Roadside assistance company the AA has blamed hefty investments into the company for a dramatic decline in profits, profit before tax came to £53m for the year to January compared to £141m the previous year.
The full year underlying earnings hit £341m and revenue moved up to £979m.
Simon Breakwell, chief executive of the AA said the reduction in profits was down to strategic investment for the company’s long-term prospects.
Paid membership continued to decline by 2% to £3.21m, although major contracts has helped with offset sliding individual sign ups.
Breakwell said, “We recognise there is still a lot to do, but we are building from a position of strength as market leader in breakdown, with best in class customer service, a growing insurance business and a clear plan to differentiate the AA through digital capabilities and investment in connected car solutions.”
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