Annual Report and Accounts    2010 1 Highlights
2 Chairman’s Statement 
4 Chief Executive’s Report 
6 Finance Director’s Review
8 Board of Directors
10 Directors & Advisers
11 Directors’ Report
13 Statement of Directors’ Responsibilities
14 Remuneration Report
15 Report of the Independent Auditor
16 Consolidated Statement of Comprehensive Income 
17 Consolidated Statement of Financial Position
18 Company Statement of Financial Position
19 Consolidated Statement of Changes in Equity
20 Consolidated Cash Flow Statement
21 Company Cash Flow Statement
22 Notes to the Accounts
37 Financial Calendar
With a national network of 71 accident repair
centres and a fleet of mobile vans 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 provides
automotive crash repair 
and accident administration
services principally to the 
UK insurance industry.
Nationwide Accident Repair Services plc Annual Report and Accounts 2010 “Against trading conditions which showed no material
improvement on the prior year, our results show a 19%
rise in profit before tax. This increase in profitability was
helped by an improvement in gross margins, reflecting
our continued focus on operational efficiencies and on
the cost base, as well as a more favourable mix of repair
work undertaken.
Growth opportunities for us in both the insurance and
noninsurance marketplaces remain promising and our
industryleading processes and IT systems continue to
underpin the efficient management of workflow and will
help to support our ongoing expansion. I look forward to
another year of growth in 2011 and believe that we have
the foundations in place to achieve our targets”.
Michael Marx
Chairman
Highlights
2010 2009
Revenue £172.3m £170.9m
Operating profit before
non-recurring items £6.4m £5.8m
Operating profit after 
non-recurring items £6.4m £5.5m
Profit before tax before
non-recurring items £6.0m £5.4m
Profit before tax after 
non-recurring items £6.0m £5.1m
Earnings per share after 
non-recurring items  10.4p 8.4p
1 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
• First year of three year growth plan completed
– encouraging progress
- targeting growth in core insurance market 
and in noninsurance markets (fleet and retail)
• Revenues up to £172.3m (2009: £170.9m)
• Gross profit margin up by one percentage 
point to 47% (2009: 46%)
• Profit before tax (before nonrecurring items) 
up 13% to £6.0m (2009: £5.4m)
• Profit before tax (after nonrecurring items) 
up 19% to £6.0m (2009: £5.1m)
• Earnings per share (before nonrecurring 
items) up by 17% to 10.4p (2009: 8.9p)
• Earnings per share (after nonrecurring items) 
up by 24% to 10.4p (2009: 8.4p)
• Net cash of £7.5m (2009: £8.3m)
• Final dividend of 3.5p per share proposed 
(2009: 3.3p), taking total 2010 dividend to 
5.3p per share (2009: 5.0p)
• Major insurance contract win with 
Groupama, April 2010 
- sole deployment of all vehicle repairs 
• Launch of enhanced mobile repair capability 
in Summer 2010
• Operational efficiencies remained 
a major focus 
• Board views growth prospects 
in 2011 positively Introduction
I am pleased to report that Nationwide
continues to make progress. Against trading
conditions which showed no material
improvement on the prior year, results show a
19% rise in profit before tax. This increase in
profitability was helped by a one percentage
point improvement in gross margins, reflecting
our continued focus on operational efficiencies
and on the cost base, as well as a more
favourable mix of repair work undertaken.
During the year, we also invested significantly in
our corporate infrastructure and in equipment. 
The Group’s balance sheet and cash position
remain very strong and we are pleased to be
recommending an increase in the final dividend.
I reported in my half year statement that we
had commenced a three year growth plan,
aimed at developing our activities in our core
insurance marketplace and increasing our
presence in the noninsurance market, especially
in the selffunded fleet market, where repairs
are funded by fleet operators themselves, and in
the retail market, where our presence is
currently relatively underrepresented.
Growth opportunities for us in both the
insurance and noninsurance marketplaces
remain promising. The insurance sector
accounts for an estimated £3.7 billion of repairs
in the UK annually. With Nationwide’s share of
the insurance market currently standing at
around 5%, we believe we are well placed to
grow, supported by the trend towards insurers
consolidating their supplier base 
in order to save costs and enhance efficiency.
The multiyear contract we signed with
Groupama in April 2010, to manage the
deployment of all its vehicle repairs, represents
encouraging progress. The selffunded fleet and
retail markets generate repair work worth some
£0.9 billion and £0.5 billion a year respectively.
In the first year of our growth plan, we have 
increased revenues from the selffunded fleet
sector by approximately 27% to £19.6 million
and, in the retail market, we have seen a 21%
rise in revenues to £6.1 million.
Our industryleading processes and IT systems
continue to underpin the efficient management
of workflow and will help to support our
ongoing expansion. I look forward to another
year of growth in 2011 and believe that we
have the foundations in place to achieve 
our targets.
Financial Results
Revenues for the year ended 31 December 2010
of £172.3 million were slightly ahead of last
year (2009: £170.9 million). As predicted, the
volume of insurance claims in 2010 did not
change materially from the previous year;
however, the mix of repair work included a
larger contribution from noninsurance work.
Operating profit before nonrecurring items rose
by 10% to £6.4 million (2009: £5.8 million),
helped by the improvement in gross margins
from 46% to 47%. The rise in gross margins is
the second successive year of increase and
demonstrates our ability to implement
operational efficiencies throughout the business.
Profit before tax before nonrecurring items
increased by 13% to £6.0 million (2009: £5.4
million) and earnings per share (before
nonrecurring items) rose 17% to 10.4p (2009:
8.9p). Statutory profit before tax (after
nonrecurring items) increased by 19% to £6.0
million (2009: £5.1 million) and statutory
earnings per share (after nonrecurring items)
rose by 24% to 10.4 pence (2009: 8.4 pence).
The Group continues to maintain a robust
balance sheet, with no borrowings and net cash
of £7.5 million at 31 December 2010 (2009:
£8.3 million).
Chairman’s Statement
Michael Marx
Chairman
2 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
    
 
Turnover
172.3m
Profit before
tax before
non-recurring items
6.0m
        
 
   
  
37
31
71
Accident Repair Centres
Mobile Repair Fleet                         Motorglass Fleet Dividend
The Board is pleased to recommend a final
dividend of 3.5 pence per share (2009: 3.3
pence per share), representing an increase of
6%. This takes the total dividend for the year
to 5.3 pence per share (2009: 5.0 pence per
share), a rise of 6% yearonyear.
Subject to shareholder approval at the Annual
General Meeting on 14 June 2011, the final
dividend will be paid to shareholders on 20
June 2011, based on the register at the close
of business on 13 May 2011.
Trading overview
The annual repair market in the UK is
substantial, being worth £5.1 billion per
annum and Nationwide’s current market share
remains at less than 5%. Despite market
conditions in 2010 showing no improvement
on the challenging conditions of 2009,
Nationwide has considerable opportunities to
increase its share in each of its three key
markets. Nationwide’s national scale and
unmatched infrastructure and operating
systems, which are underpinned by a single IT
platform, enable us to manage our network of
bodyshops, call centres and mobile repair fleet
in an efficient, integrated manner. Our
strategy to leverage the advantages of our
scale and operating systems has meant that
we have been able to drive further operational
efficiencies throughout the business. We have
reduced costs further, made changes to the
way in which we manage repair work and
improved gross margins. At the same time, we
are careful to ensure that Nationwide
continues to offer industryleading service
levels. Our core proposition of Quality, Value,
Speed and Service, is key. By flexing this
offering, we can adapt to individual customer
requirements, further increasing our market 
opportunities. We continue to focus on
maintaining close customer relationships
across the automotive insurance industry,
working alongside our clients to understand
and respond to their changing needs. In April
2010, we were very pleased to secure a major
three year contract to manage the deployment
of all Groupama’s vehicle repairs. This
followed Groupama’s decision to consolidate
its large supplier network and the contract
made a significant contribution in the second
half of the year. In December 2010 we agreed
an expansion in the services we provide
Hastings Insurance Services. Under the terms
of this agreement we are now providing
Hastings with mobile glass repairs across the
UK and are one of only two providers
delivering this service. This agreement comes
directly as a result of our initiative to develop
our mobile services.
In my interim report, I highlighted the
development of our mobile repair capacity as
an important element in our overall growth
plans. We launched our rebranded and
enhanced specialist repair fleet at the
beginning of the second half of 2010. The
expansion in our mobile repair capacity has
given us significant added flexibility and we
can now complete light repairs ‘offsite’, at a
location convenient to our customers. At the
same time, with our national network of
bodyshops and integrated IT systems, we can
transfer any substantial repairs efficiently into
one of our fixed sites. The expansion of our
mobile fleet is progressing well, with 68 vans
at the end of the year. The division made a
contribution of £4.8 million to the Group’s
turnover, which represented a £1.2 million
yearonyear increase and we believe that we
are well positioned to achieve our 2011 target
for mobile work.
The investment in our fleet and retail
initiatives has already generated promising
results. The second half of 2010 was
particularly encouraging and for the year as a
whole, we achieved £19.6 million of
combined selffunded fleet sales (comprising
fixed site and mobile repairs) compared to
£15.4 million in 2009. Private retail repairs
delivered revenues of £6.1 million, an increase
of £1 million on last year.
Outlook
The Group delivered a good performance in
2010. We invested significantly in the business
over the course of that year, in line with our
three year growth plan, and are pleased with
the results coming through. We will be
continuing to make further investments during
2011 to support our ongoing expansion
within our three key markets of insurance,
fleet and retail.
Both financially and operationally, we believe
that Nationwide is wellplaced to achieve its
targets over the coming year. Our strong
balance sheet with net cash of £7.5 million
and good cash generation underpin our
growth plans and I look forward to reporting
on our continued progress.
Michael Marx
Chairman
29 March 2011
“...results show
a 19% rise
in profit
before tax.”
