AA share price: what to expect from its full-year results

When is AA’s results date?

AA will report its full-year results on 3 April.

AA results preview: what does the City expect?

In a pre-close trading update, AA announced that its full-year results for the financial year ending 31 January 2019 are in line with the company’s previous guidance. Trading EBITDA for the year is expected to around £340 million, smack bang in the middle of the company’s guidance of £335 million – £345 million.

Investors can also look forward to a strong update on the company’s performance across its roadside and insurance businesses, with AA successfully renewing all its key full-year 2019 B2B contracts with the likes of Lloyds Banking Group, Volkswagen, Suzuki and Tata Motors-owned Jaguar Land Rover.

‘The contract renewals, extensions and wins are an endorsement of our strategy and performance, which is underpinned by our operational scale, service excellence and innovative customer solutions,’ the company said in a statement.

‘The AA is the market leader in providing breakdown services to B2B customers, who account for circa 10 million of the AA's 13 million total members.’

Its insurance business has also had a strong 12 months of trading, with its motor policy book seeing good growth through its new ‘never member channel’, which AA created in May last year.

During the year, the motor policy book grew by circa 16% to circa 731,000 and ahead of our expectations we have managed to return the home policy book to growth, achieving a modest increase of circa 1.5% to circa 830,000.

In line with our expectation for FY19, average income per motor and home policy fell to circa £69, reflecting the investment in new business growth, which has on average lower commissions compared to the rest of the book.