- Saga reported revenue of £258.3 million.
- The group reduced its full-year pre-tax profit to between £20 million and £30 million.
- Saga shares tumbled 19%.
Saga reported its interim results for the first half of the year, which saw the group slash its profit targets for the year.
The company delivered strong results in the first half, with revenue increasing 65% to £258.3 million. In addition, Underlying Profit Before Tax came in at £14 million, surging 600% compared to a loss of £2.8 million in the prior year.
Furthermore, net debt was reduced to £721.3 million, which was £7.7 million lower than on 31 January. So far, so good.
“I am pleased to report that, for the first six months of the year, Saga returned to an underlying profit, as we were able to resume more normal cruise and travel operations,” said Euan Sutherland, Saga CEO.
However, despite Sutherland remaining mindful of the external environment, he stated, “we are confident that Saga is now in a stronger position than it was before the pandemic.”
Although, the problems for Saga stem from its reduced outlook. The group expects to post a full-year pre-tax profit of £20 million and £30 million, compared to its previous guidance of £35 million to £50 million.
The company downgraded its expectations due to high levels of claims inflation, and the cost of claims is expected to remain high.
Saga shares are down 19%, following the report.