22nd Sep 2015 06:54
LONDON (Alliance News) - Breakdown cover and roadside assistance company AA PLC on Tuesday said its trading profit fell in the first half, though it said it is trading in line for the full year and said it will pay an interim dividend, its first since listing in mid-2014.
The FTSE 250 constituent said its trading earnings before interest, taxation, depreciation and amortisation in the half to the end of July was down to GBP199.2 million from GBP211.8 million a year earlier, blamed by the company on the early phasing of marketing spend, the roll-out of diagnostic technology, a run-off of a former credit card account in its financial services division, the weak euro in Ireland, and higher operating costs.
Revenue for the group fell 1.4% in the half to GBP484.6 million, primarily due to weaker income from its insurance business and a reduced volume of driver training courses. Roadside assistance revenue was up 2.1%, however, with better retention rates and a slower decline in personal member numbers.
The group said it will pay an interim dividend of 3.5 pence per share and said it will pay out a total of GBP55.0 million in dividends for the financial year to the end of January, ahead of the GBP50.0 million commitment it made when it refinanced its debt earlier this year.
"The AA has once again demonstrated its fundamental strength, stability and hugely cash generative characteristics. We are confident that we are in line with expectations for the full year and that we will position the AA as the digital brand for all motorists' needs," said Bob Mackenzie, AA's executive chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AA..L