31st Mar 2009 07:00
NARS
31 March 2009
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
("Nationwide", "the Company" or "the Group")
Preliminary Results for the year to 31 December 2008
Nationwide provides automotive crash repair and accident administration services principally to the UK insurance industry. With a national network of accident repair centres located across England, Scotland and Wales employing over 2,400 people, it is the largest dedicated provider of accident repair services in the UK.
Financial summary
|
2008 |
2007 |
|
|
Revenue |
£179.3m |
£151.9m |
|
Operating profit before non-recurring item* |
£7.5m |
£6.6m |
|
Profit before tax before non-recurring item* |
£7.8m |
£6.8m |
|
Earnings per share before non-recurring item* |
12.8p |
11.3p |
|
Operating profit after non-recurring item |
£6.7m |
£6.6m |
|
Profit before tax after non-recurring item |
£7.1m |
£6.8m |
|
Earnings per share after non-recurring item |
11.6p |
11.3p |
* A non-recurring charge of £750,000 has been made in relation to a bad debt provision against the debt of a customer that went into administration in March 2009
Key Points
Revenue up 18% to £179.3m (2007: £151.9m)
Gross profit margin maintained at 46.5%
Profit before tax before non-recurring item* up 14% to £7.8m (2007: £6.8m)
Earnings per share before non-recurring item* up 13% to 12.8p (2007: 11.3p)
Strong balance sheet with net cash at year end of £5.4m (2007: £5.2m)
Recommended final dividend of 3.3p per share, making total for the year of 5.0p, an 11% increase (2007: 4.5p)
Contract wins and contract extensions signed in 2007 enjoyed in 2008
Accident management operations, including our mobile divisions, continue to demonstrate encouraging growth
Six new bodyshops acquired in the year: Scunthorpe, Gravesend, Bristol, Redruth, Kettering and Perth
Well positioned to weather the current economic environment
Michael Marx, Chairman, commented,
"I am pleased to report that, in a challenging trading environment, financial results for the year ended 31 December 2008 recorded a new high for the Group.
Although our business is not immune to the current economic downturn, the nature of our business, based as it is around accident repairs, should afford us protection. In addition, we benefit from good cash generation, a strong balance sheet and no bank debt. Accordingly, the Directors are confident that the business is well placed for long term growth."
Enquiries:
|
Nationwide Accident Repair Services plc |
Michael Wilmshurst, Chief Executive David Loftus, Finance Director |
T: 020 7448 1000 today Thereafter: 01993 701720 |
|
Biddicks |
Katie Tzouliadis/ Sophie Lane |
T: 020 7448 1000 |
|
Arbuthnot Securities |
James Steel/ Alasdair Younie |
T: 020 7012 2000 |
Chairman's Statement
Introduction
I am pleased to report that, in a challenging trading environment, financial results for the year ended 31 December 2008 recorded a new high for the Group.
Financial Results
Revenue for the year ended 31 December 2008 increased by 18% to £179.3 million (2007: £151.9 million). This included a combined contribution of £5.0 million from the six new sites acquired during the year. Revenue on a like-for-like basis increased by 15%. Operating profit rose by 2% to £6.7 million (2007: £6.6 million) and profit before tax rose by 3% to £7.1 million (2007: £6.8 million). Earnings per share increased by 3% to 11.6 pence (2007: 11.3 pence).
These results for the year ended 31 December 2008 are after the deduction of £750,000 in respect of a bad debt provision made against the debt of a customer that went into administration in March 2009.
Net cash increased by £0.2 million, producing net cash balances as at 31 December 2008 of £5.4 million (2007: £5.2 million). This increase in cash is after an investment of £1.7 million in the purchase of the Company's own shares, deficit pension contributions of £2.6 million and the payment of £2.3 million for new site acquisitions.
Dividend
The Board is pleased to recommend a final dividend of 3.3 pence per share (2007: 3.0 pence per share), taking the total dividend for the year to 5.0 pence (2007: 4.5 pence), an increase of 11%. This will be paid, subject to approval by shareholders at the Annual General Meeting, on 12 June 2009 to shareholders on the register at the close of business on 15 May 2009.
