We set out three strategic priorities at the time of our IPO in June 2014 and in March 2015 we laid out the objectives and investment needed to deliver them. The progression of this programme is set out on pages 12 and 13 of this report.
We have made good progress in our first full year since the IPO and are now well on our way to turning the AA into the UK’s pre-eminent Membership services organisation, taking full advantage of digital opportunities.
Our strategic initiatives are covered in the strategy section of this website. The summary which follows gives a sense of the reach of our ambition and the robustness of the business in responding to these initiatives.
We have made a very good start in reversing the effect of years of under-investment:
We are making Membership more valuable, modernising our operations and becoming more efficient:
Through the refinancing completed in July, we reduced the annual cash cost of servicing our debt by more than £45m. Net debt was £2,809m at 31 January 2016, compared with £2,967m at 31 January 2015.
The refinancing also facilitated the future payment of dividends. In view of the AA’s business model, which is characterised by strong cash generation, our confidence in the transformation plans and the interest cost savings facilitated by the refinancing we intend to pursue a progressive dividend policy.
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Company number: 5149111
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