Since its acquisition by CVC/Permira back in September 2004, the AA has been on a mission to turn its business and its finance function around.

Taking this year’s Business Finance Team of the Year Award confirms that the AA has successfully achieved its aims. In the judges’ view: ‘This was a team that stood out as being completely committed to the organisation and making a major contribution. They had a clear task and set about achieving their goals with real gusto.’

Following the buyout from Centrica, a review of the AA’s activities resulted in an ambitious plan to increase earnings before interest and tax from just over £100m to £300m over a five-year period. The idea was to focus attention on profitable core businesses, improve efficiency and drive down costs.

With such a well-known brand, the company also set itself the goal of improving sales and market share.

To that end, the finance team helped to identify £150m in cost savings and restructuring initiatives, and a £1.8bn debt was refinanced. By June 2006, earnings before interest and tax was up 28% on the previous year ­ an improvement of £26m.

Led by finance director Paul Woolf, the 200-strong finance team also took up the challenge to bring its operations up to date and align itself more closely with the business.

The AA wanted a flexible, revitalised department. Today, the finance team has flattened its structure and changed its profile within the company. It provides consultancy to other parts of the business, with a team member involved in all business decisions.

The team also provides financial information on a far faster turnaround. It closes monthly management accounts in four days and provides statutory accounts six months earlier than before the overhaul.

The time taken to produce budgets and forecasts has been halved, a new graduate training scheme has been introduced and staff turnover stands at only 2%. It all adds up to a motivated and committed team.

A FOCUS ON PEOPLE

The AA’s finance department remains committed to developing its people. As well as a new graduate training scheme, all team members undergo a training Programme developed and run by team members. The department has an open door policy with senior managers, runs an annual away day and regular social events.