RNS Number:7566Q
Nationwide Accident Repair Srvs PLC
26 March 2008
NARS
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
("Nationwide", "the Company" or "the Group")
Preliminary Results for the year to 31 December 2007
Nationwide provides automotive crash repair and accident administration services
to the UK insurance industry. With a national network of accident repair centres
located across England, Scotland and Wales employing over 2,200 people, it is
the largest dedicated provider of accident repair services in the UK.
Financial summary
2007 2006
Revenue �151.9m �151.2m
Operating profit after non-recurring items* �6.6m �2.2m
Profit before tax after non-recurring items* �6.8m �2.4m
Earnings per share after non-recurring items* 11.3p 3.1p
Underlying results
Operating profit before non-recurring items* �6.6m �5.8m
Profit before tax before non-recurring items* �6.8m �5.9m
Earnings per share before non-recurring items* 11.3p 9.0p
Underlying results under IAS 19 (non-corridor)
Operating profit before non-recurring items* �7.6m �6.7m
Profit before tax before non-recurring items* �7.8m �6.9m
Earnings per share before non-recurring items* 12.5p 10.5p
* Non-recurring items affected results for the year 31 December 2006 only
Key Points
* Strong results with profit before tax before non-recurring items up 15% to
�6.8m (2006: �5.9m)
* Earnings per share before non-recurring items up 26% to 11.3p (2006: 9.0p)
* Strong balance sheet with net cash at year end of �5.2m (2006: �6.9m)
* Recommended final dividend up 15% to 3.0p per share, making total for the
year of 4.5p (2006: 2.6p)
* Major contract wins during the year:
- new customers include Hastings Direct and Zenith;
- significant contract extensions with existing customers: Norwich
Union, AXA and Zurich; and
- full benefits of these contracts to flow through in 2008 and beyond
* Accident management operations continue to demonstrate encouraging growth
* Group continues to drive consolidation within the crash repair industry:
- four new bodyshops acquired in the year: Llandudno, Lincoln, Matlock
and Hull; and
- post year end acquisitions of bodyshops in Gravesend and Scunthorpe
* 2008 has started positively and the Board remains confident of prospects
Michael Marx, Chairman, commented,
"It is encouraging to have achieved such pleasing results whilst laying strong
foundations for future growth.
We are focused on developing customer relationships which will enable us to
leverage our scale and operational efficiencies to the benefit of both
Nationwide and our customers. The new agreements we secured over the course of
2007 will bring further benefits in the current financial year and beyond, as
the additional volumes are generated. Following the strategic decision to
decline the renewal of a major contract in the second quarter, we have now more
than replaced the foregone volumes with significant contract wins from both new
and existing customers.
Furthermore, we believe that our business is well placed to benefit from market
consolidation both by acquiring bodyshops where appropriate and also by taking
advantage of opportunities to win additional volumes from insurers consolidating
their repair base. The Board therefore remains confident in its business
prospects."
Enquiries:
Nationwide Michael Wilmshurst, Chief Executive T: 020 7448 1000 today
Accident Repair David Loftus, Finance Director Thereafter: 01993 701720
Services plc
Biddicks Katie Tzouliadis/ Sophie Lane T: 020 7448 1000
Arbuthnot James Steel/ Alasdair Younie T: 020 7012 2000
Securities
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report Nationwide's preliminary results for the year ended 31
December 2007. It is encouraging to have achieved such pleasing results while
laying strong foundations for future growth.
Financial Overview
Revenue for the 12 months ended 31 December 2007 increased to �151.9m (2006:
�151.2m), a very creditable performance given our decision to let a �20m
contract lapse due to unattractive commercial terms. Operating profit before
non-recurring items rose by 15% to �6.6m (2006: �5.8m). Adjusted profit before
tax excluding non-recurring items increased by 15% to �6.8m (2006: �5.9m) and
adjusted earnings per share excluding non-recurring items increased by 26% to
11.3p from 9.0p last year.
The Company adopts IAS 19, the 'corridor approach', for its pension obligations.