Trading overview
The business continues to make solid progress and we have increased our market share. The contract wins and contract extensions signed in 2007 helped to increase volumes through our repair network notwithstanding a decrease in accidents during the year. We have also increased our non-insurance work. While our customer base is biased towards multi-year contracts with the leading insurance companies, we also provide our services to corporate fleets, brokers, motor manufacturers and private individuals.
Our national network of bodyshops enables us to service our customers' needs in an efficient and effective manner and we continue to manage the network carefully, adding new locations where we have identified customer demand and closing locations no longer required. During the year we acquired six new bodyshops and closed one bodyshop. These new acquisitions further extend our capacity and service capability and will provide improved returns once they are fully integrated into our network.
A key strength of our bodyshop network is the flexibility it provides us in the deployment of work across our branches, which allows us to maximise cost effectiveness. Our size enables us to derive economies of scale and it is pleasing to note that, despite inflationary pressure, gross margin remained constant at 46.5% for the second consecutive year. We remain focused on achieving cost savings and believe there is scope to deliver further efficiencies within the business.
Our retail initiative progressed well in 2008. Targeted at customers whose vehicles are already in a bodyshop for an insurance-related repair, revenue from this new offering has developed well. We are now further developing this direct-to-consumer offering, which should also enable us to enhance our margins.
Our Network Services division, which acts as a "one-stop shop" for accident management services, continues to expand. The division gives us a competitive edge over many of our peers, providing a service tailored to individual customers' needs, and capturing additional work for the Group's bodyshops.
Outlook
These 2008 results demonstrate the ongoing success of our twin track growth strategy, organically and via acquisition, and we believe that this strategy will continue to deliver future growth. Although our business is not immune to the current economic downturn, the nature of our business, based as it is around accident repairs, should afford us protection. In addition, we benefit from good cash generation, a strong balance sheet and no bank debt. Accordingly, the Directors are confident that the business is well placed for long term growth.
Michael Marx
Chairman
Chief Executive's Report
Introduction
I am pleased to report that 2008 was another record year for the Group, despite the increasing economic turbulence as the year progressed. However, the results were affected by the need to make a bad debt provision of £750,000 in relation to a customer which went into administration in March 2009. This provision has been disclosed as a non-recurring item.
During the twelve months, we benefited from the contract wins and extensions secured in 2007 and underlying revenue and profits (before non-recurring items) rose by 18% and 14% respectively. In line with our commitment to a progressive dividend policy, the proposed final dividend represents an increase of 11% in the total dividend for the year.
Nationwide's robust performance demonstrates the inherent strengths of the business model, in particular its resistance to cyclical influences, its good cash generation, strong balance sheet, and the scale of its operations, which enables us to extract cost efficiencies.
Operations
Our national network of bodyshops constantly evolves as we identify and acquire new locations and withdraw from others, either at the end of their lease or because they require additional capital expenditure which would not deliver a sufficiently commercial return. During 2008 we acquired six new sites in total and closed one. Three sites were acquired in the first half of the year, at Scunthorpe, Gravesend and Redruth. Sites at Bristol, Kettering and Perth were added in the second half of the year. New sites invariably take a period of time to integrate within the Nationwide model before making contributions which mirror those from our more established sites. As expected, the six new sites reflected this and generated a combined loss of £230,000 for the period as they went through the integration process. However, we expect them to deliver enhanced returns over 2009. All of these acquisitions were designed to increase our capacity in areas not served by our existing network and where we have identified and agreed sufficient customer demand.
We continued to invest in our fully integrated in-house IT platform, 'Voyager'. This system gives us considerable market advantage, allowing us to offer claims handling and vehicle repair management without the need for manual data transfer and double entry inputs. As well as improving our own efficiencies, the platform also provides additional benefits. Accessible via the web, it allows customers to track their vehicle repairs at a time and location of their choosing, without the need to call our sites. Information on the system is automatically updated throughout the repair process and the system is a good example of how we use our scale and investment to develop industry leading standards and efficiencies.
Our continued investment in sites, equipment and IT is key to our continuing growth. However, it is our skilled and committed team, which includes 116 apprentices, that enables us to deliver success. I would like to extend my thanks to all of them.
