LONDON (ShareCast) - (Sharecast News) - Over-50s specialist Saga lifted its full-year profit expectations on Thursday as it said it had successfully refinanced its corporate debt in full.

In an update for the period from 1 August 2024 to 29 January 2025, the company said it expects to report an underlying pre-tax profit "marginally higher" than the prior year on a like-for-like basis, and ahead of its previous guidance.

The company said Ocean Cruise had "another excellent year", delivering a load factor of 91%, up from 88% in the prior year.

Meanwhile, underlying pre-tax profit in the River Cruise business continued to grow, it said.

The travel segment is expected to report an underlying pre-tax profit in "the high single-digit millions", compared with £1.5m in the prior year, reflecting revenue growth of around 15% and passenger growth of 9% on a comparable basis.

In Insurance broking, underlying pre-tax profit is set to be "materially lower" than in 2023/24, with both the number of policies in force and policy sales across all products around 15% lower.

Saga also said it expects Insurance Underwriting to report an underlying pre-tax profit in "the high-single digit millions" and a net current year reported combined operating ratio of just over 100%, compared with 117.1% a year earlier.

The trading update came alongside news that Saga has secured new credit facilities which will refinance the group's corporate debt in full. It said these new facilities "materially enhance" the group's liquidity position, "significantly increase" covenant headroom and provide funding certainty "as it moves to execute its growth plans".

Chief executive Mike Hazell said: "Throughout the last financial year, we made significant operational and financial progress. We concluded our review of opportunities that would optimise Saga's financial and strategic outlook and entered into the 20-year arrangement with Ageas for our motor and home Insurance Broking business and the sale of AICL, our Insurance Underwriting business.

"As we look ahead, we expect the momentum to continue to build in our Cruise and Travel businesses. As previously outlined, we anticipate that Insurance Broking earnings will fall in the short-term, ahead of the start of the partnership with Ageas, but are pleased that work on the transition is on track to allow the new arrangement to go live Q4 2025."

At 1000 GMT, the shares were up 3.7% at 118.40p.

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