AA - Steady as she goes

All,

Please find the updated model here   

We maintain our long 5% of NAV position in the Class B notes, following release of full year results.  As numbers were pre-released there is limited update to historic, but we have expanded our model, further integrating membership numbers into the top line  revenue projections.  The AA’s business model does provide for relative stability, and with the UK government promoting private transport over public transport, car reliability becomes more important.  

The Company remains highly leveraged, but unlikely to have any negative news over the coming months.  The equity has fallen over the last week, perhaps due to their major shareholder, Parvus Capital, partially reducing their position,  

Any questions, please do not hesitate to contact me,

Tomas