Motoring group AA has today reported a 1.4% drop in revenue in the first half of its financial year today, due to weaker performance in its insurance business.
Revenue fell to £485m in the six months to the end of July from a year earlier. This was slightly below a company-supplied consensus forecast of £496m, the firm said in a trading statement.
AA, which is best known for its roadside recovery service but also offers insurance, was listed by its private equity owners last year.
Trading earnings before interest, tax, depreciation and amortisation fell 6% to £199m compared to a forecast of £207m.
The firm said an unexpected rise in insurance premium tax, which comes into force in the UK from November, was "likely to create additional churn in both insurance and roadside assistance".
AA said today it would pay shareholders an interim dividend of 3.5 pence per share.