Annual Report and Accounts 2011 With a national network of 61 accident repair centres and a fleet of
mobile vans located across England, Scotland and Wales employing
over 2,100 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.
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
40 Financial Calendar
“In a tough year for the industry,
Nationwide has performed robustly and
underlying results for the year are creditable,
with profit before tax excluding non-recurring
items at £5.5 million on sales of £172.9
million. The decisive action we took in the
second half to reduce the cost base was the
correct response to position Nationwide
appropriately for the future and while we
have cut back, we have preserved overall
capacity. At the same time, we are continuing
to invest for long-term growth both in our
core insurance market as well as our newer
fleet and retail markets. The overall market
for repairs (both insurance-funded and fleet
and retail) remains substantial and Nationwide
has the infrastructure in place to build
market share across all three sectors. 
The Group has a strong balance sheet with
net cash of £8.0 million and good cash
generation. Therefore, while we expect
trading to remain challenging in 2012, we
believe that the medium and long term
prospects of the Group are positive”.
Michael Marx
Chairman Dedicated Accident Repair Centres
Wirral
Highlights
2011 2010
Revenue £172.9m £172.3m
Operating profit before non-recurring items £5.2m £6.4m
Operating (loss)/profit after non-recurring items (£2.9m) £6.4m
Profit before tax before non-recurring items £5.5m £6.0m
(Loss)/profit before tax after non-recurring items (£2.6m) £6.0m
Earnings per share after non-recurring items 9.2p 10.4p
• Creditable underlying results in challenging year - 
results affected by deterioration in trading conditions in 
H2 after satisfactory H1
- prompt action in H2 to rebalance cost base, keeping 
capacity intact
• Revenues maintained at £172.9m (2010: £172.3m) 
• Gross profit margin down by one percentage point to 46% 
(2010: 47%) - impacted by mix of repair work which showed  
significant reduction in higher margin cosmetic repair work
• Non-recurring items totalled £8.1m (2010: £nil) – reflect cost 
reduction programme
- expected annualised savings of £1.9m
• Underlying* profit before tax reduced by 8% to £5.5m (2010: 
£6.0m). Statutory loss before tax of £2.6m (after non-recurring
items) (2010: £6.0m profit)
• Underlying* earnings per share of 9.2p (2010: 10.4p). 
Statutory loss per share of 5.5p (2010: 10.4p earnings)
• Net cash up by 6.6% to £8.0m (2010: £7.5m)
• Final dividend of 3.6p per share proposed (2010: 3.5p), 
takes total to 5.5p per share (2010: 5.3p)
• Continuing encouraging progress in non-insurance markets 
(fleet & retail) – volumes up 25% and 55% respectively
• Operational efficiencies remained a major focus
• Board views growth prospects positively 
* before non-recurring items
1
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011 2
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Introduction
In very tough trading conditions, underlying
results for the year are creditable, with profit
before tax excluding non-recurring items at £5.5
million on sales of £172.9 million. In addition,
our financial position remains robust with net
cash at the year end standing at £8.0 million
compared to £7.5 million at the same point 
in 2010.  
Underlying profits however are below our
original expectations for the financial year and
reflect a difficult second half where our more
profitable light repair insurance work reduced
both in total and as a proportion of our overall
repair volumes, not helped by the very mild and
dry weather. The trend for consumers to avoid
making claims on their motor insurance policies
for light cosmetic damage is a feature very
much in play currently. Progress outside our core
insurance market in our newer market segments
of fleet and retail has been encouraging and we
are successfully cross-selling our services into
new and existing customers. Over the year, fleet
and retail sales have risen respectively by 25%
to £24.5 million and 55% to £9.4 million.  
In November 2011, in view of economic
conditions, we took decisive action to rebalance
the Group’s cost base. This was largely completed
in January 2012 and has incurred one-off costs
of £8.1 million in the period under review. The
expected annualised savings arising from the
cost-saving programme are approximately £1.9
million. It is important to note that we have also
preserved our overall operational capacity.  
Nationwide remains a leading operator in its
core market, benefiting from a comprehensive
offering, a national network of bodyshops and
efficient operating systems. We continue to focus
on managing workflows effectively and our
growing mobile repair offering plays an important
role in this, as well as aiding our steady expansion
in the fleet and retail markets. We believe that
the strategy of leveraging our infrastructure and
systems to grow sales in non-insurance related
markets, where Nationwide is currently relatively
under-represented, continues to offer very good
growth potential over time and progress to date
is encouraging.  
The Board is pleased to recommend an increased
final dividend of 3.6p per share, taking the total
