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Profits rise for Nationwide bodyshop group

Sales remained almost flat for Nationwide Accident Repair Services however the bodyshop group achieved a 13% rise in pre-tax profit to £6m.

Revenue grew marginally to £172.3m from £170.9m the previous year.

That came as the business, which has 70 bodyshops, ended the first 12 months of a three year development plan which will see it broaden its service offerings and attract fleet and retail work while also expecting growth from its core insurance-funded marketplace.

Michael Marx, chairman, said: "This increase in profitability was helped by an improvement in gross margins, reflecting our continued focus on operational efficiencies and on the cost base, as well as a more favourable mix of repair work undertaken.

“Growth opportunities for us in both the insurance and non-insurance marketplaces remain promising and our industry-leading processes and IT systems continue to underpin the efficient management of workflow and will help to support our ongoing expansion.

“I look forward to another year of growth in 2011 and believe that we have the foundations in place to achieve our targets".

The business’s strategy to leverage the advantages of its scale and operating systems has meant that it has been able to drive further operational efficiencies throughout the business, reducing costs further, changes the way it manages repair work and improving gross margins.
 

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