However, in order to provide shareholders with financial results which are
comparable with other companies, results under IAS19 (non-corridor) are also
shown. Under IAS 19 (non-corridor), operating profit before non-recurring items
increased by 14% to �7.6m (2006: �6.7m). Profit before tax before non-recurring
items increased by 14% to �7.9m (2006: �6.9m) and earnings per share before
non-recurring items increased by 19% to 12.5p (2006: 10.5p). It should be noted
that non-recurring items affected last year's results only.
The Group's cash position remains very strong, with net cash at 31 December 2007
of �5.2m (2006: �6.9m), having acquired four new bodyshops during the year for a
total cash consideration of �2.1m in cash.
Dividend
The Group has a progressive dividend policy in place and the Directors are
pleased to recommend the payment of a final dividend of 3.0p per share for the
year, an increase of 15% on last year (2006: 2.6p). With the interim dividend of
1.5p, this takes the total dividend for the year to 4.5p (2006: 2.6p). Subject
to approval at the Annual General Meeting, the final dividend will be paid on 2
June 2008 to shareholders on the register at the close of business on 9 May
2008.
Trading Overview
The year started well with a good first quarter. However, in the second quarter
we took the strategic decision to decline the renewal of a substantial contract
which was offered on commercially unattractive terms. Since then, we have more
than replaced the lost volumes from new and existing customers. While work from
these new agreements has already started to flow, we expect to see the full
benefits come through in the current financial year and beyond. As insurers look
to consolidate the number of vehicle repair suppliers, our market leading
position and high standards of customer service should ensure that we will
continue to be well placed to take advantage of the changes, as these new
agreements demonstrate.
We remain focused on driving efficiencies and leveraging our scale in order to
realise cost savings. By working together with customers we are able to manage
our operations carefully, deploying work across the network of bodyshops in a
way which allows for maximum efficiency and cost effectiveness. During the year,
we have achieved cost savings and we will continue to look at further ways in
which to enhance operations.
During the period, we continued our acquisition growth strategy, with the
purchase of four new bodyshops in order to meet demand from our customers in
specific regions. We also refined our existing network of repair centres,
disposing of five sites which were no longer suitable for our needs.
Our Network Services Division, which offers insurers and fleet operators a
comprehensive "one-stop shop" option of accident management services, continues
to perform well. The Aquilo business, acquired in December 2006, was
successfully integrated during the year and has contributed to Network Services'
success.
Outlook
The strategic decisions which we took in 2007 have established the foundations
for future growth. We are focused on developing customer relationships which
will enable us to leverage our scale and operational efficiencies to the benefit
of both Nationwide and our customers. The new agreements we secured over the
course of 2007 will bring further benefits in the current financial year and
beyond, as the additional volumes are generated. Following the strategic
decision to decline the renewal of a major contract in the second quarter, we
have now more than replaced the foregone volumes with significant contract wins
from both new and existing customers.
Furthermore we believe that our business is well placed to benefit from market
consolidation by acquiring bodyshops where appropriate and by taking advantage
of opportunities to win additional volumes from insurers consolidating their
repair base. The Board remains confident in its business prospects.
Michael Marx
Chairman
CHIEF EXECUTIVE'S REPORT
Introduction
2007 was a record year for our Group and our ability to continue to improve our
financial performance, at a time of customer and market change, is indicative of
the strength of our business offer model and team.
Customers
In 2007 we took the difficult, but strategic decision to decline a substantial
contract on the basis of the terms offered. We believed that we would be able to
replace this work (in excess of �20 million) with other customers. A key part of
our decision was driven by our underlying business approach, which is to align
ourselves with customers whose business models reflect our strategy of
increasing repair efficiency, by directing work to the most suitable site,
utilising our excellent IT platform to develop additional efficiencies and
leveraging our own economies of scale.
I am pleased to report that over the remainder of the year, we more than
replaced the lost work. This was achieved through a mix of new contract wins and
volume extensions with existing customers. The new wins we secured were with
Hastings Direct and Zenith and we agreed significant additional volumes with
Norwich Union, AXA and Zurich. These agreements will help to underpin the
Group's growth in 2008 as they are fully implemented.
