RAC Auto Windscreens, part of the consumer services arm of RAC plc, the UK's second largest motoring organisation, reported sales in 2004 down 2% at £95.2M (£96.9M). The performance of the windscreens business contributed to a 7.4% fall in profit in 2004 for the consumer services arm to £47.5M on sales up 6% to £374.8M. RAC reported total pre-tax profit before goodwill and exceptionals of £88.6M (£86.7M). According to a statement by the group, RAC Auto Windscreens experienced "challenging trading conditions, reflected in a reduction in margins, when a number of insurers opted for a single source of supply in 2003 and the company was unsuccessful in the tenders. The new management team took action to reduce costs and are introducing new, more flexible working conditions into the business.
