirit of the
Lorelei.
Impairment review of right-of-use assets
In the year to 31 January 2026, following the Group's disposal of the
underwriting and claims handling sections of its Insurance business (Note 18a)
and the impact of this on its mailing and printing business, management
concluded that this constitutes an indicator of impairment and duly conducted
an impairment review of the assets of this business. The outcome of this
impairment review concluded that an impairment charge of £0.8m should be
recognised against the plant and equipment assets held by the mailing and
printing business at 31 January 2026. This was charged to cost of sales.
Also, in the year to 31 January 2026, management decided to review long
leasehold land and building leases used by the Group's Cruise business. As
part of this exercise, management performed an impairment review of
right-of-use assets used by the Cruise business. The outcome of this review
concluded that an impairment charge of £0.1m be recognised against the
Group's long leasehold land and buildings at 31 January 2026. This was charged
to administrative and selling expenses.
With the exception of the above, the Group did not consider it necessary to
conduct an impairment review of right-of-use assets at 31 January 2026, since
no indicators of impairment existed.
11 Financial assets and financial liabilities
a) Financial assets
2026 2025
(unaudited)
£m £m
Fair value through profit and loss (FVTPL)
Foreign exchange forward contracts 0.2 0.2
Money market funds - 62.9
Debt securities - 178.7
0.2 241.8
FVTPL designated in a hedging relationship
Foreign exchange forward contracts 0.7 0.9
Fuel oil swaps 0.2 -
0.9 0.9
Amortised cost
Deposits with financial institutions - 11.5
- 11.5
Amounts reclassified to assets held for sale - (241.6)
Total financial assets 1.1 12.6
Current 1.0 12.4
Non-current 0.1 0.2
1.1 12.6
2026 2025
(unaudited)
£m £m
Total financial assets (as above and presented on the face of the statement of 1.1 12.6
financial position)
Trade receivables 98.4 99.7
Other receivables 8.1 7.0
Cash and short-term deposits (Note 12) 257.0 129.2
Total financial assets (including cash and short-term deposits, trade and 364.6 248.5
other receivables)
For the year ended 31 January 2025, debt securities and money market funds
related to monies held by the Group's Insurance Underwriting business
(included within assets held for sale), and were subject to contractual
restrictions and are not readily available to be used for other purposes
within the Group. The Group's Insurance Underwriting business was disposed of
on 1 July 2025 (Note 18a), and therefore, no balances are reported at 31
January 2026 in the table above.
All financial assets that are measured at FVTPL are mandatorily measured at
FVTPL, with the exception of debt securities which are designated as FVTPL.
b) Financial liabilities
2026 2025
(unaudited)
£m £m
FVTPL
Foreign exchange forward contracts 0.4 0.2
0.4 0.2
FVTPL designated in a hedging relationship
Foreign exchange forward contracts 2.4 0.9
Fuel oil swaps 0.3 0.5
Interest rate swaps 1.7 -
4.4 1.4
Amortised cost
Bond, Ocean Cruise ship loans, term loan and loan facility provided by Roger 607.9 662.2
De Haan (Note 15)
Lease liabilities 38.4 26.1
Bank overdrafts 0.3 1.6
646.6 689.9
Amounts reclassified to liabilities associated with assets held for sale - (1.4)
Total financial liabilities 651.4 690.1
Current 66.7 71.3
Non-current 584.7 618.8
651.4 690.1
2026 2025
(unaudited)
£m £m
Total financial liabilities (as above and presented on the face of the 651.4 690.1
statement of financial position)
Trade payables 168.5 145.5
Other payables 16.8 9.0
Accruals 62.0 43.9
Total financial liabilities (including trade and other payables, and accruals) 898.7 888.5
Except for the Group's bond and Ocean Cruise ship loans, the fair values of
financial liabilities held at amortised cost are not materially different from
their carrying amounts, since the interest payable on those liabilities is
close to current market rates. The fair value of the Group's bond (Note 15) at
31 January 2026 was £nil (2025: £249.7m). The fair value of the Group's
Ocean Cruise ship loans (Note 15) at 31 January 2026 was £270.5m (2025:
£325.6m).
All financial liabilities that are measured at FVTPL, are mandatorily measured
at FVTPL unless they are held in a designated hedging relationship.
c) Fair value hierarchy
At 31 January 2026 At 31 January 2025
(unaudited)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m £m £m £m £m £m £m £m
Financial assets measured at fair value
Foreign exchange forwards - 0.9 - 0.9 - 1.1 - 1.1
Fuel oil swaps - 0.2 - 0.2 - - - -
Debt securities - - - - 178.7 - - 178.7
Money market funds - - - - 62.9 - - 62.9
Financial liabilities measured at fair value
Foreign exchange forwards - 2.8 - 2.8 - 1.1 - 1.1
Fuel oil swaps - 0.3 - 0.3 - 0.5 - 0.5
Interest rate swaps - 1.7 - 1.7 - - - -
Financial assets for which fair values are disclosed
Deposits with institutions - - - - - 11.5 - 11.5
Financial liabilities for which fair values are disclosed
Bond, Ocean Cruise ship loans, term loan and the loan facility provided by - 595.3 - 595.3 249.7 400.6 - 650.3
Roger De Haan
Lease liabilities - 38.4 - 38.4 - 26.1 - 26.1
Bank overdrafts - 0.3 - 0.3 - 1.6 - 1.6
d) Other information
There were no transfers between Level 1 and Level 2 during the year. There
were no non-recurring fair value measurements of assets and liabilities during
the year (2025: none). The Group's policy is to recognise transfers into, and
out of, fair value hierarchy levels at the end of the reporting period.
The values of the debt securities and money market funds were based upon
publicly available market prices.
Foreign exchange forwards are valued using current spot and forward rates
discounted to present value. They are also adjusted for counterparty credit
risk using credit default swap curves. Fuel oil swaps are valued with
reference to the valuations provided by third parties, which use current
Platts index rates, discounted to present value.
Bonds are valued at quoted market bid prices.
Ship loans are valued using discounted cash flows at the current rates of
interest.
Interest rate swaps are valued as the present value of the estimated future
cash flows, discounted using observable yield curves, and adjusted for a
credit risk adjustment.
The Group operates a programme of economic hedging against its foreign
currency and fuel oil exposures. During the year, the Group designated 410
(2025: 258) foreign exchange forward currency contracts as hedges of highly
probable foreign currency cash expenses in future periods and designated 78
(2025: 20) fuel oil swaps as hedges of highly probable fuel oil purchases in
future periods. At 31 January 2026, the Group has designated 439 (2025: 259)
forward currency contracts and 78 (2025: 35) fuel oil swaps as hedges.
During the year, the Group recognised net losses of £4.5m (2025: £6.0m
gains) on cash flow hedging instruments through OCI into the hedging reserve.
The Group recognised £nil (2025: £nil) through the income statement in
respect of the ineffective portion of foreign exchange hedges measured during
the year. The Group recognised £nil (2025: £nil) through the income
statement in respect of the ineffective portion of interest rate swaps
measured during the year.
During the year, the Group de-designated two foreign currency forward
contracts, with a transaction value of £2.4m, where forecast cash flows are
no longer expected to occur with a sufficiently high degree of certainty to
meet the requirements of IFRS 9. The accumulated losses in relation to these
contracts of £nil were reclassified from the hedging reserve into profit or
loss during the year. The Group did not de-designate any fuel oil swaps during
the year. During the year, the Group recognised a £1.6m loss (2025: £3.3m
gain) through the income statement in respect of matured hedges that were
recycled from OCI.
During the year, the Group hedged its £335.0m term loan (Note 15) using
interest rate derivatives. The Group held interest rate swaps to hedge
exposure to the financial risk of variability in cash flows attributable to
movements in interest rates. The fair value of the Group's interest swaps at
31 January 2026 is a liability of £1.7m (2025: nil), with £1.7m being
recognised as a loss through OCI into the hedging reserve.
