Annual Report & Accounts 2008 Nationwide provides automotive 
crash repair and accident administration
services principally to the UK 
insurance industry.  
With a national network of accident repair centres
located across England, Scotland and Wales employing
over 2,400 people, it is the largest dedicated provider
of accident repair services in the UK. 
“I am pleased to report that, in a
challenging trading environment,
financial results for the year ended
31 December 2008 recorded a
new high for the Group. 
Although our business is not
immune to the current economic
downturn, the nature of our
business, based as it is around
accident repairs, should afford us
protection. In addition, we benefit
from good cash generation, a
strong balance sheet and no bank
debt. Accordingly, the Directors
are confident that the business is
well placed for long term growth.”
Michael Marx
Chairman
Corporate Statement  IFC 
Highlights 1
Chairman’s Statement  2
Chief Executive’s Report  4
Finance Director’s Review  6
Board of Directors  8
Directors & Advisers  10
Directors’ Report  11
Statement of Directors’ Responsibilities  13
Remuneration Report  14
Report of the Independent Auditor  15
Consolidated Income Statement  16
Consolidated Balance Sheet  17
Consolidated Statement of Changes in Equity  18
Company Balance Sheet  19
Consolidated Cash Flow Statement  20
Company Cash Flow Statement  21
Notes to the Accounts  22 
Financial Calendar  37 Highlights
• Revenue up 18% to £179.3m 
(2007: £151.9m)
• Gross profit margin maintained at 46.5%
• Profit before tax before non-recurring item* 
up 14% to £7.8m (2007: £6.8m)
• Earnings per share before non-recurring item* 
up 13% to 12.8p (2007: 11.3p)
• Strong balance sheet with net cash at year 
end of £5.4m (2007: £5.2m)
• Recommended final dividend of 3.3p per 
share, making total for the year of 5.0p, 
an 11% increase (2007: 4.5p)
• Contract wins and contract extensions signed 
in 2007 enjoyed in 2008
• Accident management operations, including 
our mobile divisions, continue to demonstrate 
encouraging growth
• Six new bodyshops acquired in the year: 
Scunthorpe, Gravesend, Bristol, Redruth, 
Kettering and Perth
• Well positioned to weather the current 
economic environment
2008 2007
Revenue £179.3m £151.9m
Operating profit before non-recurring items* £7.5m £6.6m
Profit before tax before non-recurring items* £7.8m £6.8m
Earnings per share before non-recurring items* 12.8p 11.3p
Operating profit after non-recurring items £6.7m £6.6m
Profit before tax after non-recurring items £7.1m £6.8m
Earnings per share after non-recurring items 11.6p 11.3p
*A non-recurring charge of £750,000 has been made in relation to a bad debt provision 
against the debt of a customer that went into administration in March 2009.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008 2
Introduction
I am pleased to report that, in a challenging
trading environment, financial results for the year
ended 31 December 2008 recorded a new high
for the Group.
Financial Results
Revenue for the year ended 31 December 2008
increased by 18% to £179.3 million (2007: £151.9
million). This included a combined contribution of
£5.0 million from the six new sites acquired during
the year. Revenue on a like-for-like basis increased
by 15%. Operating profit rose by 2% to £6.7
million (2007: £6.6 million) and profit before tax
rose by 3% to £7.1 million (2007: £6.8 million).
Earnings per share increased by 3% to 11.6 pence
(2007: 11.3 pence).
These results for the year ended 31 December
2008 are after the deduction of £750,000 in
respect of a bad debt provision made against the
debt of a customer that went into administration
in March 2009.
Net cash increased by £0.2 million, producing net
cash balances as at 31 December 2008 of £5.4
million (2007: £5.2 million). This increase in cash is
after an investment of £1.7 million in the purchase
of the Company’s own shares, deficit pension
contributions of £2.6 million and the payment of
£2.3 million for new site acquisitions.
Dividend
The Board is pleased to recommend a final
dividend of 3.3 pence per share (2007: 3.0 pence
per share), taking the total dividend for the year 
to 5.0 pence (2007: 4.5 pence), an increase of
11%. This will be paid, subject to approval by
shareholders at the Annual General Meeting, on
12 June 2009 to shareholders on the register at
the close of business on 15 May 2009.
Trading overview
The business continues to make solid progress and
we have increased our market share. The contract
wins and contract extensions signed in 2007
helped to increase volumes through our repair
network notwithstanding a decrease in accidents
during the year. We have also increased our non-
insurance work. While our customer base is biased
towards multi-year contracts with the leading
insurance companies, we also provide our services
to corporate fleets, brokers, motor manufacturers
and private individuals.
Our national network of bodyshops enables us to
service our customers’ needs in an efficient and
effective manner and we continue to manage the
network carefully, adding new locations where we
have identified customer demand and closing
locations no longer required. During the year we
acquired six new bodyshops and closed one
bodyshop. These new acquisitions further extend
our capacity and service capability and will provide
improved returns once they are fully integrated
into our network.  
A key strength of our bodyshop network is the
flexibility it provides us in the deployment of work
across our branches, which allows us to maximise
cost effectiveness. Our size enables us to derive
economies of scale and it is pleasing to note that,
despite inflationary pressure, gross margin
remained constant at 46.5% for the second
consecutive year. We remain focused on achieving
cost savings and believe there is scope to deliver
further efficiencies within the business.
Our retail initiative progressed well in 2008.
Targeted at customers whose vehicles are already
in a bodyshop for an insurance-related repair,
revenue from this new offering has developed
well. We are now developing further this direct-to-
“These 2008 results
demonstrate the
ongoing success of 
our twin track growth
strategy, organically 
and via acquisition”
Chairman’s Statement
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Revenue
£179.3m
Profit before tax before 
non-recurring items
£7.8m
Accident Repair Centres
73 3
consumer offering, which should also enable us 
to enhance our margins. 
Our Network Services division, which acts as 
a “one-stop shop” for accident management
services, continues to expand. The division gives 
us a competitive edge over many of our peers,
providing a service tailored to individual
customers’ needs, and capturing additional 
work for the Group’s bodyshops.
Outlook
These 2008 results demonstrate the ongoing
success of our twin track growth strategy,
organically and via acquisition, and we believe that
this strategy will continue to deliver future growth.
Although our business is not immune to the
current economic downturn, the nature of our
business, based as it is around accident repairs,
should afford us protection. In addition, we
benefit from good cash generation, a strong
balance sheet and no bank debt. Accordingly, 
the Directors are confident that the business is
well placed for long term growth.
Michael Marx
Chief Executive
30 March 2009
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Chairman’s Statement continued 4
Introduction
I am pleased to report that 2008 was another
record year for the Group, despite the increasing
economic turbulence as the year progressed. The
results were affected by the need to make a bad
debt provision of £750,000 in relation to a
customer which went into administration in 
March 2009. This provision has been disclosed 
as a non-recurring item.
During the twelve months, we benefited from 
the contract wins and extensions secured in 
2007 and underlying revenue and profits (before
non-recurring items) rose by 18% and 14%
respectively. In line with our commitment to a
progressive dividend policy, the proposed final
dividend represents an increase of 11% in the
total dividend for the year.  
Nationwide’s robust performance demonstrates
the inherent strengths of the business model, in
particular its resistance to cyclical influences, its
good cash generation, strong balance sheet, and
the scale of its operations, which enables us to
extract cost efficiencies.
Operations
Our national network of bodyshops constantly
evolves as we identify and acquire new locations
and withdraw from others, either at the end of
their lease or because they require additional
capital expenditure which would not deliver a
sufficiently commercial return. During 2008 
we acquired six new sites in total and closed 
one. Three sites were acquired in the first half of
the year, at Scunthorpe, Gravesend and Redruth.
Sites at Bristol, Kettering and Perth were added in
the second half of the year. New sites invariably
take a period of time to integrate within the
Nationwide model before making contributions
which mirror those from our more established
sites. As expected, the six new sites reflected 
this and generated a combined loss of £230,000
for the period as they went through the
integration process. We expect them to deliver
enhanced returns over 2009. All of these
acquisitions were designed to increase our
capacity in areas not served by our existing 
network and where we have identified and agreed
sufficient customer demand.
We continued to invest in our fully integrated 
in-house IT platform, ‘Voyager’. This system gives
us considerable market advantage, allowing us 
to offer claims handling and vehicle repair
management without the need for manual data
transfer and double entry inputs. As well as
improving our own efficiencies, the platform also
provides additional benefits. Accessible via the web,
it allows customers to track their vehicle repairs at a
time and location of their choosing, without the
need to call our sites. Information on the system is
automatically updated throughout the repair
process and the system is a good example of how
we use our scale and investment to develop
industry leading standards and efficiencies.
If our continued investment in sites, equipment
and IT is key to our continuing growth, it is our
skilled and committed team, which includes 116
apprentices, that enables us to deliver success. I
would like to extend my thanks to all of them.
Network Services
Network Services, our support division, offers 
the following:-
•
first contact (known as ‘first notification of loss’
or ‘FNOL’ in the industry);
•
claims handling;
•
replacement vehicles; 
•
deployment into our own or other networks;
•
uninsured loss recovery; and 
•
on site repair services for minor damage.
