6th Dec 2007 07:02
Nationwide Accident Repair Srvs PLC06 December 2007 NARS.L NATIONWIDE ACCIDENT REPAIR SERVICES PLC ("Nationwide" or "the Group") Announces Substantial Increase in Repair Volumes with AXA Insurance Nationwide, the largest dedicated provider of automotive crash repair servicesin the UK, is delighted to announce that it has agreed a significant extensionto its existing contract with AXA Insurance. Under the terms of the new contract, Nationwide will undertake a greater volumeof vehicle repairs for AXA across a number of geographical territories. The newcontract will be implemented on a phased basis and annualised is expected togenerate revenues of approximately £6.0m. This represents a near four-foldincrease in the value of the existing contract, which yielded £1.6m ofannualised revenues. The anticipated increase in repair volumes will help tounderpin Nationwide's current growth projections for the next financial year to31 December 2008. Nationwide has provided its accident repair services to AXA for over 10 yearsand as this contract extension and recent new business wins demonstrate,Nationwide believes that growth opportunities for the business remainencouraging, especially given the Group's nationwide reach and recent siteacquisitions. In line its twin track strategy to grow the business both organically and viaacquisition, Nationwide remains in ongoing discussions regarding further siteacquisitions which will provide additional capacity to fulfil customers'requirements. Michael Wilmshurst, CEO of Nationwide, commenting on the contract, said, "It is increasingly apparent that quality repair capacity is in demand and weare working hard to ensure that we have sufficient capacity to fulfil ourcustomers' requirements. I am delighted that the relationship we have established with AXA is workingwell and believe this new contract is an endorsement of the strength of ourbusiness model and the quality of our service." Walter Jones, Motor Development Manager, Vehicle Claims Management, AXAInsurance, said: "We have now carried out a complete review of our Approved Repairer Network andsee Nationwide as a key strategic partner in a model that places great emphasison quality and customer service." Enquiries: Nationwide Accident Michael Wilmshurst, Chief Executive T: 01993 701 720Repair Services plc David Loftus, Finance Director Arbuthnot Securities James Steel or Alasdair Younie T: 020 7012 2000 Biddicks Katie Tzouliadis / Sophie Lane T: 020 7448 1000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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