AA Ireland profit falls nearly 9% to €10m

Profits at motor repair and insurance specialist AA Ireland fell 8.8 per cent to €10.3 million in the 12 months ended January 31st, the latest figures show.

The Competition and Consumer Protection Commission has just approved the sale of AA Ireland to US investors Carlyle Capital for €157 million.

According to accounts filed with the Companies Registration Office, AA Ireland's revenue rose by more than 6 per cent to €51.4 million in the 12 months ended January 31st from €48.2 million during its previous financial year.

Profit fell 9 per cent to €10.3 million from €11.3 million over the same period. The company blamed an increased in administrative costs for the dip in its surplus.

Funds

Shareholder’s funds – a measure of the company’s worth – increased 28 per cent to at €92 million on January 31st from €76.3 million a year earlier.

The increase was partly due to a fall in its pension liability to €14 million from €22 million, an increase in cash to €14.5 million from €9 million and in trade debtors to €124 million from €108 million.

Those boosts to its balance sheet helped offset an overall increase in liabilities to €56 million from €43 million.

AA Ireland is best known for providing drivers with emergency breakdown repair and roadside recovery. It also sells motor and general insurance, offers traffic updates and other services.

Sale

It is part of the British-based AA group, which earlier this year announced that it was putting the Irish business up for sale.

Carlyle secured the company with a €156.6 million bid that last week won the competition regulator’s approval.

Carlyle is buying the company with its Irish partner, Cardinal Capital, through a special-purpose vehicle, Selenium Designated Activity Company.

Former Bank of Ireland executive Brendan Nevin runs the business. He and his fellow executives will continue to do so after it is sold.