12 Cash and cash equivalents
2026 2025
(unaudited)
£m £m
Cash at bank and in hand 70.2 93.0
Short-term deposits 186.8 36.2
Cash and short-term deposits 257.0 129.2
Bank overdraft (Note 11b) (0.3) (0.2)
Cash and cash equivalents held by disposal group (including money market - 74.1
funds)
Cash and cash equivalents in the condensed consolidated statement of cash 256.7 203.1
flows
Included within cash and cash equivalents at 31 January 2026 are amounts held
by the Group's River Cruise, Holidays and Insurance Broking businesses, which
are subject to contractual or regulatory restrictions; and additional amounts
paid into an escrow account relating to the Saga Pension Scheme. Included
within cash and cash equivalents at 31 January 2025 were amounts held by the
Group's Insurance Underwriting business (included within assets held for
sale), River Cruise, Holidays and Insurance Broking businesses, which are
subject to contractual or regulatory restrictions; and additional amounts paid
into an escrow account relating to the Saga Pension Scheme. The amounts held
are not readily available to be used for other purposes within the Group and
total £67.0m (2025: £123.8m). Available Cash(6) excludes these amounts.
Cash at bank earns interest at floating rates based on daily bank deposit
rates. Short-term deposits are typically made for varying periods of between
one day and three months, depending on the immediate cash requirements of the
Group, and earn interest at the respective short-term deposit rates.
The bank overdraft is repayable on demand.
13 Retirement benefit schemes
The Group operates retirement benefit schemes for the employees of the Group,
consisting of a defined contribution plan and a legacy defined benefit plan.
In July 2021, following the completion of a review of the Group's pension
arrangements, a consultation process with active members was launched. The
consultation process concluded during October 2021 and, with effect from 31
October 2021, the Group closed both its schemes to future accrual: the Saga
Pension Scheme (its defined benefit plan) and the Saga Workplace Pension Plan
(its defined contribution plan). In their place, the Group launched a new
defined contribution pension scheme arrangement, operated as a master trust.
This move served to reduce the risk of further deficits developing in the
future on the defined benefit scheme, while moving to a fairer scheme for all
colleagues.
a) Defined contribution plans
There was one defined contribution scheme in the Group at 31 January 2026
(2025: one). The total charge for the year in respect of the defined
contribution scheme was £4.8m (2025: £5.2m). The assets of this scheme are
held separately from those of the Group in funds under the control of
Trustees.
b) Defined benefit plan
The Group operated a funded defined benefit scheme, the Saga Pension Scheme,
which was closed to future accrual on 31 October 2021. From 1 November 2021,
members moved from active to deferred status, with future indexation of
deferred pensions before retirement measured by reference to the Consumer
Price Index. There will be no further service charges relating to the scheme
and no future monthly employer contributions for current service.
The fair value of the assets and present value of the obligations of the Saga
defined benefit scheme are as follows:
2026 2025
(unaudited)
£m £m
Fair value of scheme assets 204.1 200.1
Present value of defined benefit obligation (229.5) (239.9)
Defined benefit scheme liability (25.4) (39.8)
The present values of the defined benefit obligation have been measured using
the projected unit credit valuation method.
During the year ended 31 January 2026, the net liability position of the Saga
scheme reduced by £14.4m, resulting in an overall scheme deficit of £25.4m,
mainly as a result of recovery plan contributions of £5.8m being paid by the
Group; a Section 75 contribution of £3.2m in relation to the completion of
the disposal of the Group's Insurance Underwriting business, AICL; the
adoption of the latest cash commutation factors (effective from July 2025),
which led to a decrease in the value placed on the deferred liabilities; and a
reduction in the value placed on the liabilities as a result of increases in
bond yields over the year. The latter was partially offset by the movement in
matching assets held by the scheme, which also decreased. The £5.8m deficit
funding contributions were paid by the Group under a recovery plan agreed
under the triennial valuation of the scheme at 31 January 2023.
The movements observed in the scheme's assets and obligations were impacted by
macroeconomic factors during the year, where actual inflation levels reduced
compared to recent years, high-quality long-term corporate bond yields
remained volatile and there continues to be rising cost of living pressures.
The present value of defined benefit obligations decreased by £10.4m to
£229.5m, primarily as a result of increases in bond yields over the year. The
fair value of scheme assets increased by £4.0m, to £204.1m, largely driven
by the recovery plan and Section 75 contributions.
A High Court legal ruling in June 2023 (Virgin Media Limited v NTL Pension
Trustees II Limited) decided that certain rule amendments were invalid if they
were not accompanied by the correct actuarial Section 37 certificate
confirmation. While the ruling only applied to the specific pension scheme in
question, it could be expected to apply across other pension schemes that were
contracted out on a salary-related basis and made amendments between 6 April
1997 and 6 April 2016. The ruling was appealed but, in July 2024, the Court of
Appeal dismissed the appeal.
On 5 June 2025, the Government announced that they will introduce legislation
to give affected pension schemes the ability to retrospectively obtain written
actuarial confirmation that historic benefit changes met the necessary
standards.
On 2 September 2025, the Government published draft amendments to the Pensions
Scheme Bill, which would give affected pension schemes the ability to
retrospectively obtain written actuarial confirmation that historical benefit
changes met the necessary standards. The draft legislation will need to be
agreed by both Houses of Parliament before it passes into law; however, no
additional liabilities are now expected to arise as a result of the Virgin
Media court ruling.
The Group is considering the implications of the case on its defined benefit
scheme. At 31 January 2026, the defined benefit obligation for the Group's
scheme was calculated on the basis of the pension benefits currently being
administered. The Group has not, as yet, assessed any potential impact due to
the court ruling. However, the Group received initial legal advice, which
suggests that there is no reason, based on the checks carried out, to assume
that any historical scheme changes were not validly made, and that it is
reasonable for the Trustees to take no further action at this stage. Any
subsequent developments following the Court of Appeal's judgement will be
monitored by the Group.
(6) Refer to the Alternative Performance Measures Glossary for definition and
explanation
14 Insurance contract liabilities and reinsurance assets
The following tables reconcile the opening and closing balances held in
relation to insurance and reinsurance contracts (Note 18a):
Liabilities for remaining coverage (unaudited) Liabilities for incurred claims (unaudited)
Excluding loss component Loss component Estimate of the present value of future cash flows Risk adjustment Total
£m £m £m £m £m
At 1 February 2025
Insurance contract liabilities (46.3) (1.8) (235.9) (33.7) (317.7)
Insurance revenue (Note 18a) 66.6 - - - 66.6
Incurred claims and related expenses - 2.3 (54.2) (3.8) (55.7)
Changes to liabilities for incurred claims - - 11.6 6.2 17.8
Insurance acquisition cash flows expensed (13.5) - - - (13.5)
Losses on onerous contracts and reversals of those losses - (6.5) - - (6.5)
Other incurred insurance service expenses - - (4.6) - (4.6)
Insurance service (expenses)/income (Note 18a) (13.5) (4.2) (47.2) 2.4 (62.5)
Insurance finance expense (Note 18a) - - (4.6) (0.7) (5.3)
Total changes in the income statement 53.1 (4.2) (51.8) 1.7 (1.2)
Cash flows
Premiums received (78.4) - - - (78.4)
Insurance acquisition cash flows incurred 13.5 - - - 13.5
Claims and other expenses paid - - 64.8 - 64.8
Total cash flows (64.9) - 64.8 - (0.1)
Disposed of with subsidiary undertaking 58.1 6.0 222.9 32.0 319.0
At 31 January 2026
Insurance contract liabilities - - - - -
In the year to 31 January 2025, the Insurance Underwriting business was
classified as a discontinued operation. As a result, insurance contract
liabilities at 31 January 2025 were reclassified as liabilities directly
associated with assets held for sale.
