UK's Saga H1 revenue rises 12% on Insurance Broking strength

By Reuters News


Overview

  • UK over-50s specialist's H1 revenue rose 12% yr/yr to £367.5 mln

  • Underlying profit before tax for H1 nearly doubled, driven by Travel and Insurance growth

  • Company cut net debt and leverage, and upgraded full-year profit guidance


Outlook

  • Saga raises full-year underlying profit before tax guidance to £65-70 mln

  • Company expects net debt and leverage ratio to remain broadly flat for the full year

  • Saga likely to achieve medium-term targets ahead of January 2030


Result Drivers

  • TRAVEL DEMAND - Strong customer demand and increased passenger numbers in Ocean Cruise, River Cruise and Holidays drove revenue and profit growth

  • INSURANCE POLICY GROWTH - Higher volumes of travel and private medical insurance policies and progress in motor and home insurance transition boosted Insurance Broking profits

  • OPERATIONAL SIMPLIFICATION - Simplified business model, strategic partnerships and reduced capital expenditure supported improved cash generation and profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 367.50 mln

H1 Adjusted Pretax Profit

GBP 46.60 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

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

  • Wall Street's median 12-month price target for Saga PLC is GBp907.50, about 41.6% above its September 29 closing price of GBp641.00

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


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


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

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