Acromas, which also owns retirement holiday provider Saga, made the investment as sales across its businesses grew by 15% in 2011/12.

The company, formed through a £6bn private equity deal in 2007, saw sales rise to £2.1bn with pre-tax and interest profits of £519m.

Andrew Goodsell, Acromas chief executive, said: ‘Turnover now tops £2.1bn and adjusted EBITDA grew to nearly £600m.

‘This result demonstrates that even in tough times our focus on excellence in customer service enables us to grow organically, and our financial strength means we have been able to acquire complementary businesses and take advantage of commercial opportunities to expand. Our continued record level of investment has been funded from the cash our business generates.’

Acromas purchased BSM in 2011 and a rolling programme of fleet replacements there and at the AA Driving School saw around 7,000 vehicles replaced during the year. This is on top of 716 new vehicles being acquired for the AA roadside rescue breakdown patrol fleet.

Further investment saw Acromas enhancing the AA DriveTech driver training and risk management business and acquiring two complementary businesses – IDS and Nationwide 4×4.

Elsewhere, a new building was bought in Preston to support AA AutoWindshields and AA Home Emergency Response.

Goodsell added: ‘Acromas is a great British success story; our iconic brands – including Saga and the AA serve the needs of some 18 million people.

‘We are leaders in our chosen markets because our people take pride in delivering excellence in customer service.’