dividend for the year to 5.5p (2010: 5.3p).
Financial Results
Revenues for the year ended 31 December 2011
were £172.9 million (2010: £172.3 million).
However, as indicated above, the mix of repair
work included a greater proportion of larger
repairs, with lower margins, against light repairs,
with higher margins. This adversely affected gross
margins which reduced to 45.6% from 47.2%
in 2010. Operating profit before non-recurring
items was £5.2 million (2010: £6.4 million).  
Profit before tax before non-recurring items was
£5.5 million (2010: £6.0 million) and earnings per
share before non-recurring items were 9.2p per
share (2010: 10.4p). During the year, the Group
implemented a cost reduction programme to align
Nationwide’s cost base with the current market
requirements. The total one-off non-recurring
items relating to this programme were £8.1
million, of which £1.8 million was a cash cost 
in the financial year under review. The expected
annualised savings are £1.9 million. Taking into
account non-recurring items, the statutory loss
before tax was £2.6 million and the statutory
loss per share was 5.5p (2010: earnings per
share of 10.4p).
The Group’s balance sheet remains robust, with
no borrowings and net cash of £8.0 million as
at 31 December 2011 (2010: £7.5 million), which
was ahead of expectations due to strong year
end customer cash receipts.
Dividend
The Board is pleased to recommend an increased
final dividend of 3.6 pence per share (2010: 3.5
pence per share). This takes the total dividend
for the year to 5.5 pence per share (2010: 5.3
pence per share). 
Subject to shareholder approval at the Annual
General Meeting on 25 June 2012, the final
dividend will be paid to shareholders on 2 July
2012, based on the register at the close of
business on 1 June 2012.
Trading overview
Conditions in our traditional insurance-funded
market proved challenging. During the first half
of the year, we achieved a small increase in
volumes, compared to an overall decline in
insurance claims across the industry, however
insurance claims frequency decreased sharply in 
Chairman’s Statement
Michael Marx
Chairman
“The Group’s
balance sheet
remains robust,
with no
borrowings and
net cash of
£8.0 million.” 3
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Chairman’s Statement 
the second half and our volumes were
affected, particularly for light repairs. In order
to win volumes in a market where claims
frequency is under pressure, we launched a
number of sales initiatives and we continued
to secure new insurance contracts over the
year. Given the ongoing economic conditions,
in the second half, management took decisive
action and initiated a cost reduction
programme to realign Nationwide’s cost base
with demand, generating annualised cost
savings of approximately £1.9 million.  
Nationwide remains a leading provider in the
insurance marketplace and notwithstanding
the current environment, we believe that the
Group is well placed to build on this position.
As insurers seek to enhance efficiency by
consolidating their suppliers, our integrated
offering is attractive.  
Our initiative to build our presence in the fleet
and retail markets saw good progress, with
pleasing volume increases.  Fleet volumes
increased 25% to £24.5 million (2010: £19.6
million). We are cross-selling our core
competencies to the fleet and retail markets
with increasing success.   
Direct retail sales grew by 55% to £9.4 million
(2010: £6.1 million). We have invested in
additional resource to support growth in these
markets and it is pleasing to see the benefits
of this coming through. In October 2011, we
also opened our third Fast Fit+ branch, which
offers vehicle servicing, at our existing
bodyshop site in Redruth, Cornwall.   
The mobile service which we re-launched in
2010 has continued to perform strongly and
revenues grew 57% during 2011 to £7.5
million (2010: £4.8 million). Our mobile
offering is attractive to fleet and retail
customers, where speed and convenience 
are paramount, but also to our core 
insurance customers.
The Board
After the year end, at the start of March
2012, Nationwide announced that it had
appointed David Pugh as Finance Director with
effect from 10 April 2012.  He succeeds David
Loftus, who is stepping down from the Board
and the Company on 10 April. I would like to
reiterate the Board’s thanks to David Loftus for
his hard work and contribution to the Group
over the last nine years and welcome David
Pugh to the team.
Outlook
In a tough year for the industry, Nationwide
has performed robustly and the decisive action
we took in the second half to reduce the cost
base was the correct response to position
Nationwide appropriately for the future. At
the same time, we are continuing to invest for
long-term growth both in our core insurance
market as well as our newer fleet and retail
markets. The overall market for repairs (both
insurance-funded and fleet and retail) remains
substantial and Nationwide has the
infrastructure in place to build market share
across all three sectors. 
In addition, the Group has a strong balance
sheet with net cash of £8.0 million and good
cash generation.
Therefore, while we expect trading to remain
challenging in 2012, we believe that the
medium and long-term prospects of the
Group are positive.
Michael Marx
Chairman
30 March 2012
    