The division continues to grow and is unique in
the industry, offering accident management
services and also being able to transfer vehicles for
repair into our own wholly owned network of
bodyshops. This year we will invest in the further
growth of our ‘Mobile Restore’ and ‘Mobile
Solutions’ businesses which offer glass
replacement, electronic diagnostics and air
conditioning recharge services as well as off-site
repair for minor damage.
“...another record
year for our 
Group despite the
increasing economic
turbulence”
Chief Executive’s Report
Nationwide Accident Repair Services plc Annual Report and Accounts 2008 5
Customers
Our strategy of aligning ourselves with our
customers’ objectives continues to deliver benefit.
Whilst many of our customers share similar aims,
including value for money, customer service and
process efficiency, their preferred method of
achieving these remains individual. The flexibility
of our business model allows us to tailor our
approach accordingly and our service offering
ranges from vehicle repairs at specific sites to
comprehensive claims handling. This unique
capability gives us considerable market advantage
and allows us to develop business relationships
with insurance companies, large corporate fleets
and brokers, as well as motor manufacturers and
other associated companies.  
In 2007 we launched a trial retail offering and,
having generated sales of £1.84 million in its first
year, income from this initiative over 2008 has
grown by 80% to £3.31 million. Our retail offering
is based both on convenience and value as we
provide private individuals with additional services,
normally while their vehicle is with us for an
insurance-related repair. We are currently
developing two trial sites at Leicester and Kettering
with an enhanced offering which we are
provisionally positioning as “Fast Fit +”. Adjoining
our existing bodyshop repair facilities, these sites
share infrastructure and capital investment, whilst
offering drive-in facilities for traditional “fast fit”
offers, including MOT and some servicing needs.
In the current economic climate, we have based 
our financial planning on conservative assumptions.
We believe that there is a market for cost
effective, basic servicing from well equipped
trustworthy companies. 
We put considerable emphasis on the level of
service we offer our customers and measure their
satisfaction at every site on a monthly basis. I am
pleased to report that customer satisfaction for
2008 for the Group as a whole was 85% and 
our objective is to increase this in 2009.
Outlook
We continued to grow in 2008 for the sixth year
in succession.  
The current economic environment is clearly
difficult. The nature of our work makes our
business model more resistant to cyclical variances
than many, but some claims, such as light
cosmetic vehicle damage can be deferred, whilst
more significant damage requires immediate
rectification. It is this second category of work 
which offers us protection from the extremes of
the economic cycle. We have built a market-
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Chief Executive’s Report continued
leading position which will allow us to use our 
scale to maximise cost efficiencies and with no 
bank debt and a profitable robust business, we 
believe that we are well positioned to weather
the current difficult economic environment and
to continue to execute our twin track strategy
of organic and acquisitive expansion.
Michael Wilmshurst
Chief Executive
30 March 2009 6
Operating results
Overall turnover rose by 18% from £151.9m to
£179.3m. This increase included contributions
from six new sites; Scunthorpe (Feb 08),
Gravesend (Feb 08), Redruth (Feb 08), Bristol 
(Aug 08), Kettering (Aug 08) and Perth (Nov 08).
These six sites contributed turnover of £5.0m.
Turnover on a like for like basis therefore 
increased by 15%.
Operating profit before non-recurring items rose
by 13% to £7.5m from £6.6m. This included a
loss of £230,000 in relation to the six sites
acquired. Excluding the acquisitions, operating
profit increased by 17%.
Profit before tax rose by 14% to £7.8m from
£6.8m and Earnings per share has increased 
by 13% to 12.8p.
In addition, the Group closed  its Kidderminster
site in December 08. This site had turnover of
£1.6m and incurred losses of £160,000.
Pension scheme
The Group operates a defined benefit and defined
contribution pension scheme. The defined benefit
scheme was closed for future accruals on 31st July
2006 with active members transferred to a new
defined contribution section of the scheme.
Under IAS 19 the deficit in the scheme as at 31st
December 2008 was £16.5m (2007: £10.3m) or
£11.9m (2007: £7.4m) net of deferred tax. The
principal reason for the increase in the deficit in
the year is the decline in the value of equities. The
Group has agreed with the trustees to eradicate 
the Scheme Specific Funding deficit by making 
annual special contributions of approximately
£2.3m for 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 2008 by a qualified
independent actuary.
Cash flow
The net increase in cash during the year was
£0.2m (2007: a decrease of £1.8m) which
produced a net cash balance at 31st December
2008 of £5.4m. This increase in cash was after
spending £1.7m on the purchase of own shares
and £2.3m on acquisitions.
Overall debtors increased by £3.0m, of which
£2.1m relates to an increase in trade debtors. This
increase in debtors was however compensated by
an increase in creditors of £6.3m, of which £4.3m
relates to an increase in trade creditors. 
The Company continues to invest in new plant
and equipment and in improvements to its sites;
£2.8m (2007: £1.8m). In addition, the Company
continues to pay a “special” deficit contribution 
to its pension fund of £2,555,000 (2007:
£2,465,000) and a dividend of £2.0m was 
paid in 2008 (2007: £1.8m).
The Group has a committed bank facility with 
the Royal Bank of Scotland for £8m until 31st
December 2010.
“Overall turnover 
rose by 18%... 
and turnover on a 
like for like basis
increased by 15%”
Finance Director’s Review
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Turnover +18%
2007
£151.9m
2006
£151.2m
2007
£6.8m
2006
£5.9m
Profit before tax before
non-recurring 
items +14%
2008
£7.8m
2008
£179.3m 7
Trade receivables
The Group’s trade receivables of £23.1m can 
be analysed between the two principal trading
units, NCRC (the bodyshops) and Network Services
(the accident management company).
NCRC’s trade receivables are principally owed by
insurance companies and debtor days as at 31st
December 2008 were 35 days (2007: 42 days).
Network Services customer base includes
insurance customers and fleet operators and
debtor days as at 31st December 2008 were 43
days (2007: 42 days). 
Tax
The effective tax rate is 28.8% which is slightly
above the Company’s effective rate of tax of
28.5%. The Group has no income tax losses
available but has capital losses of £4.1m available. 
Earnings per share 
The basic earnings per share are 11.6p (2007: 11.3p)
a growth of 3%. As a result of share options being
granted on 4th July 2006, the basic earnings per
share are reduced to 11.5p (2007: 11.0p).
Dividends 
The Board is proposing a final dividend in respect
of the results for the year ended 31 December
2008 of 3.3p per share (2007: 3.0p per share)
making 5.0p for the year as a whole (2007: 4.5p).
Subject to approval by shareholders at the Annual
General Meeting, this will be paid on 12 June
2009 to shareholders on the Register at the close
of business on 15 May 2009. The annual dividend
is covered 2.3 times by underlying earnings.
Key performance indicators
The Group reviews certain financial and non-
financial key performance indicators on a regular
basis and year-on-year comparisons are included
within the Directors’ Report. Despite inflationary
pressure it is very pleasing to report that the gross
profit margin has remained constant at 46.5% for
the second year running. Cycle time is also a key
measure of performance and is measured across
the group on a weekly basis. The “key to key”
measure i.e how long a car is physically on site for
has increased slightly in the year from 12.1 days 
to 12.5 days. 
Measurement of customer satisfaction is also a 
key indicator and is measured monthly via a
sample of independent telephone surveys across
all customers. This has been maintained at 85%.
David Loftus
Finance Director
30 March 2009
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Finance Director’s Review continued
2008 2007
£m £m
NCRC 15.8 15.6
Network Services 6.6 4.9
Other 0.7 0.5
23.1 21.0 8
Non-executive Chairman
(aged 61)
Michael was appointed non-executive
Chairman in June 2006. He is currently
Chief Executive of Development Securities
PLC, to whose Board he was appointed in
1994. Michael is a Fellow of the Institute
of Chartered Accountants in England and
Wales and was a member of the UK Listing
Authority Advisory Committee from 2004
to 2007. He was formerly Finance Director
and Commercial Director of Heron
International PLC from 1981 to 1994.
Chief Executive
(aged 49)
Michael has extensive automotive sector
experience, with TWR, HR Owen, and
European Motor Holdings. At HR Owen,
he was head of the luxury division including
Rolls Royce, Jaguar, Ferrari and Land Rover.
He formally joined Nationwide in May
2002, having been an active member of
the team that took the Company private. 
Finance Director, FCA, MBA, BA (Hons)
(aged 47)
David joined Nationwide in January 2003
as Finance Director. After qualifying as 
a Chartered Accountant with Spicer &
Pegler (now part of Deloitte) he spent four
years as an audit manager. In 1990, he
joined Brunel Holdings plc (formally BM
Group plc) as Group Accountant and in
1995 he was appointed Finance Director.
Michael Marx
Board of Directors
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Michael Wilmshurst David Loftus 9
Executive Director
(aged 36)
Stephen has extensive multi-site experience
in the automotive sector. He was
Operations Director with Silver Shield
windscreens and was also a divisional
Director for KwikFit. Prior to that he was 
a Commercial Managing Director for
Phones4U Limited (part of the Caudwell
Communications Group). He joined
Nationwide in January 2005 and since
then he has been responsible for
developing Network Services (Nationwide)
Limited and Mobile Solutions.