In expanding our business, our strategy has been, and continues to be, to
develop a broad base of customers. While typically half of our business is
transacted with our top five insurance customers, these insurers change over
time, reflecting market conditions. It is, therefore, important to us to
maintain contact and foster relationships across the insurance industry as a
whole and to adapt to the changing balance of work we carry out for customers in
a way which suits both parties. Over the past few years, by adopting this "Broad
Church" approach and by investing time to understand our customers' future
strategies, we have successfully managed both the growth of contracts and a
number of customer transitions. We are also applying this longer term account
relationship methodology to customers outside our current core motor insurer
customer base, namely fleet and rental operators and motor manufacturers and
secured a further 23 customers operating in these fields. A new initiative,
begun during 2007, was the launch of a retail sales operation. From a standing
start, this has generated sales of �1.84m in its first year and we will look to
grow retail sales further in 2008.
Overall, the market consolidation we highlighted in last year's report
continues, with a considerable number of insurance companies reducing the number
of repairers to which they send work. With our skilled team, national coverage
and sophisticated IT package, we believe that we are well positioned to benefit
from ongoing consolidation.
People
Nationwide employs over 2,200 skilled and committed people, including 130
apprentices. In recent years, we have developed the "Nationwide Academy", which
provides structured training programmes designed to assist our team to hone
their existing skills and develop new areas of expertise. The market in which we
operate is becoming increasingly sophisticated and, in 2008, it is our
intention, with Government assistance, to extend the training areas covered by
the programme and to increase the number of staff enjoying the benefits that the
Academy offers, including apprenticeships and National Vocational
Qualifications. Our objective is to develop the most effective team in the
sector and become the industry "employer of choice". We have made good progress
in 2007 and aim to improve further this year.
Operations
In 2007 we also took the opportunity to review the sites that we operate and the
areas in which they are located. In a multi-site business such as ours, such
reviews are a normal part of our business, as sites approach the end of their
leases or require additional capital investment. As a result of this review, we
closed or disposed of five sites and acquired four, in Llandudno, Lincoln,
Matlock and Hull. Since the year end, we have also acquired sites in Gravesend
and Scunthorpe. To support our customers' needs going forward, we are increasing
our repair capacity and plan to expand in three ways:-
* By increasing the throughput through our existing sites, with the
employment of additional staff, introduction of shifts and extending working
hours;
* By acquiring additional sites in geographical areas not served by our
existing network or where our existing sites are at capacity;
* By enlisting and managing a secondary network of Nationwide approved
repairers who carry out work on our behalf. Our Network Services Division
already successfully operates this system.
Network Services
Our Network Services Division offers a comprehensive Accident Management Service
including:-
* First contact (known as 'first notification of loss' or 'FNOL' in the
industry);
* Claims handling;
* Replacement vehicles;
* Deployment into our own or other repair networks;
* Uninsured loss recovery;
* A glass replacement service;
* Electronic diagnostic and air conditioning services; and
* On site repair services for minor damage.
In providing this service, we enjoy two key competitive advantages:-
* The majority of the work is carried out within our own network,
facilitating communication, efficient deployment and the ability to
prioritise work;
* Network Services and Nationwide Crash Repair Centres operate on a
sophisticated and fully integrated in-house IT platform. This system allows
us to monitor electronically and manage the flow of work through our
business far more efficiently than the traditional manually operated
processes.
Thanks to these advantages, the division continues to demonstrate encouraging
growth. This year we will invest in the ongoing development of our IT platform
in the areas of "first contact" and claims handling, further enhancing the
services we offer our customers and the efficiency with which we manage repairs.
Outlook
We have made encouraging progress during the year, improving the Group's
profitability for the fifth consecutive year. Most significantly, we have
secured significant volumes of additional work from our existing customers and
added new contracts. The benefits of these volume improvements will be seen in
2008 as these agreements are fully implemented.
In the current financial year, we are continuing to expand, develop and train
our team, in order to maintain our competitive advantage. We are also increasing
our capacity to repair vehicles, leveraging efficiencies at our existing sites
and looking for additional sites, where demand makes this appropriate. In
addition, we continue to grow our Network Services Division, offering insurers
and fleet operators a single point of contact and enabling us to capture work
more effectively.
Our business is by nature driven by unplanned events or accidents and, as such,
is "non-cyclical". This gives us a firm foundation on which we can capitalise,
but equally we also look to ensure that we continue to improve operational
efficiency and that we are well placed to take advantage of market
opportunities.
