AA said its results were in line with expectations with strong operational cash generation.

Today AA Plc (LON:AA) released its results for the year ended 31 January 2016 in which the company undertook its first year of its transformation.

Highlights from the results include roadside assistance retention rising to 81% compared to 79% in 2015. Roadside assistance personal member numbers were at 3,673k by year end in comparison to 3,770k in 2015 which the company said was an improvement in the rate of decline, dropping by just -2.6% compared to -4.5% in the prior year. Average income per member increased by 4.4% to £141 from £135 in 2015.

The roadside assistance company reported revenue of £963 million, dropping from £967 million in 2015. Profit after tax was hit by refinancing costs of £85 million which brought profits to £6 million compared to £69 million in the prior year. Adjusted basic EPS came in at 23.2p just below 2015’s 23.3p.

Bob Mackenzie, Executive Chairman, commented on the results:

“In this past year, the first year of our transformation, we have strengthened the foundations of the AA and put in place the platform which will allow us to revolutionise the customer experience.  We also completed a major restructuring of the debt which has substantially reduced the cost of our borrowings.  At the same time, we have delivered results in line with expectations with strong operational cash flow.

“The increase in retention and the slowing of the historic rate of decline in personal Members at this early stage in the transformation demonstrates the strength of our brand, the value of our services and the responsiveness of the business to change.  We will continue to invest across the business, updating and enhancing our customer offer, improving systems and our services, but remain on track to deliver annual savings of at least £40m off the cost base from the 2019 financial year.”

The board said due to their confidence in the business combined with the reduction in annual cash interest costs which have been achieved through the refinancing they have recommended a total dividend of 9 pence per share for 2016 financial year.