Non-executive Director
(aged 48)
Jeremy was appointed non-executive
Director in May 2002. Jeremy is a Director
of J O Hambro Capital Management
Limited and partner of North Atlantic
Value LLP where he manages private
equity investments.
Non-executive Director
(aged 62)
Barbara was appointed non-executive
Director in June 2006 and is a lawyer 
and international banker. She is currently
Chairman of the UK Atomic Energy
Authority and The School of Oriental &
African Studies. In addition, Barbara is
Deputy Chairman of Friends Provident plc.
She was formerly a Commissioner of the
US Securities and Exchange Commission.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
Board of Directors continued
Stephen Thompson Jeremy Brade Lady Judge Directors & Advisers
Company No.
966807 incorporated in England and Wales
Directors
Michael Marx
Chairman
Michael Wilmshurst
Chief Executive 
David Loftus 
Finance Director
Stephen Thompson
Executive Director
Lady Barbara Thomas Judge 
Non-executive Director
Jeremy Brade 
Non-executive Director
Secretary
Martin Hickman-Ashby
Auditor
Grant Thornton UK LLP
Grant Thornton House
202 Silbury Boulevard
Central Milton Keynes MK9 1LW
Bankers
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
HSBC Bank plc
29 King Street
Leeds LS1 2HL
Solicitors
K&L Gates
110 Cannon Street
London EC4N 6AR
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol BS1 6EG
Financial Adviser and Corporate
Stockbroker
Arbuthnot Securities Ltd
20 Ropemaker Street
London EC2Y 4GE
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
W. Yorkshire HD8 0GA
Registered Office
17A Thorney Leys Park
Witney
Oxfordshire OX28 4GE
Website Address
www.narsplc.com
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
10 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
11
The Directors present their report and accounts for the year ended 31 December 2008.
Principal activities and review of the business
As noted in the business review within the Chief Executive’s Report and Finance Director’s Review, the business of the Group is the repair of motor
vehicles and the provision of accident claim management services.
The strategy for 2008 was to maintain the profitability of the core business, to achieve consistency in margins and to introduce new insurance
companies to branches where possible. The Directors are pleased with the results for the year and this strategy will be maintained in 2009. 
Principal risks and uncertainties
The Directors regularly review principal risks and uncertainties that affect the Group. These include avoiding the reliance on key customers for work
provision by diversifying contracts and extending the duration of contracts. Legislation changes such as PAS 125, which affect road safety and vehicle
repair methodology, are being implemented through training programmes.
The Group’s business continuity has been addressed by adopting a comprehensive disaster recovery program, which has been approved by the
Directors. In the event of a systems failure, work can be re-directed to an alternative bodyshop.
Results and dividends
The Group’s sales revenue amounted to £179,337,000 (2007: £151,947,000) and the profit before taxation amounted to £7,052,000 (2007:
£6,815,000). Taxation was a charge of £2,030,000 (2007: charge of £1,744,000) and the net profit for the year was £5,022,000 (2007: £5,071,000).  
The Directors are proposing a final dividend in respect of the results for the year ended 31 December 2008 of 3.3p per share. Subject to approval by
shareholders at the Annual General Meeting, this will be paid on 12 June 2009 to shareholders on the Register at the close of business on 15 May 2009.
During 2008, the Group paid dividends of £2,030,000 (2007: £1,840,000) to its equity shareholders. These comprised a final dividend in respect of 2007
of 3.0p per share paid in June 2008 (£1,296,000) and an interim dividend in respect of 2008 of 1.7p per share paid in November 2008 (£734,000).
Non-current assets
The movement of non-current assets is set out in notes 11, 12 and 13 to the accounts.
Directors and their interests
The Directors who served during the year and their interests in the shares of the Group are shown in the Remuneration Report on page 14. 
The Group has taken out Directors and Officers liability insurance.
Corporate governance
The Board is committed to the highest principles of corporate governance. As a Group quoted on AIM, the Group is not required to comply with the
requirements of the Combined Code.
The Board consists of three executive and three independent non-executive Directors who take an active role in Board matters and it meets eight times
in every year. The Board is responsible for maintaining a sound system of internal control to safeguard shareholders’ investment and Group assets.
The Board has appointed an Audit Committee, consisting of the Chairman and J J Brade, a Remuneration Committee consisting of the Chairman 
and J J Brade and a Nominations Committee consisting of the Chairman and Lady Judge.
The Audit Committee meets regularly with the external auditor and with the executive Directors to review the interim and final results, key areas of
accounting treatment and risk and control procedures. The Committee can meet with the external auditor without any of the executive Directors
being present.
The Remuneration Committee and the Nominations Committee both meet in met in February 2009, but the Nominations Committee has not met
since its formation in June 2007.
Employment of disabled persons
The Group gives full and fair consideration to applications for employment received from disabled persons having regard to their particular aptitudes
and abilities and wherever possible the Group continues the employment of, and arranges for reasonable adjustments to the working conditions of,
employees who become disabled persons while employed by the Group. Disabled employees are treated no differently from any other employees as
regards training, career development and promotion opportunities. The Group operated this policy throughout the year.
Employee involvement
Effective employee relations are seen as key drivers in moving the Group forward. Consequently human resources, quality, health and safety and
training functions need to establish good communications with individual sites and are therefore organised on a divisional basis. This structure
enables staff to obtain the help and guidance they may need and keeps them informed of, and effectively involved in, the development of the
Group’s business. Regular review meetings are held at local, divisional and Group level to ensure that all employees are kept informed of the 
Group’s objectives. Progress towards those objectives is measured and reported back to individual sites.
Directors’ Report Directors’ Report continued
Supplier payment policy
The Group requires its subsidiaries to negotiate clear and satisfactory arrangements for the payment of suppliers, as part of the overall terms and
conditions of the supply and to make payment accordingly. Group trade creditor days at the end of the year were 52 (2007: 53). The Company trade
creditor date at the end of the year were 29 (2007: 29).
Share capital
Full details of the authorised and issued share capital of the Group are set out in note 20 to the accounts.
Summary of key performance indicators
The Directors have monitored the progress of the overall Group/Company strategy and the individual strategic elements by reference to certain
financial and non-financial key performance indicators.
Key performance indicator 2008 2007 Method of calculation
Turnover £179.3m £151.9m External turnover excluding value added tax 
Gross profit margin (%) 46.5% 46.5% Gross profit margin is the ratio of gross profit to sales 
revenue expressed as a percentage
Cycle time (key to key) 12.5 days 12.1 days Key to key cycle time measures the days from receipt 
of the vehicle on site to return to the customer
CSI 85% 85% A measure of customer satisfaction derived from the results
of independent telephone surveys
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
12
Turnover and gross margin are reviewed by individual bodyshop on a monthly basis, in order that the operational team can address work provision or
operating practices respectively. Cycle times are indicative of vehicle throughput and de minimis targets have been set, based on weekly data. CSI
targets are also specified and monitored in conjunction with the service level agreements specified by our customers. Our customer satisfaction data
is available on the web at www.nationwidecsi.co.uk and at the time of this report was 87.5%.
Financial risk management policies
The details of the Group’s financial risk management objectives and policies are detailed in note 26 to the financial statements.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as auditor.
On behalf of the Board:
Michael Wilmshurst
Chief Executive
30 March 2009 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
13
The Directors are responsible for preparing the Annual report and the financial statements in accordance with applicable law.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare
financial statements in accordance with International Financial Reporting Standards as adopted by the European Union. The financial statements are
required by law to give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period.
In preparing these financial statements the Directors are required to:
•
select suitable accounting policies and then apply them consistently;
•
make judgements and estimates that are reasonable and prudent;
•
state whether International Financial Reporting Standards as adopted by the European Union have been followed, subject to any material 
departures disclosed and explained in the financial statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any time the financial position of the
Company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
In so far as the Directors are aware:
•
there is no relevant audit information of which the Company’s auditor is unaware; and
•
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that 
the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from other legislation in 
other jurisdictions.
Michael Wilmshurst
Chief Executive
30 March 2009
Statement of Directors’ Responsibilities Remuneration Report
Remuneration Committee
The Remuneration Committee is chaired by M H Marx and includes J J Brade. The Committee, which met in February 2009, reviews and determines
the remuneration package of the executive Directors of the Group.
The remuneration policy set by the Remuneration Committee is designed to deliver the Group’s objective of increasing shareholder value by
attracting and retaining the most capable and committed people.
Directors’ and Key Management’s emoluments
The aggregate emoluments of the Directors of the Company who served during the year and of Key Management were:
2008
Total (excl
Salary Annual Pension Pension 2008 2007
and fees Benefits bonus contributions) contribution Total Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
M A Wilmshurst 334 — — 334 — 334 319
D J Loftus 147 14 70 231 21 252 264
S D G Thompson 126 20 60 206 10 216 201
Non-executive Directors
M H Marx 30 — — 30 — 30 30
Lady Judge 20 — — 20 — 20 20
J J Brade 20 — — 20 — 20 20
Total Directors’ emoluments 677 34 130 841 31 872 854
Key Management’s emoluments 317 31 20 368 11 379 247
Total 994 65 150 1,209 42 1,251 1,101
Fees of £323,400 are paid to Troy Solutions Limited via a consultancy agreement and are incorporated in the amount shown in respect of
M A Wilmshurst in the above table. M A Wilmshurst is a Director of Troy Solutions Limited (see note 24).
