AA Intermediate Co Limited Interim H1 20 Results

AA Intermediate Co Limited Interim results for the six months ended 31 July 2019

In compliance with the requirements of AA Intermediate Co Limited's ('AA Intermediate Co') Class A and Class B notes, interim results for AA Intermediate Co have been issued to the Irish Stock Exchange. The results are also available on the AA plc website at www.theaaplc.com.

AA Intermediate Co Limited is the parent company of the companies that provide security and guarantees under the Whole Business Securitisation ('WBS') financing arrangements entered into by the AA on 2 July 2013. 

AA Intermediate Co Limited's results differ from the results of AA plc that were announced on 24 September 2019.

The material differences relate to the consolidated assets and liabilities as follows:

1. Financial assets at amortised cost, which were £20m higher for AA plc than for AA Intermediate Co. This is due to the purchase of £20m of AA Bond Co Limited Class B2 notes by AA plc;

2. Inter‐company balances, which were £1,169m lower for AA plc than for AA Intermediate Co as all non-trading balances were eliminated in AA plc as part of the 2013 financing transaction;

3. Cash balances, which were £61m higher for AA plc than for AA Intermediate Co as £24m of restricted cash was held at AA plc level for the AA plc group's Insurance Underwriting activities and £37m of available cash was held mainly to pay dividends to AA plc shareholders;

4. Additional intangible assets, working capital and provision balances are held at AA plc level for the AA plc group's Insurance Underwriting activities. These include £6m for software assets, £6m for prepayments, £52m for reinsurers' share of insurance liabilities, £12m for trade payables, £5m for deferred income, £8m for other payables, £37m of provisions for unearned premiums and £35m of insurance technical provisions.

AA plc's Insurance Underwriting activities sit outside the AA Intermediate Co group. Other than these activities there are only immaterial differences between Trading Revenue and Trading EBITDA for the two groups. The remaining trading performance is therefore substantially comparable.