DUBLIN: AA Ireland the takeover of which has just been completed by private equity fund Carlyle Cardinal Ireland saw its profits dip to €10.3m in the year to the end of January 2016.
The financial services and roadside assistance firm’s after tax profits fell 8.8% in the year despite an increase in turnover to €51.4m.
AA Ireland’s revenue was boosted by more people taking out membership with 128,300 customers now signed up in total. Similarly, breakdown service volumes were 4.9% higher than 2015 levels. Its road services division recorded revenue of €26.7m, while its insurance business turned over €24.2m. Other income amounted to €463,000. The company’s profits were hit by a one-time exceptional administrative expense of €0.9m.
The deficit in AA Ireland’s defined benefit scheme shrunk considerably from €21.8m to €14.2m. Private equity fund Carlyle Cardinal Ireland completed the acquisition of AA’s Irish business earlier this year in a €156.6m deal. The fund is comprised of Carlyle Cardinal Ireland, backed by the Irish State, and Carlyle Global Financial Services.
AA Ireland will continue to operate under its own brand and has signalled its intent to use the proceeds of the all-cash deal to pay down debt. The company employed 441 staff members at the end of January with associated staff costs totalling €18.69m. Restructuring and redundancy costs came to €865,000. AA Ireland, which has traditionally provided motor and car insurance, recently announced its entry into the Irish life assurance market.
