Saga (LSE:SAGA), the UK specialist in products and services for the over-50s, said trading in the first four months of its new financial year is in line with expectations, with its cruise division the standout performer as the group reaffirmed full-year guidance.
Ocean Cruise first-half revenue is expected to exceed the prior year, with booked per diems up 13% and a booked load factor of 93%, while River Cruise is also tracking ahead, with per diems 4% higher year-on-year at the same load factor.
In Insurance Broking, the group said it has triggered a contingent consideration payment of £10.5m from Ageas, its motor and home insurance partner, after outperforming certain policy volume targets, with receipt expected imminently.
Net debt stood at £464.7m at 31 May, down £104.8m year-on-year and £34.8m below the January year-end position, reducing the leverage ratio to 3.2 times from 3.7 times at year end, with available cash of £186.5m.
Chief executive Mike Hazell said the group remains "on track to deliver our full year guidance" and is targeting at least £100m in underlying profit before tax and a leverage ratio below 2.0 times by January 2030.
Interim results for the six months to 31 July are due on 30 September.
