Annual Report and Accounts 2007 Corporate Statement
Nationwide provides 
automotive crash repair 
and accident administration 
services to the UK 
insurance industry. 
With a national network of accident 
repair centres located across England, 
Scotland and Wales employing over 
2,200 people, it is the largest dedicated 
provider of accident repair services 
in the UK.
Nationwide’s stated goal is to become 
the accident repair services supplier 
of choice to the UK insurance industry, 
fleet operators and private individuals. 
The Company is pursuing this goal both 
through continued organic growth and 
through acquisitions.
  Accident Repair Centres
    Accident Repair Centres 
(exclusive to R&SA Work)
  Nationwide Network Services
  Head Office
IFC  Corporate Statement
 01 Highlights 
 02 Chairman’s Statement 
 04 Chief Executive’s Report 
 06 Finance Director’s Review 
 08 Board of Directors
 10 Advisers
  11 Directors’ Report 
 13 Statement of Directors’ Responsibilities 
 14 Remuneration Report 
 15 Report of the Independent Auditor 
 16 Consolidated Income Statement 
 17 Consolidated Balance Sheet 
 18  Consolidated Statement of Changes in Equity 
 19 Company Balance Sheet 
 20 Consolidated Cash Flow Statement 
 21 Company Cash Flow Statement 
 22 Notes to the Accounts
 36 Financial Calendar 01 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Highlights
  Strong results with profit before tax 
before non‑recurring items up 15% 
to £6.8m (2006: £5.9m).
  Earnings per share before non‑recurring 
items up 26% to 11.3p (2006: 9.0p).
  Strong balance sheet with net cash 
at year end of £5.2m (2006: £6.9m).
  Recommended final dividend up 15% to 
3.0p per share, making total for the year 
of 4.5p (2006: 2.6p).
  Major contract wins during the year:
   new customers include Hastings Direct 
and Zenith;
   significant contract extensions with existing 
customers: Norwich Union, AXA and Zurich; and
   full benefits of these contracts to flow through 
in 2008 and beyond.
  Accident management operations continue 
to demonstrate encouraging growth.
  Group continues to drive consolidation 
within the crash repair industry:
   four new bodyshops acquired in the year: 
Llandudno, Lincoln, Matlock and Hull; and
   post year end acquisitions of bodyshops 
in Gravesend and Scunthorpe.
  2008 has started positively and the 
Board remains confident of prospects.
 2007  2006
Revenue £151.9m £151.2m
Operating profit after non‑recurring items* £6.6m £2.2m
Profit before tax after non‑recurring items* £6.8m £2.4m
Earnings per share after non‑recurring items* 11.3p 3.1p
Underlying results
Operating profit before non‑recurring items* £6.6m £5.8m
Profit before tax before non‑recurring items* £6.8m £5.9m
Earnings per share before non‑recurring items* 11.3p 9.0p
Underlying results under IAS 19 (non‑corridor)
Operating profit before non‑recurring items* £7.6m £6.7m
Profit before tax before non‑recurring items* £7.8m £6.9m
Earnings per share before non‑recurring items* 12.5p 10.5p
*Non‑recurring items affected results for the year 31 December 2006 only.


It is encouraging to have achieved such 
pleasing results whilst laying strong 
foundations for future growth.

 Michael Marx
 Chairman 02 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
“ 2008 has started 
positively and the Board 
remains confident in 
its business prospects.”
Chairman’s Statement
Michael Marx
Introduction
I am pleased to report Nationwide’s results 
for the year ended 31 December 2007. It is 
encouraging to have achieved such pleasing 
results while laying strong foundations 
for future growth.
Financial overview 
Revenue for the twelve months ended 
31 December 2007 increased to £151.9m 
(2006: £151.2m), a very creditable performance 
given our decision to let a £20m contract lapse 
due to unattractive commercial terms. Operating 
profit before non‑recurring items rose by 15% to 
£6.6m (2006: £5.8m). Adjusted profit before tax 
excluding non‑recurring items increased by 15% 
to £6.8m (2006: £5.9m) and adjusted earnings 
per share excluding non‑recurring items increased 
by 26% to 11.3p from 9.0p last year. 
The Company adopts IAS 19, the ‘corridor 
approach’, for its pension obligations. However, 
in order to provide shareholders with financial 
results which are comparable with other 
companies, results under IAS 19 (non‑corridor) 
are also shown. Under IAS 19 (non‑corridor), 
operating profit before non‑recurring items 
increased by 14% to £7.6m (2006: £6.7m). 
Profit before tax before non‑recurring items 
increased by 14% to £7.9m (2006: £6.9m) and 
earnings per share before non‑recurring items 
increased by 19% to 12.5p (2006: 10.5p). 
It should be noted that non‑recurring items 
affected last year’s results only.
The Group’s cash position remains very strong, 
with net cash at 31 December 2007 of £5.2m 
(2006: £6.9m), having acquired four new 
bodyshops during the year for a total 
consideration of £2.1m in cash. 
Dividend
The Group has a progressive dividend policy in 
place and the Directors are pleased to recommend 
the payment of a final dividend of 3.0p per share 
for the year, an increase of 15% on last year 
(2006: 2.6p). With the interim dividend of 1.5p, 
this takes the total dividend for the year to 4.5p 
(2006: 2.6p). Subject to approval at the Annual 
General Meeting, the final dividend will be paid 
on 2 June 2008 to shareholders on the register 
at the close of business on 9 May 2008. 
Trading overview
The year started well with a good first quarter. 
However, in the second quarter we took the 
strategic decision to decline the renewal of 
a substantial contract which was offered on 
commercially unattractive terms. Since then, we 
have more than replaced the lost volumes from 
new and existing customers. While work from 
these new agreements has already started to 
flow, we expect to see the full benefits come 
through in the current financial year and beyond. 
As insurers look to consolidate the number 
of vehicle repair suppliers, our market‑leading 
position and high standards of customer service 
should ensure that we will continue to be well 
placed to take advantage of the changes, 
as these new agreements demonstrate. 
We remain focused on driving efficiencies and 
leveraging our scale in order to realise cost savings. 
By working together with customers we are able 
to manage our operations carefully, deploying 
work across the network of bodyshops in a way 
which allows for maximum efficiency and cost 
effectiveness. During the year, we have achieved 
cost savings and we will continue to look at 
further ways in which to enhance operations. 
1 NCRC Scunthorpe  2 Canterbury bodyshop
1 2  03 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Chairman’s Statement continued
70
Accident repair centres
£6.8m
Profit before tax before non‑recurring items
£151.9m
Revenue
During the period, we continued our acquisition 
growth strategy, with the purchase of four new 
bodyshops in order to meet demand from our 
customers in specific regions. We also refined 
our existing network of repair centres, disposing 
of five sites which were no longer suitable for 
our needs. 
Our Network Services division, which offers 
insurers and fleet operators a comprehensive 
‘one stop shop’ option of accident management 
services, continues to perform well. The Aquilo 
business, acquired in December 2006, was 
successfully integrated during the year and has 
contributed to Network Services’ success. 
Outlook
The strategic decisions which we took in 2007 
have established the foundations for future 
growth. We are focused on developing customer 
relationships which will enable us to leverage 
our scale and operational efficiencies to the 
benefit of both Nationwide and our customers. 
