30th Jun 2015 07:55
LONDON (Alliance News) - AA Intermediate Co Ltd, a subsidiary of AA PLC, swung to a first-quarter loss, according to a statement on Tuesday, a result of lower trading earnings before interest, tax, depreciation and amortisation and higher finance costs.
AA Intermediate Co's results differ from those of AA PLC, which owns the subsidiary in full. According to the roadside assistance company, their overall consolidating trading performance is "substantially comparable". Quarterly results for AA Intermediate Co will no longer be required once AA PLC's Class B Notes are repaid on July 31.
AA Intermediate Co swung to a first-quarter pretax loss of GBP68.0 million from a GBP37.6 million pretax profit. Trading EBITDA was down to GBP98.6 million from GBP103.0 million, as revenue fell to GBP236.6 million from GBP239.1 million. Finance costs jumped to GBP133.6 million from GBP52.5 million due to recognising a GBP59.0 million fee for the early repayment of Class B notes and the GBP15.6 million write off of the debt issue fees relating to redeeming the Class B notes and a GBP209.4 million short-term facility repayment.
Trading EBITDA margin was down to 41.7% from 43.1%, with the statement citing planned investment in the business, including the costs of producing a new television marketing campaign, higher roadside assistance costs due to investment in training patrols to use its new diagnostics tool, and the costs of operating as a public limited company.
AA PLC listed on the London Stock Exchange in June 2014 with an initial market capitalisation of GBP1.39 billion. It has since entered the FTSE 250 index, and, with shares trading down 0.4% at 368.50 pence on Tuesday morning, has a market capitalisation of GBP2.23 billion.
By Samuel Agini; [email protected]; @samuelagini
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