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RAC plc reports 24% profit increase

RAC plc's provisional profit for 2003 before goodwill amortisation, exceptional items and tax was up 24% to £86.7 million. Total revenues increased by just 1% to £1,526 million, a figure reduced by disposals.

RAC plc's pre-tax profit rose to £25.7m from £23.1m in 2002, and earnings per share rose 24% to 54.4p. Strong cashflow helped RAC plc cut its debt at the end of 2003 to £154m from £282m a year earlier. Consolidated revenue growth from continuing operations was 6%, with consumer services up 7% and business services up 6%. RAC's half share in Lex Vehicle Leasing showed a profit up 12% to £19.6m. Chief Executive Andy Harrison commented: “2003 was our best year yet. We delivered good revenue growth, with sales in Consumer Services up 7% on a continuing basis and record new contract wins in Business Services.” (New LVL customers last year included Ford and the MoD). “In addition,” added Harrison, “we have invested in new systems and infrastructure to increase efficiency and deliver improved service to our customers.”

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