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Severe weather hits AA profits

The AA’s pre-tax profits fell 65% for the six months ending 31 July as weather extremes and pothole “epidemic” led to a 15-year high in breakdowns.

Majority of fleet drivers not getting formal road risk training

The extreme weather this year pushed the number of breakdowns to a 15-year high

The half-year fall – down from £80m in 2017 to £28m for the same period this year – follows an 8% increase in breakdowns in the period to 1.91m.

The breakdown recovery specialist said this was “significantly higher than both our expectations and the average over the last 15 years due to the extreme weather conditions”, and resulted in increased costs of third-party garaging to supplement its patrol availability.

Revenues were up 2% to £480m and the organisation added that it’s making good operational progress across its Roadside and Insurance businesses, and is on track to deliver FY19 Trading EBITDA of between £335m to £345m, despite the extreme weather conditions.

 

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.