RAC plc (RAC), the motoring and vehicle solutions company, will announce its interim results for the six month period ending 30 June 2003, on 30 July. RAC will conduct its usual half year meetings with analysts in the coming week.
RAC plc (RAC), the motoring and vehicle solutions company, will announce its interim results for the six month period ending 30 June 2003, on 30 July. RAC will conduct its usual half year meetings with analysts in the coming week.
Trading performance is in line with market expectations and is significantly ahead of the same period last year. The company has enjoyed a good first half year, benefiting from our strategy of focussing on our growth opportunities in Consumer and Business Services, based on our strong brands and our unique motoring and vehicle capability. We are also seeing real benefits from the major investments we have made in IT systems over the last three years which are enhancing revenues and improving efficiency and service delivery to our customers. We have extended our track record of winning large business services contracts.
Consumer Services
Consumer Services had a good first six months with individual roadside membership up by 5% in the period as a result of growth in new enrolments and a continuing strong renewal rate. Roadside revenues grew by 8% over last year. We are delivering improved roadside service with the enhanced capability which has resulted from the implementation of our new deployment systems and the roll out of our patented rapid deployment trailer to our patrol force. The number of patrols is being increased by 200 to improve efficiency and customer satisfaction levels.
BSM and Legal Services have continued the double digit growth experienced over the last 3 years. Our new, remodelled Financial Services business, which was launched in January, is making progress, and the product range has recently been expanded with the launch of an RAC branded credit card. RAC Auto Windscreens’ revenues are slightly lower than the same period last year.
Progress continues to be made in improving our customer centric management system. The customer data warehouse is now operational with over 10 million records loaded and system testing is underway. Our legacy systems will be retired during the autumn to minimise disruption during our busy summer period.
Business Services
The implementation of the 10 year contract with British Airways to manage and maintain its ground fleet services contract, which commenced in April, is going well and we see further opportunities for growth.
Lex Vehicle Leasing, which is the largest contributor to Business Services and a key element in our service offering, had a strong half year. Its fleet is now approaching 100,000 vehicles.
The disposal of our two largest UK mechanical handling businesses, Lex Harvey and Lex Birchwood, was completed in May; we are continuing to address the issues in the remaining operations.
Lex Auto Logistics is also benefiting from the new British Airways ground fleet contract and there are a number of potential new contracts in the pipeline. The business has performed well in the first half of the year and the additional margin on the run out of the Leyland contract is as we expected. Hyundai, our vehicle importership, has increased its market share and has grown vehicle registrations by 4%.
Outlook
We expect our good trading performance to continue with the full year in line with expectations.
Enquiries
Niall Addison, Group Finance and Investor Relations Manager
07764 624701
Andy Harrison, Chief Executive
020 7705 1257