Rising insurance premiums helped AA’s revenue rise to almost £1.3 billion, but profits fell by more than 40 percent.
The Group reported total revenues of £1.298 billion for the year to 31 January 2024, up from £1.173 billion in the previous twelve months.
Insurance revenues increased from £677 million to £759 million, while revenues from other areas also increased from £496 million to £539 million.
However, the AA’s newly published accounts show that pre-tax profits fell by more than 40 percent – from £71 million to £42 million – over the same period.
The AA said revenue in its road services business rose seven percent, while the decline in its pre-tax profit was largely due to higher finance costs and one-off adjusted operating items from ongoing investment in the business, including £15 million in Stonepeak transaction fees and AA’s investment in connecting its vehicles.
The full-year figures come after the AA reported a half-year profit of £23 million, down from the £40 million it made earlier in a “difficult economic and competitive environment”, with earnings from its core breakdown service business hit by cost inflation.
However, the group’s half-year revenue rose 10 percent to £625 million in the six months to July, due to growth in customer numbers and higher average income per member.
Car insurance costs will reach record levels in 2023 as inflation drives up repair costs and consumers are faced with expensive policies.
Chief Executive Officer Jakob Pfaudler said: “The 2024 financial year was a milestone for The AA, with strong financial results, the completion of the first phase of our strategy and the investment of a new shareholder.
“Achieving a third year of growth in membership, revenue and EBITDA reflects the transformation of our company since fiscal year 2021 and demonstrates our momentum despite ongoing external pressures.
“We have continued to improve our financial health and the planned investment from Stonepeak reflects the progress we have made.
“We are executing our expanded growth acceleration strategy, focusing on driving further profitable growth from our core business, expanding our ride-hailing offerings and improving our data and digital usage to ensure we continue to meet the evolving needs of our customers.”
