UK holiday group Saga has today reported a swing to full-year profit on robust demand for its cruise and tour bookings, and said it expects its travel unit to return to profit in this year.
Saga is benefiting from a rebound in the global travel industry after the Covid-19 pandemic pushed the company to losses.
However, its insurance unit - which includes its underwriting arm whose potential sale to Australia's Open was terminated last month - has been battling high claims inflation.
The company, which sells cruise holidays as well as insurance to over 50-year-olds, said its bookings for travel were significantly ahead of the same point last year.
Its revenue from the unit jumped more than 10 times to £108.4m for the year ended January 31.
Saga also said it remains in discussions over a possible sale of its insurance underwriting business, and expects to conclude the process in the second half of the year.
The company reported an underlying profit before tax of £21.5m for the year, compared to a loss of £6.7m reported a year ago.