Looking ahead, we remain confident of our trading prospects as we continue to
execute our twin track strategy of organic and acquisitive expansion.
Michael Wilmshurst
Chief Executive
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 December 2007
2007 2006
Notes �'000 �'000
Revenue 151,947 151,192
Cost of sales (81,360) (80,905)
---------------------------
Gross profit 70,587 70,287
Distribution costs (38,858) (37,347)
Administrative expenses (24,872) (27,063)
Share option charge (240) (120)
---------------------------
Operating profit before non
recurring items 6,617 5,757
Non recurring items 2 - (3,542)
---------------------------
Operating profit 6,617 2,215
Finance income 3 237 169
Finance costs 3 (39) (14)
---------------------------
Profit for the period before tax 6,815 2,370
Tax expense (1,744) (978)
---------------------------
Net profit for the period 5,071 1,392
---------------------------
Earnings per Share
Basic 4 11.3p 3.1p
Diluted 4 11.0p 3.0p
---------------------------
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED BALANCE SHEET
At 31 December 2007
2007 2006
Notes �'000 �'000
Assets
Non-current
Goodwill 7,038 5,821
Property, plant and equipment 8,100 8,933
Pension and other employee assets 5 5,273 3,867
-------------------------
20,411 18,621
-------------------------
Current
Inventories 2,591 2,548
Trade and other receivables 26,545 20,490
Cash and cash equivalents 5,152 6,932
-------------------------
34,288 29,970
-------------------------
Total assets 54,699 48,591
-------------------------
Equity
Equity attributable to the
shareholders
Share capital 6 5,578 5,609
Capital redemption reserve 1,271 1,000
Share premium account 10,864 11,104
Revaluation reserve 8 8
Retained earnings 7,426 4,226
-------------------------
Total equity 25,147 21,947
-------------------------
Liabilities
Non-current
Provisions 125 508
Deferred tax liabilities 1,002 685
-------------------------
1,127 1,193
-------------------------
Current
Provisions 14 174
Trade and other payables 27,380 24,710
Current tax liabilities 1,031 567
-------------------------
28,425 25,451
-------------------------
Total liabilities 29,552 26,644
-------------------------
Total equity and liabilities 54,699 48,591
-------------------------
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year to 31 December 2007
Share Capital Share Reval. Retained Total
Capital Redemption Premium Reserve Earnings
Reserve Account
�'000 �'000 �'000 �'000 �'000 �'000
Balance at 1 Jan 2006 5,609 1,000 11,104 8 2,714 20,435
Income for the period - - - - 1,392 1,392
--------------------------------------------------------
Total recognised income
and expense for the
period - - - - 1,392 1,392
Share option charge - - - - 120 120
--------------------------------------------------------
Balance at 31 Dec 2006 5,609 1,000 11,104 8 4,226 21,947
--------------------------------------------------------
Income for the period - - - - 5,071 5,071
--------------------------------------------------------
Total recognised income
and expense for the
period - - - - 5,071 5,071
Share buyback (31) 271 (240) - (271) (271)
Share option charge - - - - 240 240
Dividends paid - - - - (1,840) (1,840)
--------------------------------------------------------
Balance at 31 Dec 2007 5,578 1,271 10,864 8 7,426 25,147
--------------------------------------------------------
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 December 2007
2007 2006
Notes �'000 �'000
Operating activities
Profit for the period before tax 6,815 2,370
Adjustments 7 (296) 6,293
Outflow from pension obligations (2,465) (2,860)
Outflow from provisions (201) (156)
Tax paid (963) (684)
---------------------------
2,890 4,963
---------------------------
Investing activities
Additions to property, plant and
equipment (1,796) (1,653)
Proceeds from the disposal of
businesses 432 -
Proceeds from the disposal of
property, plant and equipment 930 101
Acquisition of businesses - cost (2,362) (762)
Interest received 237 169
---------------------------
(2,559) (2,145)
---------------------------
Financing activities
Dividend paid (1,840) -
Purchase of own shares (271) -
---------------------------
(2,111) -
---------------------------
Net (decrease)/increase in cash
and cash equivalents (1,780) 2,818
Cash and cash equivalents at
beginning of period 6,932 4,114
---------------------------
Cash and cash equivalents at end
of period 5,152 6,932
---------------------------
NATIONWIDE ACCIDENT REPAIR SERVICES PLC
NOTES TO THE PRELIMINARY STATEMENT
1. BASIS OF PREPARATION
This preliminary statement has been prepared on the same basis and using the
same accounting policies as used in the audited financial statements for the
year ended 31 December 2006.
