Article date: 23 June 2004
RAC plc (RAC), the motoring and vehicle services company, willannounce its interim results for the six month period ending 30June 2004, on 28 July. RAC will conduct its usual round of meetingswith analysts in the coming week.
We are pleased to confirm that the steady progress we reportedat the time of our AGM statement in April has continued. We haveenjoyed a good first half year, with trading performance in linewith our expectations and ahead of the same period last year. Itwas particularly pleasing to be voted No.1 Roadside AssistanceProvider in the annual J.D. Power & Associates survey, whichreflects the operational and customer service improvements we haveachieved, supported by the systems and infrastructure investmentthat 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 ournegotiations with the MoD to finalise the “C” vehiclescontract for which we are preferred bidder. The Group remainsfocussed on its core activities and we have now completed our exitfrom Mechanical Handling following the disposal of LexManutention.ConsumerServices
Consumer Services has once again performed well with Roadsiderevenues up by 5% over last year and further growth in membership.
Our Motoring Services businesses had another good period, withrevenues up 19% on prior year. Both BSM and Legal Services haveagain performed well, and Financial Services has delivered asignificant increase in revenues, albeit from a small base. RACAuto Windscreens revenues have been flat, with some improvement inperformance in recent months.
Lex Vehicle Leasing has continued tobuild on its position as one of the top three leasing companies inthe UK, and has grown its fleet to 132,000 vehicles including thesuccessful integration of the Ford contract. This will start todeliver a contribution in 2005. Overall revenues are up by 18% overlast year and although the used car market remains better thanexpected, we are continuing to be cautious in pricingcontracts.
As expected Lex Auto Logistics continues to be impacted by thetermination last year of the contract we had with Paccar todistribute DAF parts, although the additional margin we are earningas a result of Paccar’s earlier decision to cease Leylandproduction, is more than compensating for this. The additionalmargin is in line with our expectations.
RAC Business Solutions has had an excellent first half withrevenues up by 8%, based on a solid performance in all areas,particularly its roadside business.
Hyundai performed well during the period with revenue growth of23%, reflecting the continuing success of the award winning Getzsupermini. This helped boost market share to 1.45%.Disposals
We have completed the disposal of all our mechanical handlingbusinesses, in line with our value expectations. We also completedthe disposal of Isuzu, our small truck importership.
Lex Transfleet, which has previously been reported withinIndustrial Solutions will now be included within ManufacturerSupport Services
We expect our good trading performance to continue with the fullyear in line with expectations.
23 June 2004
Group Finance Director 07889309988
Group Finance and Investor Relations Manager 07764 624701
For the media release:
Corporate Communications Director 07768298636