Saga posts small H1 pre-tax profit, withholds FY guidance amid continued pandemic uncertainty

Over 50s specialist Saga posted a small interim pre-tax profit on Wednesday but opted to issue no guidance as a result of the ongoing Covid-19 pandemic.

Pre-tax profits for the six months ended 31 July came to £700,000, a marked turnaround when compared to the £55.5m loss reported at the same time a year earlier.

However, on an underlying basis, Saga swung from a pre-tax profit of £15.9m in 2020 to a loss of £2.8m.

Saga stated that its performance was in line with expectations, pulling in a positive operating cash flow of £41.9m despite an 18.7% drop in revenues to £156.4m due to the suspension of its travel business and lower retail broking revenues.

Looking forward, Saga highlighted that given the "continued uncertainty" arising from the coronavirus pandemic, it would not be providing any earnings guidance for the 2021-22 financial year.

Chief executive Euan Sutherland said: "We have successfully recommenced our Travel operations, including the launch of our newest ship, Spirit of Adventure. I am delighted with the positive feedback received so far and encouraged by the strong pipeline of future bookings.

"In Insurance, customer retention remains strong, and the attraction of our offer is borne out by the increased uptake of our new three-year fixed-price product. From a financial perspective, we further strengthened our position through a series of financing transactions, including the recent completion of our bond issue."

As of 0930 BST, Saga shares were down 2.43% at 342.85p.