This preliminary statement does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985. The figures for the year ended 31
December 2006 have been extracted from the statutory financial statements which
have been filed with the Registrar of Companies. The auditors' report on those
financial statements was unmodified.
2. NON RECURRING ITEMS
2007 2006
�'000 �'000
Flotation costs - 683
Non recurring bonuses - 2,859
---------------------
Total - 3,542
---------------------
3. FINANCE INCOME AND FINANCE COSTS
2007 2006
�'000 �'000
Finance Income
Interest receivable on bank balances 237 169
---------------------
Finance Costs
Pension costs:
- interest on obligation 3,786 3,262
- expected return on assets (3,747) (3,248)
---------------------
39 14
---------------------
4. EARNINGS PER SHARE
Basic earnings per share
The basic earnings per share has been calculated using the net results
attributable to the shareholders of the Company of �5,071,000 (2006:
�1,392,000). The weighted average number of outstanding shares used for the
basic earnings per share amounted to 44,864,001 (2006: 44,872,220). This number
takes into account the share buyback that occurred on the 19th December 2007.
Diluted earnings per share
The diluted earnings per share has been calculated using the net results
attributable to the shareholders of the Company of �5,071,000 (2006:
�1,392,000). The weighted average number of outstanding shares used for the
diluted earnings per share amounted to 46,108,171 (2006: 46,974,453) and assumes
the exercise of all the share options detailed in note 7 since the date they
were granted and the average market price of �1.57. This number takes into
account the share buyback that occurred on the 19th December 2007.
Underlying earnings per share
The underlying earnings per share has been calculated as follows:
2007 2006
�'000 �'000
Profit before tax (as stated) 6,815 2,370
Non recurring items - 3,542
----------------------
6,815 5,912
Tax expense (as stated) (1,744) (978)
Tax effect on non recurring items - (888)
----------------------
5,071 4,046
----------------------
Adjusted earnings per share 11.3p 9.0p
----------------------
The weighted average number of outstanding shares used for the underlying
earnings per share amounted to 44,864,001 (2006: 44,872,220). This number takes
into account the share buyback that occurred on the 19th December 2007.
Underlying earnings per share (IAS 19 non-corridor basis)
The underlying earnings per share on an IAS 19 (non-corridor) basis has been
calculated as follows:
2007 2006
�'000 �'000
Operating profit before non recurring items 7,637 6,726
under IAS 19 (non-corridor)
Finance income 237 169
Finance costs (39) (14)
--------------------
Underlying Profit before tax under IAS 19
(non-corridor) 7,835 6,881
Tax expense as stated (1,744) (978)
Deferred tax IAS 19 (corridor) reversed 316 563
Deferred tax under IAS 19 (non-corridor) (777) (853)
Tax effect on non recurring items - (888)
--------------------
5,630 4,725
--------------------
Adjusted earnings per share 12.5p 10.5p
--------------------
The weighted average number of outstanding shares used for the underlying
earnings per share amounted to 44,864,001 (2006: 44,872,220). This number takes
into account the share buyback that occurred on the 19th December 2007.
5. PENSION AND OTHER EMPLOYEE ASSETS/OBLIGATIONS
The Group operates a defined benefit scheme and a defined contribution pension
scheme in the UK which offers both pensions in retirement and death benefits to
members. Since 1 January 2002 the defined benefit scheme has been closed to new
members. The assets of the schemes are administered by trustees independent of
the Group. The Company made contributions of �2,465,000 (2006: �2,860,000) to
the defined benefit scheme during the year. The defined benefit scheme was
closed for future accruals on 31 July 2006 with active members transferred to a
new defined contribution section of the scheme. In 2005 the Company agreed with
the trustees of the pension scheme to make annual contributions of approximately
�2.3 million (increasing annually by the Retail Price Index) with a view to
eradicating the Scheme Specific Funding deficit over a period of approximately
7.5 years.
