Article date: 27 June 2003
RAC plc (RAC), the motoring and vehicle solutions company, willannounce its interim results for the six month period ending 30June 2003, on 30 July. RAC will conduct its usual half yearmeetings with analysts in the coming week.
Trading performance is in line with market expectations and issignificantly ahead of the same period last year. The company hasenjoyed a good first half year, benefiting from our strategy offocussing on our growth opportunities in Consumer and BusinessServices, based on our strong brands and our unique motoring andvehicle capability. We are also seeing real benefits from the majorinvestments we have made in IT systems over the last three yearswhich are enhancing revenues and improving efficiency and servicedelivery to our customers. We have extended our track record ofwinning large business services contracts.
Consumer Services had a good first six months with individualroadside membership up by 5% in the period as a result of growth innew enrolments and a continuing strong renewal rate. Roadsiderevenues grew by 8% over last year. We are delivering improvedroadside service with the enhanced capability which has resultedfrom the implementation of our new deployment systems and the rollout of our patented rapid deployment trailer to our patrol force.The number of patrols is being increased by 200 to improveefficiency and customer satisfaction levels.
BSM and Legal Services have continued the double digit growthexperienced over the last 3 years. Our new, remodelled FinancialServices business, which was launched in January, is makingprogress, and the product range has recently been expanded with thelaunch 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 centricmanagement system. The customer data warehouse is now operationalwith over 10 million records loaded and system testing is underway.Our legacy systems will be retired during the autumn to minimisedisruption during our busy summer period.
The implementation of the 10 year contract with British Airways tomanage and maintain its ground fleet services contract, whichcommenced in April, is going well and we see further opportunitiesfor growth.
Lex Vehicle Leasing, which is the largest contributor toBusiness Services and a key element in our service offering, had astrong half year. Its fleet is now approaching 100,000vehicles.
The disposal of our two largest UK mechanical handlingbusinesses, Lex Harvey and Lex Birchwood, was completed in May; weare continuing to address the issues in the remainingoperations.
Lex Auto Logistics is also benefiting from the new BritishAirways ground fleet contract and there are a number of potentialnew contracts in the pipeline. The business has performed well inthe first half of the year and the additional margin on the run outof the Leyland contract is as we expected. Hyundai, our vehicleimportership, has increased its market share and has grown vehicleregistrations by 4%.
We expect our good trading performanceto continue with the full year in line with expectations.
Niall Addison, Group Finance and Investor Relations Manager
Andy Harrison, Chief Executive
020 7705 1257