News in brief: AA, Moss Bros, UK services sector

News in brief
News in brief

AA revenues drop

Motoring group the AA reported a 0.4% drop in revenues to £968million in the year to January 31.

Operating profit fell to £305million from £326million last time.

It put the decline down to reductions in insurance services, driving services and its Ireland division. However, it’s well-known roadside assistance arm did well with revenues rising 1.8% to £724million. Business customer numbers also rose, up 6% to over 10,000 thanks to winning a Lex Autoleasing contract.

Executive chairman Bob Mackenzie said: “In this past year, the first year of our transformation, we have strengthened the foundations of the AA and put in place the platform which will allow us to revolutionise the customer experience.”

Moss Bros profits rise

Clothing retailer Moss Bros has seen profits rise 23.1% to £5.9million in the 52 weeks to January 30. Like-for-like sales rose 8.2% to £119million with hire sales up 11.7% and retail sales 7.6% sharper.

E-commerce sales climbed 36% and are now 10% of total sales.

It said store refits and the appointment of a People Director, chief operating officer and customer director had also improved service.

UK services sector index climbs

The UK Services sector index rose to 53.7 in March from February’s almost three-year low of 52.7. The average for the first quarter of 2016, 54, is the lowest of any quarter since the start of 2013. Data providers Markit and CIPS said global economic uncertainty and the upcoming EU referendum were undermining service sector business expectations.