AA on track to meet market expectations for the year
Roadside assistance group and insurer AA said on Thursday that it was on track to meet market expectations for the year, with first-half trading earnings set to be ahead of 2018.
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In an update for the six months to the end of July, the company also said its paid membership base is stabilising and it expects to generate "strong" free cash flow growth in line with its guidance.
AA said its motor book grew 10% during the half to around 803,000 policies and the home book was up 1.3% to approximately 841,000 policies.
Chief executive Simon Breakwell said: "We are building positive operational momentum across the business as we continue to make significant progress on our strategic plan and on the exciting development of Smart Breakdown, which will further differentiate the AA.
"Our award-winning roadside assistance business continues to deliver outstanding customer service and we are pleased to report we are stabilising roadside membership. We reiterate our confidence that the roadside membership base will be broadly flat this year and will return to growth in the year to 31 January 2021. Our Insurance business is also performing strongly supported by the growth of our in-house underwriter."
The AA said it remains on track to meet its medium-term growth targets for FY23.