Assets for remaining coverage (unaudited) Amounts recoverable on incurred claims (unaudited)
Excluding loss-recovery component Loss-recovery component Estimate of the present value of future cash flows Risk adjustment Total
£m £m £m £m £m
At 1 February 2025
Reinsurance contract (liabilities)/assets (9.3) - 88.9 28.2 107.8
Allocation of reinsurance premiums (4.7) - - - (4.7)
Amounts recoverable for incurred - - 2.6 0.1 2.7
claims and other expenses
Changes to amounts recoverable for incurred claims - - (0.6) (2.8) (3.4)
Effect of changes in the risk of non-performance of reinsurance contracts - - (0.2) - (0.2)
Net (expense)/income from reinsurance contracts (Note 18a) (4.7) - 1.8 (2.7) (5.6)
Reinsurance finance income - - 1.6 0.6 2.2
(Note 18a)
Total changes in the income statement (4.7) - 3.4 (2.1) (3.4)
Cash flows
Premiums paid 2.5 - - - 2.5
Amounts received - - (3.3) - (3.3)
Total cash flows 2.5 - (3.3) - (0.8)
Disposed of with subsidiary undertaking 11.5 - (89.0) (26.1) (103.6)
At 31 January 2026
Reinsurance contract (liabilities)/assets - - - - -
In the year to 31 January 2025, the Insurance Underwriting business was
classified as a discontinued operation. As a result, reinsurance contract
assets at 31 January 2025 were reclassified as assets held for sale.
Liabilities for remaining coverage Liabilities for incurred claims
Excluding loss component Loss component Estimate of the present value of future cash flows Risk adjustment Total
£m £m £m £m £m
At 1 February 2024
Insurance contract liabilities (56.6) (16.1) (286.4) (40.2) (399.3)
Insurance revenue (Note 18a) 197.1 - - - 197.1
Incurred claims and related expenses - 20.7 (148.1) (7.1) (134.5)
Changes to liabilities for incurred claims - - 37.0 15.5 52.5
Insurance acquisition cash flows expensed (22.7) - - - (22.7)
Losses on onerous contracts and changes in such losses - (6.4) - - (6.4)
Other incurred insurance service expenses - - (13.2) - (13.2)
Insurance service (expenses)/income (Note 18a) (22.7) 14.3 (124.3) 8.4 (124.3)
Insurance finance expense (Note 18a) - - (13.6) (1.9) (15.5)
Total changes in the consolidated income statement 174.4 14.3 (137.9) 6.5 57.3
Cash flows
Premiums received (186.8) - - - (186.8)
Insurance acquisition cash flows incurred 22.7 - - - 22.7
Claims and other expenses paid - - 188.4 - 188.4
Total cash flows (164.1) - 188.4 - 24.3
At 31 January 2025
Insurance contract liabilities (46.3) (1.8) (235.9) (33.7) (317.7)
In the year to 31 January 2025, the Insurance Underwriting business was
classified as a discontinued operation. As a result, insurance contract
liabilities at 31 January 2025 were reclassified as liabilities directly
associated with assets held for sale.
Assets for remaining coverage Amounts recoverable on incurred claims
Excluding loss-recovery component Loss-recovery component Estimate of the present value of future cash flows Risk adjustment Total
£m £m £m £m £m
At 1 February 2024
Reinsurance contract (liabilities)/assets (3.1) 1.3 141.3 33.7 173.2
Allocation of reinsurance premiums (17.1) - - - (17.1)
Amounts recoverable for incurred - (1.5) (11.3) 3.7 (9.1)
claims and other expenses
Changes to amounts recoverable for incurred claims - - (32.5) (10.8) (43.3)
Loss-recovery on onerous underlying contracts and adjustments - 0.2 - - 0.2
Effect of changes in the risk of non-performance of reinsurance contracts - - 2.1 - 2.1
Net expense from reinsurance contracts (Note 18a) (17.1) (1.3) (41.7) (7.1) (67.2)
Reinsurance finance income - - 5.7 1.6 7.3
(Note 18a)
Total changes in the consolidated income statement (17.1) (1.3) (36.0) (5.5) (59.9)
Cash flows
Premiums paid 10.9 - - - 10.9
Amounts received - - (16.4) - (16.4)
Total cash flows 10.9 - (16.4) - (5.5)
At 31 January 2025
Reinsurance contract (liabilities)/assets (9.3) - 88.9 28.2 107.8
In the year to 31 January 2025, the Insurance Underwriting business was
classified as a discontinued operation. As a result, reinsurance contract
assets at 31 January 2025 were reclassified as assets held for sale.
15 Loans and borrowings
2026 2025
(unaudited)
£m £m
Bond - 250.0
Term loan 335.0 -
DDTL facility - -
Ocean Cruise ship loans 289.2 344.8
Loan facility provided by Roger De Haan - 75.0
RCF - -
Accrued interest payable 7.5 5.1
631.7 674.9
Less: deferred issue costs (23.8) (12.7)
607.9 662.2
a) Bonds, RCF, term loan, DDTL and loan facility provided by Roger De
Haan
On 30 January 2025, the Group announced that it had secured new credit
facilities to refinance its corporate debt in full. The new facilities, agreed
by Saga Mid Co Limited, and provided by HPS Funds, comprised: a £335.0m term
loan, a £100.0m DDTL and a £50.0m RCF.
Closing of the new credit facilities was subject to customary conditions and
took place on 27 February 2025, together with the repurchase, repayment and
cancellation of the £250.0m senior unsecured notes, the £85.0m loan facility
provided by Roger De Haan and the existing £50.0m RCF.
On 15 May 2025, as a continuation of the refinancing, the Group syndicated the
new £50.0m RCF, originally provided by HPS Funds, to NatWest and Barclays.
Under the revised structure, NatWest and Barclays committed a combined £33.4m
to the RCF, while the remaining £16.6m was reallocated to HPS Funds DDTL,
increasing its total commitment from £100.0m to £116.6m.
At 31 January 2026, the Group's financing facilities consisted of a £335.0m
term loan, a £116.6m DDTL and a £33.4m RCF. The term loan and DDTL both
mature on 29 January 2031 and the RCF matures on 29 January 2029. The RCF and
DDTL were undrawn at 31 January 2026.
i) Bonds
In May 2024, the Group repaid in full its £150.0m 2024 senior unsecured bond.
As a result of the Group securing new credit facilities on 30 January 2025
(see below), and drawing down on these on 27 February 2025, the 2026 senior
unsecured bond was repaid in full, cancelled and de-listed.
The 2026 and 2024 bonds were both listed on the Irish Stock Exchange (Euronext
Dublin). The 2026 and 2024 bonds were both guaranteed by Saga Services Limited
and Saga Mid Co Limited.
Interest on the 2026 corporate bond was incurred at an annual interest rate of
5.5%. Interest on the 2024 corporate bond was incurred at an annual interest
rate of 3.375%.
Accrued interest payable on the Group's bond at 31 January 2025 was £0.6m.
ii) Former RCF
Interest payable on the Group's former RCF, if drawn down, was incurred at a
variable rate of Sterling Overnight Index Average (SONIA) plus a bank margin
that was linked to the Group's former leverage ratio calculation(7).
In March 2024, the Group concluded discussions with the lenders associated
with the former RCF to increase the Group's financial flexibility. As a
result, the following amendments were agreed, in addition to smaller,
immaterial changes:
· Increase to the former leverage ratio calculation(7) for all remaining
testing periods to 6.25x.
· Quarterly covenant testing, irrespective of whether the loan is drawn.
· The introduction of a restriction whereby, post repayment of the 2024 bond,
no utilisation of the facility is permitted if free liquidity is below
£40.0m.
· Consent requirement for any early repayment of corporate debt or payment of
shareholder dividends.
