One of the UK's best-known motoring organisations believes it is heading in the right direction after announcing a growth in profits.

The AA posted a 1.6 per cent rise in trading revenues for the year ended January 31, from £925million to £940million.

Profit after tax for the same period from continuing operations was £74million compared with a £1million loss in the previous period.

Roadside revenue grew by 2.5 per cent to £742million, with growth in paid personal members going up from 3.31million to 3.33million.

Executive chairman Bob Mackenzie said: "The transformation is delivering growth in our Roadside Assistance Membership base and of motor insurance policies, reversing long-term historic declines. It has given us a firm platform for sustainable growth.

"We are realising the AA's potential. We are now capable of building on our technologies, brand and positioning in our markets to take advantage of the abundant opportunities that arise from our ability to fulfil a wider set of consumer and business needs.

"We are more than ever convinced of the potential of the AA as we position it as the UK's pre-eminent membership services organisation."

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