Member Info for jamesbond0071977

All those peeps believing that the AA is being bought out are living in a dream world, you couldn't even give the company away straddled with 2.7 billion pounds of dept.

jedclampet no it doesn't work like that , the shares are part of his salary so he lost money as well, their is no cash alternative so the better he does for the company the more his shares are worth.

jedclampit, directors do not buy shares they are given to them as part of their remuneration package.

That's NW, got nothing to do with UK AA insurance, this has though.
https://www.trustpilot.com/review/www.aainsurance.co.uk

Does that make it less true being cut and pasted then, someone earlier said you wont find any negative figures for the AA, just corrected him.

Holders of bonds, rather than equity, are already in the ascendancy. While management could point to being “well within” financial covenants at the end of January, the assurance failed to mention that these are based on the ratio of free cash flow to debt service charges. Analysts at Barclays estimate that the AA’s net debt to adjusted cash profits ratio — a more conventional measure of indebtedness — was at 7.8, and rising.

Leverage pressures were already apparent before the current crisis began. In January, the AA was forced to swallow a 280 basis-point increase in coupon payments to refinance a portion of one tranche of bonds maturing in 2022. Analysts at Berenberg calculated this will add a further £9m in annual interest payments — equivalent to a £7.3m drop in free cash flow — on top of £10m in one-off transaction costs.

Since January, credit markets have become considerably rockier. And with a further £942m in bonds set to mature in 2022, that means the AA is facing the prospect of higher interest rates, which means more pressure on free cash flow. That starts with the refinancing of the group’s remaining subordinated “B-notes” debt, which Berenberg estimates could lead interest payments to rise by an extra £27m a year, at least.
In the near term, those actions should support cash flow. A review of the AA’s pension liabilities should save a further £10m a year. But such is the scale of the group’s debt position, analysts are starting to signal that a small downturn could be enough to wipe out shareholders.

As I said earlier people only want to hear what they want to hear just going by the last 10 posts.

You only read what you want to believe and ignore the rest, there's hundreds of negative reports on the state of the company with far better knowledge then most of the peeps on here believe me, I have to laugh when you all talk the talk but only deal in pennies and haven't a clue what really goes on. Take that from a 31 year Patrol who's at the front line. Personal customers are withholding their membership until the crisis is over, it costs you twice as much to re-join once you have broken down so will look elsewhere and that is the major cash flow for the company, also pay for use has dwindled. Moral is at an all time low with staff on the front line with little or no PPE, its a joke.

Vehicles are still breaking down and because we have less patrols to deal we are using garaging which hit s profits considerably.

Unfortunately that not how it works , when the company does get extremely busy the existing patrols are unable to deal so they have to pay extra overtime to patrols on rest to come out and also have to use their recovery agents to help out which costs three times as much.

On the other hand many millions have their renewals coming up now and in the coming months to follow so may suspend paying until crisis is over so losing much needed revenue and retention.