StockMarketWire.com - Motor services group AA said its turnaround plan remained on track as performance in its roadside business steadied following a return to paid membership growth in the second half of the year.

'In line with management expectations we have successfully stabilised the decline of the paid membership base, which returned to growth during the second half of the year,' the company said.

'This led to a broadly flat paid membership base year-on-year. We expect the growth in the second half of 2020 to continue into 2021 in line with previous guidance.'

The company said it had retained or extended all its key business-to-business contracts due for renewal in 2020 and also won several new contracts, including Admiral and Uber.

Its insurance business, comprising a broker, in-house underwriter and its financial services business, continued to deliver 'strong' rates of growth, in line with expectations, AA said.

'We look forward to delivering full year results in line with market expectations, with growth in trading EBTIDA and strong free cash flow generation,' it added.

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