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Saga results to be positive on recovering travel

Published 25/09/2023, 09:41
© Reuters.  Saga results to be positive on recovering travel
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Proactive Investors - Saga PLC (LON:SAGA) should offer some positive news in its interim results thanks to the recovering travel sector, though margins could be feeling the pinch, brokers say.

Due to report on Wednesday 27 September, travel and insurance firm Saga will delve into results for the six months to July.

According to Peel Hunt (LON:PEEL), travel revenue should improve as the company’s cruise business benefits from the post-pandemic resurgence in travel.

Revenue of £258.3 million in the first half of 2022 had already seen the London-listed firm pen improvements following lockdown-hit years.

Underlying profit came in at £14 million last time, as net debt reduced marginally to £721.3 million.

Demand should continue to grow throughout this year, Saga added in April’s full-year results announcement, as the company targets an 80% load factor on its ships.

Insurance remains a different story, however, with high inflation having already hit the business in 2022.

Saga had hinted toward lower motor and home insurance sales for the current year, leaving all eyes on any updates on the firm’s sale of its underwriting business, Peel Hunt added.

Despite the worse outlook for Saga’s insurance business, Peel Hunt tipped full-year earnings per share should come in at 20.7p, well above last year’s interim EPS of 6.1p.

Read more on Proactive Investors UK

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