 
 
 
 
        
 
   
A  
40
32
61
Accident Repair Centres
Mobile Repair Fleet                         Motorglass Fleet
    
 
172.9m
2011
2010
2009
Turnover
 
 
 
        
 
   
  
 
 
 
 
                         
 
    
 
 
 
 
        
 
   5.5m
2011
2010
2009
Operating
Profit
  
 
 
 
 
                         
  Chief Executive’s Report
Introduction
2011 proved to be a challenging year for the
automotive repair sector and the number of
people claiming on their insurance, especially for
smaller repairs, continued to decline. Nationwide
is not immune to this industry-wide trend and
our profitability was affected, especially in the
second half of the year although it was creditable
to maintain overall sales at £173 million. 
Management responded decisively to the trading
conditions in order to ensure Nationwide’s
capacity matched current demand more closely
and we implemented a cost reduction
programme in the second half to protect and
improve profitability going forward. This will
generate annualised cost savings of approximately
£1.9 million per annum, although the 
non-recurring costs incurred in 2011 impacted 
results for the year.
Our strategy to grow our overall market share
by entering the fleet and retail markets is
proving a successful and key driver for future
growth. By leveraging our core competencies,
we have achieved further progress in these
sectors during the year. The strong growth in
both fleet and retail sales helped to offset the
weakening insurance volumes and we continue
to see significant and encouraging expansion
opportunities. We also believe that the current
challenging market will create opportunities to
grow our presence in our traditional insurance-
funded market and have launched a number 
of sales initiatives in order to further increase
market share. After the year end, in February
2012, we were pleased to be appointed by
Hastings Direct as sole provider for all vehicle
repairs. This nearly doubles the size of
Nationwide’s contract with Hastings Direct.  
As insurers seek to enhance their service
standards, secure quality capacity and use
information technology to improve their
efficiency, we remain well-placed to develop
both our existing and new relationships.
Managing Cash and Dividends
At 31 December 2011, Nationwide’s net cash
balances stood at £8.0 million (31 December
2010: £7.5 million). Credit control and cash
management remain a key focus for the Group
and this result demonstrates our continued
success in this area. It is particularly pleasing in
view of both the additional investment in our
mobile capacity and resource to support our fleet
and retail expansion, and the one-off costs incurred
during our cost reduction programme. (Details
of our investment and cost reduction programme
are given in the operational review below).
We are pleased to recommend an increased
final dividend of 3.6 pence per share, taking the
total dividend for the year to 5.5 pence (2010:
5.3 pence per share).
Operations Review
The core insurance-funded market saw repair
volumes decline during the year as a whole. 
In the first half, Nationwide maintained some
volume growth, against the industry trend, but
volumes decreased markedly in the second half,
influenced by a number of factors including the
unusually mild and dry weather conditions. Not
surprisingly, the current economic climate has
resulted in customers deferring the repair of
light, more cosmetic damage and the proportion
of larger, lower margin repairs increased. This
resulted in a lower overall gross margin for the
year at 45.6% down from 47.2% in 2010.
In November 2011 we announced a cost
reduction programme which included the
closure of eight under-utilised and, therefore,
non-core sites, with the transfer of volumes to
other sites. We largely completed the programme
by the year end, incurring a total of £8.1 million
one-off costs, whilst maintaining the overall
capacity of our network. This will deliver cost
