Breakdown service AA’s earnings fell last year after forking out on more patrols and insurance marketing but shares rose as investors cheered signs of recovery.
The company, which has misfired in recent years, said earnings for the year ending January fell 13% to £341 million from £391 million, a figure broadly expected by investors.
Shares rose 5% to 94.5p after the City took confidence in the numbers, which suggested AA was getting back on track.
Chief executive Simon Breakwell said: “It’s hard to think of one metric we haven’t hit over the past 12 months.
“I feel more bullish than ever.”
Finance chief Martin Clarke said: “This company has a history of under-delivering but we’ve delivered in line with guidance.”
The business is trying to turn around the fortunes by growing profits and cash flow, in part to cut its debt pile.
Profits fell to £53 million because of £26 million spending on recruiting 65 new patrols and more than 200 agency staff, as well as marketing its insurance to boost the AA on price-comparison sites.