The new agreements we secured over the course 
of 2007 will bring further benefits in the current 
financial year and beyond, as the additional 
volumes are generated.
Furthermore we believe that our business is 
well placed to benefit from market consolidation 
by acquiring bodyshops where appropriate and 
by taking advantage of opportunities to win 
additional volumes from insurers consolidating 
their repair base. 2008 has started positively 
and the Board remains confident in its 
business prospects.
Michael Marx
Chairman
25 March 2008
1 NCRC Gravesend 
2 Dumfries bodyshop 
3 Technician, Oxford bodyshop
1
3 2  04 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Chief Executive’s Report
Michael Wilmshurst
“ We remain confident 
of our trading prospects 
as we continue to 
execute our twin track 
strategy of organic and 
acquisitive expansion.”
Introduction
2007 was a record year for our Group and 
our ability to continue to improve our financial 
performance, at a time of customer and market 
change, is indicative of the strength of our 
business offer, model and team.
Customers
In 2007 we took the difficult, but strategic decision 
to decline a substantial contract on the basis of 
the terms offered. We believed that we would be 
able to replace this work (in excess of £20m) with 
other customers. A key part of our decision was 
driven by our underlying business approach, 
which is to align ourselves with customers whose 
business models reflect our strategy of increasing 
repair efficiency. We do this by directing work 
to the most suitable site, utilising our excellent 
IT platform to develop additional efficiencies and 
leveraging our own economies of scale. 
I am pleased to report that over the remainder 
of the year we more than replaced the lost work. 
This was achieved through a mix of new contract 
wins and volume extensions with existing customers. 
The new wins we secured were with Hastings 
Direct and Zenith and we agreed significant 
additional volumes with Norwich Union, AXA and 
Zurich. These agreements will help to underpin 
the Group’s growth in 2008 as they are 
fully implemented.
In expanding our business our strategy has been, 
and continues to be, to develop a broad base of 
customers. While typically half of our business is 
transacted with our top five insurance customers, 
these insurers change over time, reflecting market 
conditions. It is, therefore, important to us to 
maintain contact and foster relationships across 
the insurance industry as a whole and to adapt 
to the changing balance of work we carry out 
for customers in a way which suits both parties. 
Over the past few years, by adopting this ‘broad 
church’ approach and by investing time to 
understand our customers’ future strategies, we 
have successfully managed both the growth of 
contracts and a number of customer transitions. 
We are also applying this longer term account 
relationship methodology to customers outside 
our current core motor insurer customer base, 
namely fleet, rental operators and motor 
manufacturers and we currently have 23 customers 
operating in these fields. A new initiative, begun 
during 2007, was the launch of a retail sales 
operation. From a standing start this has generated 
sales of £1.84m in its first year and we will look 
to grow retail sales further in 2008.
Overall, the market consolidation highlighted 
in last year’s report continues, with a considerable 
number of insurance companies reducing the 
number of repairers to which they send work. 
With our skilled team, national coverage and 
sophisticated IT package, we believe that we 
are well positioned to benefit from 
ongoing consolidation.
People
Nationwide employs over 2,200 skilled and 
committed people, including 130 apprentices. 
In recent years, we have developed the Nationwide 
Academy, which provides structured training 
programmes designed to assist our team to hone 
their existing skills and develop new areas 
of expertise. The market in which we operate 
is becoming increasingly sophisticated and 
in 2008 it is our intention, with Government 
assistance, to extend the areas covered by 
the programme and to increase the number of 
staff enjoying the benefits that the Academy 
offers, including apprenticeships and National 
Vocational Qualifications. Our objective is to develop 
the most effective team in the sector and become 
1 Luton bodyshop  
2 NCRC Matlock  
3 NCRC Wirral
1
2 3  05 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Chief Executive’s Report continued
the industry employer of choice. We have made 
good progress in 2007 and aim to improve 
further this year.
Operations
In 2007 we also took the opportunity to review 
the sites that we operate and the areas in which 
they are located. In a multi‑site business such 
as ours, such reviews are a normal part of our 
business, as sites approach the end of their leases 
or require additional capital investment. As a result 
of this review, we closed or disposed of five sites 
and acquired four, in Llandudno, Lincoln, Matlock 
and Hull. Since the year end, we have also acquired 
sites in Gravesend and Scunthorpe. To support 
our customers’ needs going forward, we are 
increasing our repair capacity and plan to 
expand in three ways:
  by increasing the throughput within 
our existing sites, with the employment of 
additional staff, introduction of shifts and 
extending working hours;
  by acquiring additional sites in geographical 
areas not served by our existing network or 
where our existing sites are at capacity; and
  by enlisting and managing a secondary network 
of Nationwide approved repairers who carry 
out work on our behalf. Our Network Services 
division already successfully operates 
this system.
Network Services
Our Network Services division offers a comprehensive 
Accident Management Service including:
  first contact (known as ‘first notification 
of loss’ or ‘FNOL’ in the industry);
 claims handling;
 replacement vehicles;
  deployment into our own or other repair 
networks;
 uninsured loss recovery;
 a glass replacement service; 
  electronic diagnostic and air conditioning 
services; and
 on site repair services for minor damage. 
In providing this service, we enjoy two key 
competitive advantages:
  the majority of the work is carried out within 
our own network, facilitating communication, 
efficient deployment and the ability 
to prioritise work; and
  Network Services and Nationwide Crash Repair 
Centres operate on a sophisticated and fully 
integrated in‑house IT platform. This system 
allows us to monitor electronically and manage 
the flow of work through our business far 
more efficiently than the traditional manually 
operated processes.
Thanks to these advantages, the division continues 
to demonstrate encouraging growth. This year 
we will invest in the ongoing development of our 
IT platform in the areas of ‘first contact’ and 
claims handling, further enhancing the services 
we offer our customers and the efficiency with 
which we manage repairs.
Outlook
We have made encouraging progress during 
the year, improving the Group’s profitability for 
the fifth consecutive year. Most significantly, we 
have secured significant volumes of additional 
work from our existing customers and added 
new contracts. The benefits of these volume 
improvements will be seen in 2008 as these 
agreements are fully implemented.
In the current financial year we are continuing 
to expand and to develop and train our team in 
order to maintain our competitive advantage. We 
are also increasing our capacity to repair vehicles, 
leveraging efficiencies at our existing sites and 
looking for additional sites where demand makes 
this appropriate. In addition, we continue to 
grow our Network Services division, offering 
insurers and fleet operators a single point 
of contact and enabling us to capture work 
more effectively. 
Our business is by nature driven by unplanned 
events or accidents and as such is ‘non‑cyclical’. 
This gives us a firm foundation on which we can 
capitalise, but equally we also look to ensure that 
we continue to improve operational efficiency 
and that we are well placed to take advantage 
of market opportunities.
Looking ahead, we remain confident of our trading 
prospects as we continue to execute our twin 
track strategy of organic and acquisitive expansion.
Michael Wilmshurst
Chief Executive
25 March 2008
1 Falkirk bodyshop 2 NCRC Gateshead
1 2  06 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
1 NCRC Hull 2 NCRC Bristol 
3 Nottingham bodyshop
Operating results
Operating profit before non‑recurring items rose 
by 15% to £6.6m from £5.8m, with turnover for 
the period marginally increasing from £151.2m 
to £151.9m. Profit before tax after non‑recurring 
items was £6.8m (2006: £2.4m).
