Nationwide Accident Repair Services has posted half-year revenues of £90.8 million but reports that high margin light damage repairs have dropped, impacting on profits.
The independent bodyshop group, headed by chief executive Michael Wilmshurst, said gross margins have dropped by 2.3 percentage points to 44.3%, due to the change in sales mix as consumers defer spending on cosmetic damage.
Profits before tax dropped to £2.4m compared to £3.9m in the first half of 2008.
"In response to the change in trading conditions in the first half, we acted quickly to reduce the cost base of the business and, as a result, gross margins have since improved. We are continuing to monitor our gross margins and overall costs carefully," said chairman Michael Marx.
For the full statement to London Stock Exchange click here: www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html