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AA plc – is there hope for this debt laden icon from the golden age of motoring?

03/10/2018 · AA PLC (AA.) 

AA plc – is there hope for this debt laden icon from the golden age of motoring?
Recently announced results from AA plc, the UK’s largest provider of roadside assistance, commented on a pothole 'epidemic' contributing to the 65% fall in reported profits. Is this yet another poor excuse for a business in permanent decline or is there cause for optimism…somewhere?

AA Plc (AA.) is the UK’s leading provider of roadside assistance. In addition to repairs, the Group’s Roadside division includes many other services, including driving lessons and training and other services such as AA Tyres, Automyze and AA Cars.

Its Insurance division focuses primarily on motor and home policies and, in partnership with the Bank of Ireland, also offers a range of other financial services products including, savings, loans and mortgages.


- Chequered past

Originally formed by a group of motoring enthusiasts in 1905, AA members voted to demutualise in 1999, which subsequently paved the way for a £1bn takeover by Centrica. By 2004 Centrica had evidently concluded it wasn’t a suitable fit and sold the business for £1.75bn to private equity groups CVC and Permira.

In 2007 the business was packaged up with Saga in the Acromas group and finally listed on the London Stock Exchange in June 2014…

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