Network Services
Network Services, our support division, offers the following:-
first contact (known as 'first notification of loss' or 'FNOL' in the industry);
claims handling;
replacement vehicles;
deployment into our own or other networks;
uninsured loss recovery and
on-site repair services for minor damage.
The division continues to grow and is unique in the industry, offering accident management services and also being able to transfer vehicles for repair into our own wholly owned network of bodyshops. This year we will invest in the further growth of our 'Mobile Restore' and 'Mobile Solutions' businesses which offer glass replacement, electronic diagnostics and air conditioning recharge services as well as off-site repair for minor damage.
Customers
Our strategy of aligning ourselves with our customers' objectives continues to deliver benefit. Whilst many of our customers share similar aims, including value for money, customer service and process efficiency, their preferred method of achieving these remains individual. The flexibility of our business model allows us to tailor our approach accordingly and our service offering ranges from vehicle repairs at specific sites to comprehensive claims handling. This unique capability gives us considerable market advantage and allows us to develop business relationships with insurance companies, large corporate fleets and brokers, as well as motor manufacturers and other associated companies.
In 2007 we launched a trial retail offering and, having generated sales of £1.84 million in its first year, income from this initiative over 2008 has grown by 80% to £3.31 million. Our retail offering is based both on convenience and value as we provide private individuals with additional services, normally while their vehicle is with us for an insurance-related repair. We are currently developing two trial sites at Leicester and Kettering with an enhanced offering which we are provisionally positioning as "Fast Fit +". Adjoining our existing bodyshop repair facilities, these sites share infrastructure and capital investment, whilst offering drive-in facilities for traditional "fast fit" offers, including MOT and some servicing needs. In the current economic climate, we have based our financial planning on conservative assumptions. However, we believe that there is demand for cost effective basic servicing from trustworthy companies.
We put considerable emphasis on the level of service we offer our customers and measure their satisfaction at every site on a monthly basis. I am pleased to report that customer satisfaction for 2008 for the Group as a whole was 85% and our objective is to increase this in 2009.
Outlook
We continued to grow in 2008 for the sixth year in succession.
The current economic environment is clearly difficult. The nature of our work makes our business model more resistant to cyclical variances than many, but some claims, such as light cosmetic vehicle damage can be deferred, whilst more significant damage requires immediate rectification. It is this second category of work which offers us protection from the extremes of the economic cycle. We have built a market-leading position which will allow us to use our scale to maximise cost efficiencies and with no bank debt and a profitable robust business, we believe that we are well positioned to weather the current difficult economic environment and to continue to execute our twin track strategy of organic and acquisitive expansion.
Michael Wilmshurst
Chief Executive
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 December 2008
|
2008 |
2007 |
||
|
Notes |
£'000 |
£'000 |
|
|
Revenue |
179,337 |
151,947 |
|
|
Cost of sales |
(95,857) |
(81,360) |
|
|
Gross profit |
83,480 |
70,587 |
|
|
Distribution costs |
(46,933) |
(38,858) |
|
|
Administrative expenses |
(28,822) |
(24,872) |
|
|
Share option charge |
(240) |
(240) |
|
|
Operating profit before non-recurring items |
7,485 |
6,617 |
|
|
Non recurring items |
2 |
(750) |
- |
|
Operating profit |
6,735 |
6,617 |
|
|
Finance income |
3 |
325 |
237 |
|
Finance costs |
3 |
(8) |
(39) |
|
Profit before tax for the year |
7,052 |
6,815 |
|
|
Tax expense |
(2,030) |
(1,744) |
|
|
Net profit for the year |
5,022 |
5,071 |
|
|
Earnings per Share arising from both total and continuing operations |
|||
|
Basic |
4 |
11.6p |
11.3p |
|