In September 2024, the Group concluded further discussions with the lenders
associated with the former RCF to further increase the Group's financial
flexibility. As a result, the following amendments were agreed, in addition to
other smaller changes:
· Extension of the expiry date of the facility from 31 May 2025, to 31 March
2026.
· Former leverage ratio calculation(7) ratio test for all remaining testing
periods reduced to 6.0x, based on a revised definition of the calculation,
which was to be performed on a Group basis inclusive of amounts relating to
the Ocean Cruise business.
In November 2024, certain amendments were agreed in order to permit, among
other things, the guarantees to be granted in relation to the disposal of the
Group's Insurance Underwriting business and the establishment of the Affinity
Partnership with Ageas (Note 18a).
In December 2024, the Group drew down £20.0m of its RCF. This amount was
repaid in January 2025.
At 31 January 2025, the Group's £50.0m RCF was undrawn. Accrued fees payable
on the Group's RCF at 31 January 2025 were £0.3m.
At 31 January 2025, the RCF was subject to covenants that are measured
quarterly in April, July, October and January, being Net Debt(7) to Adjusted
Trading EBITDA(7) of a maximum of 6.0x and interest cover of a minimum of
3.0x, based on measures as defined in the facility agreement, which are
adjusted from the equivalent IFRS amounts. The ratio of Net Debt(9) to
Adjusted Trading EBITDA(7) at 31 January 2025 was 4.7x and interest cover was
4.3x. The Group complied with the financial covenants of its borrowing
facilities during the prior year.
As a result of the Group securing new credit facilities on 30 January 2025
(see below), and drawing down on these on 27 February 2025, the former RCF was
cancelled at that date.
iii) Loan facility provided by Roger De Haan
In April 2023, the Group entered into a forward starting loan facility
provided by Roger De Haan, commencing on 1 January 2024, under which the Group
could draw down up to £50.0m with 30 days' notice to support liquidity needs
and specifically the repayment of £150.0m bonds maturing in May 2024. The
facility was provided on an arm's-length basis and was guaranteed by Saga plc,
Saga Mid Co Limited and Saga Services Limited. Per the original terms of
agreement, interest accrued on the drawn total of the facility at a rate of
10% and was payable on the last day of the period of the loan. The facility
was originally due to mature on 30 June 2025, at which point any outstanding
amounts, including interest, were due to be repaid. The facility was subject
to a 2% arrangement fee, payable on entering the arrangement. A drawdown fee
of 2% on any amount drawn down under the facility was payable on the drawing
date; and milestone fees of 2% on any uncancelled amount of the facility
became payable on 31 March 2024 and 31 December 2024 respectively.
In September 2023, the Group agreed an increase and extension to the existing
loan facility provided by Roger De Haan. The increase was for the value of
£35.0m, taking the total facility to £85.0m, and the facility was extended
to expire on 31 December 2025, previously 30 June 2025. The interest rate paid
on funds on the drawn total under this facility to finance the repayment of
notes issued by Saga, or to provide cash collateral demanded by providers of
bonding facilities to the Group, remained at 10%, but increased to 18% for any
amounts drawn to support general corporate purposes. In addition, the previous
arrangement and milestone fees of 2% remained payable; however, the drawdown
fee of 2% increased to 5% for drawdowns for general corporate purposes. The
amended facility was provided on the basis of certain conditions being met,
including that:
· no professional advisers were to be appointed to or retained by Saga
without prior approval of the Board; and
· no incremental financial indebtedness, over and above the
facilities already in place, was to be incurred by Group companies, including
contracts classed as finance lease arrangements under previous IFRS.
In April 2024, a reduction of the notice period required for drawdown of the
loan, to 10 business days, was agreed, in addition to a further extension to
the termination date of the facility, from 31 December 2025 to 30 April 2026.
In May 2024, the Group drew down £75.0m of the loan facility provided by
Roger De Haan.
In September 2024, an increase to the maximum number of permitted facility
utilisation requests was also agreed, from three to 10.
In November 2024, certain amendments were agreed in order to permit, among
other things, the guarantees to be granted in relation to the disposal of the
Group's Insurance Underwriting business and the establishment of the Affinity
Partnership with Ageas (Note 18a).
At 31 January 2025, the Group had drawn £75.0m of its £85.0m loan facility
provided by Roger De Haan. Accrued interest payable on the loan facility
provided by Roger De Haan at 31 January 2025 was £1.8m.
As a result of the Group securing new credit facilities on 30 January 2025
(see below), and drawing down on these on 27 February 2025, the loan facility
provided by Roger De Haan was repaid and cancelled at that date.
iv) Refinancing of corporate debt
On 30 January 2025, the Group announced that it had secured new credit
facilities to refinance its corporate debt in full. The new facilities, agreed
by Saga Mid Co Limited, with HPS Funds comprised:
· a £335.0m term loan facility that was to be drawn to:
o repay the £250.0m senior unsecured bond, maturing July 2026;
o repay the £75.0m drawings under the £85.0m loan facility provided by
Roger De Haan, maturing April 2026; and
o partially fund transaction costs;
· a £100.0m DDTL facility that is available for three years and may be drawn
for certain purposes, including the repayment of amortisation within the Ocean
Cruise ship debt facilities, mergers and acquisitions, and capital investment;
and
· a £50.0m RCF.
On 15 May 2025, as a continuation of the refinancing, the Group syndicated the
new £50.0m RCF, originally provided by HPS Funds, to NatWest and Barclays.
Under the revised structure, NatWest and Barclays committed a combined £33.4m
to the RCF, while the remaining £16.6m was reallocated to HPS Funds DDTL,
increasing its total commitment from £100.0m to £116.6m.
The term loan and DDTL loan facilities mature in January 2031 and are subject
to a margin ratchet based on the Group net Leverage Ratio(7) (ranging from
625bps to 700bps), priced with an initial margin of 675bps over SONIA, which
will reduce as the Group de-levers. The initial blended pro forma interest
rate was around 7.6% in combination with the Ocean Cruise ship debt
facilities, which were retained on existing terms. Interest payable under the
RCF is at SONIA plus an initial margin of 3.5%, with the margin reducing as
the Group de-levers.
Under the new credit facilities:
· the term loan and DDTL are subject to a covenant test that is measured
quarterly in April, July, October and January, being Net Debt(7) to
Consolidated Pro Forma EBITDA(7) of a maximum of 8.0x, based on measures as
defined in the facilities agreements, adjusted from the equivalent IFRS
amounts; and
· the RCF is also subject to a covenant, tested quarterly in April, July,
October and January, being Net Debt(7) to Consolidated Pro Forma EBITDA(7) of
a maximum of 8.8x, based on measures as defined in the facility agreement,
adjusted from the equivalent IFRS amounts.
Closing of the new credit facilities was subject to customary conditions and
took place on 27 February 2025, together with the repurchase, repayment and
cancellation of the £250.0m senior unsecured notes, the £85.0m loan facility
provided by Roger De Haan and the existing £50.0m RCF (see above).
The ratio of Net Debt(7) to Consolidated Pro Forma EBITDA(7) at 31 January
2026 was 3.7x, within the 8.0x covenant test. The Group complied with the
financial covenants of its borrowing facilities during the current and prior
periods.
Accrued interest payable on the Group's new credit facilities at 31 January
2026 was £5.5m.
b) Ocean Cruise ship loans
In June 2019, the Group drew down £245.0m of financing for its Ocean Cruise
ship, Spirit of Discovery. The financing represents a 12-year fixed-rate
sterling loan, secured against the Spirit of Discovery cruise ship asset, and
backed by an export credit guarantee. The initial loan was repayable in 24
broadly equal instalments, with the first payment of £10.2m paid in December
2019.
The Board announced on 22 June 2020 that it had secured a debt holiday and
covenant waiver for the Group's Ocean Cruise ship facilities. The Group's
lenders agreed to a deferral of £32.1m in principal payments under the ship
facilities that were due up to 31 March 2021.
