Business

AA looks to get back on track with positive full-year results

Breakdown cover firm AA is expecting to get back on the road with some positive results when it releases its annual report on Tuesday.

For the year-end, estimates from Liberum reckoned that AA's trading EBITDA will be around £392m, as sales will go up slightly to £964m from £933m in 2017.

Earnings in 2019 have been revised down to £335m, something which AA boss Simon Breakwell said was a "relatively modest" hit compared to 2018.

The company was delivered some good news on Friday as leading credit agency S&P reaffirmed AA's BBB- rating of the company's class A notes and a B+ rating on the B2 debt.

Read more: AA shares leap as rating agency surprises on "terminal" debt pile

At the time, AA finance chief Martin Clarke described being "pleased" about the credit decision, saying: "The strategy set out in February will allow the AA to stabilise and grow Roadside and accelerate growth in Insurance, to create shareholder value and, in time, de-lever."

Shares in the company also jumped at the end of February when AA appointed Cathryn Riley, a former chief operations officer at insurance firm Aviva, as a non-executive director at the firm.

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