Shares in over-50s specialist Saga have climbed further on Friday after an 8.6% surge on Thursday, reflecting growing market confidence in the group’s return to profitability.
Shares in Saga plc surged 8.6% on Thursday and are trading higher again on Friday, as markets continue to price in the over-50s travel and insurance group’s return to profitability confirmed by its most recent full-year results.
Shares closed at 595p on Thursday, up from 548p the previous day, before extending the advance to around 610p in early trading on the London Stock Exchange on Friday. The stock has risen sharply over the past 12 months as the group’s operational recovery has gathered pace, trading well above its 200-day moving average of 433p.
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Full-Year Results Beat Expectations
On 15 April, Saga released preliminary results for the year ended 31 January 2026, reporting underlying profit before tax from continuing operations of £44.2 million, up 19% year on year and ahead of management guidance. Group net income returned to a profit of £3.6 million. Travel proved the key driver, with chief executive Mike Hazell noting it had become “our largest and fastest-growing driver of profit”: travel underlying profit before tax rose 37% to £87.2 million. Ocean Cruise delivered a particularly strong performance, with profit up 38% to £67.3 million, load factors reaching 93%, and per-diem spending rising 10% to £394. Forward bookings for the current trading year show ocean cruise load factors already at 79%, with per diems of £447, 13% ahead of the same point last year.
The strong cash generation accompanying the profit turnaround allowed significant debt repayment: available operating cash flow rose 88% to £205.9 million, and net debt fell to £499.5 million. Saga restructured its insurance business during the year, selling its in-house underwriter Acromas Insurance Co Ltd (AICL) and launching a commission-based partnership with Ageas that is expected to generate approximately £80 million in total proceeds, removing underwriting risk from the balance sheet. Group debt was refinanced onto a new 2031 facility with £150 million of undrawn committed lines, removing near-term maturity concerns.
Analysts carry a consensus price target of 725p, according to EODHD data. Hazell said the year’s progress had increased management’s confidence in reaching its target of £100 million profit by January 2030. The company’s 2026 annual general meeting is scheduled for 11am on Tuesday 30 June, the next formal opportunity for management to update shareholders. Guidance points to further profit growth in Ocean Cruise and Insurance Broking profitability “at least in line” with 2025/26 levels.