savings of £1.9 million on an annualised basis.
We have continued to focus on improving 
“Our strategy to
grow our overall
market share by
entering the fleet
and retail markets
is proving
successful”
Chief Executive’s Report
4
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Michael Wilmshurst
Chief Executive our operational efficiency. Key areas include
enhancing parts margins, conversion ratios,
speed of repair, customer satisfaction and, 
of course, securing additional sales from both 
new and existing customers.
As the UK’s largest accident repair group our
purchasing of parts is significant and economies
of scale are an important element of our
competitive advantage. During 2011, we further
improved our parts margin (by almost 1%), a
useful contribution in a challenging market.
Conversion rates, i.e. the number of
opportunities that we convert into repairs,
increased overall from 84.4% in 2010 to 86.7%
in 2011 and we are encouraged by the
increasing effectiveness of our ‘up stream’
Network Services call centres in securing 
and converting claims. This integrated offer,
comprising call centres and repair capability
(fixed site and mobile), is proving attractive 
to both insurers and the fleet market and
continues to support growth. The speed at
which we repair vehicles is important to the
majority of markets we service and offers us
operational and commercial benefits. In 2010
the average “full cycle” period (from the point
of claim to the point of repair completion) was
23.57 days. By balancing capacity with demand
through our call centres and increasingly
sophisticated IT platform, the continued 
roll-out of our mobile repair service (which is 
a particularly rapid solution) and working with
our insurance customers to streamline processes,
we have reduced this to 20.33 days in 2011.
Measuring our “key to key” average (which is
the average time taken to complete a repair,
from the day we receive a vehicle to the day 
it is returned to a customer), we have reduced
the average to 11.68 days from 12.93 days in
2010.  There are opportunities to further
improve both the “full cycle” and “key to
key” averages, particularly for those repairs
deployed centrally through our Network
Services division.
Customer satisfaction levels across the
business saw an increase in 2011 to 85.9%
(2010: 85.3%), as measured by independent
telephone surveys of approximately 17,000 of
our customers. The same customers also rated
the “quality of repair” at 91%, similar to 2010.
We also scored strongly in insurers’ own
benchmarks.
Our enhanced offer includes the mobile repair
service, now integrated within our fixed site
repair network. Sales have increased by 57% to
£7.54 million, demonstrating the attractiveness
of this service as part of our ‘one stop shop’
offer.  Our dedicated glass repair offering,
Motorglass, performed very strongly with sales
of £4.37 million, an increase of 71% on 2010,
when it launched. The increased mobile capacity
enables the Group to manage its workflows
more efficiently and provides customers with a
quick and convenient service. Both our Mobile
and Motorglass operations are now making a
good contribution to Group performance and
we remain confident of further growth
opportunities.  
The fleet and retail markets are a natural
extension to our core insurance business and
the mobile offering is highly attractive to all
three target segments. We achieved excellent
growth in both fleet and retail sales during 
the year.
Our fleet sales increased by 25% to £24.5
million and we now have established a presence
in the rental vehicle, governmental and private
commercial sectors.  We also secured a number
of new fleet customers and should see the full
benefit of these relationships coming through
in 2012 and beyond. As a result of our success
in this area a number of insurance customers,
including AXA and Zurich, have engaged with us
to work on this important sector of 
the market.
Direct retail sales have improved by 55% over
