AA blames bad weather and pothole ‘epidemic’ for drop in half year profits
The AA has blamed extreme weather and an “epidemic” of potholes for sending breakdowns to a 15-year high and leaving its half-year profits sharply lower.
Shares tumbled as the group reported a 65% plunge in pre-tax profits to £28 million for the six months to July 31.
It said underlying earnings tumbled 35% to £116 million, largely due to a hit in its roadside recovery business, as the Beast from the East in February and March caused an 8% rise in breakdowns to a cost of £1.91 million.
Earnings in the AA’s roadside business dropped 17% to £132 million in the first half.
The group also said... read more
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