These deferred amounts were to be paid between June 2021 and December 2024 for
Spirit of Discovery and between September 2021 and March 2025 for Spirit of
Adventure, and interest remained payable.
On 29 September 2020, the Group drew down £280.8m of financing for its Ocean
Cruise ship, Spirit of Adventure. The financing, secured against the Spirit of
Adventure cruise ship asset, represents a 12-year fixed-rate sterling loan,
backed by an export credit guarantee. The loan is repayable in 24 broadly
equal instalments, with the first payment originally due six months after
delivery in March 2021, but initially deferred to September 2021 as a result
of the debt holiday described above.
In March 2021, the Group reached agreement for a one-year extension to the
debt deferral on its Ocean Cruise ship facilities. As part of an industry-wide
package of measures to support the cruise industry, an extension of the
existing debt deferral was agreed to 31 March 2022. The key terms of this
deferral were:
· all principal payments to 31 March 2022 (£51.8m) deferred and repaid over
five years;
· all financial covenants until 31 March 2022 waived; and
· dividends remain restricted while the deferred principal is outstanding.
During the year to 31 January 2024, the Group concluded discussions with its
Cruise lenders in respect of the covenant restrictions attaching to its two
ship debt facilities. Lenders agreed to waive the EBITDA to debt repayment
covenant ratio for the 31 July 2023 testing date. In addition, lenders agreed
to amend the covenants on the two ship debt facilities to reduce the EBITDA to
debt repayment ratio from 1.2x to 1.0x for the additional periods up to, and
including, 31 January 2025.
Interest on the Spirit of Discovery ship loan is incurred at an effective
annual interest rate of 4.31% (including arrangement and commitment fees).
Interest on the Spirit of Adventure ship loan is incurred at an effective
annual interest rate of 3.30% (including arrangement and commitment fees).
Interest payable on the Group's Ocean Cruise ship debt deferrals is incurred
at a variable rate of SONIA plus a bank margin.
During the year to 31 January 2026, Ocean Cruise ship loan repayments of
£55.6m (2025: £62.2m) were made by the Group. Accrued interest payable on
the Group's Ocean Cruise ship loans at 31 January 2026 was £2.0m (2025:
£2.4m).
At 31 January 2026, the Ocean Cruise ship debt facilities were subject to
covenants that are measured six-monthly in July and January, being a debt
service cover ratio and an interest cover ratio, based on measures as defined
in the debt facility agreements, which are adjusted from the equivalent IFRS
amounts. The debt service ratio, at 31 January 2026, was 1.9x (2025: 1.4x), in
excess of the 1.2x covenant (2025: 1.0x) under the Ocean Cruise ship debt
facilities at the same date. The interest cover ratio, at 31 January 2026, was
12.2x (2025: 7.9x), in excess of the 2.0x covenant under the Ocean Cruise ship
debt facilities at the same date.
c) Total debt and finance costs
At 31 January 2026, deferred debt issue costs were £23.8m (2025: £12.7m).
The movement in the year of £11.1m represents an increase of £17.6m
following the drawdown of the new credit facilities, being offset by £6.5m
amortisation expense for the year.
During the year, the Group charged £63.3m (2025: £45.8m) to the income
statement in respect of interest, fees and charges associated with the bond,
RCF, the loan facility provided by Roger De Haan, term loan, DDTL and Ocean
Cruise ship loans. In addition, finance costs recognised in the income
statement include £2.5m (2025: £2.1m) relating to interest and finance
charges on lease liabilities, £2.1m (2025: £2.3m) relating to net finance
expense on pension schemes, and net fair value losses on derivatives of £0.7m
(2025: £0.3m). The Group complied with the financial covenants of its
borrowing facilities during the current and prior periods.
(7) The Group's former leverage ratio test was calculated as the ratio of the
sum of the carrying values of the Group's debt facilities less the amount of
Available Cash it held, to an adjusted Trading EBITDA that excluded the impact
of IFRS 9 'Financial Instruments', IFRS 15 'Revenue Recognition', IFRS 16
'Leases' and IFRS 17 'Insurance Contracts' and acted as the denominator in the
leverage ratio covenant calculation applicable to the RCF that was in place at
31 January 2025. Refer to the Alternative Performance Measures Glossary for
the full definition and explanation of Available Cash and Trading EBITDA
16 Called up share capital
£m
Ordinary shares
Nominal value
£
Value
£m
Number
Allotted, called up and fully paid
At 1 February 2024 141,795,822 0.15 21.3
Issue of shares - 3 May 2024 1,565,919 0.15 0.2
At 31 January 2025 143,361,741 0.15 21.5
Issue of shares - 14 July 2025 1,493,744 0.15 0.2
At 31 January 2026 (unaudited) 144,855,485 0.15 21.7
On 3 May 2024, Saga plc issued 1,565,919 new ordinary shares of 15p each, with
a value of £0.2m, for transfer into an employee benefit trust to satisfy
employee incentive arrangements. The newly issued shares rank pari passu with
existing Saga shares.
On 14 July 2025, Saga plc issued 1,493,744 new ordinary shares of 15p each,
with a value of £0.2m, for transfer into an employee benefit trust to satisfy
employee incentive arrangements. The newly issued shares rank pari passu with
existing Saga shares.
17 Share-based payments
The Group granted a number of different equity-based awards that it has
determined to be share-based payments. New awards granted during the year were
as follows:
a) On 28 May 2025, nil cost options over 655,094 shares were issued
under the DBP to Executive Directors, reflecting their deferred bonus in
respect of 2024/25, which vest and become exercisable on the third anniversary
of the grant date. Under the DBP, executives receive a maximum of two-thirds
of the bonus award in cash and a minimum of one-third in the form of rights to
shares of the Company. There were no cash settlement alternatives.
b) On 25 June 2025, nil cost options over 1,533,377 shares were issued
under the RSP to certain Directors and other senior employees that vest and
become exercisable on the third anniversary of the grant date, subject to
continuing employment. There were no cash settlement alternatives.
The Group charged £3.9m (2025: £4.2m) during the year to the income
statement in respect of equity-settled share-based payment transactions. This
was charged to administrative and selling expenses.
18 Discontinued operations and assets held for sale
a) Discontinued operations
Further to the announcement made on 16 December 2024, the Group completed the
disposal of its Insurance Underwriting business, AICL, to Ageas on 1 July
2025. This followed receipt of regulatory approval and all other conditions
associated with the sale being satisfied.
In addition, on 16 December 2024, the Group announced it had entered into a
binding agreement with Ageas to establish a 20-year Affinity Partnership for
motor and home insurance.
Pursuant to a share purchase agreement (SPA), Ageas UK acquired AICL for a
base consideration of £65.0m (subject to adjustments) and an additional
consideration of £2.5m which was paid following the commencement of the
Affinity Partnership and, therefore, the sale of new policies and the renewal
of existing ones, in December 2025.
The profit before tax in the income statement in respect of discontinued
operations comprises:
2026 2025
(unaudited)
£m £m
Profit before tax 12.6 22.7
Costs of disposal incurred to date - (3.6)
Loss on disposal of discontinued operations (10.2) -
2.4 19.1
The (loss)/profit after tax in the income statement in respect of discontinued
operations comprises:
2026 2025
(unaudited)
£m £m
Profit after tax 9.7 16.5
Costs of disposal incurred to date, net of tax - (2.7)
Loss on disposal of discontinued operations, net of tax (10.2) -
(0.5) 13.8
The impact of the discontinued operations on the reported earnings/(loss) per
share is as follows:
2026 2025
(unaudited)
£m £m
Basic (loss)/earnings per share from (0.4p) 9.8p
discontinued operations
Diluted (loss)/earnings per share from (0.4p) 9.8p
discontinued operations
The loss on disposal of AICL is as follows:
2026
(unaudited)
£m
Initial cash consideration received at completion (after adjustments to base 57.9
consideration)
Additional cash consideration receivable (after adjustments to base 10.9
consideration)
Additional consideration received following the commencement of the Affinity 2.5
Partnership
Costs of disposal not previously provided for (2.5)
Amounts recognised as a liability of the Group in respect of properties (15.7)
Receipt of a Section 75 contribution in relation to AICL's share of pension 3.2
scheme liabilities
Cash and cash equivalents deposits disposed of as part of the transaction (84.4)
Carrying value of net liabilities disposed 17.9
(10.2)
The adjustments made to the base consideration included receipt of a Section
75 contribution of £3.2m in relation to AICL's share of the pension scheme's
liabilities, a property asset value adjustment in respect of its Solvency II
value, and a net asset value adjustment reflecting the excess of AICL's
Solvency II net asset valuation at completion.