The above disclosure on Directors’ emoluments forms part of the financial statements as stated in note 5.
Share options
Share options were granted to Michael Wilmshurst, David Loftus and Stephen Thompson on 4 July 2007. Details are given in note 20.
Directors’ interests
The interests of the Directors in the share capital of the Company were:
Ordinary shares
31 December 1 January
2008 2008
Executive Directors
M A Wilmshurst 1,351,351 1,351,351
D J Loftus 54,054 54,054
S D G Thompson — —
Non-executive Directors
M H Marx 30,000 30,000
Lady Judge 55,348 55,348
J J Brade 22,550 —
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
14 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
15
We have audited the Group and Parent Company financial statements (the ‘’financial statements’’) of Nationwide Accident Repair Services plc for the
year ended 31 December 2008 which comprise the consolidated income statement, the consolidated balance sheet, the consolidated and Company
statements of changes in equity, the Company balance sheet, the consolidated and Company cash flow statements and notes 1 to 26. These
financial statements have been prepared under the accounting policies set out therein. 
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditor
The Directors’ responsibilities for preparing the Annual report and the financial statements in accordance with applicable law and International Financial
Reporting Standards (IFRS) as adopted for use by the European Union are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements have been properly
prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the Directors’ report is
consistent with the financial statements. The information given in the Directors’ report includes that specific information presented in the Chief
Executive’s report and the Finance Director’s review that is cross referenced from the Business Review section of the Directors’ report.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and other transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other
information comprises only the Directors’ report, Chairman’s Statement, Chief Executive’s report and Finance Director’s review. We consider the
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of
the significant estimates and judgements made by the Directors in the preparation of the financial statements, and of whether the accounting policies
are appropriate to the Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
•
the Group financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of the state of the Group’s 
affairs as at 31 December 2008 and of its profit for the year then ended;
•
the Parent Company financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union as applied in 
accordance with the provisions of the Companies Act 1985, of the state of the Parent Company’s affairs as at 31 December 2008;
•
the financial statements have been properly prepared in accordance with the Companies Act 1985; and
•
the information given in the Directors’ Report is consistent with the financial statements.
Separate opinion in relation to IFRS
As explained in note 2 to the Group financial statements, the Group in addition to complying with its legal obligation to comply with IFRS 
as adopted by the European Union, has also complied with the IFRS as issued by the International Accounting Standards Board.
In our opinion the Group financial statements give a true and fair view, in accordance with IFRS, of the state of the Group’s affairs as at 
31 December 2008 and of its profit for the year then ended.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Central Milton Keynes
30 March 2009
Report of the Independent Auditor
to the members of Nationwide Accident Repair Services plc Consolidated Income Statement
for the year ended 31 December 2008
2008 2007
Notes £’000 £’000
Revenue 179,337 151,947
Cost of sales (95,857) (81,360)
Gross profit 83,480 70,587
Distribution costs (46,933) (38,858)
Administrative expenses (28,822) (24,872)
Share option charge (240) (240)
Operating profit before non-recurring items 4 7,485 6,617
Non-recurring items 6 (750) —
Operating profit 4 6,735 6,617
Finance income 7 325 237 
Finance costs 7 (8) (39)
Profit before tax for the year 7,052 6,815
Tax expense 8 (2,030) (1,744)
Net profit for the year 5,022 5,071
Earnings per share arising from both total and continuing operations
Basic 9 11.6p 11.3p
Diluted 9 11.5p 11.0p
The accompanying notes form an integral part of these financial statements. 
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
16 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
17
2008 2007
Notes £’000 £’000
Assets
Non-current
Goodwill 11 7,752 7,038
Property, plant and equipment 13 9,811 8,100
Pension and other employee assets 15 7,619 5,273
25,182 20,411
Current
Inventories 16 2,678 2,591
Trade and other receivables 17 29,500 26,545
Cash and cash equivalents 19 5,395 5,152
37,573 34,288
Total assets 62,755 54,699
Equity
Equity attributable to the shareholders
Share capital 20 5,400 5,578
Capital redemption reserve 1,209 1,031
Share premium account 11,104 11,104
Revaluation reserve 8 8
Retained earnings 8,970 7,426
Total equity 26,691 25,147
Liabilities
Non-current
Provisions 21 86 125
Deferred tax liabilities 18 1,678 1,002
1,764 1,127
Current
Provisions 21 4 14
Trade and other payables 22 33,728 27,380
Current tax liabilities 23 568 1,031
34,300 28,425
Total liabilities 36,064 29,552
Total equity and liabilities 62,755 54,699
The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2009. They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.
Consolidated Balance Sheet
as at 31 December 2008 Consolidated Statement of Changes in Equity
for the year ended 31 December 2008
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2007 5,609 1,000 11,104 8 4,226 21,947
Income for the year — — — — 5,071 5,071
Total recognised income and expense for the period — — — — 5,071 5,071
Share buyback (31) 31 — — (271) (271)
Share option charge — — — — 240 240
Dividend paid (see note 9) — — — — (1,840) (1,840)
Balance at 31 December 2007 5,578 1,031 11,104 8 7,426 25,147
Income for the year — — — — 5,022 5,022
Total recognised income and expense for the period — — — — 5,022 5,022
Share buyback (178) 178 — — (1,688) (1,688)
Share option charge — — — — 240 240
Dividend paid (see note 9) — — — — (2,030) (2,030)
Balance at 31 December 2008 5,400 1,209 11,104 8 8,970 26,691
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2007 5,609 1,000 11,104 — 7,607 25,320
Income for the year — — — — 3,099 3,099
Total recognised income and expense for the period — — — — 3,099 3,099
Share buyback (31) 31 — — (271) (271)
Share option charge — — — — 240 240
Dividend paid (see note 9) — — — — (1,840) (1,840)
Balance at 31 December 2007 5,578 1,031 11,104 — 8,835 26,548
Income for the year — — — — 3,136 3,136
Total recognised income and expense for the period — — — — 3,136 3,136
Share buyback (178) 178 — — (1,688) (1,688)
Share option charge — — — — 240 240
Dividend paid (see note 9) — — — — (2,030) (2,030)
Balance at 31 December 2008 5,400 1,209 11,104 — 8,493 26,206
The accompanying notes form an integral part of these financial statements. 
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
18 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
19
2008 2007
Company Notes £’000 £’000
Assets
Non-current
Investments in subsidiary undertakings 12 37,496 37,496
Property, plant and equipment 13 337 252
Pension and other employee assets 15 7,619 5,273
45,452 43,021
Current
Trade and other receivables 17 949 5,392
Cash and cash equivalents 19 10,200 6,664
11,149 12,056
Total assets 56,601 55,077
Equity
Equity attributable to the shareholders
Share capital 20 5,400 5,578
Capital redemption reserve 1,209 1,031
Share premium account 11,104 11,104
Retained earnings 8,493 8,835
Total equity 26,206 26,548
Liabilities
Non-current
Deferred tax liabilities 18 2,104 1,423
2,104 1,423
Current
Provisions 21 — 18
Trade and other payables 22 28,291 26,632
Current tax liabilities 23 — 456
28,291 27,106
Total liabilities 30,395 28,529
Total equity and liabilities 56,601 55,077
The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2009. They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.
Company Balance Sheet
as at 31 December 2008 Consolidated Cash Flow Statement
for the year ended 31 December 2008
2008 2007
£’000 £’000
Operating activities
Profit for the year before tax 7,052 6,815
Adjustments to arrive at operating cash flow:
Net finance costs 8 (237)
Depreciation 2,303 2,225
Profit on sale of businesses — (165)
Loss/(profit) on sale of property, plant and equipment 35 (548)
Changes in inventories (87) (43)
Changes in trade and other receivables (2,955) (5,155)
Changes in trade and other payables 6,369 2,670
Changes in provisions — (342)
Movement in pension fund asset – IAS 19 209 1,059
Share option scheme charge 240 240
Outflow from pension obligations (2,555) (2,465)
Outflow from provisions (49) (201)
Net cash flow from operating activities 10,570 3,853
Tax paid (1,817) (963)
Investing activities
Additions to property, plant and equipment (2,788) (1,796)
Proceeds from the disposal of businesses — 432
Proceeds from the disposal of property, plant and equipment 273 930
Acquisition of businesses – cost (2,269) (2,362)
(4,784) (2,796)
Financing activities
Dividend paid (2,030) (1,840)
Interest paid (8) -
Interest received — 237
Purchase of own shares (1,688) (271)
(3,726) (1,874)
Net increase/(decrease) in cash and cash equivalents 243 (1,780)
Cash and cash equivalents at beginning of year 5,152 6,932
Cash and cash equivalents at end of year 5,395 5,152
The accompanying notes form an integral part of these financial statements.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
20 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
21
2008 2007
£’000 £’000
Operating activities
Profit for the year before tax 4,587 4,360
Net finance costs 4 384
Depreciation 157 103
Profit on sale of property, plant and equipment (18) (6)
Changes in trade and other receivables 4,590 2,057
Changes in trade and other payables 1,659 (389)
Movement in pension fund asset – IAS 19 209 1,059
Share option scheme charge 240 240
Outflow from pension obligations (2,555) (2,465)
Outflow from provisions (18) (23)
Tax paid (1,373) (605)
7,482 4,715
Investing activities
Additions to property, plant and equipment (242) (160)
Investments written off — 346
Proceeds from the disposal of property, plant and equipment 18 12
Interest paid (4) (384)
(228) (186)
Financing activities
Dividend paid (2,030) (1,840)
Purchase of own shares (1,688) (271)
(3,718) (2,111)
Net increase in cash and cash equivalents 3,536 2,418
Cash and cash equivalents at beginning of year 6,664 4,246 
Cash and cash equivalents at end of year 10,200 6,664
The accompanying notes form an integral part of these financial statements.