Chairman’s Statement
3 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Chief Executive’s Report
Michael Wilmshurst
Chief Executive
4 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Introduction
I am pleased to report on our progress at the end
of the first year of our three year growth plan.
After a good first half, we closed the year having
delivered a strong overall trading performance,
with gross margins for the 12 months up by over
one percentage point on last year to 47.2% and
earnings per share (after nonrecurring items) up
by 24% to 10.4 pence per share yearonyear.
The balance sheet at 31 December 2010 remains
very strong and the business continues to
generate very good cash flows, helping to
support our progressive dividend policy.
These results are pleasing and we expect to see
further healthy growth as we implement the
remainder of the three year growth plan.
At the heart of our growth plan is our strategy 
to expand Nationwide’s presence in the
insurance, retail and fleet sectors. While the
insurancefunded market will remain the core
engine for growth, we are now strategically
targeting the retail and fleet markets alongside
it. We see significant expansion opportunities in
all three key markets which have considerable
and currently untapped potential.
At the same time as expanding Nationwide’s
presence in the insurance, retail and fleet sectors,
there continue to be margin gains to be made
in ensuring that we focus on operational
efficiencies. The gross margin improvement we
made this year directly reflects this and efficient
workflow management remains an area of our
business that we target for further improvement.
Our network of over 70 bodyshops across the UK,
backed by our accident management call centres,
give us national reach and scale. Overlaying this
is our single IT platform and information systems,
which together provide us with significant
commercial and operational advantages. In the
second half of this year we strengthened our
competitive positioning with the launch of an
enhanced mobile repair offering. We intend to
increase our mobile capacity over the next few 
years and as well as supporting our expansion
plans, the increased flexibility is designed to
deliver further operational efficiencies.
Managing Cash and Dividends
At 31 December 2010, the Group held net cash
of £7.5 million (31 December 2009: £8.3
million). In a period of increased expenditure
over and above our normal annual investment,
this result highlights our continuing emphasis on
credit control and cash management.
Expenditure to support expansion was ongoing
over the course of the year. We invested
approximately £1.2 million on refurbishments at
our repair centres (31 December 2009: £0.6
million) and approximately £3.1 million on capital
equipment and mobile repair units. Included
within this amount is £1.2 million of nonrecurring
items. As we grow, it is important to ensure that
our investment in our repair facilities and
equipment, as well as in the Group’s technology
and systems, is maintained at a standard which
means that we can deliver marketleading
performance levels. We are pleased to recommend
an increased final dividend of 3.5 pence per share
(2009: 3.3 pence per share) taking the total
dividend for the year to 5.3 pence (2009: 5.0
pence per share).
Progress
I am delighted that the improvement in gross
margins I reported in the first half of 2010
continued into the second half of the year,
assisted by an increase in smaller repairs with
higher labour content. Yearonyear, the Group’s
gross margin increased by over one percentage
point from 45.9% to 47.2%, which reflects our
efficient management of the repair process and
commitment to identifying potential cost savings.
I am also pleased to report that overall site
efficiency (i.e. productivity) improved by two 
One Nationwide, One Team. “...a good start to our
three year growth plan
and results for 2010
are very encouraging.”
Chief Executive’s Report
percentage points compared to the prior year,
with this improvement supported by the
adjustments we made to the labour cost base
in the year.
In the late summer of 2010 we launched our
rebranded and improved mobile repair
capability. Trading as ‘mobile repair’, and
‘motorglass’, our fleet of specialist mobile repair
vehicles can now undertake the repair of lightly
damaged vehicles, including glass, electronic
and airconditioning related repairs, ‘offsite’
without requiring the vehicle to be brought to
a bodyshop. The combined fleet now comprises
68 vehicles, up from 52 at 30 June 2010, and
should help our competitive positioning as we
target sales across all three of our key markets.
We were especially pleased to announce early
progress of this strategy in December 2010,
with the signing of a significant contract with
Hastings Insurance Services to provide mobile
glass repairs from February 2011. For the year
as a whole, the mobile division reported sales
of £4.8 million compared to £3.5 million in
the prior year, which represents a substantial
37% increase.
In May 2010 we acquired a modern, leasehold
site in NewcastleuponTyne to extend the
Group’s repair capacity in the North East region.
We already operate a site in Middlesbrough
and an RSAdedicated site in Gateshead, and
the addition of the bodyshop in Newcastle
came after we had identified the need for
further capacity. The new site is now fully
integrated, with Nationwide’s IT platform and
workflow processes in place, and it brings the
Group’s total number of bodyshops to 71. We
also operate two “fast Fit+” centres, which
offer MOTs and other bolton services such as
exhausts and tyres.
Insurance work
We made good progress in our core insurance
market, securing a number of new contracts
over the year. In the first half of the year, at the 
end of April 2010, we signed a major new
contract with Groupama, estimated to be worth
approximately £8 million in revenue per annum.
We now manage the deployment of all
Groupama’s vehicle repairs, with Groupama
having decided to consolidate its large supplier
network in order to improve both efficiencies
and service levels. Groupama is also using our
mobile repair services.
The UK motor insurance industry generates an
estimated c. 2.4 million repairs a year, worth
c. £3.71 billion per annum. We believe that
our market share is approximately 5%,
indicating the scale of the growth opportunity
available to us.
Fleet work
While total spend on vehicle repairs by the fleet
market is estimated at £1.5 billion per annum,
this includes £0.6 billion of insurancefunded
repairs. The remaining £0.9 billion is spent
directly by fleet operators and it is the
selffunded fleet market we are now targeting
more aggressively.
The selffunded fleet market is a natural
extension to our core insurance business and
while, historically, we have always worked for a
number of fleet operators, including the Royal
Mail, Environment Agency and G4S, our
presence in this market is currently very small.
Typically, speed and service are the key drivers
for fleet operators, reflecting their need to
ensure that vehicles are off the road for as short
a time as possible. The launch of our enhanced
mobile repair offering and continued
development of our management information IT
platform is specifically designed to assist in our
penetration of this market.
I am pleased to report a number of new
contract wins in 2010, including Kindertons and
Easidrive and we also increased our work with
existing customers. Sales for the year rose by
27% to £19.6 million against the same period
last year, including £2.2 million of sales
generated by motorglass and mobile repair.
Retail work
The majority of our repairs are for damaged
vehicles belonging to private individuals who
come to us indirectly via insurers. Over recent
years we have increased our direct retail sales,
undertaking additional repairs for private
individuals while their vehicles are being
repaired under an insurance claim. During the
twelve month period, we have continued to
focus on this area while also undertaking some
highly targeted marketing campaigns.Sitebased
retail sales increased by 21% to £6.1 million in
2010 from £5.0 million in the prior year.
We plan to further increase retail sales over
2011. The retail market is worth some £0.5
billion a year in the UK and so there is
significant potential to grow our sales in this
area over time.
Outlook
We have made a good start to our three year
growth plan and results for 2010 are very
encouraging. Looking forward to 2011 and
2012, we believe there is very good potential
for Nationwide to continue to strengthen its
presence in its core insurance market as well
as in the allied fleet and retail markets. We are
working hard to ensure that our offering
remains marketleading and delivers value,
quality, speed and service to customers. The
development of our mobile repair solution will
assist this as well as help to enhance
operational efficiencies.
The business is cash generative with a solid
balance sheet, which will continue to allow us
to pursue a progressive dividend policy and
supplement our organic growth with suitable
acquisition opportunities. I look forward to
another successful year in 2011.
Michael Wilmshurst
Chief Executive
29 March 2011
5 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Finance Director’s Review
6 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
David Loftus
Finance Director
    
 
172.3m
2010
2009
2008
Turnover
 
 
 
        
 
   6.4m
2010
2009
2008
Operating
Profit
  
 
 
 
 
                         
 
2010 2009 Change
£m £m %
Insurance 146.6 150.5 -3
Fleet 19.6 15.4 +27
Retail 6.1 5.0 +21
Total 172.3 170.9
2010 2009 Change
£m £m %
Fixed Site 155.2 152.8 +2
Mobile 4.8 3.5 +36
Sub-contract 12.3 14.6 -16
Total 172.3 170.9
Operating results
The Group’s turnover increased 1% from
£170.9m to £172.3m. However, in line with the
Group’s strategic objectives, the turnover of
Fleet customers, Retail customers and the
Mobile division all increased significantly. The
tables below analyse turnover by market sector
and by repair route.
It is also very pleasing that the gross margin rose
again to 47.2%, with efficiencies driving year on
year improvements in the majority of individual
margins. The 2009 Gross margin has been
restated. This is due to the reclassification of
certain costs from distribution costs to cost of
sales. Details are given in note 3 to the financial
statements. The Group again reviewed its cost
base accordingly to pre-empt any volume
shortfall, but also invested in its marketing
campaign to drive non insurance sales volumes.
Profit before tax after non-recurring items rose
by 19% to £6.0m from £5.1m and earnings per
share has increased by 24% to 10.4p.
Non-recurring items
During the year the group incurred a number 
of non-recurring items. Most significantly, it 
recognised a profit of £845,000 arising from 
the final insurance settlements from the two
fires in Norwich and Manchester which occurred
in 2009. All insurance proceeds have been
received and the detail of this is provided in note
5. Our continued drive on cost savings
regrettably resulted in further redundancies,
with associated costs of £337,000. Finally, an
accrual of £513,000 was required for the disposal
of a lease at our Croydon site.
Pension scheme
The Group operates a defined benefit and
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 2010 was
£14.1 million (2009: £20.3 million) or £10.2
million (2009: £14.6 million) net of deferred 
tax. The Group has agreed with the trustees to
eradicate the Scheme Specific Funding deficit by
making annual contributions of £2.6 million for
approximately the next 9 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. An actuarial valuation
of the defined benefit scheme was carried out
as at 31 December 2010 by a qualified
independent actuary. The next triennial full
valuation is due on 31 December 2011.
