5th Apr 2016 06:29
LONDON (Alliance News) - AA PLC, the FTSE 250 roadside assistance company founded 111 years ago in London, on Tuesday added to the dividend paid at the half year and reiterated its intention to pursue a "progressive" dividend policy.
Pretax profit fell to GBP17 million in the year ended January 31, the company said, from GBP61 million a year earlier, as the company counted the GBP85 million cost of refinancing its debt. The refinancing paved the way for AA to pay a total dividend of 9.0 pence per share for the year as a whole, including the 3.5p interim dividend paid in October 2015.
Revenue, excluding the windscreen repair business sold in September 2015, fell by 0.4% to GBP963 million, AA said, citing pressures in the insurance and driving services markets, as well as in its Ireland business. Roadside assistance revenue rose by 1.8% to GBP724 million, AA said.
Trading earnings before interest, tax, depreciation and amortisation fell 3.3% to GBP415 million, which the company said was in line with expectations.
The company said it has made a "positive start" to the new financial year.
AA floated on the London Stock Exchange in June 2014, with a management buy-in led by Bob Mackenzie, the company's current executive chairman, and backed by a group of cornerstone investors including BlackRock and Aviva.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
AA..L