RAC boss hails 'strong performance'
The RAC, the Walsall-based roadside rescue business, has cut its losses in what it's new chief executive called "a strong performance" last year.
Accounts for RAC Group (Holdings), newly filed at Companies House, show revenue for the business rose 10 per cent to £558 million in 2017, up from £507m the year before.
Pre-tax losses were cut by more than £30 million, down to £147m from £179m in 2016.
In his first report as chief executive, David Hobday said: "The RAC continued to perform strongly in 2017.
"We have carried this momentum into the new financial year and the business is well invested as we continue to focus on driving growth."
It is also focused on its Next Chapter strategy to improve services, he said. This also saw a radical shake-up of the organisation last year.
Mr Hobday said pre-tax earnings before exceptional items had risen £6m to £189m, "reflecting the strong performance in our insurance broking and motoring services businesses and a robust performance in Roadside in spite of strong competition". The company had also face implementation costs to handle 'substantial levels' of new business.
"These results have been achieved by identifying clear priorities and executing against out plans and out consumer roadside, insurance broking and motoring services businesses have all performed strongly as a result," said Mr Hobday.
"In business roadside we have been immensely proud to welcome a number of new corporate partners including Mercedes-Benz and eSure for both of whom we commenced provision of roadside assistance services during the second quarter.
"Over the past few years we have ensured that the group has received the right level of investment to keep the RAC at the leading edge of our industry.
"We will continue to invest and innovate and deliver better member experiences which will help us continue to deliver profitable and sustainable growth."
He also heaped praise on the company's workforce: "In December, for example, when our Roadside business experiences some of the highest demand for our breakdown services in recent memory, our people went above and beyond to assist our members."
Looking ahead, Mr Hobday said: "We have made a strong start to 2018." January earnings were ahead of the previous year "and we are confident of further progress in 2018".
Founded 120 years ago, the RAC now has around eight million members and its 1,500 patrols attend around 2.8 million breakdowns a year. The group employs almost 4,000 staff across the UK with its headquarters and rescue control centre at RAC House in Bescot, overlooking the M6.
