Saga has recorded a 19% increase in its underlying profit before tax, totalling £44.2m in the year to 31 January, which was ahead of its guidance despite expected higher finance costs.

In this time, the products and services provider for over-50s posted a £2.1m statutory profit before tax, after recording a £160.2m loss in the previous financial year.

The firm’s underlying revenue also jumped by 11% to £654.6m, with growth across both its travel and insurance divisions.

Furthermore, the group has recorded a 16% reduction in its net debt, which totalled £499.5m.

The results come after Saga launched a motor and home insurance partnership with Ageas, which it said marks a "major step forward" in the simplification of its insurance broking operations with the support of a "first-class" insurance partner.

In its outlook, the group said that it is looking forward to the current financial year “with confidence” and expects to deliver continued growth in both profit and cash generation.

Its underlying profit before tax is also expected to take a further step forward, with its travel division recording strong forward bookings, while its insurance broking division is set to be at least in line with the 2025/26 and ahead of previous guidance as the Ageas partnership become fully embedded.

Shares in Saga jumped by 6% following the preliminary results publication.

Group chief executive officer at Saga, Mike Hazell, said that the 2026 financial year was "transformational" for the firm.

He concluded: "The restructuring of our insurance business, and the partnership with Ageas, derisks and simplifies our operating model, creating a more stable platform for growth. Alongside this, we continued to see growth across all our travel businesses, driven in particular by the newly combined management team's relentless focus on delivering differentiated travel experiences designed with the needs of our customers in mind.

"The result was an excellent trading performance that drove growth across all our core businesses, and a strong financial performance, with underlying profit before tax and the leverage ratio significantly ahead of our original guidance."

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