Diluted |
4 |
11.5p |
11.0p |
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED BALANCE SHEET
At 31 December 2008
|
2008 |
2007 |
||
|
Notes |
£'000 |
£'000 |
|
|
Assets |
|||
|
Non-current |
|||
|
Goodwill |
7,752 |
7,038 |
|
|
Property, plant and equipment |
9,811 |
8,100 |
|
|
Pension and other employee assets |
5 |
7,619 |
5,273 |
|
25,182 |
20,411 |
||
|
Current |
|||
|
Inventories |
2,678 |
2,591 |
|
|
Trade and other receivables |
29,500 |
26,545 |
|
|
Cash and cash equivalents |
5,395 |
5,152 |
|
|
37,573 |
34,288 |
||
|
Total assets |
62,755 |
54,699 |
|
|
Equity |
|||
|
Equity attributable to the shareholders |
|||
|
Share capital |
6 |
5,400 |
5,578 |
|
Capital redemption reserve |
1,209 |
1,031 |
|
|
Share premium account |
11,104 |
11,104 |
|
|
Revaluation reserve |
8 |
8 |
|
|
Retained earnings |
8,970 |
7,426 |
|
|
Total equity |
26,691 |
25,147 |
|
|
Liabilities |
|||
|
Non-current |
|||
|
Provisions |
86 |
125 |
|
|
Deferred tax liabilities |
1,678 |
1,002 |
|
|
1,764 |
1,127 |
||
|
Current |
|||
|
Provisions |
4 |
14 |
|
|
Trade and other payables |
33,728 |
27,380 |
|
|
Current tax liabilities |
568 |
1,031 |
|
|
34,300 |
28,425 |
||
|
Total liabilities |
36,064 |
29,552 |
|
|
|
|
|
|
|
Total equity and liabilities |
62,755 |
54,699 |
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year to 31 December 2008
|
Share |
Capital |
Share |
Revaluation |
Retained |
Total |
|
|
capital |
redemption |
premium |
reserve |
earnings |
||
|
reserve |
account |
|||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Balance at 1 January 2007 |
5,609 |
1,000 |
11,104 |
8 |
4,226 |
21,947 |
|
Income for the year |
- |
- |
- |
- |
5,071 |
5,071 |
|
Total recognised income and expense for the period |
- |
- |
- |
- |
5,071 |
5,071 |
|
Share buyback |
(31) |
31 |
- |
- |
(271) |
(271) |
|
Share option charge |
- |
- |
- |
- |
240 |
240 |
|
Dividend paid |
- |
- |
- |
- |
(1,840) |
(1,840) |
|
Balance at 31 December 2007 |
5,578 |
1,031 |
11,104 |
8 |
7,426 |
25,147 |
|
Income for the year |
- |
- |
- |
- |
5,022 |
5,022 |
|
Total recognised income and expense for the period |
- |
- |
- |
- |
5,022 |
5,022 |
|
Share buyback |
(178) |
178 |
- |
- |
(1,688) |
(1,688) |
|
Share option charge |
- |
- |
- |
- |
240 |
240 |
|
Dividend paid |
- |
- |
- |
- |
(2,030) |
(2,030) |
|
Balance at 31 December 2008 |
5,400 |
1,209 |
11,104 |
8 |
8,970 |
26,691 |
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 December 2008
|
2008 |
2007 |
||
|
£'000 |
£'000 |
||
|
Operating activities |
|||
|
Profit for the year before tax |
7,052 |
6,815 |
|
|
Adjustments to arrive at operating cash flow: |
|||
|
Net finance costs |
8 |
(237) |
|
|
Depreciation |
2,303 |
2,225 |
|
|
Profit on sale of businesses |
- |
(165) |
|
|
Loss/(profit) on sale of property, plant and equipment |
35 |
(548) |
|
|
Changes in inventories |
(87) |
(43) |
|
|
Changes in trade and other receivables |
(2,955) |
(5,155) |
|
|
Changes in trade and other payables |
6,369 |
2,670 |
|
|
Changes in provisions |
- |
(342) |
|
|
Movement in pension fund asset - IAS 19 |
209 |
1,059 |
|
|
Share option scheme charge |
240 |
240 |
|
|
Outflow from pension obligations |
(2,555) |
(2,465) |
|
|
Outflow from provisions |
(49) |
(201) |
|
|
Net cash flow from operating activities |
10,570 |
3,853 |
|
|
Tax paid |
(1,817) |
(963) |
|
|
Investing activities |
|||
|
Additions to property, plant and equipment |
(2,788) |
(1,796) |
|
|
Proceeds from the disposal of businesses |
- |
432 |
|
|
Proceeds from the disposal of property, plant and equipment |
273 |
930 |
|
|
Acquisition of businesses - cost |
(2,269) |
(2,362) |
|
|
(4,784) |
(2,796) |
||
|
Financing activities |
|||
|
Dividend paid |
(2,030) |
(1,840) |
|
|
Interest paid |
(8) |
- |
|
|
Interest received |
- |
237 |
|
|
Purchase of own shares |
(1,688) |
(271) |
|
|
(3,726) |
(1,874) |
||
|
Net increase/(decrease) in cash and cash equivalents |
243 |
(1,780) |
|
|
Cash and cash equivalents at beginning of year |
5,152 |
6,932 |
|
|
Cash and cash equivalents at end of year |
5,395 |
5,152 |
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
NOTES TO THE PRELIMINARY STATEMENT
1. BASIS OF PREPARATION
This preliminary statement has been prepared on the same basis and using the same accounting policies as used in the audited financial statements for the year ended 31 December 2007.
