AA sees ‘return to growth’ with 102% profit increase
Motoring insurance and breakdown cover specialist AA has reported a significant rise in profits for the year ending January 31.
In a summary of unaudited financial information published today, AA reported a pre-tax profit increase of 102 per cent.
The group’s membership base returned to growth during the second half of the year, rising 0.2 per cent to 3.2 million customers.
According to a statement issued with the results, the firm said it had not been ‘materially impacted’ by the COVID-19 outbreak but that “there continue to be risks”, and are taking steps to bolster the business through the ongoing disruption.
The AA commented: “We are planning and executing changes to our operations that include the deferral or reduction of operating costs and capital expenditure across the Group to ensure we limit as much as possible the impact to our Trading EBITDA and cash flow forecasts.
“The AA has proved resilient through previous economic downturns and the steps we are now taking will help us maintain that resilience.
“The management team has successfully turned the operational and commercial performance of the AA around in the last two years and remains focused on navigating the challenges ahead.”
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