Interim results from Nationwide Accident Repair Services (NARS) were overshadowed by a 26 per cent jump in the share price after software and technology group Quindell Portfolio declared a 22.5 per cent stake in the repair service specialist. The stake was purchased from two institutions through a share swap for Quindell shares, valuing each share in Nationwide at 84p.
First-half profits at Nationwide were trimmed by the loss of a big contract and drivers having fewer crashes. Loss of the Aviva contract was felt most in the group's South West division, but in July Nationwide bought vehicle accident repair specialist Exway, based in Torbay, for an undisclosed sum, and this is expected to generate annualised sales of around £6m.
Nationwide Crash Repair Centres was the largest revenue generator in the period, and turnover here slipped from £70.7m to £67.6m, while underlying pre-tax profits slid from £2.63m to £773,000. Much of the decline reflected the loss of the Aviva contract, while in other parts of the country an excess workload led to higher volumes, but lower margins.
Broker Westhouse is leaving its full-year forecasts unchanged, having downgraded pre-tax profit estimates in August from £5.2m to £3m, giving EPS of 5.3p.
| NATIONWIDE ACCIDENT REPAIR SERVICES (NARS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 62p | MARKET VALUE: | £26.8m | |
| TOUCH: | 61-63p | 12-MONTH HIGH: | 79p | LOW: 48p |
| DIVIDEND YIELD: | 7.4% | PE RATIO: | 9 | |
| NET ASSET VALUE: | * | NET CASH: | £5m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 80.7 | 2.37 | 4.5 | 1.9 |
| 2013 | 79.1 | 1.35 | 2.3 | 1.0 |
| % change | -2 | -43 | -49 | -47 |
Ex-div: 9 Oct Payment: 5 Nov *Negative equity | ||||