During 2007, four businesses were acquired, 
Llandudno (January 2007), Lincoln (March 2007), 
Matlock (October 2007) and Hull (November 2007). 
Between them they contributed turnover of 
£2.1m and a loss of £161,000.
In addition, the Group disposed of and closed five 
sites which had a combined turnover of £2.5m 
and losses of £97,000.
Pension scheme
The Group operates a defined benefit and 
a defined contribution pension scheme. 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. 
Under IAS 19 the deficit in the scheme as at 
31 December 2007 was £10.3m (2006: £20.6m) 
or £7.4m (2006: £14.3m) net of deferred tax. 
The Group has agreed with the trustees to eradicate 
the Scheme Specific Funding deficit by making 
annual special contributions of approximately 
£2.4m 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 2007 by a qualified 
independent actuary.
To assist comparisons to be made to other 
businesses that do not adopt the corridor 
approach details are given of the effect on profits 
and assets if IAS 19 (non‑corridor) was applied 
instead. Under IAS 19 (non‑corridor), operating 
profit before non‑recurring items increased by 
14% to £7.6m (2006: £6.7m). Profit before tax 
before non‑recurring items increased by 14% 
to £7.9m (2006: £6.9m). 
Cash flow
The net decrease in cash during the year 
was £1.8m (2006: an increase of £2.8m) 
which produced a net cash balance at 
31 December 2007 of £5.2m. 
The Company continues to invest in new plant 
and equipment and in improvements to its sites. 
The acquisition of new businesses during the year 
accounted for an outflow of £2.4m. Included within 
this amount is £900,000 relating to a property 
purchased and subsequently resold. This amount 
is shown with debtors at the year end as the cash 
was not received until January 2008. The Company 
continues to pay a ‘special’ deficit contribution to 
its pension fund of £2,465,000 (2006: £2,860,000) 
and a dividend of £1.8m was paid in 2007 
(2006: £nil).
Finance Director’s Review
David Loftus
1
2 3
“ Operating profit before 
non‑recurring items rose 
by 15%.”
Revenue
2007
151.9
2006
151.2
2005
139.6
Operating profit before non‑recurring items
2007
6.6
2006
5.8
2005
4.0 07 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Finance Director’s Review continued
1 NCRC Daventry  
2 NCRC Leeds  
3 Oxford bodyshop
The Group has a committed bank facility with 
the Royal Bank of Scotland for £8m until 
31 December 2010.
Tax
The effective tax rate is 26% which is lower 
than the standard rate of tax. The effective rate 
in 2006 was 41% which reflected the majority 
of the flotation costs being disallowed for tax 
purposes. The group has no income tax losses 
available but has capital losses of £4.2m available.
Earnings per share
The basic earnings per share is 11.3p (2006: 3.1p). 
The 2006 figure was significantly affected by 
non‑recurring items. Excluding non‑recurring 
items underlying earnings per share is 11.3p 
(2006: 9.0p), a growth of 25%. As a result of 
share options being granted on 4 July 2006, 
the basic earnings per share is reduced to 
10.3p (2006: 3.0p).
As mentioned above the Company adopts the 
‘corridor approach’ for the treatment of its 
pension liabilities and as such the actuarial loss 
is recognised in the income statement. To enable 
comparisons to be made to other businesses, 
earnings per share is also shown on an IAS 19 
(non‑corridor) basis. On this basis, earnings per 
share before non‑recurring items increased by 
19% to 12.5p (2006: 10.5p). 
Dividends
The Board is proposing a final dividend in respect 
of the results for the year ended 31 December 2007 
of 3.00p per share making a total of 4.5p for 
the year (2006: 2.6p per share). Subject to 
approval by shareholders at the Annual General 
Meeting, this will be paid on 2 June 2008 
to shareholders on the Register at the close of 
business on 9 May 2008. The dividend is covered 
2.6 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. Gross profit margin has remained 
consistent which is encouraging. Cycle Times and 
CSI performance are monitored at least monthly, 
and improvements in both measures are indicative 
of an enhanced service to our customers.
David Loftus
Finance Director
25 March 2008
1 2 
3  08 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Board of Directors
Michael was appointed non‑executive 
Chairman in June 2006. He is currently 
Chief Executive and Finance Director 
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 a former 
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.
Michael has extensive automotive 
sector experience, with TWR, HR Owen, 
and European Motor Holdings. At 
HR Owen, aged 31, 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.
David joined Nationwide in 
January 2003 as Finance Director. 
After qualifying as a Chartered 
Accountant with Spicer & Pegler 
(now part of Deloittes) 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
Non‑executive Chairman
(aged 60)
Michael Wilmshurst
Chief Executive
(aged 48)
David Loftus
Finance Director, FCA, MBA, 
BA (Hons) (aged 46) 09 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Board of Directors continued
Stephen has extensive multi‑site 
experience in the automotive sector. 
He has worked 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.
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 European and US 
private equity investments.
Barbara was appointed non‑executive 
Director in June 2006 and is a lawyer 
and international banker. She is 
currently Chairman of UKAEA and 
The School of Oriental & African 
Studies. In addition, Barbara is 
Deputy Chairman of the Financial 
Reporting Council and Friends 
Provident plc. She was formerly a 
Commissioner of the US Securities 
and Exchange Commission.
Stephen Thompson
Executive Director
(aged 35)
Jeremy Brade
Non‑executive Director
(aged 47)
Lady Judge
Non‑executive Director
(aged 61) Advisers
10 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Company No. 
966807 incorporated in England and Wales
Secretary
Martin Hickman‑Ashby
Registered Office
17A Thorney Leys Park 
Witney 
Oxfordshire OX28 4GE
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 
The Registry 
34 Beckenham Road 
Beckenham  
Kent BR3 4TU 
Website Address
www.narsplc.com 11 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
The Directors present their report and accounts for the year ended 31 December 2007.
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 2007 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 2008. 
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. Operational standards such as PAS 125 and changes to vehicle repair methodology, are being implemented through 
training programmes.
Post balance sheet events 
Since the year end the Group has acquired the trade and assets of bodyshop businesses in Gravesend and Scunthorpe (February 2008). The consideration 
for these businesses was £610,000 paid in cash.
Results and dividends
The Group’s sales revenue amounted to £151,947,000 (2006: £151,192,000) and the profit before taxation amounted to £6,815,000 (2006: £2,370,000). 
Taxation was a charge of £1,744,000 (2006: charge of £978,000) and the net profit for the year was £5,071,000 (2006: £1,392,000). 
The Directors are proposing a final dividend in respect of the results for the year ended 31 December 2007 of 3.0p per share. Subject to approval by 
shareholders at the Annual General Meeting, this will be paid on 2 June 2008 to shareholders on the Register at the close of business on 9 May 2008.
During 2007, the Group paid dividends of £1,840,000 (2006: £nil) to its equity shareholders. These comprised a final dividend in respect of 2006 
of 2.6p per share paid in May 2007 (£1,167,000) and an interim dividend in respect of 2007 of 1.5p per share paid in November 2007 (£673,000).
Non‑current assets
The movement of non‑current assets is set out in notes 10, 11 and 12 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.
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 Jeremy Brade, a Remuneration Committee consisting of the Chairman 
and Jeremy Brade and a Nominations Committee consisting of the Chairman and Lady Judge.