Company Cash Flow Statement
for the year ended 31 December 2008 Notes to the Accounts
for the year ended 31 December 2008
1. Nature of operations
Nationwide Accident Repair Services plc and its subsidiaries’ (the Group) principal activity is the provision of support services to the motor insurance
industry. Currently, this includes the repair of motor vehicles in the Group’s wholly owned sites and the provision of accident claim management services.
The strategy for 2008 was to maintain the profitability of the core business, to achieve consistency in margins and to introduce new insurance companies
to branches where possible. The integration of newly acquired sites was also paramount. The Directors are pleased with the results for the year and this
strategy will be maintained in 2009.
The following is a list of the principal subsidiary undertakings of which Nationwide Accident Repair Services plc is either directly, or through subsidiary
undertakings, the beneficial owner of the whole of the equity share capital. All companies are engaged in motor trade activities. All are incorporated 
in England and Wales.
•
Nationwide Crash Repair Centres Limited
•
Nationwide Crash Repair Centres (Staff) Limited
•
Network Services (Nationwide) Limited
•
Mobile Vehicle Repairs Limited (trading as Mobile Solutions)
•
Nationwide Fast Fit Plus Limited (previously W Harold Perry Limited)
2. General information
The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) as
adopted by the EU and as developed and published by the International Accounting Standards Board (IASB).
The measurement basis for individual items has been noted in the accounting policies below.
3. Summary of accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention. The accounting policies have remained unchanged from the previous year.
It should be noted that accounting estimates and assumptions are used in preparing the financial statements including the carrying amount of
goodwill (note 11) and provisions (note 21). Although these estimates are based on management’s best knowledge of current events and actions,
actual results may ultimately differ from those estimates. The following significant judgement has been made in the financial statements: 
Intangible assets: Provisional fair values are placed on all property, plant and equipment at the date of acquisition, as certain asset values are required
to be estimated. No intangible asset arises on acquisition.
New standards and interpretations currently in issue but not effective for accounting periods commencing on 1 January 2009 have been reviewed.
IAS1 (Revised) will have an effect on the presentation of the statement of changes in equity and IFRS3 (Revised) on business combinations, where
transaction costs are required to be written off rather than included in the calculation of goodwill.
Consolidation
Subsidiaries are all entities over which the Group has power to control the financial and operating policies, with a view to obtaining benefits. The
consolidated financial statements incorporate the financial statements of the Parent Company as well as those entities controlled by the Group by 
full consolidation.
In addition, acquired subsidiaries and non subsidiary acquisitions are subject to the application of the purchase method. This involves the revaluation
at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or
not they were recorded in the financial statements of the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the
subsidiary are included in the consolidated balance sheet at their fair values, which are also used as the bases for subsequent measurement in
accordance with Group accounting policies. Goodwill represents the excess of acquisition cost over the fair value of the Group’s share of identifiable
net assets of the acquired subsidiary at the date of acquisition. Unrealised gains on transactions between the Group and its subsidiaries are
eliminated and unrealised losses are eliminated, unless the transaction provides evidence of an impairment of the asset transferred. Amounts
reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted
by the Group.
The results of subsidiary undertakings acquired or disposed of during the year are included in the consolidated income statement for their respective
periods of ownership. Inter-Company trading is eliminated from these accounts where appropriate. As permitted by section 230 of the Companies
Act 1985, an income statement is not presented for Nationwide Accident Repair Services plc. Profit for the year for Nationwide Accident Repair
Services plc (the Company) was £3,136,323 (2007: £3,099,096).
Income and expense recognition
Revenue is recognised upon the performance of the service once authority has been given by the customer to undertake this work. Intra-Group sales
and value added tax are excluded. 
Operating expenses (with the exception of the IAS 19 pension adjustment) are recognised in the income statement upon utilisation of the service.
Interest income and expenditure are reported on an accruals basis.
Goodwill
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
22 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
23
3. Summary of accounting policies continued
Property, plant and equipment
All property, plant and equipment is recognised at cost.
Buildings, fittings and furniture are carried at acquisition cost less subsequent depreciation and impairment losses.
The cost of property, plant and equipment is depreciated on a straight line basis taking into account estimated residual values. Both estimated
residual values and useful economic life are reviewed annually.
The useful lives of property, plant and equipment can be summarised as follows:
Land – Nil
Buildings – 5 to 25 years
Plant and equipment – 3 to 10 years
IT equipment – 2 to 5 years
Land is not depreciated as it has an unlimited useful economic life.
On adopting IFRS, the Group and Company have taken advantage of the transitional rule that allows previously revalued fixed assets to be deemed at cost.
Leases
Payments on operating leases are recognised as an expense on a straight-line basis. Operating leases are those agreements where the risk and rewards
of ownership are not transferred to the lessee.
Impairment testing of goodwill, other intangible assets and property, plant and equipment
The Group’s goodwill, other intangible assets and property, plant and equipment are subject to impairment testing.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-
generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is
allocated to those cash-generating units that are expected to benefit from synergies of the related business combination and represent the lowest
level within the Group at which management controls the related cash flows.
Individual assets or cash-generating units that include goodwill with an indefinite useful life or those not yet available for use are tested for
impairment at least annually. All other individual assets or cash-generating units are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions less costs to sell and value in use, based on an internal discounted cash
flow evaluation. Impairment losses recognised for cash-generating units, to which goodwill has been allocated, are credited initially to the carrying
amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit. With the exception of
goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
Inventories
Inventories comprise materials and direct labour. At the balance sheet date inventories are carried at the lower of cost and net realisable value.
Inventories are valued using the weighted average cost. Net realisable value is the estimated selling price in the ordinary course of business less any
applicable selling expenses.
Accounting for income taxes
Current income tax assets and/or liabilities comprise those obligations to, or claims from fiscal authorities relating to the current or prior reporting
period, that are unpaid at the balance sheet date. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which
they relate, based on the taxable income for the year. All changes to current tax assets or liabilities are recognised as a component of tax expense in
the income statement.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference
between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of
goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting
profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary
differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to
be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are always provided for in full. Deferred tax assets are recognised to the extent that it is probable that they will be able to be
offset against future taxable income. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to
their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date. Deferred tax is on the annual
share option is recognised as a deferred tax asset on the balance sheet.
Most changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement. Only changes in deferred
tax assets or liabilities that relate to a change in value of assets or liabilities that are charged directly to equity (such as the revaluation of land) are
charged or credited directly to equity.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid investments such as money market instruments and
bank deposits. Money market instruments are financial assets carried at fair value.
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
3. Summary of accounting policies continued
Financial assets
Trade receivables do not carry any interest and are recognised, after initial recognition, at amortised cost using the effective interest rate method, as
reduced by appropriate allowances for estimated irrecoverable amounts.
Equity
Share capital is determined using the nominal value of shares that have been issued.
Share premium includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are
deducted from share premium, net of any related income tax benefits.
The revaluation reserve comprises gains and losses due to the revaluation of property, plant and equipment.
Retained earnings include all current and prior period results as disclosed in the income statement.
The capital redemption reserve was created on the acquisition by the Company of its own shares.
Share based payments
The Group operates two employee share option schemes. The fair value at the date at which the share options are granted is recognised in the income
statement on a straight line basis over the vesting period, taking into account the number of options that are expected to vest. In valuing the share
options the Group has utilised the Black-Scholes option pricing model for tranche 1 of the options and the Monte Carlo model for tranche 2 of the
options with the weighted average share price being factored into the model. The expected life of the options has been assumed to be three years for
tranche 1 and five years for tranche 2 with the options being exercisable between three and ten years. The model assumptions used are included
within note 20.
Pension obligations and short term employee benefits
Pensions to employees are provided through a defined benefit plan as well as a defined contribution plan.
A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent
on one or more factors such as age, years of service and salary. The legal obligation for any benefits from this kind of pension plan remains with the
Group, even if plan assets for funding the defined benefit plan have been acquired. Plan assets may include assets specifically designated to a long
term benefit fund as well as qualifying insurance policies.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into an independent entity. The Group has no legal or
constructive obligations to pay further contributions after payment of the fixed contribution.
The asset/liability recognised in the balance sheet for defined benefit pension plans is the present value of the defined benefit obligation (DBO) at the
balance sheet date less the fair value of the plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs.