Cash flow
The net decrease in cash during the year was
£0.8 million (2009: an increase of £2.9 million)
which still produced a healthy net cash balance
at 31 December 2010 of £7.5 million. The
Company continues to invest in new plant and
equipment and in improvements to its sites;
£4.3 million (2009: £2.1 million). However, of this Finance Director’s Review
£4.3 million there was £1.2 million of ‘non-
recurring’ spend relating to re-equiping of the two
sites that were damaged by fire. In addition, the
Company continues to pay a deficit contribution
to its pension fund of £2.6 million (2009: £2.6
million) and a dividend of £2.2 million was paid in
2010 (2009: £2.2 million). Although cash positive,
the Group successfully negotiated a revolving
credit facility for £12m with HSBC Bank plc, based
on it’s proven track record of financial stability.This
facility is for 3 years to December 2013.
Trade receivables
The Group’s trade receivables of £21.8 million can
be analysed between the three principal trading
units, NCRC (the bodyshops), Network Services
(the accident management company) and Mobile
Division. NCRC’s trade receivables are principally
owed by insurance companies and debtor days as
at 31 December 2010 were 37 days (2009: 33
days). The introduction by a customer of a new
payments system in December 2010 was the
principle reason why debtor days have increased,
rather than any material change in credit terms.
The challenges of this new system have been
resolved in 2011. Network Services debtor days as
at 31 December 2010 were slightly improved at
30 days (2009: 31 days).
Tax
The Group’s effective tax rate is 25.7% which is
less than the Company’s effective rate of tax of
28%: This effective rate has been helped by
deferred tax now being provided at 27%. The
Group has no income tax losses available but has
capital losses of £3.6 million available.  
Earnings per share 
The basic earnings per share are 10.4p (2009: 8.4p)
an increase of 24%. As a result of share options
being granted on 4 July 2006 and the average 
market price of £0.90, the share options are not
included in the dilutive earnings per share calculation,
which remains at 10.4p. 
Dividends 
The Board is proposing a final dividend in respect
of the results for the year ended 31 December 2010
of 3.5p per share (2009: 3.3p per share) making
5.3p for the year as a whole (2009: 5.0p).Subject
to approval by shareholders at the Annual General
Meeting, this will be paid on 20 June 2011 to
shareholders on the Register at the close of business
on 13 May 2011. The annual dividend is covered
2.1 times by underlying earnings.
Key performance indicators
The Group reviews certain financial and non
financial key performance indicators on a regular
basis and year-on-year comparisons are included
within the Directors’ Report. Despite another year
of inflationary pressure, it is very pleasing to report
that the gross profit margin has increased to 47.2%
from 45.9% in 2009. Cycle time, which measures
the speed of vehicle throughput, is also a key
measure of performance and is measured across
the group on a weekly basis. The “key to key”
measure i.e. how long a car is on site for has
increased in the year from 12.7 days to 13.0 days,
but this was mainly due to severe weather
disruption at the end of the year.
Measurement of customer satisfaction is also a key
indicator and is measured monthly via a sample of
independent telephone surveys across all customers.
This fell slightly to 85.3% from 87% in 2009.
David Loftus
Finance Director
29 March 2011
“Retail sales
improved by 21%”
“Fleet sales
improved by 27%”
“Mobile sales
improved by 36%”
7 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Michael Marx
Non-executive Chairman 
(aged 63)
Michael was appointed non-executive
Chairman in June 2006.  He is currently
Chief Executive of Development Securities
plc, to whose Board he was appointed in
1994.  Michael is a Fellow of the Institute of
Chartered Accountants in England and
Wales and was a member of the UK Listing
Authority Advisory Committee from 2004 to
2007. He was formerly Finance Director and
Commercial Director of Heron International
PLC from 1981 to 1994.
Michael Wilmshurst
Chief Executive 
(aged 51)
Michael has extensive automotive sector
experience, with TWR, HR Owen, and
European Motor Holdings. At HR Owen, he
was head of the luxury division including
Rolls Royce, Jaguar, Ferrari and Land Rover.
He formally joined Nationwide in May 2002,
having been an active member of the team
that took the Company private prior to its
return to the market in 2006. 
David Loftus
Finance Director, FCA, MBA, BA (Hons) 
(aged 49)
David joined Nationwide in January 2003 
as Finance Director. After qualifying as a
Chartered Accountant with Spicer & Pegler
(now part of Deloitte, Bristol) 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.
8 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Board of Directors  Stephen Thompson
Executive Director 
(aged 38)
Stephen has extensive multi-site experience 
in the automotive sector. He was Operations
Director with Silver Shield windscreens and
was also a divisional director for KwikFit. 
Prior to that he was a Commercial Managing
Director for Phones4U Limited (part of the
Caudwell Communications Group). He joined
Nationwide in January 2005 and since then
he has been responsible for developing
Network Services (Nationwide) Limited and 
the Mobile division.
Christopher Mills
Non-executive Director 
(aged 58)
Christopher was appointed non-executive
Director in June 2009. Christopher is a
founding director of JO Hambro Capital
Management, Chief Investment Officer of
North Atlantic Value LLP and Chief Executive of
North Atlantic Smaller Companies Investment
Trust plc. Before joining JO Hambro Capital
Management Limited he worked for Samuel
Montagu Limited, Montagu Investment
Management Limited and its successor
company, Invesco MIM until 1993. He was 
a director of Invesco MIM and held positions 
as Head of North American Investments and
Head of North American Venture Capital.
Lady Judge CBE
Non-executive Director 
(aged 64)
Lady Judge is currently the Chairman of the
Pension Protection Fund. She was formerly
the Chairman of the UK Atomic Energy
Authority from 2002 until 2010, and is now
the Chairman Emeritus. In addition to being
a member of the UK Nuclear Development
Forum, Lady Judge is a member of the UAE
Advisory Board for the Development of
Peaceful Nuclear Energy. She is also a non-
executive director of Statoil ASA (Norway),
NV Bekaert SA (Belgium) and Magna
International Inc (Canada).
9 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Board of Directors Company No.
966807 incorporated in England and Wales
Directors
Michael Marx
Chairman
Michael Wilmshurst
Chief Executive 
David Loftus 
Finance Director
Stephen Thompson
Executive Director
Lady Barbara Thomas Judge 
Non-executive Director
Christopher Mills 
Non-executive Director
Secretary
Martin Hickman-Ashby
Auditor
Grant Thornton UK LLP
Grant Thornton House
202 Silbury Boulevard
Central Milton Keynes MK9 1LW
Bankers
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
HSBC Bank plc
29 King Street
Leeds LS1 2HL
Solicitors
K&L Gates
New Change
London EC4M 9AF
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 
Registered Office
17A Thorney Leys Park
Witney
Oxfordshire OX28 4GE
Website Address
www.narsplc.com
10 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Directors & Advisers  The Directors present their report and accounts for the year ended 31 December 2010.
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 2010 was to improve margins within the core business, and to develop its insurance work, fleet work and retail work. In addition,
the Directors sought to develop the Group’s mobile business. 2010 presented another challenging economic climate, so the Directors are pleased
with the results for the year. This strategy will be maintained in 2011. 
Principal risks and uncertainties
The Directors regularly review principal risks and uncertainties that affect the Group. These include avoiding the reliance on key customers by
diversifying contracts and extending the duration of contracts. As detailed in note 4 to the financial statements, the contribution from key customers
is reviewed each month and remains consistent year on year. The Group has implemented, where appropriate, the industry’s British Standards
Institution Kitemark Standard (PAS 125). This demonstrates our commitment to ensuring quality repairs. Adherence to this standard is rigorously
checked by an internal audit team, in addition to unannounced visits from the British Standards Institution.
The Group’s business continuity has been addressed by adopting a comprehensive disaster recovery program, which has been approved by the
Directors. In the event of a systems failure, work can be re-directed to an alternative bodyshop. The practicalities of this were successfully tested
when the Group suffered the two fires in 2009.
The details of the Group’s financial risk management objectives and policies are detailed in note 27 to the financial statements.
Results and dividends
The Group’s sales revenue amounted to £172,251,000 (2009: £170,890,000) and the profit before taxation amounted to £6,034,000 (2009:
£5,057,000). Taxation was a charge of £1,550,000 (2009: charge of £1,440,000) and the net profit for the year was £4,484,000 (2009: £3,617,000).
The Directors are proposing a final dividend in respect of the results for the year ended 31 December 2010 of 3.5p per share. 
Subject to approval by shareholders at the Annual General Meeting, this will be paid on 20 June 2011 to shareholders on the Register at the close of
business on 13 May 2011.
During 2010 the Group paid dividends of £2,203,000 (2009: £2,160,000) to its equity shareholders. These comprised a final dividend in respect of 2009
of 3.3p per share paid in June 2010 (£1,425,000) and an interim dividend in respect of 2010 of 1.8p per share paid in November 2010 (£778,000).
Non-current assets
The movement of non current assets is set out in notes 11, 12 and 13 to the accounts.
Directors and their interests
The Directors who served during the year and their interests in the shares of the Group are shown in the Remuneration Report on page 14. The Group has
taken out Directors and Officers liability insurance.
Corporate governance
The Board is committed to the highest principles of corporate governance. As a Group quoted on AIM, the Group is not required to comply with the
requirements of the Combined Code.
The Board consists of three executive and three independent non-executive Directors, who take an active role in Board matters, and it meets eight times
in every year. The Board is responsible for maintaining a sound system of internal control to safeguard shareholders’ investment and Group assets.
The Board has appointed an Audit Committee, consisting of the Chairman and C H B Mills, a Remuneration Committee consisting of the Chairman
and C H B Mills and a Nominations Committee consisting of the Chairman and Lady Judge.