The Audit Committee meets regularly with the external auditors 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 auditors without any of the executive Directors being present.
The Remuneration Committee met in February 2008, but the Nominations Committee has not met since its formation in June 2006.
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.
New Articles of Association
We are asking shareholders to approve a number of amendments to our Articles of Association (the ‘Current Articles’), through the adoption of new 
articles of association (the ‘New Articles’), primarily to reflect the provisions of the Companies Act 2006 (the ‘2006 Act’). An explanation of the main 
changes between the New Articles and the Current Articles is included and explained within the notice of meeting. During 2007, new provisions in the 
2006 Act came into force regarding the ways that a company is permitted to communicate with its shareholders. In the future, the Company wishes 
to take advantage of these methods of communication and so the New Articles contain provisions to this effect which will require a resolution of the 
shareholders to implement. For now, the Company will continue to communicate with shareholders in the usual way.
Directors’ Report 12 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
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. Trade creditor days at the end of the year were 53 (2006: 54).
Share capital
Full details of the authorised and issued share capital of the Group are set out in note 19 to the accounts.
On 19 December 2007 the Group purchased 250,000 of its own shares at a price of 108p per share, the total consideration was £271,351. Subsequent 
to the year end, the Group purchased a further 975,000 shares on 15 January 2008 for a total consideration of £1,175,851, at a price of 120p per share 
and 450,000 shares on 25 January 2008, for a total consideration of £520,089, at a price of 115p per share. The three transactions represented 2.6% 
of the authorised share capital. The share buybacks were undertaken in order to enhance earnings for the shareholders.
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  2007 2006      Method of calculation
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)  12.1 days 12.2 days Cycle time measures the days from receipt of the vehicle on site  
     to return to the customer
CSI   85.4% 84.4% A measure of customer satisfaction derived from the results  
     of independent telephone surveys
Financial risk management policies
The details of the Group’s financial risk management objectives and policies are detailed in note 27 to the financial statements.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as auditors in accordance with Section 385 of the Companies Act 1985.
On behalf of the Board:
Michael Wilmshurst
Chief Executive
25 March 2008 13 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Statement of Directors’ Responsibilities
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
25 March 2008 14 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Remuneration Report
Remuneration Committee
The Remuneration Committee is chaired by Michael Marx and includes Jeremy Brade. The Committee, which met in February 2008, 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:
     Salary and  Annual Pension 2007 2006 
     fees Benefits bonus contribution Total Total 
     £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
M A Wilmshurst    318 1 — — 319 165
D J Loftus    140 15 70 39 264 616
S D G Thompson    120 19 50 12 201 96
Non‑executive Directors      
M H Marx    30 — — — 30 15
Lady Judge    20 — — — 20 10
J J Brade    20 — — — 20 10
A M Butcher (resigned 17 May 2007)    — — — — — 10
Total Directors’ emoluments    648 35 120 51 854 922
      
Key Management’s emoluments    205 30 50 18 303 280
Total    853 65 170 69 1,157 1,202
Fees of £308,000 were paid to Troy Solutions Limited via a consultancy agreement and are incorporated in the amount shown in respect 
of Michael Wilmshurst in the above table. Michael Wilmshurst is a Director of Troy Solutions Limited (see note 24).
The fees of £20,000 (2006: £10,000) relating to Jeremy Brade were paid to JO Hambro Capital Management Ltd.
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 2006. Details are given in note 19.
Directors’ interests
The interests of the Directors in the share capital of the Company were:
 Ordinary shares
         31 December 1 January 
         2007 2007 
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 —
Lady Judge         55,348 55,348
J J Brade        — —
A M Butcher (resigned 17 May 2007)        — — 15 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Report of the Independent Auditor
to the members of Nationwide Accident Repair Services plc
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 2007 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 27. 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 auditor’s 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 2007 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 2007;
 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 2007 
and of its profit for the year then ended.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants 
Central Milton Keynes
25 March 2008 16 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Consolidated Income Statement
for the year ended 31 December 2007
         2007 2006 
        Notes £’000 £’000
Revenue         151,947 151,192
Cost of sales        (81,360) (80,905)
Gross profit        70,587 70,287
Distribution costs        (38,858) (37,347)
Administrative expenses        (24,872) (27,063)
Share option charge        (240) (120)
Operating profit before non‑recurring items        6,617 5,757
Non‑recurring items       4 — (3,542)
Operating profit       4 6,617 2,215
Finance income       6 237 169
Finance costs       6 (39) (14)
Profit for the year before tax        6,815 2,370
Tax expense        7 (1,744) (978)
Net profit for the year        5,071 1,392
Earnings per share arising from both total and continuing operations
Basic       8 11.3p 3.1p
Diluted       8 11.0p 3.0p
The accompanying notes form an integral part of these financial statements. 17 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Consolidated Balance Sheet
as at 31 December 2007
         2007 2006 
        Notes £’000 £’000
Assets
Non‑current
Goodwill       10 7,038 5,821
Property, plant and equipment       12 8,100 8,933
Pension and other employee assets       14 5,273 3,867
         20,411 18,621
Current 
Inventories       15 2,591 2,548
Trade and other receivables       16 26,545 20,490
Cash and cash equivalents       18 5,152 6,932
         34,288 29,970
Total assets        54,699 48,591
Equity
Equity attributable to the shareholders 
Share capital       19 5,578 5,609
Capital redemption reserve        1,271 1,000
Share premium account        10,864 11,104
Revaluation reserve        8 8
Retained earnings        7,426 4,226
Total equity        25,147 21,947
Liabilities
Non‑current
Provisions       20 125 508
Deferred tax liabilities       17 1,002 685
         1,127 1,193
Current
Provisions       20 14 174
Trade and other payables       21 27,380 24,710
Current tax liabilities       22 1,031 567
         28,425 25,451
Total liabilities        29,552 26,644
Total equity and liabilities        54,699 48,591
The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2008. They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements. 18 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Consolidated Statement of Changes in Equity
for the year ended 31 December 2007
      Capital Share    
     Share redemption premium Revaluation Retained  
     capital reserve account reserve earnings Total 
Group    £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2006    5,609 1,000 11,104 8 2,714 20,435
Income for the period    — — — — 1,392 1,392
Total recognised income and expense for the period   — — — — 1,392 1,392
Share option charge    — — — — 120 120
Balance at 31 December 2006    5,609 1,000 11,104 8 4,226 21,947
Income for the period    — — — — 5,071 5,071
Total recognised income and expense for the period   — — — — 5,071 5,071
Share buyback    (31) 271 (240) — (271) (271)
Share option charge    — — — — 240 240
Dividend paid (see note 8)    — — — — (1,840) (1,840)
Balance at 31 December 2007    5,578 1,271 10,864 8 7,426 25,147
     Share Capital     
     capital redemption Share Revaluation Retained  
     reserve account premium reserve earnings Total 
Company    £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2006    5,609 1,000 11,104 — 7,022 24,735
Income for the period    — — — — 465 465
Total recognised income and expense for the period   — — — — 465 465
Share option charge    — — — — 120 120
Balance at 31 December 2006    5,609 1,000 11,104 — 7,607 25,320
Income for the period    — — — — 3,099 3,099
Total recognised income and expense for the period   — — — — 3,099 3,099
Share buyback    (31) 271 (240) — (271) (271)
Share option charge    — — — — 240 240
Dividend paid (see note 8)    — — — — (1,840) (1,840)
Balance at 31 December 2007    5,578 1,271 10,864 — 8,835 26,548
The accompanying notes form an integral part of these financial statements.  19 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Company Balance Sheet
as at 31 December 2007
         2007 2006 
        Notes £’000 £’000
Assets
Non‑current
Investments in subsidiary undertakings       11 37,496 37,842
Property, plant and equipment       12 252 201
Pension and other employee assets       14 5,273 3,867
         43,021 41,910
Current    
Trade and other receivables       16 5,392 7,449
Cash and cash equivalents       18 6,664 4,246