The DBO is calculated annually by independent actuaries using the projected unit credit method. The present value of the DBO is determined by
discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which
the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are not recognised as an expense unless the total unrecognised gain or loss exceeds 10% of the greater of the obligation
and related plan assets. The amount exceeding this 10% is charged or credited to profit or loss over the employees’ expected average remaining
working lives. Actuarial gains and losses within the 10% corridor are disclosed separately. Past service costs are recognised immediately in the income
statement, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting
period). In this case, the past service costs are amortised on a straight line basis over the vesting period.
The contributions recognised in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognised if
underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short term nature.
Financial liabilities
The Group’s financial liabilities include bank loans and overdrafts, trade and other payables. They are included in balance sheet line items ‘long term
financial liabilities’ and ‘trade and other payables’. 
Trade payables are recognised initially at their fair value and subsequently measured at amortised cost, through the income statement, less 
settlement payments.
Dividend distributions to shareholders are included in ‘other short term financial liabilities’ when the dividends are approved by the shareholders’ meeting.
Other provisions, contingent liabilities and contingent assets
Other provisions are recognised when present obligations will probably lead to an outflow of economic resources from the Group and they can be
estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive
commitment that has resulted from past events. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the
balance sheet date, including the risks and uncertainties associated with the present obligation. Any reimbursement expected to be received in the
course of settlement of the present obligation is recognised, if virtually certain as a separate asset, not exceeding the amount of the related provision.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class
of obligations as a whole. In addition, long term provisions are discounted to their present values, where time value of money is material.
All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
24 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
25
3. Summary of accounting policies continued
Other provisions, contingent liabilities and contingent assets continued
In those cases where the possible outflow of economic resource as a result of present obligations is considered improbable or remote, or the amount to be
provided for cannot be measured reliably, no liability is recognised in the consolidated balance sheet, unless assumed in the course of a business combination.
These contingent liabilities are recognised in the course of the allocation of purchase price to the assets and liabilities acquired in the business combination.
They are subsequently measured at the higher amount of a comparable provision as described above and the amount initially recognised, less any amortisation.
Probable inflows of economic benefits to the Group that do not yet meet the recognition criteria of an asset are considered contingent assets.
Investment in subsidiaries
Investments are valued at cost less any impairment and after deducting any dividends paid out of pre-acquisition profits.
4. Operating result
Operating result is stated after charging/(crediting):
2008 2007
£’000 £’000
Depreciation 2,303 2,225
Operating lease rentals:
Land and buildings 6,192 5,799
Courtesy cars 5,616 4,935
Plant and machinery 178 138
Auditor’s remuneration:
Audit services 5 5
Non-audit services (audit of subsidiaries) 107 92
Non-audit services (tax and IFRS assistance) — 7
Profit on disposal of businesses — (165)
Profit on disposal of property, plant and equipment (11) (548)
Bad debt expense 132 16
5. Employee remuneration
The aggregate payroll costs of the Group’s employees are analysed as follows:
2008 2007
£’000 £’000
Wages and salaries 51,589 44,109
Social security costs 5,126 4,298
Other pension costs (contributions paid) 2,857 2,821
59,572 51,228
The amount of pension contributions paid to defined contribution scheme 302 356
The average number of employees during the year was made up as follows:
Number Number
Motor accident repair operations 2,319 2,141
Accident claim management operations 122 96
Central and other 18 15
2,459 2,252
The remuneration of the Directors and key management is disclosed in the Remuneration Report paragraph Directors’ and Key Management’s
emoluments on page 14.
6. Non Recurring Item
2008 2007
£’000 £’000
Bad debt provision for debtor in administration  750 —
This provision was made to provide against the debt of a customer that went into administration in March 2009.
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
7. Finance income and finance costs
2008 2007
£’000 £’000
Finance income
Interest receivable on bank balances — 237
Pension credit (see note 15): :
Interest on obligation 3,911 —
Expected return on assets (4,236) —
325 237
Finance costs
Interest receivable on bank balances 8 —
Pension costs (see note 15):
Interest on obligation — 3,786
Expected return on assets — (3,747)
8 39
8. Tax expense
2008 2007
£’000 £’000
Current tax:
United Kingdom corporation tax at 28% (2007: 30%) 1,418 1,624
Adjustments in respect of prior years (64) (197)
1,354 1,427
Deferred tax:
Movement relating to pension asset (IAS 19) 657 422
Deferred tax on pension resulting from reduction in tax rate — (106)
Temporary differences origination and reversal 86 40
Deferred tax resulting from reduction in tax rate — 28
On share options (67) (67)
2,030 1,744
The tax assessed for the period is higher (2007: lower) than the effective rate of corporation tax in the UK of 28.5% (2007: 30%).
The differences are explained as follows:
2008 2007
£’000 £’000
Profit for the year before tax 7,052 6,815
Profit on ordinary activities before tax multiplied by effective rate of UK corporation tax of 28.5% (2007: 30%) 2,010 2,044
Effect of: Adjustments in respect of prior years (10) (197)
Deferred tax provided at 28% (13) (71)
Capital item covered by capital losses brought forward (32) (220)
Items not deductible for tax purposes 52 83
Capital allowances in excess of depreciation 23 65
Other temporary differences — 40
Total tax charge for the year 2,030 1,744
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
26 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
27
9. Earnings per share and dividends
Basic earnings per share
Basic earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,022,000 (2007: £5,071,000).
The weighted average number of outstanding shares used for the basic earnings per share amounted to 43,264,023 (2007: 44,864,001).
Diluted earnings per share
Diluted earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,022,000  (2007: £5,071,000).
The weighted average number of outstanding shares used for diluted earnings per share amounted to 43,672,070 (2007: 46,108,171) and assumes the
exercise of all the share options detailed in note 20 since the date they were granted and the average market price of £1.23.  
Underlying earnings per share
The underlying earnings per share has been calculated as follows:   
2008 2007
£’000 £’000
Profit before tax (as stated) 7,052 6,815
Non recurring item 750 —
7,802 6,815
Tax expense (as stated) (2,030) (1,744)
Tax effect on non recurring item (214) —
5,558 5,071
Adjusted earnings per share 12.8p 11.3p
Dividends
During 2008, the Company paid dividends of £2,030,000 (2007: £1,840,000) to its equity shareholders. 
These comprised:
– a final dividend in respect of 2007 of 3.0p per share paid in June 2008 (£1,296,000); and
– an interim dividend in respect of 2008 of 1.7p per share paid in November 2008 (£734,000).
The Board is proposing a final dividend in respect of the results for the year ended 31 December 2008 of 3.3p per share.
10. Acquisitions
Acquisitions
During 2008, the trade and assets of six bodyshop businesses were acquired in Scunthorpe, Gravesend and Redruth (February 08), Bristol and 
Kettering (August 08) and Perth (November 08).
The total cost of these acquisitions includes the components stated below. The purchase prices were settled in cash.
£’000
Purchase price 2,134
Due diligence costs including legal fees 135
Total cost 2,269
Fair value of assets acquired 1,534
Goodwill 735
At Fair value
acquisition adjustments Total
Notes £’000 £’000 £’000
Non-current assets
Property, plant and equipment (b) 1,534 — 1,534
Net assets 1,534 — 1,534
Notes:
(a) On acquisition, the value of other intangible assets was considered and no value was attributed. The Directors have considered the value of 
intangible assets and determined that this was immaterial and that the goodwill arising related to expected synergies with the existing business 
and a skilled workforce but which are not separately recognised under IFRS.
(b) Provisional fair values were placed on all property, plant and equipment at the date of acquisition, as certain asset values were required to 
be estimated. 
The result included in the Group accounts in relation to these six acquisitions, following their acquisition was revenue of £4,957,000 and a loss 
before tax of £230,000. It is not possible to restate the revenue and profit of these acquisitions as if the acquisition had taken place as at 1 
January 2008, as the information cannot reliably be extracted from the accounting records.
(c) During the year, an adjustment of £21,000 was made to increase the goodwill of the Hull acquisition. This related to further costs of acquisition 
which were known but not quantifiable at that date.
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
11. Goodwill
Group
2008 2007
£’000 £’000
Cost or valuation:
1 January 7,098 5,881
Reassessment of previous goodwill (21) 308
Additions 735 909
31 December 7,812 7,098
Impairment
1 January and 31 December 60 60
Net book value at 31 December 7,752 7,038
Net book value comprises:
Business of Gemini Accident Repair Centres acquired in July 2005 4,648 4,648
Business of Aquilo Motor Services acquired in December 2006 1,481 1,481
Businesses acquired in 2007 888 909
Businesses acquired in 2008 735 —
7,752 7,038 
Business of Gemini Accident Repair Centres
The carrying amount of goodwill is allocated to the cash-generating units acquired. The recoverable amounts for the cash-generating units
determined above are based on value in use calculations, covering a detailed one year forecast, followed by an extrapolation of expected cash flows
using a 2.5% growth rate. These cash flows were extrapolated over ten years and discounted using a rate of 5%. A ten year period has been chosen
because management’s experience and knowledge of the business indicates that equivalent sites have a useful economic life in excess of ten years.
Management’s key assumptions for these cash-generating units include stable profit margins and resulting cash flows which have been determined
based on past experience in this market. The Group is not currently aware of any reasonable possible changes which would necessitate changes in its
key assumptions. 
