Building
momentum
for change

Welcome to our Annual
Report and Accounts 2017

Scroll down to read the highlights of the year, or jump down to downloads to access the full report and key sections.

The AA at a glance

We operate three main divisions: Roadside Assistance,
Insurance Services and Driving Services.

Roadside Assistance

Roadside Assistance Image
Trading Revenue
£742m (2016: £724m)
Personal Members
3.3m (2016: 3.3m)
Trading EBITDA
£365m (2016: £361m)
Business customers
10.0m (2016: 10.2m)
car icon

Insurance Services

Insurance Services Image
Trading Revenue
£131m (2016: £131m)
Trading EBITDA
£76m (2016: £78m)
Financial Services products
100k (2016: 33k)
Insurance policies
1.9m (2016: 2.1m)
Average income per policy (includes FS policies)
£70 (2016: £63)
house icon

Driving services

Driving Services Image
Trading Revenue
£67m (2016: £68m)
Trading EBITDA
£20m (2016: £19m)
Driving instructors
2,607 (2016: 2,574)
DriveTech Police contracts
11 (2016: 11)
speedometer icon

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Executive Chairman Bob Mackenzie

The transformation is delivering growth in our Roadside Assistance Membership base and in motor insurance policies, reversing long-term historic declines. It has given us a firm platform for sustainable growth.

We have delivered results in line with expectations, mitigating the increases in Insurance Premium Tax (IPT) and call outs, and paid a progressive dividend. In addition, the refinancing reduced the cash cost of debt by £10m per annum, bringing the annualised reduction since the IPO to more than £75m.

We are realising the AA’s potential. We are now capable of building on our technologies, brand and positioning in our markets to take advantage of the abundant opportunities that arise from our ability to fulfil a wider set of consumer and business needs. We are more than ever convinced of the potential of the AA as we position it as the UK’s pre-eminent Membership services organisation.”


Executive Chairman Bob Mackenzie's signature
Bob Mackenzie
Executive Chairman

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Financial highlights

Trading Revenue
£940m 2016: £925m
Trading EBITDA
£403m 2016: £402m
Profit before tax from continuing operations
£100m 2016: £9m
Cash conversion
92% 2016: 101%
Net debt
£2.7bn 2016: £2.8bn
Continuing adjusted basic EPS
21.3p 2016: 21.8p
Continuing basic EPS
12.2p 2016: (0.2)p
Trading Revenue
2.6x 2016: 2.4x

Definitions

The following definitions apply throughout the report.

2017 financial year is the year to 31 January 2017

Trading Revenue is revenue excluding discontinued operations, business disposed of and exceptional revenue items.

Trading EBITDA (earnings before interest, tax, depreciation and amortisation) excludes exceptional items and items not allocated to a segment. In the current period items not allocated to a segment principally relate to the difference between the cash contributions to the pension schemes for ongoing service and the calculated annual service cost and share-based payments (see note 5).

Continuing adjusted basic EPS (earnings per share) adjusts for a number of one-offs of which the largest are exceptional operating items, items not allocated to a segment and exceptional finance costs (see note 6).

Cash conversion is net cash inflow from continuing operating activities before tax and exceptional items divided by Trading EBITDA. Interest cover is Trading EBITDA divided by ongoing cash finance costs (see note 6).

Net debt includes the principal amounts of the Group’s borrowings less cash and cash equivalents.

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Downloads centre

Annual Report and Accounts 2017

Annual General Meeting

Our AGM is on 8 June 2017. For details and documents visit our corporate website

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