last year to £9.4 million as we continue to
strengthen our offer and sales process. These
sales typically involve undertaking additional
repairs for private individuals while their vehicles
are being repaired under an insurance claim
and are targeted to provide convenience, quality
and value for money. Nationwide now has a
proven track record of successfully integrating
additional automotive support services within
our offer. This process continues and in 2011
we opened our third Fast Fit+ branch in
Redruth, Cornwall, offering MOTs and other
vehicle services such as the supply and fitting
of exhausts and tyres.
Outlook
Nationwide has the foundations in place on
which to build, both operationally and financially.
Although the downturn in insurance repair
volumes is not expected to reverse in the short
term, management has taken the necessary
actions to align our bodyshop network with
demand, whilst maintaining capacity and
investing in growth areas such as fleet and retail.
The Group is increasingly well positioned 
to offer existing and potential customers an
integrated automotive support service, has 
a strong balance sheet, with net cash and no
borrowings, and good cash conversion. We
remain confident that medium- and long-term
prospects for Nationwide to capture market
share in its three target markets, insurance,
fleet and retail, are positive.  
Michael Wilmshurst
Chief Executive
30 March 2012
Chief Executive’s Report 
5
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011 2011 2010 Change
£m £m %
Insurance 139.0 146.6 -5.2
Fleet 24.5 19.6 +25.2
Retail 9.4 6.1 +54.6
Total 172.9 172.3
2011 2010 Change
£m £m %
Fixed Site 149.6 153.9 -2.8
Mobile 7.5 4.8 +57.0
Sub-contract 15.8 13.6 +16.8
Total 172.9 172.3
Turnover
The Group’s turnover was maintained at £172.9m,
being £172.3m in 2010. However, in line with the
Group’s strategic objectives, the turnover of Fleet
customers rose significantly by 25% and revenues
derived from Retail customers increased by 55%.
An analysis by market sector is included below.
The small decline in volumes within the
insurance market was a result of a decline in 
the second half of the year. This also happened
in 2010, but to a lesser extent. As noted in the
Chairman’s Statement, the Board launched a
number of sales initiatives to mitigate this.
The Board’s strategy continues to be to build
presence in the fleet and retail markets and in the
former, a number of new contracts were secured.
Underlying Profit before Tax
Despite the challenging economic climate, the
Group continues to be profitable, generating profit
before tax of £5.5m, before non-recurring items.
As noted in the Chairman’s statement and Chief
Executive’s review, management responded to
the downturn in volumes during the second half
of the financial year by implementing a cost
reduction program with associated annualised
cost savings of £1.9m. Non-recurring items are
discussed in more detail below.
Final Dividend
The Board is proposing a final dividend in respect
of the results for the year ended 31 December
2011 of 3.6p per share (2010: 3.5p per share)
making 5.5p for the year as a whole (2010: 5.0p).
Subject to approval by shareholders at the Annual
General Meeting, this will be paid on 2 July
2012 to shareholders on the Register at the
close of business on 1 June 2012. It is very
encouraging that this is the fifth successive 
year of dividend growth.
Underlying Earnings per Share
The statutory loss before tax was £2.6 million
and the statutory loss per share was 5.5p (2010:
earnings per share of 10.4p). Adjusting for the
non-recurring items of £8.1m, the underlying
earnings per share is 9.2p (2010: 10.4p).
Turnover and profitability are both reviewed by
individual Bodyshop on a monthly basis, in order 
“...the group
continues to 
be profitable,
generating
profit before 
tax of 5.5m...”
Finance Director’s Review
6
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
David Loftus
Finance Director
    
