AA's chief pledges to accelerate the brand
Bob Mackenzie, the AA's new boss, has vowed to capitalise on the strength of the brand as the roadside assistance business released its first set of results since its £1.4bn June flotation.
The motoring organisation, with around four million members, saw sales lift 1.6% to £491.7m in the six months to July 31 as it won new contracts from VW, Hyundai and Porsche.
But its pre-tax profit plummeted almost 92% to £10.2m, after incurring £178m of flotation and financing costs run up by the firm's previous private equity owners CVC, Permira and Charterhouse.
The AA is now run by a management buy-in team led by former Green Flag boss Mr Mackenzie and backed by institutional investors, including Aviva and Legal & General, who floated the business three months ago.
The motoring group said its breakdown services membership reduced by 2.2% to 3.96m.