Control over property assets, previously owned by AICL, transferred to a
subsidiary of Saga plc at the point of sale, through the contractual
arrangements contained within the SPA. These property assets are not,
therefore, reflected in the carrying value of the net assets disposed reported
above. A liability in respect of these property assets of £15.7m is recorded
within the trade and other payables balance on the Group's consolidated
statement of financial position, representing amounts payable to Ageas UK upon
the earlier of a future sale of these properties to a third-party purchaser
and the repurchase of the freehold by a subsidiary of Saga plc. All amounts
payable are expected to be settled within two years of the end of the year.
For the year ended 31 January 2026, all cash flows relating to the disposal of
AICL have been included under investing activities within the consolidated
statement of cash flows.
'Disposal group eliminations and adjustments' referred to in the tables below
comprise the following:
· The Group adopted IFRS 17 for the first time in the year ended 31
January 2024. IFRS 17 applies to all insurance and reinsurance contracts,
covering the principles of recognition, measurement, presentation and
disclosure. IFRS 17 only applies to insurance contracts that are underwritten
by the Group and related reinsurance contracts held. It does not affect the
accounting for the Group's Insurance Broking activities. As AICL, the Group's
Insurance Underwriting business, has been classified as part of the disposal
group held for sale in the statement of financial position and as discontinued
operations in the income statement, all IFRS 17 related consolidation entries
have also been classified as such accordingly.
· Intra-disposal group revenue and cost of sales were eliminated on
consolidation.
· Inter-group transactions with the disposal group were eliminated on
consolidation.
i) Results of the disposal group for the year
Disposal group Disposal group eliminations and adjustments 2026
(unaudited) (unaudited) (unaudited)
Note £m £m £m
Revenue from Insurance Broking services 8.5 (11.7) (3.2)
Other revenue (non-Insurance Underwriting) 1.7 - 1.7
Non-insurance revenue 10.2 (11.7) (1.5)
Insurance revenue 14 62.4 4.2 66.6
Total revenue 72.6 (7.5) 65.1
Cost of sales (non-Insurance Underwriting) (7.4) 8.9 1.5
Gross profit/(loss) (non-Insurance Underwriting) 2.8 (2.8) -
Insurance service expenses 14 (45.3) (17.2) (62.5)
Net (expense)/income from reinsurance contracts 14 (6.3) 0.7 (5.6)
Insurance service result 10.8 (12.3) (1.5)
Administrative and selling expenses (1.4) 14.0 12.6
Net finance expense from insurance contracts 14 (5.3) - (5.3)
Net finance income from reinsurance contracts 14 2.2 - 2.2
Investment income/(charge) 6.0 (1.4) 4.6
Profit/(loss) before tax 15.1 (2.5) 12.6
Income tax expense (0.9) (2.0) (2.9)
Profit/(loss) from discontinued operations attributable to equity holders of 14.2 (4.5) 9.7
the parent
Disposal group Disposal group eliminations and adjustments 2026
(unaudited) (unaudited) (unaudited)
£m £m £m
Reconciliation to Underlying Profit/(Loss) Before Tax(8)
Profit before tax 15.1 (2.5) 12.6
Fair value gains on debt securities (2.2) - (2.2)
Changes in underwriting discount rates on non-PPO liabilities 0.1 - 0.1
Onerous contract provision 2.2 2.1 4.3
Restructuring costs 0.4 - 0.4
Underlying Profit/(Loss) Before Tax(8) 15.6 (0.4) 15.2
Disposal group Disposal group eliminations and adjustments 2025
Note £m £m £m
Revenue from Insurance Broking services 21.1 (29.5) (8.4)
Other revenue (non-Insurance Underwriting) 8.1 (0.1) 8.0
Non-insurance revenue 29.2 (29.6) (0.4)
Insurance revenue 14 186.4 10.7 197.1
Total revenue 215.6 (18.9) 196.7
Cost of sales (non-Insurance Underwriting) (19.5) 17.1 (2.4)
Gross profit/(loss) (non-Insurance Underwriting) 9.7 (12.5) (2.8)
Insurance service expenses 14 (101.5) (22.8) (124.3)
Net expense from reinsurance contracts 14 (66.5) (0.7) (67.2)
Insurance service result 18.4 (12.8) 5.6
Administrative and selling expenses (2.1) 23.1 21.0
Impairment of non-financial contracts (4.1) - (4.1)
Net finance expense from insurance contracts 14 (15.5) - (15.5)
Net finance income from reinsurance contracts 14 7.3 - 7.3
Investment income/(expense) 14.5 (3.3) 11.2
Profit/(loss) before tax 28.2 (5.5) 22.7
Income tax (expense)/credit (7.1) 0.9 (6.2)
Profit/(loss) from discontinued operations attributable to equity holders of 21.1 (4.6) 16.5
the parent
Disposal group Disposal group eliminations and adjustments 2025
£m £m £m
Reconciliation to Underlying Profit/(Loss) Before Tax(8)
Profit/(loss) before tax 28.2 (5.5) 22.7
Fair value gains on debt securities (5.1) - (5.1)
Changes in underwriting discount rates on non-PPO liabilities (0.6) - (0.6)
Onerous contract provision (17.1) 4.1 (13.0)
Impairment of assets 6.3 - 6.3
Restructuring costs 0.3 - 0.3
Underlying Profit/(Loss) Before Tax(8) 12.0 (1.4) 10.6
ii) Net cash flows of the disposal group
The net cash flows of the disposal group during the year were as follows:
2026 2025
(unaudited)
£m £m
Operating (11.1) 14.9
Investing 31.3 45.0
Financing (10.0) (19.1)
Net cash inflow 10.2 40.8
a) Property assets held for sale
At the end of the year ended 31 January 2021, the Group made the decision to
initiate an active programme to locate buyers for a number of its freehold
properties and one of its long leasehold properties. At the point of
reclassification to held for sale, the carrying values were considered to be
equal to, or below, fair value less costs to sell, and hence no revaluation at
the point of reclassification was required.
At the end of the year ended 31 January 2023, the Group made the decision to
initiate an active programme to locate buyers for a further two of its
freehold properties. The Group also reclassified, to held for sale, the
related fixtures and fittings associated with one of these freehold
properties.
At 31 January 2023, the carrying values of the properties classified as held
for sale, totalling £31.2m, were representative of either each property's
fair value or historic cost less accumulated depreciation and any impairment
charges to date, whichever was lower.
During the year ended 31 January 2024, the Group declassified one of the
properties held for sale at 31 January 2023, to property, plant and equipment,
since it was no longer being actively marketed for disposal. The carrying
value of this property at 31 January 2023 was £3.4m. Other than this one
property, there were no changes in relation to the Group's intention to sell
any of the properties classified as held for sale at 31 January 2023.
At 31 January 2024, the Group obtained updated market valuations of its
freehold properties held for sale, to determine the fair value of each
building. As a consequence of the remeasurement of the properties to the lower
of fair value less cost to sell and the carrying value, management concluded
that net impairment charges totalling £10.4m should be recognised against the
Group's property assets held for sale.
