AA says trading in line, on track to deliver 'strong' FCF generation
Roadside assistance provider and insurer AA said on Wednesday that trading was in line with expectations.
In a brief statement ahead of its annual meeting in London, the company said it remains well positioned to deliver trading earnings before interest, tax, depreciation and amortisation growth and "strong" free cash flow generation in FY20. The group also said it is on track to meet its medium-term growth targets to FY23.
Back in April, the AA posted a 64% drop in annual profit to £53m and said it was cutting its total dividend for the year to 2p a share from 5p. The decline in profits was attributed in part to £26m spent on the company's roadside division to help improve fleet efficiency. AA said profit also took a £22m hit from new pension rules.
At 0930 BST, the shares were up 2.8% at 55.71p.