RAC profits accelerate after membership boost

British motoring services group RAC today said it had driven half-year profits 4% higher after boosting the number of motorists on its books to seven million.

RAC, which is based at Bourne End, Buckinghamshire, said it had seen strong performances across the business, leaving it on track to deliver annual results in line with expectations.

The total number of drivers signed up for RAC’s services, which range from insurance and breakdown cover to legal services and driving tuition, rose from 6.5 million last year.

This helped lift pre-tax profits before goodwill and exceptionals to £44.9m (€67.8m) in the six months to June 30.

Motoring services, which offer products ranging from legal cover to replacement windscreens, recorded a 19% increase in revenues to £33.5m (€50.6m).

Within this division, driving school BSM raised revenues by 4% after increasing its number of instructors to more than 3,000.

Revenues from the group’s roadside business were 5% higher at £101.6m (€153.6m).

An increase of 1% in the number of members to 2.2 million represented a lower rate of growth than previously experienced, although the renewal rate remained high at 83%.