At 31 January 2024, the carrying values of the properties classified as held
for sale, totalling £17.4m, were representative of either each property's
fair value or historic cost less accumulated depreciation and any impairment
charges to date, whichever was lower.
During the year ended 31 January 2025, the Group declassified one of the
properties to property, plant and equipment, since it was no longer being
actively marketed for disposal. The carrying value of this property at 31
January 2025 was £6.0m.
At 31 January 2025, the Group obtained updated market valuations of its
freehold properties held for sale, to determine the fair value of each
building. As a consequence of the remeasurement of the properties to the lower
of fair value less cost to sell and the carrying value, management concluded
that net impairment charges totalling £0.4m should be recognised against the
Group's property assets held for sale.
At 31 January 2026, the Group again obtained updated market valuations of its
freehold properties held for sale. The carrying values of the properties,
totalling £11.0m, were representative of either each property's fair value or
historic cost less accumulated depreciation and any impairment charges to
date, whichever is lower. No gains or losses were recognised with respect to
the properties during the year. The properties continue to be actively
marketed, with completion expected within 12 months of the end of the
financial period, although the Directors note that a successful completion
within this timeframe cannot be assured. All properties classified as held for
sale at 31 January 2026 are held by continuing operations.
(8) Refer to the Alternative Performance Measures Glossary for definition and
explanation
19 Related party transactions
As set out in Note 15, in April 2023, the Group entered into a forward
starting loan facility provided by Roger De Haan, commencing on 1 January
2024, under which the Group could draw down up to £50.0m with 30 days' notice
to support liquidity needs and specifically the repayment of £150.0m bonds
maturing in May 2024. The facility was provided on an arm's-length basis and
was guaranteed by Saga plc, Saga Mid Co Limited and Saga Services Limited. Per
the original terms of agreement, interest accrued on the drawn total of the
facility at a rate of 10% and was payable on the last day of the period of the
loan. The facility was originally due to mature on 30 June 2025, at which
point any outstanding amounts, including interest, were due to be repaid. The
facility was subject to a 2% arrangement fee, payable on entering the
arrangement.
A drawdown fee of 2% on any amount drawn down under the facility was payable
on the drawing date; and milestone fees of 2% on any uncancelled amount of the
facility became payable on 31 March 2024 and 31 December 2024 respectively.
In September 2023, the Group agreed an increase and extension to the existing
loan facility provided by Roger De Haan. The increase was for the value of
£35.0m, taking the total facility to £85.0m, and the facility was extended
to expire on 31 December 2025, previously 30 June 2025. The interest rate paid
on funds on the drawn total under this facility to finance the repayment of
notes issued by Saga, or to provide cash collateral demanded by providers of
bonding facilities to the Group, remained at 10%, but increased to 18% for any
amounts drawn to support general corporate purposes. In addition, the previous
arrangement and milestone fees of 2% remained payable; however, the drawdown
fee of 2% increased to 5% for drawdowns for general corporate purposes. The
amended facility was provided on the basis of certain conditions being met,
including:
· no professional advisers were to be appointed to or retained by
Saga without prior approval of the Board; and
· no incremental financial indebtedness, over and above the
facilities already in place, was to be incurred by Group companies, including
contracts classed as finance lease arrangements under previous IFRS.
In April 2024, a reduction of the notice period required for drawdown of the
loan to 10 business days was agreed, in addition to a further extension to the
termination date of the facility, from 31 December 2025 to 30 April 2026.
In May 2024, the Group drew down £75.0m of the loan facility provided by
Roger De Haan.
In September 2024, an increase to the maximum number of permitted facility
utilisation requests was also agreed, from three to 10.
In November 2024, certain amendments were agreed in order to permit, among
other things, the guarantees to be granted in relation to the disposal of the
Group's Insurance Underwriting business and the establishment of the Affinity
Partnership with Ageas (Note 18a).
At 31 January 2025, the Group had drawn £75.0m of its £85.0m loan facility
provided by Roger De Haan. Accrued interest payable on the loan facility
provided by Roger De Haan at 31 January 2025 was £1.8m.
As a result of the Group securing new credit facilities on 30 January 2025
(please refer to Note 15), and drawing down on these on 27 February 2025, the
loan facility provided by Roger De Haan was repaid and cancelled at that date.
Alternative Performance Measures Glossary
The Group uses a number of Alternative Performance Measures (APMs), which are
not required or commonly reported under International Financial Reporting
Standards (IFRS), the Generally Accepted Accounting Principles (GAAP) under
which the Group prepares its financial statements, but which are used by the
Group to help the user of the accounts better understand the financial
performance and position of the business.
Definitions for the primary APMs used in this report are set out below. APMs
are usually derived from financial statement line items and are calculated
using consistent accounting policies to those applied in the financial
statements, unless otherwise stated. APMs may not necessarily be defined in a
consistent manner to similar APMs used by the Group's competitors. They should
be considered as a supplement to, rather than a substitute for, GAAP measures.
Underlying Revenue
Underlying Revenue represents revenue excluding ceded reinsurance premiums
earned on business underwritten by the Group, the Insurance Broking onerous
contract provision, the prior year AXA profit share payable on cessation of
the private medical insurance (PMI) contract, the release of deferred revenue
associated with motor and home three-year fixed-price policies, modification
of Travel breakage policy and revenue associated with the exit from some of
our smaller, loss-making activities.
This measure is useful for presenting the Group's underlying trading
performance as it excludes non-cash technical accounting adjustments and
one-off financial impacts that are not expected to recur. In the case of the
Insurance Broking onerous contract provision, this is excluded due to it being
a fair value type adjustment to revenue that will reverse over time.
Underlying Revenue reconciles to the statutory measure of revenue as follows:
£m 12m to Jan 2026 Change 12m to Jan 2025
Underlying Revenue 715.0 (6.9%) 768.2
Ceded reinsurance premiums earned on business underwritten by the Group 4.7 (72.5%) 17.1
Included within discontinued operations (65.1) 66.9% (196.7)
Underlying Revenue from continuing operations 654.6 11.2% 588.6
Insurance Broking onerous contract provision 1.3 (27.8%) 1.8
AXA profit share payable on cessation of PMI contract - 100.0% (2.6)
Release of deferred revenue on three-year fixed price policies 7.0 100.0% -
Modification of Travel breakage policy (3.0) (100.0%) -
Exit from smaller, loss-making activities 0.1 (80.0%) 0.5
Revenue per statutory financial statements 660.0 12.2% 588.3
Underlying Profit Before Tax
Underlying Profit Before Tax represents the profit/(loss) before tax excluding
the impairment of Insurance Broking goodwill and the following other
exceptional items:
· release of deferred revenue associated with motor and home
three-year fixed-price policies;
· Affinity Partnership transition;
· loss on disposal of subsidiaries, including the write-off of the
written to earned adjustment;
· costs and fees associated with the Group's previous corporate
debt, including accelerated amortisation of fees relating to the loan facility
provided by Roger De Haan;
· net unrealised fair value losses on derivatives;
· Ocean Cruise dry dock costs and customer compensation;
· impairment of the carrying value of non-financial assets;
· impact of change in the discount rate on non-periodical payment
order (PPO) liabilities(1);
· fair value gains on debt securities;
· foreign exchange gains/(losses) on River Cruise ship leases;
· movements in insurance onerous contract provisions (net of
reinsurance recoveries(2));
· profit share payable to AXA on cessation of the PMI contract;
· the IFRS 16 lease accounting adjustment on River Cruise vessels;
· restructuring costs; and
· modification of Travel breakage policy.
It is reconciled to statutory loss before tax within the Group Chief Financial
Officer's Review.
This measure is the Group's key performance indicator and is useful for
presenting the Group's underlying trading performance, as it excludes non-cash
technical accounting adjustments due to their volatility and one-off financial
impacts that are not expected to recur.
