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Nationwide Accident Repair Services, the UK’s largest provider of crash repair services, saw turnover and profit rise significantly during the first half of the year despite consolidation in the sector.
Revenue was up 16 per cent to £88.3m, compared to last year’s total of £75.9m. Around £10m of this £12m revenue hike was through the existing sites and the growth in the network services business.
Operating profit was up 15 per cent, from £3.3 to £3.8m, while profit before tax was up 14.7 per cent from £3.4m £3.9m.
Although many bodyshops have been struggling in a market affected by economic slowdown, Nationwide acquired four new sites during the period and has recently added a fifth bringing its network to 73 sites.
Nationwide said new contracts and volume extensions agreed last year began to generate the revenues and profitability he had anticipated. Amongst these were new deals with Zenith and additional volumes of work with Norwich Union, AXA and Zurich.
Additionally, retail sales have increased, helped by the acquisitions of bodyshops in Bristol, Gravesend, Scunthorpe, and Redruth in Cornwall. The newest addition was a site at Kettering in Northamptonshire.
Michael Wilmshurst (pictured), Nationwide chief executive, told Motor Trader that future expansion was focused on targeting desirable locations with potential.
“We don’t buy sites without being comfortable there is sufficient work in the area to give us a good likelihood for success,” he said.
Nationwide’s Network Services Division, which provides accident management services to motor insurers and fleet operators, has also enjoyed a successful six months.