Business of Aquilo Motor Services
The carrying amount of goodwill is allocated to the cash-generating units acquired. The recoverable amounts for the cash-generating units
determined above are based on value in use calculations, covering a detailed one year forecast, followed by an extrapolation of expected cash flows
using a 2.5% growth rate. These cash flows were extrapolated over five years and discounted using a rate of 5%. A five year period has been
chosen because management’s experience and knowledge of the business indicates that equivalent business have a useful economic life in excess of
five years. Management’s key assumptions for these cash-generating units include stable profit margins and resulting cash flows which have been
determined based on past experience in this market. The Group is not currently aware of any probable changes which would necessitate changes in
its key assumptions.
Businesses acquired in 2008
During 2008, six businesses were acquired. Scunthorpe, Gravesend and Redruth (February 08), Bristol and Kettering (August 08) and Perth
(November 08). The recoverable amounts for the cash-generating units determined above are based on value in use calculations, covering a detailed
one year forecast, followed by an extrapolation of expected cash flows using a 2.5% growth rate. These cash flows were extrapolated over ten years
and discounted using a rate of 5%. A ten year period has been chosen because management’s experience and knowledge of the business indicates
that equivalent sites have a useful economic life in excess of ten years. Management’s key assumptions for these cash-generating units include stable
profit margins and resulting cash flows which have been determined based on past experience in this market. 
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
28 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
29
12. Investments in subsidiary undertakings
Company
2008 2007
£’000 £’000
Cost or valuation:
1 January 37,506 39,456
Disposals — (1,950) 
31 December 37,506 37,506
Accumulated provisions:
1 January 10 1,614
On disposals — (1,604)
31 December 10 10
Net book value at 31 December 37,496 37,496
The significant investments comprise:
Subsidiary Country of residence Proportion of shares held
Nationwide Crash Repair Centres Limited England and Wales 100%
Nationwide Crash Repair Centres (Staff) Limited England and Wales 100%
Network Services (Nationwide) Limited England and Wales 100%
Mobile Vehicle Repairs Limited England and Wales 100%
Nationwide Fast Fit Plus Limited (Previously W Harold Perry Limited) England and Wales 100%
13. Property, plant and equipment
Plant
equipment and
Land Buildings computers Total
Group £’000 £’000 £’000 £’000
Cost:
1 January 2008 248 4,853 20,537 25,638
Acquisitions — 564 970 1,534
Additions — 308 2,480 2,788
Disposals —  —  (1,417) (1,417)
31 December 2008 248 5,725 22,570 28,543
Accumulated depreciation:
1 January 2008 — 1,705 15,833 17,538
Disposals — — (1,109) (1,109)
Charge for the year — 304 1,999 2,303
31 December 2008 — 2,009 16,723 18,732
Net book value at 31 December 2008 248 3,716 5,847 9,811
Cost:
1 January 2007 348 4,970 20,881 26,199
Acquisitions — — 245 245
Additions — 355 1,441 1,796
Disposals (100) (472) (2,030) (2,602)
31 December 2007 248 4,853 20,537 25,638
Accumulated depreciation:
1 January 2007 — 1,589 15,677 17,266
Disposals — (137) (1,816) (1,953)
Charge for the year — 253 1,972 2,225
31 December 2007 — 1,705 15,833 17,538
Net book value at 31 December 2007 248 3,148 4,704 8,100
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
13. Property, plant and equipment continued
The net book value of land and buildings comprises:
Short
Leasehold
Total Freehold improvements
£’000 £’000 £’000
Group as at 31 December 2008 3,964 248 3,716
Group as at 31 December 2007 3,396 248 3,148
Motor vehicles
2008 2007
Company £’000 £’000
Cost
1 January 516 437
Additions 242 160
Disposals (119) (81)
31 December 2008 639 516
Accumulated provisions:
1 January 264 236
Change for the year 157 103
On disposals (119) (75)
31 December 302 264
Net book value at 31 December 337 252
As at 31 December 2008, there was a non cancelable commitment of £550,000 to acquire software for Network Services (Nationwide) Limited.
14. Leases
The total of future minimum lease commitments in respect of non-cancelable operating leases as at 31 December are as follows:
2008 2007
Group £’000 £’000
Land and buildings leases expiring:
Within one year 106 268
Two – five years inclusive 2,497 3,410
More than five years 57,678 54,163
60,281 57,841
Other leases expiring:
Within one year 2,361 2,423
Two – five years inclusive 306 645
More than five years — 5
2,667 3,073
The total of future minimum sub-lease payments expected to be received under non-cancelable sub-leases at the balance sheet date is £1,100,000
(2007: £1,258,000).
2008 2007
Company £’000 £’000
Land and buildings leases expiring:
Within one year — 15
Two – five years inclusive 15 —
15 15
Other leases expiring:
Within one year — 4
Two - five years inclusive 5 —
5 4
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
30 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
31
15. 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 £2,555,000 (2007: £2,465,000) 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.
2008 2007 2006 2005
IAS 19 % % % %
The major assumptions used by the actuary were (in nominal terms):
Rate of increase in salaries n/a n/a n/a 3.3
Rate of increase in pensions – accrued pre 5 April 1997 3.0 3.0 3.0 3.0
Rate of increase in pensions – accrued post 5 April 1997 2.70 3.15 2.85 2.65
Discount rate 6.5 6.1 5.4 5.0
Inflation assumption 2.70 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 pre and post retirement mortality assumptions use the A92 and PA92 tables respectively. The 1992 series of mortality tables
were published by the Continuous Mortality Investigation Bureau and are based on mortality data from life assurance companies over the years 1991 to
1994 inclusive. The “A92” tables are based on the mortality experience of life assurance policyholders. The “PA92” tables are based on the mortality
experience of pension annuity policyholders.
The assets in the scheme and the expected rate of return were:
2008 2007 2006 2005
Long Long Long Long
Term rate Term rate Term rate Term rate
of return Value of return Value of return Value of return Value
expected £’000 expected £’000 expected £’000 expected £’000
Equities 9.6% 26,575 8.5% 37,044 8.1% 34,525 8.0% 29,340
Bonds 5.2% 9,668 5.3% 9,664 4.8% 9,341 4.4% 9,493
Property 9.6% 4,378 8.5% 6,055 8.1% 6,400 8.0% 5,454
Other 4.2% 3,047 4.3% 1,970 3.3% 94 3.0% 232
Total market value of assets 43,668 54,733 50,360 44,519
Present value of defined  
obligations (funded plans) (60,131) (65,040) (70,928) (65,552)
Present value of 
unfunded obligations (16,463) (10,307) (20,568) (21,033)
Unrecognised actuarial losses 24,082 15,580 24,435 23,024
Net asset in balance sheet 7,619 5,273 3,867 1,991
Actual return on assets in period (11,783) 3,540 4,719 5,584
The overall expected rates of return were determined by the Directors of the Group, with the advice of their actuarial advisers. The expected return 
available on equities has been taken as the dividend yield on the FTSE Actuaries All Share Index plus real dividend growth of 2.1% plus price inflation.
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
2008 2007 2006 2005
£’000 £’000 £’000 £’000
Benefit obligation at beginning of year 65,040 70,928 65,552 61,984
Service cost — — 613 1,148
Interest cost 3,911 3,786 3,262 3,344
Contributions by scheme members — — 212 328
Actuarial (gain)/loss (6,983) (8,042) 3,351 323
Curtailments and settlements — — (611) —
Benefits paid (1,837) (1,632) (1,451) (1,575)
Balance at end of year 60,131 65,040 70,928 65,552
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
15. Pension and other employee assets/obligations continued
Reconciliation of opening and closing balances of the fair value of plan assets
2008 2007 2006 2005
£’000 £’000 £’000 £’000
Fair value of scheme assets at beginning of year 54,733 50,360 44,519 37,601
Expected return on scheme assets 4,236 3,747 3,248 2,471
Actuarial (loss)/gain (16,019) (207) 972 3,113
Contributions by employers 2,555 2,465 2,860 2,581
Contributions by scheme members — — 212 328
Benefits paid (1,837) (1,632) (1,451) (1,575)
Asset at end of year 43,668 54,733 50,360 44,519
The amounts recognised in the income statement are:
2008 2007
£’000 £’000
Current service cost — —
Interest on obligation 3,911 3,786 
Expected return on assets (4,236) (3,747) 
Curtailments and settlements — —
Actuarial loss recognised in year 534 1,020 
209 1,059 
Charged to:
Administration expenses 534 1,020
Finance income (325) —
Finance costs — 39
209 1,059 
History of scheme assets, obligations and experience adjustments
2008 2007 2006 2005 2004
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations (60,131) (65,040) (70,928) (65,552) (61,984)
Fair value of scheme assets 43,668 54,733 50,360 44,519 37,601
Deficit in scheme (16,463) (10,307) (20,568) (21,033) (24,383)
Experience adjustments arising on scheme liabilities (6,983) (8,042) 3,351 323 1,954
Experience item as a % of scheme liabilities (12%) (12%) 5% 0% 3%
Experience adjustments arising on scheme assets (16,019) (207) 972 3,113 1,270
Experience item as a % of scheme assets (37%) 0% 2% 7% 3%
16. Inventories
Group
2008 2007
£’000 £’000
Consumables 2,678 2,591
In 2008 total purchases of £47,161,000 of inventories were included in the income statement as an expense (2007: £43,638,000). There were no 
write downs of inventories (2007: £nil).
