Losses prompt the AA to make £25m division sale

Wed, 27 Sep 2017 | DIVISION SALE

Recent losses and business failings may force UK driving firm the AA into selling off several ailing parts of its business, including its driving schools, road signs and maps divisions.

It is believed that the motoring association is hoping to focus on its roadside breakdown and insurance arms, for which it is best known and which generate 94 per cent of its total profit.

The AA hit headlines last month after then executive chairman Bob Mackenzie was removed from his position for gross misconduct after a violent altercation with a colleague in the bar of a Surrey hotel.

Since then, Simon Breakwell has been appointed full-time CEO and the AA has identified a few “non-essential” business areas, including making temporary signs for events, the firm’s hotel accreditation scheme and courses for drivers, to recover a projected £25 million.

The sales would cover just 5 per cent of the AA’s £403 million bet income recorded for 2017, of which roadside assistance services accounted for £365 million.

Lost business divisions may also comprise the firm’s bestselling atlas, map and travel guide series and driving schools, which currently employ more than 2,600 people.

Breakwell’s appointment this summer followed a tumultuous summer, which saw the AA hastily revise profit forecasts to investors and delay a large-scale IT upgrade.

The new CEO said that he hoped to make the AA stand out from its competitors once again by focusing on its insurance and roadside response business.

He added: “if you look at the great companies of the world, they always have great products that are really distinctive from their competitors.

“It’s our intention to make the AA one of those companies. I’m a great believer in the approach of less is more, and that it is better to do a few things very well instead of being spread thinly.”

Find a business for sale.
Subscribe to the Business Sale Report.


Share this article



Latest Businesses for Sale

Designer & Manufacturer of Consumer Entertainment Robotics (Fast Sale)
UK Wide

Expressions of interest for the business and assets are required by 5pm on 24th July 2019 with bids anticipated shortly thereafter. An opportunity exists to acquire the shares or alternatively the business and assets of this UK based, innovative comp...

Asking Price: Offers Invited
Turnover: £5m+

Manufacturer of Precision Instrumentation Products
UK Wide

*Trade Enquiries Only*. A leading UK designer, manufacturer and global distributor of critical components in specified compression fittings with a crucial safety function. Offers invited.

Asking Price: Offers Invited
Turnover: £1,900,000

Manufacturer of Nets
South West, UK

Manufacturer of Nets for everything except fishing. More than 130 years of continuous trading. The Company was founded in 1889 and is a very well established manufacturing business and has been a pioneer in the industry and consistently & successfull...

Asking Price: £450,000
Turnover: £522,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

 
18
 
Jul
 
 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
13
 
Mar
 

Fleet services company sold to AA Plc for £8.7m cash | BUSINESS SALE

Prestige Fleet Servicing, a class-leading technology-led com...

 
02
 
Nov
 

Lakehouse buys heating company in £10 million deal | BUSINESS SALE

The assets and energy support services group Lakehouse has c...

 
04
 
Jul
 

Dwell founder steps in to save business | ADMINISTRATION

The founder of embattled houseware retailer Dwell, Aamir Ahm...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources