AA appoints new boss amid jump in profits

The AA also said there were no roadbumps in its half-year results

The AA also said there were no roadbumps in its half-year results

On 1 August the FTSE 250 group warned that profits would be lower than originally expected due to "erratic workload patterns" especially in June and July against a high level of fixed costs, while also sacking executive chairman Bob Mackenzie for gross misconduct. The appointment accelerates the AA's plan to split the roles of chief executive and chairman. He said he was "now reviewing what the business needs to deliver its potential".

As well as hitting half-year targets, the AA has appointed former Expedia and Uber executive Simon Breakwell its permanent chief executive to "sharpen focus" on the parts of the businesses where there are "most value and future profit opportunity".

"He has, since his appointment as Acting CEO, invested his full energy and skills into the Company and identified the means of strengthening it, reinvigorating our people, and rebuilding the culture under his leadership".

"As a member of the board since September 2014, I have had time enough to recognise that it is indeed a great company with enormous strength at a fundamental level".

The roadside assistance and insurance group generated earnings before interest, tax, depreciation and amortisation of £193m in the six months ended 31 July, a 1% increase on the same period a year ago, on revenue up 1% to £471m as membership rose modestly to 3.33m from 3.32.

Trading revenue nudged up 1 per cent to £471m, which the AA said reflected growth in insurance broking and underwriting.

The group's membership base rose to 3.325 million driven by a 13 per cent increase in new members and stable retention.

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