This preliminary statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ended 31 December 2007 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unmodified.
2. NON RECURRING ITEM
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Bad debt provision for debtor in administration |
750 |
- |
This provision was made to provide against the debt of a customer that went into administration in March 2009.
3. FINANCE INCOME AND FINANCE COSTS
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Finance Income |
||
|
Interest receivable on bank balances |
- |
237 |
|
Pension costs: (see note 5) |
||
|
- Interest on obligation |
3,911 |
- |
|
- Expected return on assets |
(4,236) |
- |
|
325 |
237 |
|
|
Finance Costs |
||
|
Interest payable on bank balances |
8 |
- |
|
Pension costs: (see note 5) |
||
|
- Interest on obligation |
- |
3,786 |
|
- Expected return on assets |
- |
(3,747) |
|
8 |
39 |
4. EARNINGS PER SHARE
Basic earnings per share
Basic earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,022,000 (2007: £5,071,000). The weighted average number of outstanding shares used for the basic earnings per share amounted to 43,264,023 (2007: 44,864,001).
Diluted earnings per share
Diluted earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,022,000 (2007: £5,071,000). The weighted average number of outstanding shares used for the diluted earnings per share amounted to 43,672,070 (2007: 46,108,171) and assumes the exercise of all the share options detailed in note 6 since the date they were granted and the average market price of £1.23.
Underlying earnings per share
The underlying earnings per share has been calculated as follows:
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Profit before tax (as stated) |
7,052 |
6,815 |
|
Non recurring item |
750 |
- |
|
7,802 |
6,815 |
|
|
Tax expense (as stated) |
(2,030) |
(1,744) |
|
Tax effect on non recurring item |
(214) |
- |
|
5,558 |
5,071 |
|
|
Adjusted earnings per share |
12.8p |
11.3p |
The weighted average number of outstanding shares used for the basic earnings per share amounted to 43,264,023 (2007: 44,864,001).
5. PENSION AND OTHER EMPLOYEE ASSETS/OBLIGATIONS
The Group operates a defined benefit scheme and a defined contribution pension scheme in the UK which offers both pensions in retirement and death benefits to members. Since 1 January 2002 the defined benefit scheme has been closed to new members. The assets of the schemes are administered by trustees independent of the Group. The Company made contributions of £2,555,000 (2007: £2,465,000) to the defined benefit scheme during the year. The defined benefit scheme was closed for future accruals on 31 July 2006 with active members transferred to a new defined contribution section of the scheme. In 2005 the Company agreed with the trustees of the pension scheme to make annual contributions of approximately £2.3 million (increasing annually by the Retail Price Index) with a view to eradicating the Scheme Specific Funding deficit over a period of approximately 7.5 years.
The Group has opted to amortise all actuarial gains and losses above the corridor (10% of the greater of assets and liabilities) over the future working lifetime of the active membership.
