Financial highlights

The robust performance of Roadside Assistance, which represents 76% of Group trading EBITDA, against a background of major transformation reinforces our conviction in the potential of this business. It grew revenue 1.8% and trading EBITDA 0.8%, reflecting not just its resilient business model but our successful execution of several strategic initiatives in the first year of the transformation.

Overall revenue, excluding the Glass business which we sold in September 2015, reduced 0.4% to £963m. This was the result of the continued pressures in both the Insurance Services and Driving Services markets and the impact of the weaker Euro affecting conversion of the results of the Ireland business. This decline, as well as new IT operating costs and a full year of PLC costs, together with the investment in marketing and diagnostic technology offset both the positive performance of Roadside Assistance and cost reductions. As a result, Group Trading EBITDA, excluding the Glass business, reduced 3.3% to £415m, in line with expectations, and the EBITDA margin was consequently slightly lower than last year at 43.1% (2015: 44.4%).

Operational cash flow was strong and cash conversion before tax and exceptional items was 101%. Net cash flow was £90m before dividends, the one-off costs of the refinancing and the purchase of our own shares for an employee incentive programme. This was achieved despite the abnormally high level of capital expenditure relating to the transformation.

  • Revenue (excluding business disposed of)

    -0.4%

  • Trading EBITDA (excluding business disposed of)

    -3.3%

  • Basic EPS

    1.0p

  • Adjusted basic EPS

    23.2p

  • Cash conversion

    101%

  • Dividend per share

    9p

  • Key KPIs

     

  • Personal Members

    3.7m

  • Personal Members excluding free memberships

    3.3m

  • Business customers

    10.2m

  • Insurance policies

    2.1m

  • Driving instructors

    2,574