         12,056 11,695
Total assets        55,077 53,605
Equity
Equity attributable to the shareholders
Share capital       19 5,578  5,609
Capital redemption reserve        1,271 1,000
Share premium account        10,864 11,104
Retained earnings        8,835 7,607
Total equity        26,548 25,320
Liabilities
Non‑current
Provisions       20 — 7
Deferred tax liabilities       17 1,423 1,099
         1,423 1,106
Current
Provisions       20 18 34
Trade and other payables       21 26,632 27,021
Current tax liabilities       22 456 124
         27,106 27,179
Total liabilities        28,529 28,285
Total equity and liabilities        55,077 53,605
The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2008. They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.  20 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Consolidated Cash Flow Statement
for the year ended 31 December 2007
         2007 2006 
        Notes £’000 £’000
Operating activities
Result for the year before tax        6,815 2,370
Adjustments        23 (296) 6,293
Outflow from pension obligations        (2,465) (2,860)
Outflow from provisions        (201) (156)
Tax paid        (963) (684)
         2,890 4,963
Investing activities
Additions to property, plant and equipment        (1,796) (1,653)
Proceeds from the disposal of businesses        432 —
Proceeds from the disposal of property, plant and equipment       930 101
Acquisition of businesses – cost        (2,362) (762)
Interest received        237 169
         (2,559) (2,145)
Financing activities   
Dividend paid        (1,840) —
Purchase of own shares        (271) —
         (2,111) —
Net (decrease)/increase in cash and cash equivalents       (1,780) 2,818
Cash and cash equivalents at beginning of year        6,932 4,114
Cash and cash equivalents at end of year        5,152 6,932
The accompanying notes form an integral part of these financial statements. 21 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Company Cash Flow Statement
for the year ended 31 December 2007
         2007 2006 
        Notes £’000 £’000
Operating activities
Result for the year before tax        4,360 1,383
Adjustments        23 3,794 1,513
Outflow from pension obligations        (2,465) (2,860)
Outflow from provisions        (23) (10)
Tax paid        (605) (150)
         5,061 (124)
Investing activities
Additions to property, plant and equipment        (160) (174)
Proceeds from the disposal of property, plant and equipment       12 63
Interest (paid)/received        (384) 121
         (532) 10
Financing activities
Dividend paid        (1,840) —
Purchase of own shares        (271) —
         (2,111) —
Net increase/(decrease) in cash and cash equivalents       2,418 (114)
Cash and cash equivalents at beginning of year        4,246 4,360
Cash and cash equivalents at end of year        6,664 4,246
The accompanying notes form an integral part of these financial statements. 22 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts
for the year ended 31 December 2007
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 2007 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 2008.
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)
 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
IFRS 7 financial instruments has been adopted for the first time. The significant accounting policies that have been used in the preparation of these 
consolidated financial statements are summarised below. The consolidated financial statements have been prepared on the historic cost basis.
It should be noted that accounting estimates and assumptions are used in preparing the financial statements including the carrying amount of goodwill 
(note 10) and provisions (note 20). Although these estimates are based on management’s best knowledge of current events and actions, actual results 
may ultimately differ from those estimates. No significant judgements have been made in the financial statements.
New standards and interpretations currently in issue but not effective for accounting periods commencing on 1 January 2008 have been reviewed, 
but none are considered to have a significant impact on the financial statements.
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 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 the 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.
The results of subsidiary undertakings acquired or disposed of during the year are included in the Consolidated Income Statements 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 before taxation for Nationwide Accident Repair Services plc 
(the ‘Company’) was £4,600,843 (2006: £2,001,273).
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. 23 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
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, which are reviewed each year.
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
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.
Trade receivables
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. 24 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
3. Summary of accounting policies continued
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 19.
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 liabilities. They are included in balance sheet line items 
‘long term financial liabilities’ and ‘trade and other payables’. 
Financial liabilities are evaluated on a fair value basis, when the Group becomes party to the contractual agreements of the instrument. All interest 
related charges are recognised as an expense in ‘finance cost’ in the income statement, in accordance with the Group’s documented risk management 
or investment strategy.
Bank loans are raised for support of long term funding of the Group’s operations. They are recognised at fair values, net of direct issue costs. Finance charges, 
including premiums payable on settlement or redemption and direct issue costs, are charged to profit or loss on an accrual basis using the effective 
interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
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. 25 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
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): 
         2007 2006 
         £’000 £’000
Depreciation         2,225 2,407
Operating lease rentals:  
 Land and buildings        5,799 5,719
 Courtesy cars        4,935 4,536
 Plant and machinery        138 71
Auditors’ remuneration:
 Audit services        5 5
 Non‑audit services (audit of subsidiaries)        92 85
 Non‑audit services (tax and IFRS assistance)        7 4
 Non‑audit services (reporting accountant for flotation)       — 153
Profit on disposal of businesses         (165) —
Profit on disposal of property, plant and equipment        (548) —
Bad debt expense         16 27
Non‑recurring costs
Flotation costs        — 683
Non‑recurring bonuses        —  2,859
Total        — 3,542
The 2006 accounts included non‑recurring bonuses payable on admission to AIM totalling £2,859,000. Of this amount £2,407,000 was payable 
to Troy Solutions Limited, a company where Michael Wilmshurst is a Director and £400,000 was paid to David Loftus. The flotation costs relate 
to the admission to AIM on 4 July 2006. 
5. Employee remuneration
The aggregate payroll costs of the Group’s employees are analysed as follows:
         2007 2006 
         £’000 £’000
Wages and salaries        44,109 44,732
Social security costs        4,298 4,287
Other pension costs (contributions paid)        2,821 3,013
         51,228 52,032
The amount of pension contributions paid to defined contribution scheme      356 153
The average number of employees during the year was made up as follows:
         Number Number
Motor accident repair operations        2,141 2,118
Accident claim management operations        96 51
Central and other        15 17
         2,252 2,186
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. Finance income and finance costs 
         2007 2006 
         £’000 £’000
Finance income
Interest receivable on bank balances        237 169
Finance costs
Pension costs (see note 14):
Interest on obligation        3,786 3,262
Expected return on assets        (3,747) (3,248)
         39 14 26 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
7. Tax expense 
         2007 2006 
         £’000 £’000
Current tax:
United Kingdom corporation tax at 30% (2006: 30%)       1,624 636
Adjustments in respect of prior years        (197) —
         1,427 636
Deferred tax:  
Movement relating to pension asset (IAS 19)        422 563
Deferred tax on pension resulting from reduction in tax rate       (106) —
Temporary differences origination and reversal        40 (221)
Deferred tax resulting from reduction in tax rate        28 —
On share options        (67) —
         1,744 978
The tax assessed for the period is lower (2006: higher) than the standard rate of corporation tax in the UK of 30% (2006: 30%). The differences 
are explained as follows:
         2007 2006 
         £’000 £’000
Result for the year before tax        6,815 2,370
Income on ordinary activities before tax multiplied by standard rate of UK corporation tax of 30% (2006: 30%)   2,044 711
Effect of: Adjustments in respect of prior years        (197) —
 Deferred tax provided at 28%        (71) —
 Capital item covered by capital losses brought forward       (220) —
 Items not deductible for tax purposes        83 258
 Capital allowances in excess of depreciation         65 (82)
 Other temporary differences        40 91
Total tax charge for the year        1,744 978
8. Earnings per share and dividends 
Basic earnings per share
The basic earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,071,000 (2006: £1,392,000). 
