AA PLC (LON:AA) have given shareholders an update with a positive tone, which has led to shares in green on Tuesday afternoon.
The firm said that it expects to report growth in earnings across 2020, as cash flows should sustain to meet market expectations.
The firm said that it had carried forward positive sentiment in the twelve months which ended January 31, which should give annual results a positive spin.
AA also added that they remain on track with their strategic plan, as the firm looks to consolidate their status in the market.
The firm said “In line with management expectations we have successfully stabilised the decline of the paid membership base, which returned to growth during the second half of the year. This led to a broadly flat paid membership base year-on-year. We expect the growth in the second half of FY20 to continue into FY21 in line with previous guidance.”
For the year ended January 31, 2019, AA generated £341 million in trading Ebitda on revenue of £979 million. Pretax profit remained around £53 million.
Simon Breakwell, Chief Executive Officer, commented:
“We look forward to delivering full year results in line with market expectations, with growth in Trading EBITDA and strong free cash flow generation. In Roadside, we continue to deliver best-in-class customer service and have returned our paid membership base to growth. Our B2B business is performing well with strong renewal rates as well as new wins. Our focus in B2B remains building accretive long-term partnerships utilising our operational scale, service excellence, and innovative approach to customer solutions. Lastly, the Insurance business is delivering strong rates of profitable policy growth, and we expect this to continue next year.”
AA are set to publish their full year results on 31st March 2020, and will carry an optimistic tone for shareholders.
Shares in AA trade at 46p (+2.26%). 11/2/20 14:39BST.
