Robust demand for cruises at Saga have helped the group focused on the over-50s to offset tougher conditions at its insurance division.
Euan Sutherland, Saga’s chief executive, said its ocean cruises had enjoyed “strong bookings”, with the business reporting a load factor of 79 per cent for the 2023-24 season by mid-June. That was seven percentage points higher than at the same point last year, while the opening of bookings for the 2024-25 ocean cruises season had been Saga’s strongest ever, it said.
This helped to counter a “challenging market” in insurance broking, where policy sales in the four months to the end of May lagged last year by 6 per cent.
Sutherland, 54, said: “In insurance, market conditions, particularly in motor, continue to weigh on our group result.”
Saga was set up 72 years ago by Sidney De Haan as a provider of low-cost holidays to the retired. However, its shares have tumbled by more than 90 per cent in the past five years after the Covid pandemic hit its cruises and holidays businesses and its insurance division faced difficulties.
The group is looking to sell its insurance underwriting operations as part of a plan to reduce its borrowing costs. Net debts stood at PS711.7 million at the end of January, while its available cash totalled PS149.5 million as of May 31.
Saga shares rose 5 1/2p, or 4.1 per cent, to close at 135 3/4p.
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