RAC quadruples profit

The Royal Automobile Club of WA has posted strong full-year revenue and profit figures, but the not for profit also wrote-down the value of two of its business ventures.

RAC’s revenue increased 11 per cent from $737.3 million to $819.1 million for the 2019 financial year, with net profit soaring from $5.3 million to $23.2 million.

Additionally, total net assets for the group were up from $854 million to $886 million.

Its membership grew 3.2 per cent over the 2019 fiscal year to reach 1,066,365.

RAC said it provided $55 million in direct benefits to members, its largest figure ever.

However, it also said the subdued Western Australian residential property market led to a $7.8 million impairment against its wholly-owned St Ives Group retirement villages and associated resident loans.

It also recognised a $10 million write-down against its 50-50 joint venture with Quadrant Private Equity for Enrich Living Services, which is an aged care provider.

RAC said it remained optimistic about business growth of Enrich going forward.

Last week, fellow WA-based not-for-profit organisation P&N Bank released its full-year results, which detailed a net profit after tax of $10.3 million.

This was a decrease of 14.9 per cent from the prior corresponding period, which P&N said was due to fee reductions, a property development impairment and one-off merger related costs.