AA on track despite a fall in members

Caitlin Morrison
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Revenue is up at breakdown firm the AA
Car repair business the AA has reported revenue of £245m for its subsidiary AA Intermediate Co in the three months to 31 October, narrowly up from £244m in the same period of last year.

The business also posted profit before tax of £35.4m, compared with £24.7m in the third quarter of 2013.

For the year ended October 2014, the number of personal AA members was 3.92m, down from 4.02m in the year to October 2013, while business customers increased, from 8.55m to 8.89m.

Analysts at Liberum said their estimates for the full year remained unchanged, and added that the firm has “significant scope to make savings to the IT system, by reducing bureaucracy, licensing software rather than developing it, and reducing the need for manual reconciliation of the commercial system to the reporting system”.

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