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Corporate contracts keep the AA bouyed

by LLB Reporter
12th Feb 19 9:56 am

Roadside assistant company the AA has announced full-year profits are set to come due to major contract deals help to offset failing membership.

The company said thanks to solid performance with the roadside and insurance sectors, their full-year underlying trading earnings is expected to be “not less than” £340m.

However, this is still a fall with £391m reported for 2017 and 2018, with a 65% plunge with interim pre-tax profits to £28m, due to adverse weather causing more breakdowns.

AA membership fell by 2% to 3.2m over the year to 31 January however, the company hopes to return membership growth by 2020 to 2021.

Business contracts account for 10m of their 13m roadside membership as the company has been buoyed by corporate renewals from Volkswagen, Jaguar Land Rover, Suzuki and Lloyds Banking Group.

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