Financial headlines
Trading revenue grew 2% to £467m as a result of a strong performance from Roadside Assistance with growth in paid personal Member numbers for the last three months of the period. This has continued into August and September
Group Trading EBITDA flat at £192m reflecting increased costs associated with the higher number of breakdowns in the period which are in part driven by greater awareness of the service achieved by the marketing campaign
Operating profit remained flat at £132m as a result of higher share based charges partially offset by a lower level of exceptional items. Profit before tax up £117m to £48m due to the absence of refinancing payments that impacted last year's results
Adjusted earnings per share up 2% to 10.3p reflecting lower interest costs due to the new capital structure
Cash conversion before exceptional items 99%, lower than last year due to the relative timing of working capital movements
Net debt was £2,807m at period end. Adjusting net debt and EBITDA for the disposal of AA Ireland in August, net debt of £2,677m represents leverage7 of 6.7x EBITDA (July 2016: 6.7x)
Recommended dividend increased to 3.6 pence per share reflecting the good progress made in the transformation and our progressive dividend policy
Of the £130m net proceeds from the sale of AA Ireland, £106m has been used for partial repayment of the Senior Term Facility which incurs no penalties for early payments
