Insurance and roadside assistance provider The AA is seeing double, as unaudited results for the year ending January 31 show a 102% boost in profit before tax to £107 million.
AA Plc, which does not expect material deviation from the numbers once the audit is complete, also enjoyed higher revenue and operating profit in the period. The figures stood at £995 million and £257 million, respectively.
The group’s insurance unit – made up of the broker, in-house underwriter, and financial services business – posted growth in both motor and home policies, while the roadside assistance operations reported that all its key business-to-business contracts were either retained or extended.
In addition, the AA’s strategic partnerships with Admiral and Uber are said to be delivering incremental new revenue streams.
As for the effects of the coronavirus pandemic, the company had this to say: “To date, the spread of COVID-19 has not impacted the group materially but there continue to be risks, including disruptions to our operations and, consistent with the rest of the market, there can be no certainty as to the future impact.
“We are planning and executing changes to our operations that include the deferral or reduction of operating costs and capital expenditure across the group to ensure we limit as much as possible the impact to our trading EBITDA (earnings before interest, taxes, depreciation, and amortisation) and cash flow forecasts.”
Meanwhile it’s been revealed that the AA’s board has decided to suspend the final dividend. “Total dividend payments in FY20 will therefore remain 0.6 pence per share, representing the amount paid in respect of the interim dividend,” noted the firm.
