Fleet News

AA loses £30 million

THE AA has reported an operating loss of £30 million for the first three months since it was taken on by its new owner Centrica - but the new parent company insists it will bring huge dividends in future. Overall Centrica, which bought the AA last year for £750 million, made a pre-tax profit for year ended December 31 of £417 million, up from £252 million in 1998, on turnover down slightly year on year from £7.4 billion to £7.2 billion.

Chairman Sir Michael Perry said the improved performance was down to lower costs for its gas production arm, but added that he expected the AA to provide new avenues for growth. He said: 'The acquisition of the AA was an important milestone in the development of our strategy. It provides the opportunity to forge new relationships with more than 10 million AA customers and brings the considerable strength of the AA brand alongside British Gas and Goldfish.'

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