A full actuarial valuation of the defined benefit scheme was carried out as at 31 December 2005 and was updated to 31 December 2008 by a qualified independent actuary.
|
IAS 19 |
||||
|
2008 |
2007 |
2006 |
2005 |
|
|
% |
% |
% |
% |
|
|
The major assumptions used by the actuary were (in nominal terms): |
||||
|
Rate of increase in salaries |
n/a |
n/a |
n/a |
3.3 |
|
Rate of increase in pensions - accrued pre 5 April 1997 |
3.0 |
3.0 |
3.0 |
3.0 |
|
Rate of increase in pensions - accrued post 5 April 1997 |
2.70 |
3.15 |
2.85 |
2.65 |
|
Discount rate |
6.5 |
6.1 |
5.4 |
5.0 |
|
Inflation assumption |
2.70 |
3.15 |
2.85 |
2.65 |
The assumptions used in determining the overall expected return of the scheme have been set with reference to yields available on government bonds and appropriate risk margins. The pre and post retirement mortality assumptions use the A92 and PA92 tables respectively. The 1992 series of mortality tables were published by the Continuous Mortality Investigation Bureau and are based on mortality data from life assurance companies over the years 1991 to 1994 inclusive. The "A92" tables are based on the mortality experience of life assurance policyholders. The "PA92" tables are based on the mortality experience of pension annuity policyholders.
The assets in the scheme and the expected rate of return were:
|
2008 |
2007 |
2006 |
2005 |
|||||
|
Long term rate of return expected |
Value £'000 |
Long term rate of return expected |
Value £'000 |
Long term rate of return expected |
Value £'000 |
Long term rate of return expected |
Value £'000 |
|
|
Equities |
9.6% |
26,575 |
8.5% |
37,044 |
8.1% |
34,525 |
8.0% |
29,340 |
|
Bonds |
5.2% |
9,668 |
5.3% |
9,664 |
4.8% |
9,341 |
4.4% |
9,493 |
|
Property |
9.6% |
4,378 |
8.5% |
6,055 |
8.1% |
6,400 |
8.0% |
5,454 |
|
Other |
4.2% |
3,047 |
4.3% |
1,970 |
3.3% |
94 |
3.0% |
232 |
|
Total market value of assets |
43,668 |
54,733 |
50,360 |
44,519 |
||||
|
Present value of defined obligations (funded plans) |
(60,131) |
(65,040) |
(70,928) |
(65,552) |
||||
|
Present value of unfunded obligations |
(16,463) |
(10,307) |
(20,568) |
(21,033) |
||||
|
Unrecognised actuarial losses |
24,082 |
15,580 |
24,435 |
23,024 |
||||
|
Net asset in balance sheet |
7,619 |
5,273 |
3,867 |
1,991 |
||||
|
Actual return on assets in period |
(11,783) |
3,540 |
4,719 |
5,584 |
||||
The overall expected rates of return were determined by the Directors of the Group, with the advice of their actuarial advisers. The expected return available on equities has been taken as the dividend yield on the FTSE Actuaries All Share Index plus real dividend growth of 2.1% plus price inflation.
