AA to boost board as profits fall in maiden results

The AA has played down fears of a corporate governance breakdown in its boardroom by promising to boost its roster of non-executive directors.

The 109-year-old roadside recovery group joined the London Stock Exchange as a standalone company for the first time in its history in June but has since seen its chief executive Chris Jansen and finance director Andy Boland quit.

Executive chairman Bob Mackenzie has taken on Jansen’s role, drawing criticism from shareholder advisory groups Pirc and Manifest. He said today: “We plan to appoint at least two more non-executives, including a senior independent director, which will take us up to six.”

The AA saw revenues rise 1.6 per cent to £491.7 million in the six months to July 31. Pre-tax profits tumbled from £121.2 million to £10.2 million partly because of one-off costs linked to June’s flotation.

Mackenzie said the management team is at present working on a long-term plan for the business that will lead to investment across its operations. Shares in the company floated at 250p: today they rose 5.25p to 296.12p.