The weighted average number of outstanding shares used for the basic earnings per share amounted to 44,864,001 (2006: 44,872,220). This number 
takes into account the share buyback that occurred on 19 December 2007.
Diluted earnings per share
The diluted earnings per share has been calculated using the net results attributable to the shareholders of the Company of £5,071,000 (2006: £1,392,000). 
The weighted average number of outstanding shares used for the diluted earnings per share amounted to 46,108,171 (2006: 46,974,453) and assumes 
the exercise of all the share options detailed in note 19 since the date they were granted and the average market price of £1.57. This number takes into 
account the share buyback that occurred on 19 December 2007.
Underlying earnings per share
The underlying earnings per share has been calculated as follows: 
         2007 2006 
         £’000 £’000
Profit before tax (as stated)        6,815 2,370
Non‑recurring items        — 3,542
         6,815 5,912
Tax expense (as stated)        (1,744) (978)
Tax effect on non‑recurring items        — (888)
         5,071 4,046
Adjusted earnings per share        11.3p 9.0p
The weighted average number of outstanding shares used for the underlying earnings per share amounted to 44,864,001 (2006: 44,872,220). 
This number takes into account the share buyback that occurred on 19 December 2007 as detailed in note 19. 27 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
8. Earnings per share and dividends continued
Underlying earnings per share (IAS 19 non‑corridor basis)
The underlying earnings per share on an IAS 19 (non‑corridor) basis has been calculated as follows: 
         2007 2006 
         £’000 £’000
Operating profit before non‑recurring items under IAS 19 (non‑corridor)       7,637 6,726
Finance income        237 169
Finance costs         (39) (14)
Underlying profit before tax under IAS 19 (non‑corridor)       7,835 6,881
Tax expense as stated        (1,744) (978)
Deferred tax IAS 19 (corridor) reversed        316 563
Deferred tax under IAS 19 (non‑corridor)        (777) (853)
Tax effect on non‑recurring items        — (888)
         5,630 4,725
Adjusted earnings per share        12.5p 10.5p
The weighted average number of outstanding shares used for the underlying earnings per share amounted to 44,864,001 (2006: 44,872,220). 
This number takes into account the share buyback that occurred on 19 December 2007 as detailed in note 19. 
Dividends
During 2007, the Company paid dividends of £1,840,000 (2006: £nil) to its equity shareholders. 
These comprised:
– a final dividend in respect of 2006 of 2.6p per share paid in May 2007 (£1,167,000); and
– an interim dividend in respect of 2007 of 1.5p per share paid in November 2007 (£673,000).
The Board is proposing a final dividend in respect of the results for the year ended 31 December 2007 of 3.0p per share.
9.  Acquisitions/disposals
Acquisitions
During 2007, the trade and assets of four bodyshop businesses were acquired in Llandudno (January 07), Lincoln (March 07), Matlock (October 07) 
and Hull (November 07).
The total cost of these acquisitions includes the components stated below. The purchase prices were settled in cash.
          £’000
Purchase price         1,907
Due diligence costs including legal fees         147
Total cost         2,054
Fair value of assets acquired          1,145
Goodwill         909
        At Fair value  
        acquisition adjustments Total 
       Notes £’000 £’000 £’000
Non‑current assets
Property, plant and equipment      (b) 245 — 245
Current assets
Property held for resale      (c) 900 — 900
Net assets       1,145 — 1,145
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 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.
(c) The purchase of the business in Hull included the purchase of a property that was subsequently sold in December 2007.
The result included in the Group accounts in relation to these four acquisitions, following their acquisition was turnover of £2,148,000 and a loss 
of £161,000. 28 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
9.  Acquisitions/disposals continued
Disposals
During 2007 two bodyshop businesses were sold; Kidderminster and Cumbernauld.
The total proceeds of these disposals included the components stated below. The sales prices were settled in cash.
          £’000
Sales price         458
Selling costs including legal fees         (26)
Net sales price         432
Net book value of assets disposed of         (267)
Profit on disposal         165
The assets disposed of comprised the plant and machinery of the businesses at the date of disposal. 
10. Goodwill
 Group
         2007 2006 
         £’000 £’000
Cost or valuation:
1 January         5,881 4,708
Reassessment of previous goodwill        308 —
Additions        909 1,173
31 December         7,098 5,881
Impairment  
1 January         60 60
Charge in the period to administration expenses        — —
31 December         60 60
Net book value at 31 December        7,038 5,821
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 1,173
Businesses acquired in 2007        909 —
         7,038 5,821
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.
The business of Aquilo Motor Services was acquired from Aquilo plc which went into administration in 2007. As a result certain assets and liabilities 
acquired with the business were reassessed and the goodwill on acquisition was increased by £308,000. The reassessment of previous goodwill relates 
to a fair value adjustment for trade receivables and trade payables.
Businesses acquired in 2007
During 2007, four businesses were acquired, Llandudno (January 07), Lincoln (March 07), Matlock (October 07) and Hull (November 07).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 probable changes which would 
necessitate changes in its key assumptions. 29 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
11. Investments in subsidiary undertakings
 Company
         2007 2006 
         £’000 £’000
Cost or valuation:
1 January         39,456 39,456
Disposals        (1,950) —
31 December         37,506 39,456
Accumulated provisions:
1 January         1,614 1,614
On disposals        (1,604) —
31 December         10 1,614
Net book value at 31 December         37,496 37,842
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%
W Harold Perry Limited   England and Wales 100%
12. Property, plant and equipment 
         Plant   
         equipment and  
       Land Buildings computers Total 
Group      £’000 £’000 £’000 £’000
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
Cost:     
1 January 2006      348 4,623 19,967 24,938
Acquisitions      — — 70 70
Additions      — 347 1,306 1,653
Disposals      — — (462) (462)
31 December 2006      348 4,970 20,881 26,199
Accumulated depreciation:     
1 January 2006      — 1,348 13,872 15,220
Disposals      — — (361) (361)
Charge for the year      — 241 2,166 2,407
31 December 2006      — 1,589 15,677 17,266
Net book value at 31 December 2006      348 3,381 5,204 8,933
The net book value of land and buildings comprises:
          Short 
          leasehold  
        Total Freehold improvements 
        £’000 £’000 £’000
Group as at 31 December 2007       3,396 248 3,148
Group as at 31 December 2006       3,729 497 3,232 30 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
12. Property, plant and equipment continued
 Motor vehicles
         2007 2006 
Company        £’000 £’000
Cost:
1 January         437 399
Additions        160 174
Disposals        (81) (136)
31 December        516 437
Accumulated depreciation:
1 January        236 229
Charge for the year        103 80
Disposals        (75) (73)
31 December        264 236
Net book value at 31 December        252 201
13. Leases
The total of future minimum lease commitments in respect of non‑cancellable operating leases as at 31 December are as follows:
         2007 2006 
Group        £’000 £’000
Land and buildings leases expiring:
Within one year        268 150
Two – five years inclusive        3,410 876
More than five years        54,163 61,218
         57,841 62,244
Other leases expiring:
Within one year        2,423 3,318
Two – five years inclusive        645 1,282
More than five years        5 61
         3,073 4,661
The total of future minimum sub‑lease payments expected to be received under non‑cancellable sub‑leases at the balance sheet date is £1,258,000 
(2006: £2,678,500).
