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Shares in AA (LON:AA.) dropped by 11.58% to 105.67p (as of 11:15 BST) after first-half profits before tax fell by 65% to £28 million. Revenues for the six months ended 31st July were up by 2% at £480 million due to progress in roadside and insurance operations.
CEO Simon Breakwell said: “The first half of FY19 has seen exceptional weather conditions, from extreme cold and snow in February and March to the hottest summer in recent memory, with the severe winter also creating a pothole ‘epidemic’ on the UK’s roads. All this led to a 15 year high in the number of breakdowns we serviced. Against this backdrop, I am extremely proud of our achievements and to be reporting results in line with our guidance as we continue to build resilience throughout the business.
“We are making good operational progress across our Roadside and Insurance businesses and firmly believe that we have the people and strategy in place to unlock the full potential of the AA and crystallise long term value for our shareholders. We remain on-track to meet our Trading EBITDA guidance for FY19 and to return to growth thereafter.“