The Group has opted to amortise all actuarial gains and losses above the
corridor (10% of the greater of assets and liabilities) over the future working
lifetime of the active membership.
A full actuarial valuation of the defined benefit scheme was carried out as at
31 December 2005 and was updated to 31 December 2007 by a qualified independent
actuary.
IAS 19
2007 2006 2005
% % %
--------------------------
The major assumptions used by the actuary were
(in nominal terms):
Rate of increase in salaries n/a n/a 3.3
Rate of increase in pensions - accrued pre 5
April 1997 3.0 3.0 3.0
Rate of increase in pensions - accrued post 5
April 1997 3.15 2.85 2.65
Discount rate 6.1 5.4 5.0
Inflation assumption 3.15 2.85 2.65
--------------------------
The assumptions used in determining the overall expected return of the scheme
have been set with reference to yields available on government bonds and
appropriate risk margins.
The assets in the scheme and the expected rate of return were:
2007 2006 2005
--------------------- --------------------- -------------------
Long term Long term Long term
rate of rate of rate of
return Value return Value return Value
expected �'000 expected �'000 expected �'000
---------------------------------------------------------------
Equities 8.5% 37,044 8.1% 34,525 8.0% 29,340
Bonds 5.3% 9,664 4.8% 9,341 4.4% 9,493
Property 8.5% 6,055 8.1% 6,400 8.0% 5,454
Other 4.3% 1,970 3.3% 94 3.0% 232
---------------------------------------------------------------
Total market value of
assets 54,733 50,360 44,519
Present value of defined
obligations (funded
plans) (65,040) (70,928) (65,552)
---------------------------------------------------------------
Present value of unfunded
obligations (10,307) (20,568) (21,033)
Unrecognised actuarial
losses 15,580 24,435 23,024
---------------------------------------------------------------
Net asset in balance
sheet 5,273 3,867 1,991
---------------------------------------------------------------
Actual return on
assets in period 3,540 4,719 5,584
---------------------------------------------------------------
Reconciliation of opening and closing balances of the present value of the
defined benefit obligations
2007 2006 2005
�'000 �'000 �'000
-----------------------------------------
Benefit obligation at beginning of year 70,928 65,552 61,984
Service cost - 613 1,148
Interest cost 3,786 3,262 3,344
Contributions by scheme members - 212 328
Actuarial (gain)/loss (8,042) 3,351 323
Curtailments and settlements - (611) -
Benefits paid (1,632) (1,451) (1,575)
-----------------------------------------
Balance at end of year 65,040 70,928 65,552
-----------------------------------------
Reconciliation of opening and closing balances of the fair value of plan assets
2007 2006 2005
�'000 �'000 �'000
-----------------------------------------
Fair value of scheme assets at beginning of year 50,360 44,519 37,601
Expected return on scheme assets 3,747 3,248 2,471
Actuarial (loss)/gain (207) 972 3,113
Contributions by employers 2,465 2,860 2,581
Contributions by scheme members - 212 328
Benefits paid (1,632) (1,451) (1,575)
-----------------------------------------
Asset at end of year 54,733 50,360 44,519
-----------------------------------------
The amounts recognised in the income statement are:
2007 2006
�'000 �'000
---------------------------------------
Current service cost - 613
Interest on obligation 3,786 3,262
Expected return on assets (3,747) (3,248)
Curtailments and settlements - (611)
Actuarial loss recognised in year 1,020 969
---------------------------------------
1,059 985
---------------------------------------
Charged to:
Administration expenses 1,020 971
Finance costs 39 14
---------------------------------------
1,059 985
---------------------------------------
History of scheme assets, obligations and experience adjustments
2007 2006 2005
�'000 �'000 �'000
------------------------------------
Present value of defined benefit obligations (65,040) (70,928) (65,552)
Fair value of scheme assets 54,733 50,360 44,519
------------------------------------
Deficit in scheme (10,307) (20,568) (21,033)
------------------------------------
Experience adjustments arising on scheme liabilities (8,042) 3,351 323
Experience item as a % of scheme liabilities (12%) 5% 0%
Experience adjustments arising on scheme assets (207) 972 3,113
