AA profits punctured by soaring costs of roadside tyre changes

Flat: Profits were hit by rising tyre change costs
Oli Scarff/Getty Images
Michael Bow28 September 2016

Changing a tyre used to be a rite of passage for many drivers but a surge in call-outs to the AA to fix blown-out tyres helped keep earnings at the breakdown group flat this year.

The resurgent firm, known for its distinctive yellow vans, said there were an extra 100,000 call-outs during the six months ending July against last year, which kept trading earnings flat at £192 million.

This was despite AA members spending £3 more on average to £157, and sales rising 2% to £467 million.

Investment in IT systems also pressed down on earnings.

Chief financial officer Martin Clarke said tyre-related incidents have now overtaken battery failure as the most common emergency call-out, which he blamed on hi-tech cars.

“Changing a tyre on a modern car is pretty bloody difficult,” he said, adding more potholes and drivers scared of changing tyres on the hard shoulder was also behind the change.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in