As Underlying Profit Before Tax includes the benefits of restructuring
programmes, but excludes significant costs, such as the impairment of
non-financial assets and restructuring items, it should not be regarded as a
complete picture of the Group's financial performance, which is presented in
its financial statements. The exclusion of other underlying items may result
in Underlying Profit Before Tax being materially higher or lower than reported
loss before tax. In particular, when significant non-financial asset
impairments and restructuring charges are excluded, Underlying Profit Before
Tax will be higher than earnings reported in the financial statements.
Trading EBITDA
Trading EBITDA is defined as earnings before interest payable, tax,
depreciation and amortisation, and excludes exceptional items and impairments.
Trading EBITDA, on a rolling 12-month basis, is a key component of
Consolidated Pro Forma EBITDA (see below), which acts as the denominator in
the Group's Leverage Ratio covenant calculations applicable to the term loan,
delayed-draw term loan (DDTL) and Revolving Credit Facility (RCF) that were in
place at 31 January 2026. It reconciles to Total Underlying Profit Before Tax
as follows:
£m 12m to Change 12m to
Jan 2026 Jan 2025
Ocean Cruise Trading EBITDA 105.3 18.0% 89.2
River Cruise Trading EBITDA 5.9 47.5% 4.0
Holidays Trading EBITDA 15.2 40.7% 10.8
Insurance Broking Trading EBITDA 20.2 (9.8%) 22.4
Insurance Underwriting Trading EBITDA 18.6 (5.1%) 19.6
Other Businesses and Central Costs Trading EBITDA (12.1) (36.0%) (8.9)
Trading EBITDA 153.1 11.7% 137.1
Depreciation and amortisation (32.5) 8.2% (35.4)
Net finance costs (including Ocean Cruise and Insurance Underwriting) (61.2) (13.5%) (53.9)
Total Underlying Profit Before Tax 59.4 24.3% 47.8
£m 12m to Change 12m to
Jan 2026 Jan 2025
Trading EBITDA 153.1 11.7% 137.1
Insurance Broking Trading EBITDA from discontinued operations 0.4 126.7% (1.5)
Insurance Underwriting Trading EBITDA from discontinued operations (18.6) 5.1% (19.6)
Trading EBITDA from continuing operations 134.9 16.3% 116.0
£m 12m to Change 12m to
Jan 2026 Jan 2025
Depreciation and amortisation per above table 32.5 8.2% 35.4
Depreciation included within other exceptional items 4.5 4.3% 4.7
Depreciation and amortisation per statutory financial statements 37.0 7.7% 40.1
£m 12m to Change 12m to
Jan 2026 Jan 2025
Net finance costs (including Ocean Cruise and Insurance Underwriting) per 61.2 (13.5%) 53.9
above table
Included within other exceptional items 10.4 (92.6%) 5.4
Included within discontinued operations (3.0) (65.9%) (8.8)
Net finance costs per consolidated income statement 68.6 (35.8%) 50.5
Consolidated Pro Forma EBITDA
Consolidated Pro Forma EBITDA represents Trading EBITDA, excluding the impact
of IFRS 16 'Leases' and the Trading EBITDA associated with the disposed
Insurance Underwriting business and acts as the denominator in the Group's
Leverage Ratio covenant calculation applicable to the term loan, DDTL and RCF.
Consolidated Pro Forma EBITDA is calculated as follows:
£m 12m to Change 12m to
Jan 2026 Jan 2025
Trading EBITDA 153.1 11.7% 137.1
Impact of IFRS 16 (1.6) 36.0% (2.5)
Impact of disposal of Insurance Underwriting (18.2) (100.0%) -
Consolidated Pro Forma EBITDA 133.3 (1.0%) 134.6
Gross Written Premiums
Gross Written Premiums represent the total premium that the Group charges to
customers for a core insurance product, excluding insurance premium tax but
before the deduction of any outward reinsurance premiums, measured with
reference to the cover start date of the policy. This measure is widely used
by insurers so provides a meaningful comparison of performance with our peers.
It is analysed further within the Group Chief Financial Officer's Review.
Written Gross Profit After Marketing Expenses
Written Gross Profit After Marketing Expenses is calculated as written
revenue, less cost of sales and marketing expenses. This measure provides a
meaningful view of the contribution of each Insurance Broking product, before
accounting for operating expenses, and is analysed further within the Group
Chief Financial Officer's Review.
Underlying Basic Earnings Per Share
Underlying Basic Earnings Per Share represents the basic earnings/(loss) per
share excluding the post-tax effect of:
· release of deferred revenue associated with motor and home
three-year fixed-price policies;
· Affinity Partnership transition;
· loss on disposal of subsidiaries, including the write-off of the
written to earned adjustment;
· costs and fees associated with the Group's previous corporate
debt, including accelerated amortisation of fees relating to the loan facility
provided by Roger De Haan;
· net unrealised fair value losses on derivatives;
· Ocean Cruise dry dock costs and customer compensation;
· impairment of the carrying value of non-financial assets;
· impact of change in the discount rate on non-PPO liabilities(1);
· fair value gains on debt securities;
· foreign exchange gains/(losses) on River Cruise ship leases;
· movements in the insurance onerous contract provisions (net of
reinsurance recoveries(2));
· profit share payable to AXA on cessation of PMI contract;
· the IFRS 16 lease accounting adjustment on River Cruise vessels;
· restructuring costs; and
· modification of Travel breakage policy.
This measure is reconciled to the statutory basic earnings/(loss) per share in
Note 6 to the accounts. This measure is linked to the Group's key performance
indicator, Underlying Profit Before Tax, and represents what management
considers to be the underlying shareholder value generated in the period.
Available Cash
Available Cash represents cash held by subsidiaries within the Group that is
not subject to regulatory restrictions, net of any overdrafts held by those
subsidiaries, and excludes additional amounts paid into an escrow account
relating to the Saga Pension Scheme. This measure is reconciled to the
statutory measure of cash in Note 12 to the accounts.
Available Operating Cash Flow
Available Operating Cash Flow is net cash flow from operating activities after
capital expenditure but before income tax received, interest paid,
restructuring costs and other one-off payments, which is available to be used
by the Group as it chooses and is not subject to regulatory restriction.
Available Operating Cash Flow reconciles to net cash flows from operating
activities as follows:
£m 12m to 12m to
Jan 2026 Change Jan 2025
Net cash flows from operating activities (reported) 117.0 3.4% 113.2
Exclude cash impact of:
Trading of restricted divisions (25.9) 58.2% (61.9)
Restructuring costs and other one-off payments 48.2 77.9% 27.1
Interest paid 49.9 19.7% 41.7
Income tax received (0.4) 88.9% (3.6)
71.8 >500.0% 3.3
Cash released from restricted divisions 26.2 13.9% 23.0
Capital expenditure funded from Available Cash (20.6) (12.0%) (18.4)
Cash collateralised Association of British Travel Agents bonding 11.5 200.0% (11.5)
Available Operating Cash Flow 205.9 87.9% 109.6
Net Debt
Net Debt is the sum of the carrying values of the Group's debt facilities and
pre-IFRS 16 lease liabilities less the amount of Available Cash it holds and
acts as the numerator in the Group's Leverage Ratio covenant calculation
applicable to the term loan, DDTL and RCF. It is analysed further within the
Group Chief Financial Officer's Review.
Leverage Ratio
Leverage Ratio is the ratio of Net Debt to Consolidated Pro Forma EBITDA as of
the last day of a relevant period. It is a key metric used to report the
Group's capacity to service its debt.
1 This adjustment reduces the risk of residual volatility from changes in
market interest rates adversely affecting Underlying Profit Before Tax
2 The IFRS 17 onerous contract requirements create a timing mismatch between
when claims are incurred and when they are recognised in profit before tax.
Underlying Profit Before Tax adjusts for this timing mismatch by reversing the
impact of these requirements
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