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Britain's AA shares plunge after slashing dividends and profit forecast

The dividend cut marks a change for AA, which paid a total dividend of 9.3 pence in the 2017

Reuters  |  London 

AA shares fell by 22 per cent on Wednesday after the British roadside recovery group and insurer said it planned to pay lower dividends and forecast lower core profit. In a strategy update following a profit warning and the sudden departure of its executive chairman last year, AA said it would pay a total dividend of 5 pence per share for the 2018 financial year, but that this would then fall. AA shares were on course for their largest one-day drop following the revised outlook and dividend news, benefiting some hedge funds who have targeted AA with "short" ...

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First Published: Wed, February 21 2018. 17:19 IST