         2007 2006 
Company        £’000 £’000
Land and buildings leases expiring:
Within one year        15 15
         15 15
Other leases expiring:
Within one year        4 15
Two – five years inclusive        — 32
         4 47
14. Pension and other employee assets/obligations
The Group operates a defined benefit scheme and a defined contribution pension scheme in the UK which offers both pensions in retirement and death 
benefits to members. Since 1 January 2002 the defined benefit scheme has been closed to new members. The assets of the schemes are administered by 
trustees independent of the Group. The Company made contributions of £2,465,000 (2006: £2,860,000) to the defined benefit scheme during the year. 
The defined benefit scheme was closed for future accruals on 31 July 2006 with active members transferred to a new defined contribution section 
of the scheme. In 2005 the Company agreed with the trustees of the pension scheme to make annual contributions of approximately £2.3m 
(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. 
        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  3.3
Rate of increase in pensions – accrued pre 5 April 1997      3.0  3.0  3.0
Rate of increase in pensions – accrued post 5 April 1997      3.15  2.85  2.65 
Discount rate       6.1 5.4  5.0
Inflation assumption       3.15 2.85  2.65
The assumptions used in determining the overall expected return of the scheme have been set with reference to yields available on government bonds 
and appropriate risk margins. The pre and post retirement mortality assumptions use the A92 and PA92 tables respectively. 31 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
14. Pension and other employee assets/obligations continued
The assets in the scheme and the expected rate of return were:
  2007  2006  2005
      Long  Long  Long  
      term rate  term rate  term rate  
     of return Value of return Value of return Value 
     expected £’000 expected £’000 expected £’000
Equities    8.5% 37,044 8.1% 34,525 8.0% 29,340
Bonds    5.3% 9,664 4.8% 9,341 4.4% 9,493
Property    8.5% 6,055 8.1% 6,400 8.0% 5,454
Other    4.3% 1,970 3.3% 94 3.0% 232
Total market value of assets     54,733  50,360  44,519
Present value of defined obligations (funded plans)    (65,040)  (70,928)  (65,552)
Present value of unfunded obligations     (10,307)  (20,568)  (21,033)
Unrecognised actuarial losses     15,580  24,435  23,024
Net asset in balance sheet     5,273  3,867  1,991
Actual return on assets in period     3,540  4,719  5,584
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
        2007 2006 2005 
        £’000 £’000 £’000
Benefit obligation at beginning of year       70,928 65,552 61,984
Service cost       — 613 1,148
Interest cost       3,786 3,262 3,344
Contributions by scheme members       — 212 328
Actuarial (gain)/loss       (8,042) 3,351 323
Curtailments and settlements       — (611) —
Benefits paid       (1,632) (1,451) (1,575)
Balance at end of year       65,040 70,928 65,552
Reconciliation of opening and closing balances of the fair value of plan assets
        2007 2006 2005 
        £’000 £’000 £’000
Fair value of scheme assets at beginning of year       50,360 44,519 37,601
Expected return on scheme assets       3,747 3,248 2,471
Actuarial (loss)/gain       (207) 972 3,113
Contributions by employers       2,465 2,860 2,581
Contributions by scheme members       — 212 328
Benefits paid       (1,632) (1,451) (1,575)
Asset at end of year       54,733 50,360 44,519
The amounts recognised in the income statement are:
         2007 2006 
         £’000 £’000
Current service cost        — 613
Interest on obligation        3,786 3,262
Expected return on assets        (3,747) (3,248)
Curtailments and settlements        — (611)
Actuarial loss recognised in year        1,020 969
         1,059 985
Charged to:
Administration expenses        1,020 971
Finance costs        39 14
         1,059 985
History of scheme assets, obligations and experience adjustments
        2007 2006 2005 
        £’000 £’000 £’000
Present value of defined benefit obligations       (65,040) (70,928) (65,552)
Fair value of scheme assets       54,733 50,360 44,519
Deficit in scheme       (10,307) (20,568) (21,033)
Experience adjustments arising on scheme liabilities      (8,042) 3,351 323
Experience item as a % of scheme liabilities       (12%) 5% 0%
Experience adjustments arising on scheme assets       (207) 972 3,113
Experience item as a % of scheme assets       0% 2% 7% 32 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
14. Pension and other employee assets/obligations continued
Effect on profitability: comparison between IAS 19 (corridor) and IAS 19 (non‑corridor)
         2007 2006 
         £’000 £’000
Operating result before non‑recurring items as stated       6,617 5,757
Add back actuarial loss recognised under IAS 19 (corridor)       1,020 969
Operating result before non‑recurring items under IAS 19 (non‑corridor)      7,637 6,726
Non‑recurring items        — (3,542)
Operating result under IAS 19 (non‑corridor)        7,637 3,184
Finance income        237 169
Finance costs         (39) (14)
Profit before tax under IAS 19 (non‑corridor)        7,835 3,339
Tax expense as stated        (1,744) (978)
Deferred tax under IAS 19 (corridor) reversed        316 563
Deferred tax under IAS 19 (non‑corridor)        (777) (853)
Profit after tax under IAS 19 (non‑corridor)       5,630 2,071
15. Inventories
 Group
         2007 2006 
         £’000 £’000
Goods for resale        2,591 2,548
In 2007, total purchases of £43,638,000 of inventories were included in the income statement as an expense (2006: £44,821,000). There were no write 
downs of inventories (2006: £nil).
16. Trade and other receivables
 Company  Group
       2007 2006 2007 2006 
       £’000 £’000 £’000 £’000
Trade receivables      270 270 21,139 16,822
Bad debt provision      — — (145) (143)
Other receivables      1,096 1,145 187 189
Amounts owed by subsidiary undertakings      3,219 5,381 — —
Prepayments and accrued income      807 653 5,364 3,622
       5,392 7,449 26,545 20,490
The Directors consider that the carrying amount of trade and other receivables approximates to their fair values.
