Saga sails to still waters after storm

By the Editorial Team · Thursday, October 1, 2026

Saga Group Plc reported a 12% revenue increase and a more than 500% rise in underlying profit before tax to £28 million in the first half of fiscal 2024, leading it to raise its profit guidance and speed up its £100 million profit target timeline. The company’s improved financial position and strategic focus on its cruise business have driven a turnaround that could see it reach its medium-term profit goals earlier than planned.

Saga Group Plc reported a strong financial performance for the first half of its 2024 fiscal year, prompting the company to raise its profit guidance and accelerate its timeline to achieve a £100 million underlying profit target. The UK-based company, which primarily serves customers over 50, said it expects underlying profit before tax to be “materially higher” than the previous year, projecting a range between £65 million and £70 million for the full year.

Revenue climbed 12% to £367.5 million during the period, while underlying profit before tax surged over 500%, rising from £3.7 million to £28 million. In addition, Saga reduced its net debt by £70 million to £429.1 million, reflecting ongoing efforts to improve the group’s financial position and operational focus.

Saga has been executing a long-term turnaround strategy that includes exiting the underwriting of insurance policies and concentrating more on its cruise business. The group has also worked to reduce the substantial debt burden it accumulated during its period under private equity ownership. These efforts have contributed to a notable recovery in the company’s share price, which has risen more than 130% over the past year. Shares closed at 787 pence, up 22.8%, or 146 pence, on the latest trading day.

Mike Hazell, Saga’s chief executive, emphasized the progress made in simplifying the business and enhancing customer focus, saying the results demonstrate the resilience of Saga’s business model amid economic uncertainties and global market volatility. He expressed confidence that the company would surpass its medium-term targets ahead of schedule.

Saga’s return to profitability follows a turbulent period after its 2014 initial public offering on the London Stock Exchange. The flotation, which involved about 200,000 retail shareholders many of whom were customers, initially resulted in difficulties due to a high debt load of approximately £700 million. The company’s turnaround has been supported in part by financing from Sir Roger De Haan, Saga’s non-executive chairman and the son of the company’s founder.

Looking forward, Saga aims to reach an underlying profit before tax of £100 million by 2030, a target it now anticipates achieving sooner than expected based on recent performance trends.

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