The Audit Committee meets regularly with the external auditor and with the executive Directors to review the interim and final results, key areas of
accounting treatment and risk and control procedures. The Committee can meet with the external auditor without any of the executive Directors
being present.
The Remuneration Committee met in February 2011 and the Nominations Committee met in March 2009.
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.
11 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Directors’ Report 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 team briefings are held at local, divisional and Group level, in addition to frequent communications which ensure that all
employees are kept informed of the Group’s objectives. Progress towards those objectives is measured and reported back to individual sites.
Supplier payment policy
The Group requires its subsidiaries to negotiate clear and satisfactory arrangements for the payment of suppliers, as part of the overall terms and
conditions of the supply and to make payment accordingly. Group trade creditor days at the end of the year were 56 (2009: 54). The Company trade
creditor days at the end of the year were 30 (2009: 31).  
Share capital
Full details of the authorised and issued share capital of the Group are set out in note 21 to the accounts.
Summary of key performance indicators
The Directors have monitored the progress of the overall Group/Company strategy and the individual strategic elements by reference to certain
financial and non-financial key performance indicators.
Key performance indicator 2010 2009 Method of calculation
Turnover £172.3m £170.9m External turnover excluding value added tax 
Gross profit margin (%) 47.2% 45.9% Gross profit margin is the ratio of gross profit to sales 
revenue expressed as a percentage
Cycle time (key to key) 13.0 days 12.7 days Cycle time measures the days from receipt of the vehicle on
site to return to the customer
CSI 85.3% 87.0% A measure of customer satisfaction derived from the results
of independent telephone surveys
Turnover and gross margin are reviewed by individual bodyshop on a monthly basis, in order that the operational team can address work flows or
operating practices respectively. Cycle times are indicative of vehicle throughput and targets have been set, which are reviewed against weekly data.
The slight deterioration in cycle time is an area of key focus both by the Group and our customers and has, in part, been influenced by extreme
weather conditions in December 2010. CSI targets are also specified and monitored in conjunction with the service level agreements specified by
insurance companies.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as auditor.
On behalf of the Board:
Michael Wilmshurst
Chief Executive
29 March 2011
12 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Directors’ Report  The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
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 (IFRSs). The financial
statements are required by law to give a true and fair view of the state of affairs of the Group and Parent 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 applicable IFRSs 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 adequate 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 2006. 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
29 March 2011
13 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Statement of Directors’ Responsibilities 14 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Remuneration Report
Remuneration Committee
The Remuneration Committee is chaired by M H Marx and includes C H B Mills. The Committee, which met in February 2011, 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 (audited)
The aggregate emoluments of the Directors of the Company who served during the year and of Key Management were:
2010
Employers Total (excl Pension
Salary National Annual Pension contribution 2010 2009
and fees Benefits Insurance bonus contributions) DC Scheme Total Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
M A Wilmshurst 334 —1 — 335 — 335 335
D J Loftus 147 14 18 73 252 18 270 199
S D G Thompson 130 12 15 31 188 13 201 179
Non-executive Directors
M H Marx 35 —— — 35 — 35 33
Lady Judge 30 —— — 30 — 30 25
J J Brade (resigned 4/6/09) —— —— — — — 8
C H B Mills 30 —2 — 32 — 32 17
Total Directors’ emoluments 706 26 36 104 872 31 903 796
Other Key Management’s emoluments 259 35 36 39 369 13 382 471
Total 965 61 72 143 1,241 44 1,285 1,267
Fees of £323,400 are paid to Troy Customer Research Limited via a consultancy agreement and are incorporated in the amount shown in respect of
M A Wilmshurst in the above table. M A Wilmshurst is a Director of Troy Customer Research Limited (see note 25). The above disclosure on 
Directors’ emoluments forms part of the financial statements as stated in note 7.
Key Management are those managers involved in the senior operations meeting, which is held monthly and discusses both financial and 
operational issues.
£98,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2010 (2009: £169,000),
relating to share based payments.
Share options
Share options were granted to M A Wilmshurst, D J Loftus and S D G Thompson on 4 July 2006. Details are given in note 21.
None of the Directors (2009 : nil) exercised any share options during the year.
Directors’ interests
The interests of the Directors in the share capital of the Company were:
Ordinary shares
31 December 1 January
2010 2010
Executive Directors
M A Wilmshurst 1,351,351 1,351,351
D J Loftus 54,054 54,054
S D G Thompson — —
Non-executive Directors
M H Marx 30,000 30,000
Lady Judge 65,348 55,348
C H B Mills* — —
*C H B Mills is a partner within North Atlantic Value LLP , who have a 31.88% interest in the share capital of the company. This represents a 
shareholding of 13,773,214 ordinary shares (2009: 13,773,214 shares). We have audited the financial statements of Nationwide Accident Repair Services plc for the year ended 31 December 2010 which comprise the
consolidated statement of comprehensive income, the consolidated and parent company statements of financial position, the consolidated and parent
company statements of changes in equity, the consolidated and parent company cash flow statements and the related notes. The financial reporting
framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006. 
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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
As explained more fully in the Directors’ Responsibilities Statement set out on page 13, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements
In our opinion:
•
the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2010 and 
of the group's profit for the year then ended;  
• the group financial statements have been properly prepared in accordance with IFRS as adopted by the European Union; and
•
the parent company financial statements have been properly prepared in accordance with IFRS as adopted by the European Union and as applied 
in accordance with the provisions of the Companies Act 2006; 
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with
the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
•
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches
not visited by us; or
•
the parent company financial statements are not in agreement with the accounting records and returns; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
John Corbishley
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Milton Keynes
29 March 2011
15 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Report of the Independent Auditor
to the members of Nationwide Accident Repair Services plc 2010 2009
Restated
Group Notes £’000 £’000
Revenue 4 172,251 170,890
Cost of sales (90,901) (92,384)
Gross profit 81,350 78,506
Distribution costs (46,492) (44,944)
Administrative expenses (28,335) (27,544)
Share option charge (98) (169)
Operating profit before non-recurring items 6,425 5,849
Non-recurring items - administrative costs 5 (5) (307)
Operating profit 6 6,420 5,542
Finance income 8 5 5 
Finance costs 8 (391) (490)
Profit before tax 6,034 5,057
Income tax expense 9 (1,550) (1,440)
Profit for the period 4,484 3,617
Other comprehensive income — —
Total comprehensive income for the period 4,484 3,617
Attributable to:
Equity holders of the parent 4,484 3,617
Earnings per share 
Basic 10 10.4p 8.4p
Diluted 10 10.4p 8.4p
The accompanying notes form an integral part of these financial statements. 
16
Consolidated Statement of Comprehensive Income 
for the year ended 31 December 2010
Nationwide Accident Repair Services plc Annual Report and Accounts 2010 2010 2009
Group Notes £’000 £’000
Assets
Non-current assets
Goodwill 11 7,768 7,768
Property, plant and equipment 13 12,066 9,962
Pension and other employee assets 15 9,589 8,649
29,423 26,379
Current assets
Inventories 16 3,148 2,317
Trade and other receivables 17 27,322 23,460
Cash and cash equivalents 19 7,459 8,269
37,929 34,046
Total assets 67,352 60,425
Liabilities
Non current liabilities
Long-term Provisions 22 40 86
Deferred tax liabilities 18 2,621 2,112
2,661 2,198
Current liabilities
Short-term provisions 22 31 31
Trade and other payables 23 33,800 29,568
Current tax liabilities 24 164 311
33,995 29,910
Total liabilities 36,656 32,108
Net assets 30,696 28,317
Equity
Equity attributable to the shareholders of the parent
Share capital 21 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Revaluation reserve 8 8
Retained earnings 12,975 10,596
Total equity 30,696 28,317
The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2011. 
They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.
Company Number 966807
Consolidated Statement of Financial Position
as at 31 December 2010
17 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Company Statement of Financial Position 
as at 31 December 2010
2010 2009
Company Notes £’000 £’000
Assets
Non-current assets
Investments in subsidiary undertakings 12 37,496 37,496
Property, plant and equipment 13 174 193
Pension and other employee assets 15 9,589 8,649
47,259 46,338
Current assets
Trade and other receivables 17 2,836 2,764
Cash and cash equivalents 19 10,706 11,651
13,542 14,415
Total assets 60,801 60,753
Liabilities
Non-current liabilities
Deferred tax liabilities 18 2,330 2,458
Current liabilities
Trade and other payables 23 27,872 31,824
Current tax liabilities 24 353 —
28,225 31,824
Total liabilities 30,555 34,282
Net Assets 30,246 26,471
Equity
Share capital 21 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Retained earnings 12,533 8,758
Total equity 30,246 26,471
The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2011. 
They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.
Company Number 966807
18 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Consolidated Statement of Changes in Equity
for the year ended 31 December 2010
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2009 5,400 1,209 11,104 8 8,970 26,691
Share option charge — — — — 169 169
Dividend paid (see note 10) — — — — (2,160) (2,160)
Transactions with owners — — — — (1,991) (1,991)
Profit for the year — — — — 3,617 3,617
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 3,617 3,617
Balance at 31 December 2009 5,400 1,209 11,104 8 10,596 28,317
Share option charge — — — — 98 98
Dividend paid (see note 10) — — — — (2,203) (2,203)
Transactions with owners —— — — (2,105) (2,105)
Profit for the year — — — — 4,484 4,484
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 4,484 4,484
Balance at 31 December 2010 5,400 1,209 11,104 8 12,975 30,696
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2009 5,400 1,209 11,104 — 8,493 26,206
Share option charge — — — — 169 169
Dividend paid (see note 10) — — — — (2,160) (2,160)
Transactions with owners — — — — (1,991) (1,991)
Profit for the year — — — — 2,256 2,256
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 2,256 2,256
Balance at 31 December 2009 5,400 1,209 11,104 — 8,758 26,471
Share option charge — — — — 98 98
Dividend paid (see note 10) — — — — (2,203) (2,203)
Transactions with owners —— — — (2,105) (2,105)
Profit for the year — — — — 4,116 4,116
Dividend received from subsidary (see note 10) — — — — 1,764 1,764
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 5,880 5,880
Balance at 31 December 2010 5,400 1,209 11,104 — 12,533 30,246
The accompanying notes form an integral part of these financial statements. 
