23rd Sep 2014 08:28
LONDON (Alliance News) - Nationwide Accident Repair Services PLC Tuesday said results for the first half of its financial year were in line with management expectations as it reported an improved underlying performance.
In a statement, Nationwide, which provides automotive accident repair management services to the UK insurance industry, fleet and retail customers, said its underlying pretax profit, which is calculated before non-recurring items and amortisation of intangibles, increased to GBP2.5 million from GBP1.4 million.
However, reported pretax profit fell to GBP21,000 from GBP1.4 million, as non-recurring costs and amortisation of intangibles increased to GBP2.5 million, from zero last year. These were due to acquisition fees of GBP300,000 and amortisation of intangibles of GBP700,000, together with the closure costs of three sites, costing GBP1.3 million and glass costs of GBP200,000. In February, the company completed the acquisition of Howard Basford, a UK bodyshop chain. Nationwide Accident also completed the acquisition of Gladwins, another UK bodyshop chain, earlier this month.
Revenue increased to GBP90.0 million from GBP79.1 million, driven by increases in Nationwide Crash Repair Centres, which make up the bulk of the group's activities, as well as in the glass division.
Revenue from the company's accident management services business segment fell to GBP20.2 million from GBP22.7 million, as a fall in sales generated from work deployed into Nationwide Crash Repair Centres more than offset an increase in revenue generated from sub-contracting to the company's approved network. Neverthless, gross profit of the division rose to GBP2.2 million from GBP2.0 million due to a greater proportion of activity being generated through the approved network.
Nationwide Accident's interim dividend was flat at 1.0 pence.
Nationwide Accident Repair shares were Tuesday quoted up 0.8% at 78.60p.
By Samuel Agini; [email protected]; @samuelagini
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