February 21, 2018 / 7:09 AM / in 4 months

BRIEF-AA updates strategy, to pay lower dividends

Feb 21 (Reuters) - Aa Plc:

* STRATEGY UPDATE

* ‍INNOVATE AND GROW ROADSIDE AND ACCELERATE GROWTH OF INSURANCE WITH COMBINED INCREMENTAL INVESTMENT OF £45M OF OPEX AND CAPEX IN FY19​

* ‍EXTENDED ROLL OUT OF OUR CONNECTED CAR PRODUCT TO TENS OF THOUSANDS OF OUR EXISTING CUSTOMERS​

* ‍COMPLETE INVESTMENT IN ROADSIDE MEMBERSHIP SYSTEMS​

* ‍CREATING 65 NEW ROADSIDE PATROLS AND JOBS FOR 200 NEW CALL CENTRE AGENTS​

* ‍WE EXPECT TRADING EBITDA OF £335M TO £345M IN FY19​

* ‍TARGETING ANNUAL TRADING EBITDA GROWTH OF 5% TO 8% FROM FY19 TO FY23​

* ‍EXPECT TO REMAIN CASH GENERATIVE IN FY19​

* ‍WE PROPOSE PAYING 2P PER SHARE PER YEAR UNTIL SUCH TIME AS BOARD IS SATISFIED THAT PROFIT AND FREE CASH FLOW ENABLE A CHANGE IN POLICY​

* ‍WE CURRENTLY EXPECT TO DECLARE A FINAL DIVIDEND IN RESPECT OF FY18 OF 1.4P PER SHARE. ADDED TO INTERIM DIVIDEND ALREADY PAID, THIS WOULD GIVE TOTAL DIVIDENDS FOR FY18 OF 5P PER SHARE​ Source text for Eikon: Further company coverage: (Reporting By Carolyn Cohn)

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