19 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 2010 2009
Group £’000 £’000
Operating Activities
Profit for the year 4,484 3,617
Adjustments to arrive at operating cash flow:
Net finance income (5) (5)
Depreciation 2,144 1,828
Profit on sale of property, plant and equipment (incl. non recurring items) (820) (211)
Taxation recognised in profit or loss 1,550 1,440
Changes in inventories (831) 361
Changes in trade and other receivables (3,862) 6,040
Changes in trade and other payables 4,230 (4,176)
Changes in provisions 37 60
Movement in pension fund asset 1,661 1,553
Share option scheme charge 98 169
Outflow from pension obligations (2,600) (2,582)
Outflow from provisions (83) (33)
Net cash flow from operating activities 6,003 8,061
Tax paid (1,187) (1,263)
4,816 6,798
Investing activities
Additions to property, plant and equipment (4,325) (2,088)
Proceeds from the disposal of property, plant and equipment 897 319
Interest received 5 5
(3,423) (1,764)
Financing activities
Dividend paid (2,203) (2,160)
(2,203) (2,160)
Net (decrease)/increase in cash and cash equivalents (810) 2,874
Cash and cash equivalents at beginning of year 8,269 5,395
Cash and cash equivalents at end of year 7,459 8,269
The accompanying notes form an integral part of these financial statements.
Consolidated Cash Flow Statement 
for the year ended 31 December 2010
20 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Company Cash Flow Statement 
for the year ended 31 December 2010
2010 2009
Company £’000 £’000
Operating Activities
Profit for the year 4,116 2,256
Adjustments to arrive at opening cash flow:
Net finance (income)/costs (37) 81
Depreciation 97 141
Profit on sale of property and equipment 1 2
Taxation recognised on profit or loss 1,101 943
Changes in trade and other receivables (178) (1,856)
Changes in trade and other payables (3,953) 3,533
Movement in pension fund asset 1,661 1,553
Share option scheme charge 98 169
Outflow from pension obligations (2,600) (2,582)
Net cash flow from operating activities 306 4,240
Tax paid (770) (548)
(464) 3,692
Investing activities
Additions to property, plant and equipment (133) —
Proceeds from the disposal of property, plant and equipment 54 —
Dividend received from subsidiary 1,764 —
Interest received/(paid) 37 (81)
1,722 (81)
Financing activities
Dividend paid (2,203) (2,160)
(2,203) (2,160)
Net increase in cash and cash equivalents (945) 1,451
Cash and cash equivalents at beginning of year 11,651 10,200 
Cash and cash equivalents at end of year 10,706 11,651
The accompanying notes form an integral part of these financial statements.
21 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 1. Nature of operations
Nationwide Accident Repair Services plc and its subsidiaries’ (the Group) principal activity is the provision of automotive support services. Currently, this
includes the repair of motor vehicles in the Group’s wholly owned sites, the provision of accident claim management services and the provision of mobile
repair and glass replacement services.
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
It should be noted that accounting estimates and assumptions are used in preparing the financial statements including the carrying amount of
goodwill (note 11) and provisions (note 22). Although these estimates are based on management’s best knowledge of current events and actions,
actual results may ultimately differ from those estimates. The following significant judgements have been made in the financial statements: 
Tangible assets : Provisional fair values are placed on all property, plant and equipment at the date of acquisition, as certain asset values are required
to be estimated. No intangible asset arises on acquisition.
Onerous leases : Consideration has been given to the liabilities over the remaining life of leases in respect of empty properties and the probability of
sub-letting these properties.
Bad Debts : Consideration is given to those amounts which are overdue by more than 120 days and for which no cash has been received after the
year end. Impairment of those amounts is made where considered necessary.
Pension Assumptions : The present value of the defined benefit obligation (DBO) at the consolidated statement of financial position date and the
amounts recognised in the statement of comprehensive income are determined by an independent actuary based on assumptions detailed in note 15
to the financial statements.
The following Standards and Interpretations have been issued, but are not yet effective and have not been early adopted by the group: 
- IFRS 9 Financial Instruments (effective 1 January 2013) 
- IAS 24 (Revised 2009) Related Party Disclosures (effective 1 January 2011) 
- Amendment to IAS 32 Classification of Rights Issues (effective 1 February 2010) 
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective 1 July 2010) 
- Prepayments of a Minimum Funding Requirement - Amendments to IFRIC 14 (effective 1 January 2011) 
- Improvements to IFRS issued May 2010 (some changes effective 1 July 2010, others effective 1 January 2011) 
- Disclosures - Transfers of Financial Assets - Amendments to IFRS 7 (effective 1 July 2011) 
- Deferred Tax: Recovery of Underlying Assets - Amendments to IAS 12 Income Taxes (effective 1 January 2012)
The Standards and Interpretations are not expected to have any significant impact on the group’s financial statements in their periods of initial application.
As permitted by section 408 of the Companies Act 2006, an income statement is not presented for Nationwide Accident Repair Services plc. Profit
for the year for Nationwide Accident Repair Services plc (the Company) was £4,115,538 (2009: £2,255,984).
Going Concern
The company’s business activities, together with the factors likely to affect its future development performance and position, are set out in the
Business Review on pages 2 to 5. The financial position of the company, its cash flows, liquidity position and borrowing facilities are described in the
Finance Director’s Review on pages 6 to 7. In addition, note 27 to the financial statements includes the company’s objectives, policies and processes
for managing its capital, its financial risk management objectives, details of its financial instruments and its exposures to credit risk and liquidity risk.
Based on their review of the above, and consideration of the long term contracts with some of the main insurance companies and key suppliers, the
directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The
directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Thus they continue to adopt the going concern basis of accounting in preparing the annual 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 statement of financial position at their fair values, which are also used as the bases for subsequent measurement in accordance with
Group accounting policies. Goodwill represents the excess of the consideration transferred to vendors over the fair value of the Group’s share of
identifiable net assets of the acquired subsidiary at the date of acquisition. Unrealised gains on transactions between the Group and its subsidiaries
are eliminated and unrealised losses are eliminated, unless the transaction provides evidence of an impairment of the asset transferred. Amounts
reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted
by the Group.
The results of subsidiary undertakings acquired or disposed of during the year are included in the consolidated statement of comprehensive income
for their respective periods of ownership. Inter-Company trading is eliminated from these accounts where appropriate.
Notes to the Accounts
for the year ended 31 December 2010
22 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 3. Summary of accounting policies continued
Disclosure of expenses
The Group recategorised certain items of expense from distribution costs and administration expenses to cost of sales. The 2009 consolidated
statement of comprehensive income has been restated accordingly, to increase cost of sales and reduce distribution costs by £1,703k.
Income and expense recognition
Revenue for Nationwide Crash Repair Centres Ltd is recognised upon the completion of the service once authority has been given by the customer to
undertake this work. Network Services (Nationwide) Limited recognises referral fee income based upon the number of jobs invoiced in a particular
accounting period.  Intra-Group sales and value added tax are excluded from the consolidated financial statements. Operating expenses (with the
exception of the IAS 19 pension adjustment) are recognised in the consolidated statement of comprehensive income upon utilisation of the service.
Interest income and expenditure are reported on an accruals basis.
Fire Claims
Gains arising from the receipt of insurance proceeds in excess of asset net book values are based upon final settlements received from the Loss Adjusters.
Goodwill
Goodwill is tested annually for impairment and carried at cost of acquisition over the fair value of the Group’s share of identifiable net assets
acquired less accumulated impairment losses.
Property, plant and equipment
All property, plant and equipment is recognised at cost.
Buildings, fittings and furniture are carried at acquisition cost less subsequent depreciation and impairment losses.
The cost of property, plant and equipment is depreciated on a straight line basis taking into account estimated residual values. Both estimated
residual values and useful economic life are reviewed annually.
The useful lives of property, plant and equipment can be summarised as follows:
Buildings – 5 to 25 years
Plant and equipment – 3 to 10 years
IT equipment – 2 to 5 years
Land is not depreciated as it has an unlimited useful economic life.
On adopting IFRS, the Group and Company have taken advantage of the transitional rule that allows previously revalued fixed assets to be deemed to be
at cost.
Leases
Payments on operating leases are recognised as an expense on a straight line basis over the lease term. 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 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 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 statement of financial position date inventories are carried at the lower of cost and net
realisable value. Inventories are valued using the weighted average cost method. Net realisable value is the estimated selling price in the ordinary
course of business less any applicable selling expenses.
Notes to the Accounts continued
for the year ended 31 December 2010
23 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 3. Summary of accounting policies continued
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 statement of financial position 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 statement of comprehensive income.
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 statement of financial position date. Deferred tax on
the annual share option is recognised as a deferred tax asset on the statement of financial position.
Most changes in deferred tax assets or liabilities are recognised as a component of tax expense in the statement of comprehensive income. 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 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.
Financial assets
Trade receivables and cash and cash equivalents are loans and receivables and initial recognition is at fair value, with subsequent measurement being
amortised cost using the effective interest rate method, as reduced by appropriate allowances for estimated irrecoverable amounts.
Equity
Share capital is determined using the nominal value of shares that have been issued.
Share premium includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are
deducted from share premium, net of any related income tax benefits.
The revaluation reserve comprises gains and losses due to the past revaluation of property, plant and equipment.
Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income.
