Investment case

Our strong fundamentals and sustainable business model

A highly trusted commercial brand The AA has one of the most widely recognised and trusted brands in the UK.

Market leadership We are by far the largest Roadside Assistance provider with more than 40% share of the UK consumer market. We also have strong market positions across our other products and services.

Opportunity for digital transformation We are at the forefront of digital development with the potential to transform the services we deliver and the experience our Members and customers receive.

High barriers to entry Our deployment system, people and scale combined with the high start-up costs required to operate an efficient national roadside service pose significant barriers to entry.

High recurring revenue Our personal Members are loyal with stable retention rates and average tenure of 12 years.

High cash generation The majority of our customers pay for our services in advance so that virtually all of our accounting profits convert to operating cashflow.

Experienced and skilled workforce Our selection process and continual training for our excellent workforce lead to long service and high repair rates in Roadside Assistance.

Our opportunity to grow

The AA has significant opportunities to transform itself into the UK’s pre-eminent Membership services organisation. We set out an outline strategy to do so when we floated and then developed this strategy in more detail during the 2015 financial year. The strategy for this transformation and progress to date is explained more fully in the strategy section of this website and the annual report.