leadf
logo-loader
viewAA PLC

AA financial results boost share price

April saw a drop off in breakdowns, new member sales and retention rates as lockdown meant fewer cars were on the road.

AA PLC - AA financial results boost share price

AA PLC (LON:AA) shares rallied as its financial results highlighted a “resilient, cash generative” business, albeit the financials cover the pre-coronavirus period.

Revenue for the twelve months ended 31 January 2020 amounted to £995mln, up 2%, while operating profit increased 17% to £257mln.

Profit before tax rose by 102% to £107mln, with earnings per share at 14.1p from 6.9p in the preceding year.

READ: AA not “materially” impacted by coronavirus

Updating on the pandemic impacts, the AA said that trading in February and March was in line with expectations.

In April, trading was described as “more variable”. With fewer cars on the road the company noted that total breakdowns are materially down, new membership sales have softened and retention rates are materially down.

The company said that insurance business has been resilient and is performing in line with expectations.

In response, AA said it is making a number of changes which will result in the deferral and reduction of a range of operating costs.

It has cancelled pay rises, suspended the normal bonus scheme, frozen new hires, cut director pay by 15% and put in place tight cost controls.

AA shares advanced 15% to change hands at 30.22p.

Quick facts: AA PLC

Price: 32.6625 GBX

LSE:AA.
Market: LSE
Market Cap: £203.6 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

First Cobalt Corp takes step forward the Cobalt Camp with the start of...

First Cobalt Corp (CVE: FCC- OTCQX: FTSSF) Vice President of Exploration Frank Santaguida joined Steve Darling from Proactive to shares news the company is getting to work starting a geophysical survey to follow up on high-grade silver and cobalt intercepts in a historic mining area of the...

13 hours, 10 minutes ago

2 min read