22nd Jan 2010 07:00
NARS
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
("Nationwide" or "the Company")
Pre-Close Trading Update
Nationwide, the largest dedicated provider of automotive crash repair services in the UK, is pleased to make the following update on trading for the year ended 31 December 2009, prior to entering its close period.
Against a backdrop of a continued decline in claims volumes, the Directors are pleased to report that Nationwide's results for the year are anticipated to be in line with market expectations.
The Company remains cash generative and the balance sheet is strong, with nil borrowings. Nationwide's cash position at 31 December 2009 is expected to show net cash of approximately £8.0m, ahead of the last year's net cash position of £5.4m. Based on the Company's performance, the Directors intend to propose a final dividend of 3.3p per share, maintaining the dividend for the full year at last year's level of 5p per share.
The Directors are pleased to report that the actions taken in the first half of the year to manage the change in trading conditions have resulted in an improvement in gross margins in the second half.
While market conditions are expected to remain challenging for some time, the recent renewal of Nationwide's contract with RSA will help to underpin the Company's trading performance in the new financial year and beyond. Additionally, the Directors believe there are a number of interesting, primarily organic, growth opportunities available to Nationwide. Accordingly, an investment of approximately £1m is planned in the current financial year to support its growth strategy. This investment is in addition to Nationwide's normal yearly investment in business development and will be recognised in the Company's consolidated income statement for the year ended 31 December 2010.
As the UK's largest dedicated provider of accident repair services, the Board views long term prospects for the business very positively.
The Company's preliminary results for the year ended 31 December 2009 are expected to be announced on 22 March 2010.
Enquiries:
|
Nationwide Accident Repair Services plc |
Michael Wilmshurst, Chief Executive David Loftus, Finance Director |
T: 01993 701 720 |
|
Arbuthnot Securities |
James Steel/Ben Wells/Alasdair Younie |
T: 020 7012 2000 |
|
Biddicks |
Katie Tzouliadis/ Sophie Lane |
T: 020 7448 1000 |
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