RAC plc (RAC), the motoring and vehicle services company, will announce its interim results for the six month period ending 30 June 2004, on 28 July. RAC will conduct its usual round of meetings with analysts in the coming week.
RAC plc (RAC), the motoring and vehicle services company, will announce its interim results for the six month period ending 30 June 2004, on 28 July. RAC will conduct its usual round of meetings with analysts in the coming week.
We are pleased to confirm that the steady progress we reported at the time of our AGM statement in April has continued. We have enjoyed a good first half year, with trading performance in line with our expectations and ahead of the same period last year. It was particularly pleasing to be voted No.1 Roadside Assistance Provider in the annual J.D. Power & Associates survey, which reflects the operational and customer service improvements we have achieved, supported by the systems and infrastructure investment that we have outlined in previous updates.
The implementation of the Ford contract, won at the end of 2003, has gone smoothly and we continue to make progress in our negotiations with the MoD to finalise the “C” vehicles contract for which we are preferred bidder. The Group remains focussed on its core activities and we have now completed our exit from Mechanical Handling following the disposal of Lex Manutention.
Consumer ServicesOur Motoring Services businesses had another good period, with revenues up 19% on prior year. Both BSM and Legal Services have again performed well, and Financial Services has delivered a significant increase in revenues, albeit from a small base. RAC Auto Windscreens revenues have been flat, with some improvement in performance in recent months.
Business Services
Lex Vehicle Leasing has continued to build on its position as one of the top three leasing companies in the UK, and has grown its fleet to 132,000 vehicles including the successful integration of the Ford contract. This will start to deliver a contribution in 2005. Overall revenues are up by 18% over last year and although the used car market remains better than expected, we are continuing to be cautious in pricing contracts.
As expected Lex Auto Logistics continues to be impacted by the termination last year of the contract we had with Paccar to distribute DAF parts, although the additional margin we are earning as a result of Paccar’s earlier decision to cease Leyland production, is more than compensating for this. The additional margin is in line with our expectations.
RAC Business Solutions has had an excellent first half with revenues up by 8%, based on a solid performance in all areas, particularly its roadside business.
Hyundai performed well during the period with revenue growth of 23%, reflecting the continuing success of the award winning Getz supermini. This helped boost market share to 1.45%.
DisposalsLex Transfleet, which has previously been reported within Industrial Solutions will now be included within Manufacturer Support Services
Outlook
We expect our good trading performance to continue with the full year in line with expectations.
23 June 2004
Enquiries:
Richard Pennycook
Group Finance Director 07889 309988
Niall Addison
Group Finance and Investor Relations Manager 07764 624701
For the media release:
Neil Lovell
Corporate Communications Director 07768 298636