April 17, 2018 / 6:24 AM / in 6 months

AA core profit drops 3 pct in FY 2018 to $561 mln

LONDON, April 17 (Reuters) - British roadside recovery group and insurer AA posted a 3 percent drop in core profit, it said on Tuesday, following a year which saw the unexpected departure of the firm’s executive chairman and prompted a strategic review.

Trading earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ending Jan 31, 2018, was 391 million pounds ($560.77 million), in line with a company-supplied consensus forecast.

AA said in February it forecast core profit of 390-395 million pounds.

Trading revenue rose 2 percent to 959 million pounds, supported by strong performance in insurance underwriting.

“We have made a positive start to the 2019 financial year as we begin to execute on our new strategy,” Chief Executive Simon Breakwell said in a statement. Breakwell took over after the company dismissed Bob Mackenzie as executive chairman for gross misconduct.

The company said it would pay a total dividend of five pence per share, down 46 percent but in line with previous guidance. ($1 = 0.6973 pounds) (Reporting by Carolyn Cohn, editing by Sinead Cruise)

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