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
32 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
33
17. Trade and other receivables
Company Group
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Trade receivables 209 270 24,000 21,139 
Bad debt provision — — (921) (145)
Current tax receivable 147 — — —
Other receivables — 1,096 — 187
Amounts owed by subsidiary undertakings 418 3,219 — —
Prepayments and accrued income 175 807  6,421 5,364
949 5,392 29,500 26,545 
The Directors consider that the carrying amount of trade and other receivables approximates to their fair values.
Financial Assets can be analysed as follows:
Company Group
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Within terms 558 3,369 21,997 18,425
Overdue by 30 days 10 98 1,057 1,542
Overdue by 60 days — — 508 501
Overdue by 90 days 59 22 267 526
Overdue by more than120 days — — 171 145
627 3,489 24,000 21,139
Company Group
2008 2007 2008 2007
Impaired receivables £’000 £’000 £’000 £’000
Within terms — — 737 —
Overdue by 30 days — — 5 —
Overdue by 60 days — — 3 —
Overdue by 90 days — — 5 —
Overdue by more than120 days — — 171 145
— — 921 145
Company Group
2008 2007 2008 2007
Net loss on receivables £’000 £’000 £’000 £’000
Movement on bad debt provision — — 776 2
Receivables written off — — 106 14
Net loss on receivables — — 882 16
The basis for identifying impaired receivables is to consider those amounts which are overdue by more than 120 days and for which no cash has
been received after the year end. Past history has indicated that this policy is reasonable. In addition, a provision of £750,000 has been made to
provide against the debt of a customer that went into administration in March 2009 (see note 6).
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
18. Deferred tax assets and liabilities
2008 2007
Group £’000 £’000
Accelerated capital allowances 472 392
Pension fund asset (2,133) (1,476)
Goodwill (166) —
Short term temporary differences 149 82
Liability (1,678) (1,002)
Balance brought forward (1,002) (685)
Charge for the year (676) (317)
Balance carried forward (1,678) (1,002)
Company
Accelerated capital allowances 29 39 
Pension fund asset (2,133) (1,476) 
Short term temporary differences — 14
Liability (2,104) (1,423) 
The Group and Company have capital losses available to be carried forward and offset against future capital gains of £4.1m (2007: £4.2m) for which
no deferred tax asset has been recognised.
19. Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid investments such as money market instruments and
bank deposits. Money market instruments are financial assets carried at fair value. The Company has a committed facility of £8m with The Royal
Bank of Scotland plc until 2010. Any borrowings under this facility are guaranteed by a fixed charge on book debts. Under this facility, the Company
has given an unlimited guarantee for the borrowings of its trading subsidiaries.
20. Equity
Share capital
2008 2007
Shares £’000 Shares £’000
Authorised
Ordinary shares of 12.5p (2007: 12.5p) each 64,000,000 8,00064,000,000 8,000
Issued and fully paid
Ordinary shares of 12.5p (2007: 12.5p) each 43,197,220 5,400 44,622,220 5,578
On 15 January 2008 the Company purchased 975,000 of its own shares 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 have been cancelled.
Of the 20,802,780 shares authorised, but not issued, 4,262,861 are reserved for issue in respect of the share options.
Share options
Number Exercise Exercise
of 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, £240,000 of employee compensation expense has been included in the consolidated income statement for 2008 (2007: £240,000). 
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.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
34 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
35
20. Equity continued
The accounting policy for share based payments is included within note 3, and the following have been factored into the model:
Exercise prices of £1.11 and £1.165, expected volatility of 25%, dividend yield of 3.00%, equivalent risk free rate of return being the rate of return
on zero-coupon Government bonds with a term equal to the expected life assumptions.
The Company’s assumptions regarding the volatility of its shares have been based on a review of market and competitors’ volatility.
The Group’s objectives when managing capital are:
i) to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for 
other stakeholders, and 
ii) to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in the light of 
changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
21. Provisions
Onerous lease costs:
Company Group
Group £’000 £’000
At 1 January 2008 18 139
Charged to the income statement to administrative expenses  — 35
Credited to the income statement to administrative expenses   (5) (5)
Utilised (13) (79)
At 31 December 2008 — 90
Current liability — 4
Non-current liability — 86
— 90
The Group vacated a number of properties over the last six years for which there is an ongoing liability in respect of leases and other costs. 
The potential cost of these onerous contracts has been provided in the accounts. Due consideration has been given to the likelihood of sub-letting
these properties, the potential outflows of which will occur in the period to December 2018.
22. Trade and other payables
Company Group
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Trade payables 1,413 1,692 23,140 18,884
Amounts owed to subsidiary undertakings 24,212 23,403 — —
Taxes and social security costs 218 202  3,604 2,912 
Accruals 2,448 1,335  6,984 5,584 
28,291 26,632  33,728 27,380 
The Directors consider that the carrying amount of financial liabilities approximates to their fair values.
23. Current tax liabilities
Company Group
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Current tax liabilities — 456 568 1,031
Notes to the Accounts continued
for the year ended 31 December 2008 Notes to the Accounts continued
for the year ended 31 December 2008
24. Related party transactions
Group
The Group paid £323,400 to Troy Solutions Limited in the year for management and consultancy services (2007: £308,000). This amount is included within
Directors’ remuneration as it relates to the amounts payable under a consultancy agreement dated 29 June 2007. M A Wilmshurst is a Director of Troy
Solutions Limited.  In addition, the Group paid Troy Solutions Limited £295,653 (2007: £256,788) in relation to the provision of office facilities, customer
satisfaction surveys and training services. The amount outstanding at the year end was £34,350 (2007: £44,112). This outstanding amount was payable
within 30 days of the invoice date in cash.
Company
The Company paid £323,400 to Troy Solutions Limited in the year for management and consultancy services (2007: £308,000). This amount is included
within Directors’ remuneration as it relates to the amounts payable under a consultancy agreement dated 29 June 2007. M A Wilmshurst is a Director of
Troy Solutions Limited. In addition, the Company paid Troy Solutions Limited £295,653 (2007: £256,788) in relation to the provision of office facilities,
customer satisfaction surveys and training services. The amount outstanding at the year end was £34,350 (2007: £44,112). This outstanding amount was
payable within 30 days of the invoice date in cash.
Transactions with subsidiaries
Balance Balance
as at as at
31 December 31 December
2008 2007
£’000 £’000
Nationwide Crash Repair Centres Limited 346 3,219
Network Services (Nationwide) Limited (778) (784)
Mobile Vehicle Repairs Limited 27 78
Nationwide Fast Fit Plus Limited (2,362) (1,274)
Other non-trading subsidiaries (21,027) (21,423)
(23,794) (20,184)
During the year, the Company recharged various costs incurred to its subsidiaries including a £3.0m management charge to Nationwide Crash Repair
Centres Limited. The above balances are all repayable on demand. The Company was also charged interest of £840,000 (2007: £826,000) on an
intercompany loan with a subsidiary Nationwide Fast Fit Plus Limited. The interest was calculated using the average base rate plus 1% throughout
the year.
25. Contingent assets and contingent liabilities 
Various warranty and legal claims were brought against the Group during the year. Where these claims are not quantifiable no provision is made in
the accounts. At the balance sheet date management’s assessment of the value of contingent assets and liabilities was £nil. 
26. Risk management objectives and policies
Group and Company
The Group and Company is exposed to a variety of financial risks which result from both its operating and investing activities. The Group and Company’s risk
management is coordinated at its headquarters and is regularly discussed by the Board of Directors. The Group and Company does not engage in the trading
of financial assets nor does it write options. The most significant financial risks to which the Group and Company is exposed to are described below:
i) Credit risk
The Group and Company’s trade and other receivables are monitored actively to avoid significant concentrations of credit risk. The Group varies its
credit terms with new customers in order to reduce this risk.
ii) Cash flow and interest rate risks
The Group and Company is in a cash positive situation and currently earns between 0.5% and 1.0% interest on its deposits. This interest earned is
dependent on bank rates and is not fixed. Other than this the Group and Company is not exposed to interest rate risk on its financial assets and
financial liabilities.
The Royal Bank of Scotland overdraft rate is only payable when the facility is utilised. The interest rate is dependent upon the bank base rate and is
not fixed.
iii) Market risk
The Group and Company hedge market risk by avoiding reliance on a few key customers. In addition, The Group and Company operate within a
vertical market, with the ability to influence a significant number of market sectors.
Nationwide Accident Repair Services plc Annual Report and Accounts 2008
36 Nationwide Accident Repair Services plc Annual Report and Accounts 2008
37
Preliminary Announcement 31 March 2009
Annual Report publication due 24 April 2009
Annual General Meeting 4 June 2009
2009 Interim Announcement September 2009
Financial Calendar Nationwide Accident Repair Services plc
17a Thorney Leys Park
Witney
Oxfordshire OX28 4GE
www.narsplc.com