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
statement of comprehensive income 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 tranche 2
options have market conditions taken into account in the calculation of the fair value at grant date and do not impact the number of awards expected
to vest. The model assumptions used are included within note 21. No adjustments are made if the conditions are not met.
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 obligation to pay further contributions after payment of the fixed contribution.
The asset/liability recognised in the statement of financial position for defined benefit pension plans is the present value of the defined benefit
obligation (DBO) at the statement of financial position 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
statement of comprehensive income, 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.
Notes to the Accounts continued
for the year ended 31 December 2010
24 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
3. Summary of accounting policies continued
Financial liabilities
The Group’s financial liabilities include bank loans and overdrafts, trade and other payables. They are included in the statement of financial position
line item ‘trade and other payables’. 
Trade payables are recognised initially at their fair value and subsequently measured at amortised cost, through the statement of comprehensive
income, less settlement payments.
Dividend distributions to shareholders are included in ‘other short term financial liabilities’ when the dividends are approved by the shareholders’
meeting.
Investment in subsidiaries
Investments are valued at cost less any impairment and after deducting any dividends paid out of pre-acquisition profits.
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
statement of financial position 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.
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 statement of financial position, 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.
4. Segment Analysis
The Group operates three main business segments, Nationwide Crash Repair Centres (NCRC), Network Services and Mobile Division (which
incorporates Motorglass and Mobile Repairs). The segments are identified by their distinct functions within the Group, being site based vehicle
repairs, accident administration and mobile vehicle repairs respectively. NCRC is the core business and comprises a dedicated network of repair
centres across England, Scotland and Wales. Network Services provides accident administration services to insurance companies and fleet operators,
in the main deploying work to Nationwide Crash Repair Centres Limited, while the Mobile Division provides mobile repairs, glass, air conditioning
and auto-electronic services to the automotive industry.  The income and costs of the holding company are shown within NCRC, which acts as the
support function for the Nationwide Crash Repair Centres bodyshops
The revenues and net result generated by the three business segments are summarised as follows:
Network  Mobile 
NCRC Services Division Total
Year to 31 December 2010 £’000 £’000 £’000 £’000
Revenue from external customers 155,217 13,519 3,515 172,251
Inter-segment revenues — 16,563 1,286 17,849
Total revenues 155,217 30,082 4,801 190,100
Profit /(Loss) before tax 6,693 311 (970) 6,034
Total Assets 59,815 5,776 1,761 67,352
Network  Mobile 
NCRC Services Division Total
Year to 31 December 2009 £’000 £’000 £’000 £’000
Revenue from external customers 152,809 15,855 2,226 170,890
Inter-segment revenues — 20,095 1,299 21,394
Total revenues 152,809 35,950 3,525 192,284
Profit before tax 4,950 52 55 5,057
Total Assets 52,992 6,223 1,210 60,425
25 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 4. Segment analysis continued
Major Customers
During the year there were three customers (2009-three) who each accounted for more than 10% of the group’s revenues as follows.
2010 2009
Sales £’000 % of total Sales £’000 % of total
Customer 1 41,214 23.9% 34,224 20.0%
Customer 2 23,224 13.5% 28,602 16.7%
Customer 3 20,529 11.9% 21,118 12.4%
84,967 49.3% 83,944 49.1%
The Directors review a similar analysis of revenue by customer at each Board meeting. As the Group operates in a single geographical market, the
United Kingdom, no information about geographical areas has been provided.
5. Non Recurring Items - administrative costs
2010 2009
£’000 £’000
Profit on assets destroyed in fire 845 200
Redundancy costs (337) (492)
Site closure costs (513) (186)
Amounts recovered against 2008 bad debt — 171
(5) (307)
In 2009, the company suffered two fires at its sites in Manchester (August 2009) and Norwich (September 2009). The Group’s insurers accepted
liability. Both claims have now been fully settled, covering both the loss of assets and business interruption (lost profits). 
The Norwich site reopened in May 2010 and a profit on disposal of assets of £167k has been recognised in 2010 (12 months to December 2009
£200k). The combined profit of £367k has arisen as the insurance proceeds of £470k less costs of £56k are in settlement of fixed assets with a net
book value of £47k. 
The Manchester site was fully operational in July 2010 and a profit on disposal of assets of £678k has been recognised in 2010, which comprises
insurance proceeds of £749k less costs of £56k in settlement of fixed assets with a net book value of £15k. No profit was recognised in 2009.
The site closure costs relate to a provision for the disposal of the Croydon property lease and the 2009 charge related to the closure of the
Kidderminster site.
6. Operating profit
Operating profit is stated after charging/(crediting):
2010 2009
£’000 £’000
Depreciation 2,144 1,828
Operating lease rentals:
Land and buildings 6,463 7,098
Courtesy cars 5,580 5,513
Plant and machinery 197 186
Auditor’s remuneration:
Audit services 5 5
Non Audit services:   
Audit of subsidiary companies pursuant to legislation 95 90
Other services relating to tax and IFRS assistance 9 9
Loss on disposal of property, plant and equipment 25 11
Profit on disposal of property, plant and equipment (non-recurring) (845) (200)
Bad debt expense 178 123
Notes to the Accounts continued
for the year ended 31 December 2010
26 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
7. Employee remuneration
The aggregate payroll costs of the Group’s employees are analysed as follows:
2010 2009
£’000 £’000
Wages and salaries 48,429 49,237
Social security costs 4,753 4,871
Other pension costs (contributions paid) 2,864 2,867
56,046 56,975
The amount of pension contributions paid to defined contribution scheme 264 285
The average number of employees during the year was made up as follows:
Number Number
Motor accident repair operations 2,095 2,176
Accident claim management operations 99 113
Central and other 28 29
2,222 2,318
The remuneration of the Directors and Key Management is disclosed in the Remuneration Report of the Directors’ and Key Management’s
emoluments on page 14.
8. Finance income and finance costs
2010 2009
£’000 £’000
Finance income
Interest receivable on bank balances 5 5
5 5
Finance costs
Pension costs (see note 15):
Interest on obligation 4,331 3,842
Expected return on assets (3,940) (3,352)
391 490
9. Tax expense
2010 2009
£’000 £’000
Current tax:
United Kingdom corporation tax at 28% (2009: 28.5%) 1,140 1,007
United Kingdom corporation tax at 21% (2009: 28%) (12) —
Adjustments in respect of prior years (87) (1)
1,041 1,006
Deferred tax:
Movement relating to pension asset (IAS 19) 167 288
Temporary differences origination and reversal 362 193
On share options (20) (47)
1,550 1,440
27 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 9. Tax expense continued
The tax assessed for the period is lower (2009: lower) than the effective rate of corporation tax in the UK of 28% (2009: 28%). The differences are
explained as follows:
2010 2009
£’000 £’000
Profit for the year before tax 6,034 5,057
Profit on ordinary activities before tax multiplied by effective rate of UK corporation tax of 28% (2009: 28%) 1,689 1,416
Effect of: Adjustments in respect of prior years (87) —
Deferred tax provided at 27% (97) —
Marginal rate adjustment (4) —
Capital item covered by capital losses brought forward — (75)
Items not deductible for tax purposes 26 22
Depreciation in excess of capital allowances 23 77
Total tax charge for the year 1,550 1,440
10. Earnings per share and dividends
Basic earnings per share
Basic earnings per share has been calculated using the net results attributable to the shareholders of the Company of £4,484,000 (2009: £3,617,000).
The weighted average number of outstanding shares used for basic earnings per share amounted to 43,197,220 (2009: 43,197,220).
Diluted earnings per share
Diluted earnings per share has been calculated using the net results attributable to the shareholders of the Company of £4,484,000  (2009: £3,617,000).
The weighted average number of outstanding shares used for diluted earnings per share amounted to 43,197,220 (2009: 43,197,220) and assumes that
none of the share options detailed in note 21 would be exercised given the average market price of £0.90
In the current year due to the average market price of £0.90, the share options are not included in the dilutive earnings per share calculation. In 2009,
the average market price was £0.90 and similarly, due to the share options being anti-dilutive, the diluted earnings per share is the same as the basic
earnings per share.   
Underlying earnings per share
The underlying earnings per share has been calculated as follows:   
2010 2009
£’000 £’000
Profit before tax (as stated) 6,034 5,057
Non recurring items (note 5) 5 307
6,039 5,364
Tax expense (as stated) (1,550) (1,440)
Tax effect on non recurring items (1) (86)
4,488 3,838
Adjusted earnings per share 10.4p 8.9p
Dividends
Group
During 2010, the Group paid dividends of £2,203,000 (2009: £2,160,000) to its equity shareholders. 
These comprised:
– a final dividend in respect of 2009 of 3.3p per share paid in June 2010 (£1,425,000); and
– an interim dividend in respect of 2010 of 1.8p per share paid in November 2010 (£778,000).
The Board is proposing a final dividend in respect of the results for the year ended 31 December 2010 of 3.5p per share.
Company
During 2010 the Company received a dividend of £1,764,000 (2009: £nil) from Nationwide Crash Repair Centres (Staff) Limited.
Notes to the Accounts continued
for the year ended 31 December 2010
28 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
11. Goodwill
Group
2010 2009
£’000 £’000
Cost or valuation:
1 January 7,828 7,812
Reassessment of previous goodwill — 16
31 December 7,828 7,828
Accumulated Impairment
1 January and 31 December 60 60
Net book value at 31 December 7,768 7,768
Net book value comprises:
Business of Gemini Accident Repair Centres acquired in July 2005 4,648 4,648
Business of Aquilo Motor Services acquired in December 2006 1,481 1,481
Businesses acquired in 2007 888 888
Businesses acquired in 2008 751 751
7,768 7,768
No goodwill arose on the business acquired in 2010, the Newcastle Central bodyshop. In 2009, an adjustment of £16,000 was made to increase the
goodwill of the Perth acquisition by £11,000 and the Redruth acquisition by £5,000. This related to further costs of acquisition which were known
but not quantifiable at that date.