Trade receivables can be analysed as follows:
 Company  Group
       2007 2006 2007 2006 
Past due but not impaired      £’000 £’000 £’000 £’000
Within terms      3,369 5,631 18,425 14,355
Overdue by 30 days      98 10 1,542 1,007
Overdue by 60 days      — 10 501 779
Overdue by 90 days      22 — 526 538
Overdue by more than 120 days      — — — —
       3,489 5,651 20,994 16,679
 Company  Group
       2007 2006 2007 2006 
Impaired receivables      £’000 £’000 £’000 £’000
Overdue by more than 120 days      — — 145 143
       — — 145 143
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. 33 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
17. Deferred tax assets and liabilities
         2007 2006 
Group        £’000 £’000
Accelerated capital allowances        392 460
Pension fund asset        (1,476) (1,160)
Short term temporary differences        82 15
Liability        (1,002) (685)
Balance brought forward        (685) (343)
Acquisitions        — —
Charge for the year        (317) (342)
Balance carried forward         (1,002) (685)
Company
Accelerated capital allowances        39 46
Pension fund asset        (1,476) (1,160)
Short term temporary differences        14 15
Liability        (1,423) (1,099)
The Group and Company have capital losses available to be carried forward and offset against future capital gains of £4.2m (2006: £4.3m).
18. 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 £8.0m 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.
19. Equity
Share capital
 2007  2006
       Shares £’000 Shares £’000
Authorised
Ordinary shares of 12.5p (2006: 12.5p) each      64,000,000 8,000 64,000,000 8,000
Issued and fully paid
Ordinary shares of 12.5p (2006: 12.5p) each      44,622,220 5,578 44,872,220 5,609
On 19 December 2007 the Company purchased 250,000 of its own shares at a price of 108p per share. Subsequent to the year end, the Company 
purchased a further 975,000 shares on 15 January 2008 at a price of 120p per share and 450,000 shares on 25 January 2008 at a price of 115p 
per share. All shares purchased will be cancelled.
Share options
        Number of  Exercise Exercise 
        shares price period
M A Wilmshurst      Approved 25,751 £1.165 2009–16
       Unapproved 2,217,860 £1.11 2009–16
D J Loftus      Approved 25,751 £1.165 2009–16
       Unapproved 1,096,055 £1.11 2009–16
S D G Thompson      Approved 25,751 £1.165 2009–16
       Unapproved 871,693 £1.11 2009–16
        4,262,861  
All the above options were issued on 4 July 2006 and no additional share options have been issued since this date.
In total, £240,000 of employee compensation expense has been included in the Consolidated Income Statement for 2007 (2006: £120,000). 
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.
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. 34 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
20. Provisions
Onerous lease costs:
         Company Group 
Group        £’000 £’000
At 1 January 2007        41 682
Charged/(credited) to the income statement to administration        70 (342)
Utilised        (93) (201)
At 31 December 2007        18 139
Current liability        18 14
Non‑current liability        — 125
         18 139
Included in non‑current liabilities is an amount of £56,000 payable in more than five years.
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.
21. Trade and other payables
 Company  Group
       2007 2006 2007 2006 
       £’000 £’000 £’000 £’000
Trade payables       1,692 1,375 17,494 16,014
Amounts owed to subsidiary undertakings      23,403 22,690 — —
Taxes and social security costs       202 230 2,912 2,808
Accruals      1,335 2,726 6,974 5,888
       26,632 27,021 27,380 24,710
The Directors consider that the carrying amount of financial liabilities approximates to their fair values.
22. Current tax liabilities
 Company  Group
       2007 2006 2007 2006 
       £’000 £’000 £’000 £’000
Current tax liabilities      456 124 1,031 567
23. Cash flow statement
The following non‑cash flow adjustments have been made to the pre‑tax result for the year to arrive at operating cash flow:
         2007 2006 
Group        £’000 £’000
Adjustments:
Movement in pension fund asset – IAS 19        1,059 985
Share option scheme charge        240 120
Depreciation        2,225 2,407
Changes in inventories        (43) 219
Changes in trade and other receivables        (5,155) 2,949
Changes in trade and other payables        2,670 (360)
Changes in provisions         (342) 142
Profit on sale of businesses        (165) —
Profit on sale of property, plant and equipment        (548) —
Finance income        (237) (169)
Total        (296) 6,293
         2007 2006 
Company        £’000 £’000
Adjustments:
Movement in pension fund asset – IAS 19        1,059 985
Share option scheme charge        240 120
Depreciation        103 80
Changes in trade and other receivables        2,057 (437)
Changes in trade and other payables        (389) 886
Investments written off        346 —
Profit on sale of property, plant and equipment        (6) —
Finance income        384 (121)
Total        3,794 1,513 35 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Notes to the Accounts continued
for the year ended 31 December 2007
24. Related party transactions 
Group
The Group paid £308,000 to Troy Solutions Limited in the year for management and consultancy services (2006: £2,722,653). This amount is included 
within Directors’ remuneration as it relates to the amounts payable under a consultancy agreement dated 29 June 2006. The 2006 amount included 
non‑recurring bonuses of £2,407,653. Michael Wilmshurst is a Director of Troy Solutions Limited. In addition, the Group paid Troy Solutions Limited 
£256,788 (2006: £236,372) in relation to the provision of office facilities, customer satisfaction surveys and training services. The amount outstanding 
at the year end was £44,112 (2006: £42,877).
Company
The Company paid £308,000 to Troy Solutions Limited in the year for management and consultancy services (2006: £2,722,653). This amount is included 
within Directors’ remuneration as it relates to the amounts payable under a consultancy agreement dated 29 June 2006. The 2006 amount included 
non‑recurring bonuses of £2,407,653. Michael Wilmshurst is a Director of Troy Solutions Limited. In addition, the Company paid Troy Solutions Limited 
£256,788 (2006: £236,372) in relation to the provision of office facilities, customer satisfaction surveys and training services. The amount outstanding 
at the year end was £44,112 (2006: £42,877).
Transactions with subsidiaries
         Balance  Balance  
         as at as at 
         31 December  31 December 
         2007 2006 
         £’000 £’000
Nationwide Crash Repair Centres Limited        3,219 5,381
Network Services (Nationwide) Limited        (784) (768)
Mobile Vehicle Repairs Limited        78 —
W Harold Perry Limited         (1,274) (696)
Other non‑trading subsidiaries        (21,423) (21,226)
         (20,184) (17,309)
During the year, the Company recharged various costs incurred to its subsidiaries including a £3.25m management charge to Nationwide Crash Repair 
Centres Limited. The above balances are all repayable on demand.
25. Post balance sheet events
Since the year end the Group has acquired the trade and assets of bodyshop businesses in Gravesend and Scunthorpe (February 2008). The consideration 
for these businesses was £610,000 paid in cash.
          £’000
Purchase price         610
Due diligence costs including legal fees         63
Total cost         673
Fair value of assets acquired: property plant and equipment        410
Goodwill on acquisition         263
It is not practical to disclose the post acquisition turnovers and profits of the newly acquired businesses due to financial sensitivities and the impact 
on other businesses potentially being acquired in 2008.
Subsequent to the year end the Company purchased a further 975,000 shares on 15 January 2008 at a price of 120p per share and 450,000 shares 
on 25 January 2008 at a price of 115p per shares. All shares purchased will be cancelled.
26. 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. 
27. 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 are described below:
i) Credit risk
The Group and Company’s trade and other receivables are actively monitored 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 5.25% and 6.25% 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.  36 Nationwide Accident Repair Services plc Annual Report and Accounts 2007
Financial Calendar
Preliminary Announcement   26 March 2008
Annual Report publication due   23 April 2008
Annual General Meeting    27 May 2008
2008 Interim Announcement   September 2008  Nationwide Accident Repair Services plc
17A Thorney Leys Park 
Witney 
Oxfordshire OX28 4GE
www.narsplc.com