RAC plc 2002 preliminary results statement
RAC plc announces another year of good progress
Andy Harrison, Chief Executive, RAC plc, commented:
"RAC has delivered another robust performance with an 8% growth in underlying profit, backed up by strong cash flow. The quality of our underlying earnings continues to improve, with further growth in RAC Consumer Services including 22% growth in non-roadside services as we build on the strength of the RAC brand. We also won new business services contracts with lifetime revenues of £620 million.
"Our financial strength increased, with debt falling by £44.2 million, and we have taken active steps to manage our pension deficit. We believe all the ingredients are in place for another good year in 2003. This is supported by the Board's decision to increase the dividend by 5% to 23p."
* Before goodwill amortisation, exceptional items and tax
** Reduction primarily due to goodwill and other write-offs in Mechanical Handling compared with an exceptional gain on the sale of our investment in Synnex in 2001.
Highlights
| Strong operational cashflow of £73 million. | |
| Underlying profit* up 8% to £70.2 million. | |
| Underlying earnings per share* up 5% to 43.9p. | |
| Profit before tax £23.1 million (2001 - £62.3 million)**; FRS14 earnings per share 8.5p | |
| (2001 £39.5p). |
RAC Consumer Services profit increased to £45.2 million:
| Roadside revenues up 5% to £183 million; | |
| Non-roadside revenues up 22% to £51 million. | |
| Lex Vehicle Leasing profit up 11% to £17.5 million (our half share). | |
| Lifetime revenues from new contract wins of £620 million. | |
| Full year dividend up 5% to 23.0p. |
For more information contact:
Paul Hewitt, Group Finance Director, RAC plc 01628 843703
Niall Addison, Group Finance & Investor Relations Manager, RAC plc 07764 624701
Anita Scott / Stuart Bruseth, Brunswick Group 020 7404 5959
E-mail: racplc@rac.co.uk