All the above acquisitions are acquisitions on behalf of Nationwide Crash Repair Centres Limited, with the exception of Aquilo Motor Services which
was on behalf of Network Services (Nationwide) Limited.
Business of Gemini Accident Repair Centres
The carrying amount of goodwill is allocated to the cash-generating units acquired. The impairment assessment for these cash-generating units was
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 10%. 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 that would lead to the carrying value
exceeding the recoverable amount. 
Business of Aquilo Motor Services
The carrying amount of goodwill is allocated to the cash-generating units acquired. The impairment assessment for these cash-generating-units was
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 10%. 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 that would lead to the carrying value exceeding
the recoverable amount.
Businesses acquired in 2008
During 2008 five businesses were acquired. Scunthorpe and Gravesend (February 2008), Redruth (April 2008), Kettering (October 2008) and Perth
(November 2008). The impairment assessment for these cash-generating-units was 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 10%. 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.  
Businesses acquired in 2007
During 2007 the trade and assets of four bodyshop businesses were acquired in Llandudno (January 2007), Lincoln (March 2007), Matlock (October
2007) and Hull (November 2007). The impairment assessment for these cash-generating-units was 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 10%. 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. 
29 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 12. Investments in subsidiary undertakings
Company
2010 2009
£’000 £’000
Cost or valuation:
1 January 37,506 37,506
31 December 37,506 37,506
Accumulated provisions:
1 January 10 10
31 December 10 10
Net book value at 31 December 37,496 37,496
The significant investments comprise the following entities which are consolidated within the Group financial statements:
Subsidiary Country of residence Proportion of shares held
Nationwide Crash Repair Centres Limited England and Wales 100%
Nationwide Crash Repair Centres (Staff) Limited England and Wales 100%
Network Services (Nationwide) Limited England and Wales 100%
Mobile Vehicle Repairs Limited England and Wales 100%
Nationwide Fast Fit Plus Limited England and Wales 100%
All shareholdings are classified as direct.
13. Property, plant and equipment
Asset Plant
in the course equipment and
Land Buildings of construction computers Total
Group £’000 £’000 £’000 £’000 £’000
Cost:
1 January 2010 248 6,137 604 22,673 29,662
Additions 395 801 — 3,129 4,325
Reclassification of asset —— (604) 604 —
Disposals —  (15) —  (597) (612)
31 December 2010 643 6,923 — 25,809 33,375
Accumulated depreciation:
1 January 2010 — 2,188 — 17,512 19,700
Disposals — — — (535) (535)
Charge for the year — 417 — 1,727 2,144
31 December 2010 — 2,605 — 18,704 21,309
Net book value at 31 December 2010 643 4,318 — 7,105 12,066
Cost:
1 January 2009 248 5,725 — 22,570 28,543
Additions — 646 604 838 2,088
Disposals — (234) — (735) (969)
31 December 2009 248 6,137 604 22,673 29,662
Accumulated depreciation:
1 January 2009 — 2,009 — 16,723 18,732
Disposals — (181) — (679) (860)
Charge for the year — 360 — 1,468 1,828
31 December 2009 — 2,188 — 17.512 19,700
Net book value at 31 December 2009 248 3,949 604 5,161 9,962
The net book value of land and buildings comprises: Short
Leasehold
Total Freehold improvements
£’000 £’000 £’000
Group as at 31 December 2010 4,961 879 4,082
Group as at 31 December 2009 4,197 248 3,949
The assets in the course of construction relate to £604,127 to acquire the “FNOL” system for Network Services (Nationwide) Limited. This project has
now been completed and is included within Plant, Equipment and Computers.
Notes to the Accounts continued
for the year ended 31 December 2010
30 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
13. Property, plant and equipment continued
At 31 December 2010, the group had entered into contractual commitments for the acquisition of property, plan and equipment amounting to
£1,350k (2009: £nil). This comprised the purchase of a property in Glasgow for £1,150k which completed in January 2011 and orders for recovery
vehicles placed in December 2010 but not delivered until 2011 which amounted to £200k
Motor vehicles
2010 2009
Company £’000 £’000
Cost
1 January 617 639
Additions 133 —
Disposals (107) (22)
31 December 643 617
Accumulated depreciation:
1 January 424 302
Change for the year 97 142
On disposals (52) (20)
31 December 469 424
Net book value at 31 December 174 193
14. Leases
The total of future minimum lease commitments in respect of non-cancellable operating leases as at 31 December are as follows:
2010 2009
Group £’000 £’000
Land and buildings leases payments falling due:
Within one year 5,913 6,117
Two – five years inclusive 21,949 22,986
More than five years 23,929 29,312
51,791 58,415
Other leases payments falling due:
Within one year 3,410 3,381
Two – five years inclusive 1,716 1,072
More than five years — —
5,126 4,453
The total of future minimum sub-lease payments expected to be received under non-cancellable sub-leases at the statement of financial position date
is £1,019,000 (2009: £1,207,000).
2010 2009
Company £’000 £’000
Land and buildings leases payments falling due:
Within one year 30 39
Two – five years inclusive 60 158
90 197
Other leases payments falling due:
Within one year 11 5
Two - five years inclusive 23 10
34 15
15. Pension and other employee assets/obligations
The Company operates a funded pension scheme in the UK. The Fund has both defined benefit and defined contribution sections. Since 1 January
2002 the Fund has been closed to new members. Active members of the Fund ceased to accrue further benefits in the defined benefit section on 31
July 2006. Under the current Schedule of Contributions, contributions to the Fund for the year beginning 1 January 2011 will be £2.6m. This
disclosure is in respect of the defined benefit section of the Fund only.
The Company has opted to amortise all actuarial gains and losses above the corridor (10% of the greater of assets and liabilities) over a term of 17 years.
An actuarial valuation of the scheme was carried out as at 31 December 2010 by a qualified independent actuary. The major assumptions used by
the actuary were (in nominal terms) as follows:
31 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 15. Pension and other employee assets/obligations continued
2010 2009 2008 2007
IAS 19 % % %%
The major assumptions used by the actuary were (in nominal terms):
Discount rate 5.6 6.0 6.5 6.1
Rate of increase to pensions in payment 3.0 3.0 3.0 3.0
RPI rate of inflation 3.30 3.50 2.70 3.15
CPI rate of inflation 2.60 n/a n/a n/a 
Assumed life expectancies on retirement at age 65 are:
31 Dec 2010 31 Dec 2009
Current Current
Pensioners Pensioners
Retiring today: Males 21.1 21.0
Females 23.7 23.6
31 Dec 2010 31 Dec 2009
Future Future
Pensioners Pensioners
Retiring today: Males 20.8 20.7
Females 23.4 23.3
Retiring in 20 years time: Males 22.7 22.6
Females 25.3 25.2
The assumptions used in determining the overall expected return of the scheme have been set with reference to yields available on government bonds and
appropriate risk margins. The pre and post retirement mortality assumptions use the A92 and PA92 tables respectively. The 1992 series of mortality tables
were published by the Continuous Mortality Investigation Bureau and are based on mortality data from life assurance companies over the years 1991 to
1994 inclusive. The “A92” tables are based on the mortality experience of life assurance policyholders. The “PA92” tables are based on the mortality
experience of pension annuity policyholders.
The assets in the scheme and the expected rate of return were:
2010 2009 2008 2007
Long Long Long Long
Term rate Term rate Term rate Term rate
of return Value of return Value of return Value of return Value
expected £’000 expected £’000 expected £’000 expected £’000
Equities 8.5% 39,723 9.2% 33,940 9.6% 26,575 8.5% 37,044 
Bonds 4.9% 13,220 5.2% 12,776 5.2% 9,668 5.3% 9,664
Property 8.5% 4,570 9.2% 4,212 9.6% 4,378 8.5% 6,055 
Other 3.9% 1,793 4.2% 2,012 4.2% 3,047 4.3% 1,970 
Total market value of assets 59,306 52,940 43,668 54,733
Present value of defined  
obligations (funded plans) (73,366) (73,195) (60,131) (65,040)
Present value of 
unfunded obligations (14,060) (20,255) (16,463) (10,307)
Unrecognised actuarial losses 23,649 28,904 24,082 15,580
Net asset in balance sheet 9,589 8,649 7,619 5,273
Actual return on assets in period 5,781 8,752 (11,783) 3,540
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
2010 2009 2008 2007
£’000 £’000 £’000 £’000
Benefit obligation at beginning of year 73,195 60,131 65,040 70,928
Interest cost 4,331 3,842 3,911 3,786
Contributions by scheme members — —— — 
Actuarial (gain)/loss (2,145) 11,284 (6,983) (8,042)
Benefits paid (2,015) (2,062) (1,837) (1,632)
Balance at end of year 73,366 73,195 60,131 65,040
Notes to the Accounts continued
for the year ended 31 December 2010
32 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
33 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
15. Pension and other employee assets/obligations continued
Reconciliation of opening and closing balances of the fair value of plan assets
2010 2009 2008 2007
£’000 £’000 £’000 £’000
Fair value of scheme assets at beginning of year 52,940 43,668 54,733 50,360
Expected return on scheme assets 3,940 3,352 4,236 3,747
Actuarial gain/(loss) 1,841 5,400 (16,019) (207)
Contributions by employers 2,600 2,582 2,555 2,465
Contributions by scheme members — — ——
Benefits paid (2,015) (2,062) (1,837) (1,632)
Asset at end of year 59,306 52,940 43,668 54,733
The amounts recognised in the statement of comprehensive income are:
2010 2009
£’000 £’000
Current service cost — —
Interest on obligation 4,331 3,842 
Expected return on assets (3,940) (3,352) 
Curtailments and settlements — —
Actuarial loss recognised in year 1,270 1,063 
1,661 1,553 
Charged to:
Administration expenses 1,270 1,063
Finance costs 391 490
1,661 1,553 
History of scheme assets, obligations and experience adjustments
2010 2009 2008 2007 2006
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations (73,366) (73,195) (60,131) (65,040) (70,928)
Fair value of scheme assets 59,306 52,940 43,668 54,733 50,360
Deficit in scheme (14,060) (20,255) (16,463) (10,307) (20,568)
Experience adjustments arising on scheme liabilities (2,145) 11,284 (6,983) (8,042) 3,351
Experience item as a % of scheme liabilities (3%) 15% (12%) (12%) 5%
Experience adjustments arising on scheme assets 1,841 5,400 (16,019) (207) 972
Experience item as a % of scheme assets 3% 10% (37%) 0% 2%
16. Inventories
Group
2010 2009
£’000 £’000
Consumables 3,148 2,317
In 2010 total purchases of £45,643,000 of inventories were included in the statement of comprehensive income as an expense (2009: £42,690,000). 
