(Alliance News) - AA PLC said Tuesday it expects to report growth in earnings for financial 2020 and cash flow in line with market expectations.
The motor association and insurer said the positive momentum in the twelve months to the end of January "continues to gather pace" and remains on track with its strategic plan.
Chief Executive Simon Breakwell said: "We look forward to delivering full year results in line with market expectations, with growth in trading Ebitda and strong free cash flow generation."
For the year ended January 31, 2019, AA generated GBP341 million in trading Ebitda on revenue of GBP979 million. Pretax profit stood at GBP53 million.
AA said it was able to stabilise the decline of its paid membership base, and return to growth in the second half - in line with internal expectations.
This has resulted in "broadly flat" paid membership base year-on-year.
"We expect the growth in the second half of financial 2020 to continue into financial 2021 in line with previous guidance," AA added.
AA ended financial 2019 with 3.2 million paid members.
The firm also noted its Insurance business saw rates of growth in line with internal expectations.
AA said: "During the year, both our motor and home books grew in line with expectations, reflecting the strong profitable growth of our in-house underwriter and the benefit of ongoing investment in systems to further accelerate the growth of the broker."
Breakwell added: "In Roadside, we continue to deliver best-in-class customer service and have returned our paid membership base to growth. Our B2B business is performing well with strong renewal rates as well as new wins. Our focus in B2B remains building accretive long-term partnerships utilising our operational scale, service excellence, and innovative approach to customer solutions. Lastly, the Insurance business is delivering strong rates of profitable policy growth, and we expect this to continue next year."
AA is scheduled to release its financial 2020 results on March 31.
Shares in AA were up 3.5% in London on Tuesday morning at 46.68 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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