Nationwide Accident Repair is trading in line with expectations according to its chairman Michael Marx.
Marx spoke at the company’s annual general meeting and said that while sales were coming in, the mix of repair work included a bigger element of replacement parts which carry a lower margin.
He said: “We have seen the profile of repair work recover and gross margins have improved. We have also taken various actions to improve our position but the benefits of these will not show through fully until the second half of the year.
“The balance sheet remains strong and cash generation is good. As of May 31, 2009, the group held net cash of £7.4m.”
Nationwide is expecting to continue growing its network but said the economic environment in 2009 would remain difficult.