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
|
2008 |
2007 |
2006 |
2005 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Benefit obligation at beginning of year |
65,040 |
70,928 |
65,552 |
61,984 |
|
Service cost |
- |
- |
613 |
1,148 |
|
Interest cost |
3,911 |
3,786 |
3,262 |
3,344 |
|
Contributions by scheme members |
- |
- |
212 |
328 |
|
Actuarial (gain)/loss |
(6,983) |
(8,042) |
3,351 |
323 |
|
Curtailments and settlements |
- |
- |
(611) |
- |
|
Benefits paid |
(1,837) |
(1,632) |
(1,451) |
(1,575) |
|
Balance at end of year |
60,131 |
65,040 |
70,928 |
65,552 |
Reconciliation of opening and closing balances of the fair value of plan assets
|
2008 |
2007 |
2006 |
2005 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Fair value of scheme assets at beginning of year |
54,733 |
50,360 |
44,519 |
37,601 |
|
Expected return on scheme assets |
4,236 |
3,747 |
3,248 |
2,471 |
|
Actuarial (loss)/gain |
(16,019) |
(207) |
972 |
3,113 |
|
Contributions by employers |
2,555 |
2,465 |
2,860 |
2,581 |
|
Contributions by scheme members |
- |
- |
212 |
328 |
|
Benefits paid |
(1,837) |
(1,632) |
(1,451) |
(1,575) |
|
Asset at end of year |
43,668 |
54,733 |
50,360 |
44,519 |
The amounts recognised in the income statement are:
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Current service cost |
- |
- |
|
Interest on obligation |
3,911 |
3,786 |
|
Expected return on assets |
(4,236) |
(3,747) |
|
Curtailments and settlements |
- |
- |
|
Actuarial loss recognised in year |
534 |
1,020 |
|
209 |
1,059 |
|
|
Charged to: |
||
|
Administration expenses |
534 |
1,020 |
|
Finance income |
(325) |
- |
|
Finance costs |
- |
39 |
|
209 |
1,059 |
History of scheme assets, obligations and experience adjustments
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Present value of defined benefit obligations |
(60,131) |
(65,040) |
(70,928) |
(65,552) |
(61,984) |
|
Fair value of scheme assets |
43,668 |
54,733 |
50,360 |
44,519 |
37,601 |
|
Deficit in scheme |
(16,463) |
(10,307) |
(20,568) |
(21,033) |
(24,383) |
|
Experience adjustments arising on scheme liabilities |
(6,983) |
(8,042) |
3,351 |
323 |
1,954 |
|
Experience item as a % of scheme liabilities |
(12%) |
(12%) |
5% |
0% |
3% |
|
Experience adjustments arising on scheme assets |
(16,019) |
(207) |
972 |
3,113 |
1,270 |
|
Experience item as a % of scheme assets |
(37%) |
0% |
2% |
7% |
3% |
6. EQUITY
Share Capital
|
2008 |
2007 |
||||
|
Shares |
£'000 |
Shares |
£'000 |
||
|
Authorised |
|||||
|
Ordinary shares of 12.5p (2007: 12.5p) each |
64,000,000 |
8,000 |
64,000,000 |
8,000 |
|
|
Issued and fully paid |
|||||
|
Ordinary shares of 12.5p (2007: 12.5p) each |
43,197,220 |
5,400 |
44,622,220 |
5,578 |
|
On 15 January 2008 the Company purchased 975,000 of its own shares at a price of 120p per share and 450,000 shares on 25 January 2008 at a price of 115p per share. All shares purchased have been cancelled.
Of the 20,802,780 shares authorised, but not issued, 4,262,861 are reserved for issue in respect of the share options.
Share Options
|
Number of |
Exercise |
Exercise |
||
|
Shares |
price |
Period |
||
|
M A Wilmshurst |
Approved |
25,751 |
£1.165 |
2009-16 |
|
Unapproved |
2,217,860 |
£1.11 |
2009-16 |
|
|
D J Loftus |
Approved |
25,751 |
£1.165 |
2009-16 |
|
Unapproved |
1,096,055 |
£1.11 |
2009-16 |
|
|
S D G Thompson |
Approved |
25,751 |
£1.165 |
2009-16 |
|
Unapproved |
871,693 |
£1.11 |
2009-16 |
|
|
4,262,861 |
All the above options were issued on 4 July 2007 and no additional share options have been issued since this date.
In total, £240,000 of employee compensation expense has been included in the consolidated income statement for 2008 (2007: £240,000). The corresponding credit is taken to shareholders' funds. No liabilities were recognised due to share based transactions.
Each Director has been granted two transfers of options. The first tranche is not subject to any vesting conditions and the second tranche is subject to achievement of a Total Shareholder Return performance condition. Under both tranches, vested options can be exercised at any time between the third and tenth anniversary of the date of the grant.
7. FINANCIAL STATEMENTS
The audited financial statements will be posted to shareholders on 24 April 2009 and along with this announcement will be available from the registered office of Nationwide Accident Repair Services plc at 17A Thorney Leys Park, Witney, Oxfordshire, OX28 4GE and on the Company's website, www.narsplc.com
Related Shares:
NARS.L