Experience item as a % of scheme assets 0% 2% 7%
------------------------------------
Effect on profitability: comparison between IAS 19 (corridor) and IAS 19
(non-corridor)
2007 2006
�'000 �'000
--------------------
Operating result before non-recurring items as stated 6,617 5,757
Add back actuarial loss recognised under IAS 19 (corridor) 1,020 969
--------------------
Operating result before non-recurring items under IAS 19
(non-corridor) 7,637 6,726
Non-recurring items - (3,542)
--------------------
Operating result under IAS 19 (non-corridor) 7,637 3,184
Finance income 237 169
Finance costs (39) (14)
--------------------
Profit before tax under IAS 19 (non-corridor) 7,835 3,339
Tax expense as stated (1,744) (978)
Deferred tax under IAS 19 (corridor) reversed 316 563
Deferred tax under IAS 19 (non-corridor) (777) (853)
--------------------
Profit after tax under IAS 19 (non-corridor) 5,630 2,071
--------------------
Effect on total equity: comparison between IAS 19 and FRS 17
2007 2006
�'000 �'000
-----------------------------
Total equity as stated under IAS 19 (non-corridor) 25,081 21,947
Less IAS 19 (corridor) asset (5,273) (3,867)
Add back IAS 19 (corridor) deferred tax provision 1,476 1,160
IAS 19 (non-corridor) deficit (10,307) (20,568)
Deferred tax asset under FRS 17 2,886 6,170
-----------------------------
Total equity under FRS 17 13,863 4,842
-----------------------------
6. EQUITY
Share Capital
2007 2006
-------------------- ---------------------
Shares �'000 Shares �'000
---------------------------------------------
Authorised
Ordinary shares of 12.5p (2006: 12.5p) each 64,000,000 8,000 64,000,000 8,000
---------------------------------------------
Issued and fully paid
Ordinary shares of 12.5p (2006: 12.5p) each 44,622,220 5,578 44,872,220 5,609
---------------------------------------------
On 19 December 2007, the Company purchased 250,000 of its own shares at a price
of 108p per share. Subsequent to the year end, the Company purchased a further
975,000 shares on 15 January 2008 at a price of 120p per share and 450,000
shares on 25 January 2008 at a price of 115p per share. All shares purchased
will be cancelled.
Share Options
Number of Exercise Exercise
Shares price Period
-------------------------------------------
M A Wilmshurst Approved 25,751 �1.165 2009-16
Unapproved 2,217,860 �1.11 2009-16
D J Loftus Approved 25,751 �1.165 2009-16
Unapproved 1,096,055 �1.11 2009-16
S D G Thompson Approved 25,751 �1.165 2009-16
Unapproved 871,693 �1.11 2009-16
-------------------------------------------
4,262,861
-------------------------------------------
All the above options were issued on 4 July 2006 and no additional share options
have been issued since this date.
In total, �240k of employee compensation expense has been included in the
consolidated income statement for 2007 (2006: �120k). The corresponding credit
is taken to shareholders' funds. No liabilities were recognised due to
share-based transactions.
Each director has been granted two transfers of options. The first tranche is
not subject to any vesting conditions and the second tranche is subject to
achievement of a Total Shareholder Return performance condition. Under both
tranches, vested options can be exercised at any time between the third and
tenth anniversary of the date of the grant.
7. CASH FLOW STATEMENT
The following non-cash flow adjustments have been made to the pre-tax result for
the year to arrive at operating cash flow:
2007 2006
Adjustments: �'000 �'000
Movement in pension fund asset- IAS19 1,059 985
Share option scheme charge 240 120
Depreciation 2,225 2,407
Changes in inventories (43) 219
Changes in trade and other receivables (5,155) 2,949
Changes in trade and other payables 2,670 (360)
Changes in provisions (342) 142
Profit on sale of businesses (165) -
Profit on sale of property, plant and equipment (548) -
Finance Income (237) (169)
---------------------
Total (296) 6,293
---------------------
8. FINANCIAL STATEMENTS
The audited financial statements will be posted to shareholders on 23 April 2008
and will be available from the registered office of Nationwide Accident Repair
Services plc at 17A Thorney Leys Park, Witney, Oxfordshire, OX28 4GE and on the
Company's website, www.narsplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PUUUGWUPRGRA
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