There were no write downs of inventories (2009: £nil).
17. Trade and other receivables
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Trade receivables 559 327 22,065 17,457 
Provision for credit losses — — (294) (226)
Current tax receivable — 106 — —
Taxes and social security costs — 1,004 — —
Other receivables 137 — — —
Amounts owed by subsidiary undertakings 1,199 233 — —
Prepayments and accrued income 941 1,094  5,551 6,229
2,836 2,764 27,322 23,460 
The Directors consider that the carrying amount of trade and other receivables approximates to their fair values. 17. Trade and other receivables continued
Financial Assets can be analysed as follows:
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Within terms 401 253 18,314 14,476
Overdue by 30 days 156 23 2,729 1,723
Overdue by 60 days 1 23 690 561
Overdue by 90 days 1 10 26 239
Overdue by more than 120 days — 18 306 458
559 327 22,065 17,457
Management considers that the value of debts within terms are not impaired. (2009 : £nil)
Company Group
2010 2009 2010 2009
Impaired receivables £’000 £’000 £’000 £’000
Within terms — — — 737
Overdue by 30 days — — — 5
Overdue by 60 days — — — 3
Overdue by 90 days — — — 5
Overdue by more than 120 days — — 294 226
— — 294 226
Company Group
2010 2009 2010 2009
Net loss/(gain) on receivables £’000 £’000 £’000 £’000
Movement on provision for credit losses — — 68 (695)
Receivables written off — — 110 286
Net loss/(gain) on receivables — — 178 (409)
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.
18. Deferred tax assets and liabilities
2010 2009
Group £’000 £’000
Accelerated capital allowances 136 403
Pension fund asset (2,589) (2,422)
Goodwill (371) (275)
Short term temporary differences 203 182
Liability (2,621) (2,112)
Balance brought forward (2,112) (1,678)
Charge for the year (509) (434)
Balance carried forward (2,621) (2,112)
Company
Accelerated capital allowances 54 58 
Pension fund asset (2,589) (2,422) 
Short term temporary differences 205 (94)
Liability (2,330) (2,458) 
The Group and Company have capital losses available to be carried forward and offset against future capital gains of £3.6 million (2009: £4.1
million) for which no deferred tax asset has been recognised.
Notes to the Accounts continued
for the year ended 31 December 2010
34 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
19. Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid investments such as overnight treasury deposits. 
The Company has a revolving credit facility of £12m with HSBC Bank plc. 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. This facility expires in
December 2013.
20. Financial Instruments
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Financial Assets
Trade receivables 559 327 22,065 17,457
Cash and cash equivalents 10,706 11,651 7,459 8,269
11,265 11,978 29,524 25,726
Financial Liabilities
Trade Liabilitiess 2,226 433 21,144 17,866
21. Equity
Share capital
2010 2009
Shares £’000 Shares £’000
Authorised
Ordinary shares of 12.5p (2009: 12.5p) each 64,000,000 8,000 64,000,000 8,000
Issued and fully paid
Ordinary shares of 12.5p (2009: 12.5p) each 43,197,220 5,400 43,197,220 5,400
Of the 20,802,780 shares authorised, but not issued, 4,262,861 are reserved for issue in respect of the share options.
Share options
Number Exercise Exercise
of shares price period
M A Wilmshurst Approved 25,751 £1.165 2009–16
Unapproved 2,217,860 £1.11 2009–16
D J Loftus Approved 25,751 £1.165 2009–16
Unapproved 1,096,055 £1.11 2009–16
S D G Thompson Approved 25,751 £1.165 2009–16
Unapproved 871,693 £1.11 2009–16
4,262,861
All the above options were issued on 4 July 2006 and no additional share options have been granted since this date.
In total, £98,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2010 (2009:
£169,000). 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.
22. Provisions
Onerous lease costs:
Group
£’000
At 1 January 2010 117
Charged to the statement of comprehensive income to administrative expenses    37
Utilised (83)
At 31 December 2010 71
Current liability 31
Non-current liability 40
71
The Group vacated a number of properties over the last seven 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.
35 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 23. Trade and other payables
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Trade payables 2,226 433 21,144 17,866
Amounts owed to subsidiary undertakings 23,029 27,020 — —
Taxes and social security costs 169 188  2,303 3,081 
Accruals 2,448 4,183  10,353 8,621 
27,872 31,824  33,800 29,568 
The Directors consider that the carrying amount of financial liabilities approximates to their fair values.
24. Current tax liabilities
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Current tax liabilities 353 — 164 311
25. Related party transactions
Group and Company
The Group paid £323,400 to Troy Customer Research Limited in the year for management and consultancy services (2009: £323,400). This amount is
included within Directors’ remuneration as it relates to the amounts payable under a consultancy agreement dated 29 June 2007. M A Wilmshurst is a
Director of Troy Customer Research Limited.  In addition, the Group paid Troy Customer Research Limited £200,927 (2009: £235,914) in relation to the
provision of customer satisfaction surveys and training services. The amount outstanding at the year end was £56,980 (2009: £nil). The outstanding
amount in 2010 was payable within 30 days of the invoice date in cash.
Balances with subsidiaries
Balance Balance
as at as at
31 December 31 December
2010 2009
£’000 £’000
Nationwide Crash Repair Centres Limited 413 (2,885)
Network Services (Nationwide) Limited (1,444) (838)
Mobile Vehicle Repairs Limited 786 —
Nationwide Fast Fit Plus Limited (18,192) (247)
Other non-trading subsidiaries (3,393) (22,817)
(21,830) (26,787)
During the year, the Company recharged various costs incurred to its subsidiaries including a £3.5 million management charge to Nationwide Crash
Repair Centres Limited (2009 : £3.0 million). The above balances are all repayable on demand. The Company was also charged interest of £235,000
(2009: £246,575) on an intercompany loan with a subsidiary Nationwide Fast Fit Plus Limited. The interest was calculated using the average base rate
plus 1% throughout the year. A non-trading subsidiary paid a dividend of £1,764,000 (2009: £nil) to its parent during the year. This was settled
through the intercompany loan
Dividends
The directors received dividends as follows. Further details of the dividend payments are provided within note 10 to the financial statements.
Dividend Paid
2010 2009
Executive Directors
M A Wilmshurst 68,919 67,568
D J Loftus 2,757 2,703
Non-executive Directors
M H Marx 1,530 1,500
Lady Judge 3,333 2,767
C H B Mills * 702,434 688,661
* C H B Mills is a partner within North Atlantic Value LLP who have a 31.88% interest in the share capital of the company. The dividend was paid to
North Atlantic Value LLP .
26. Contingent assets and contingent liabilities 
Various warranty and legal claims were brought against the Group and the Company during the year. Where these claims are not quantifiable no
provision is made in the accounts. At the statement of financial position sheet date management’s assessment of the value of contingent assets and
liabilities was £nil for both the Group and the Company.
Notes to the Accounts continued
for the year ended 31 December 2010
36 Nationwide Accident Repair Services plc Annual Report and Accounts 2010 Notes to the Accounts continued
for the year ended 31 December 2010
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 to are described below:
i) Credit risk
The Group and Company’s trade and other receivables are monitored actively to avoid significant concentrations of credit risk. The Group varies its
credit terms with new customers in order to reduce this risk. See note 17.
ii) Cash flow and interest rate risks
The Group and Company is in a cash positive situation and currently earns between 0.25% and 0.5% 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.
Interest on the HSBC Bank plc committed facility is only payable when the facility is utilised. The interest rate is dependent upon the bank base rate
and is not fixed. A non utilisation fee is payable.
iii) Market risk
The Group and Company limit market risk by avoiding reliance on a few key customers. In addition, The Group and Company operate within a
vertical market, with the ability to influence a significant number of market sectors.
28. Capital Management
The Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of
capital growth and through the payment of annual dividends.
The Group has no debt but does have a revolving credit facility of £12m with HSBC Bank plc. Any borrowings under this facility are guaranteed by a
fixed charge on book debts.
Company Group
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Cash and cash equivalents 10,706 11,651 7,459 8,269
Share capital 5,400 5,400 5,400 5,400
Capital redemption reserve 1,209 1,209 1,209 1,209
Share premium 11,104 11,104 11,104 11,104
Revaluation reserve — — 8 8
Retained earnings 12,533 8,758 12,975 10,596
30,246 26,471 30,696 28,317
The Group’s objectives when managing capital are:
i) to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for 
other stakeholders, and
ii) to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in the light of
changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
Preliminary Announcement 29 March 2011
Annual Report publication due 26 April 2011
Annual General Meeting 14 June 2011
2011 Interim Announcement September 2011
37 Nationwide Accident Repair Services plc Annual Report and Accounts 2010
Financial Calendar  Nationwide Accident Repair Services plc
17a Thorney Leys Park
Witney
Oxfordshire OX28 4GE
www.narsplc.com