 
 
 
 
        
 
   
  
 
 
 
 
                         
 
2007 2008 2009 2010 2011
151.9m
179.3m
170.9m
172.3m 172.9m
Turnover
£
2007 2008 2009 2010 2011
6.8m
7.8m
5.4m
6.0m
5.5m
Underlying Profit before tax*
£
2007 2008 2009 2010 2011
4.5p
5.0p 5.0p
5.3p
5.5p
Final Dividend
2007 2008 2009 2010 2011
11.3p
12.8p
8.9p
10.4p
9.2p
Underlying Earning per share*
*before non-recuring items
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. The
financial key performance indicators are as follows: Finance Director’s Review 
7
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
that the operational team can address work
flows or operating practices respectively. In
addition, significant emphasis is placed upon
gross margin and the two main operational 
key performance indicators of cycle time 
and CSI scores.
Margins
The mix in repair work directly impacts the
gross margin as there is an inverse relationship
between the size of repair and margin.
Consequently, the margin reduced from
47.2% to 45.6% as the number of light,
cosmetic repairs has declined. 
Individual elements of margin are discussed
regularly at a senior management level and,
notwithstanding the change in the mix of
work, the Group constantly strives to drive
efficiencies through the bodyshops in order 
to improve individual margins.
Cycle Times
Cycle Time measures the days from receipt 
of the vehicle on site to return to the customer.
Cycle Times are indicative of vehicle throughput
and targets have been set, which are reviewed
against weekly data. The improvement in cycle
time to 11.7 days (2010: 12.9 days) has been
the result of significant focus both by the
Group and our customers and is very
encouraging.
CSI Scores
CSI scores are a measure of customer
satisfaction derived from the results of
independent telephone surveys. CSI targets 
are also specified and monitored in conjunction
with the service level agreements specified by
insurance companies. Excellent progress has
been made, with a 2011 score of 85.9%
compared to 85.3% in 2010.
Non-recurring items
During the second half of the year the Group
incurred a number of non-recurring items
which are described in detail within note 5 to
these financial statements. Most significantly,
the closure of the eight sites in December
2011, in addition to the centralisation of the
Group’s finance and administration staff to
Bristol, resulted in one-off costs of £6.6m.
Goodwill of £1.5m was impaired relating to
seven sites as detailed in note 11, resulting 
in a non-recurring item of £8.1m. As noted
above, these one-off costs will yield expected
annual cost savings of £1.9m.
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 2011 was
£26.1m (2010: £14.1m) or £19.6m (2010:
£10.2m) net of deferred tax. The Group has
agreed with the trustees to eradicate the
Scheme Specific Funding deficit by making
annual contributions of £2.6m for approximately
the next 8 years. The Group has opted to
amortise all actuarial gains and losses above
the corridor (10% of the greater of assets and
liabilities) over the future working lifetime of the
active membership. A full actuarial valuation of
the defined benefit scheme was carried out as
at 31 December 2011 by a qualified
independent actuary.
Cash flow
At 31 December 2011, Nationwide’s net cash
balance was £8.0 million (31 December 2010:
£7.5 million) and it is indicative of the financial
strength of the Group that a significant positive
balance has been consistently reported in recent
years. The net increase in cash during the year
was £0.5m (2010: a decrease of £0.8m). The
Company continues to invest in new plant and
equipment and in improvements to its sites,
with expenditure of £2.4m (2010: £4.3m). The
Company continues to pay a deficit contribution
to its pension fund of £2.6m (2010: £2.6m)
and a dividend of £2.3m was paid in 2011
(2010: £2.2m). Although cash positive, the
Group successfully maintains a revolving credit
facility for £11m with HSBC Bank plc, based
on its proven track record of financial stability.
Cash management remains an area of focus
by senior management and is reflected in an
encouraging year end debtors position of 31
days (2010: 37 days). 
Trade receivables
The Group’s trade receivables of £16.2m 
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 2011
were encouragingly 31 days (2010: 37 days).
Delays in some customer payment systems
continue to be a contributing factor, but
progress has been made and an improvement
in payment has been evident year on year.
Network Services debtor days as at 31 December
2011 were again improved for the second
consecutive year at 27 days (2010: 30 days).
David Loftus
Finance Director
30 March 2012 Michael Marx
Non-executive Chairman 
(aged 64)
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 52)
Michael has extensive automotive sector
experience, with TWR, HR Owen, and
European Motor Holdings. At HR Owen,
aged 31, he was head of the luxury division
including Rolls Royce, Jaguar, Ferrari and
Land Rover. He formally joined Nationwide
in May 2002, having been an active
member of the team that took the
Company private.
David Loftus
Finance Director, FCA, MBA, BA (Hons) 
(aged 50)
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 2011
Board of Directors  Stephen Thompson
Executive Director 
(aged 39)
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 59)
Christopher was appointed non-executive
Director in June 2009. Christopher Mills 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 65)
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
the Chairman of the Business Advisory Board
of the UK National Nuclear Centre of
Excellence and 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 2011
Board of Directors   10
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Directors & Advisers 
Company No.
966807 incorporated in England and Wales
Directors
Michael Marx
Chairman
Michael Wilmshurst
Chief Executive 
David Loftus 
Finance Director
Stephen Thompson
Executive Director
Lady Barbara Thomas Judge 
Non-executive Director
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
HSBC Bank plc
29 King Street
Leeds LS1 2HL
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
Solicitors
K&L Gates
One New Change
London EC4M 9AF
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol BS1 6EG
Financial Adviser and 
Corporate Stockbroker
Westhouse Securities Limited
One Angel Court
London EC2R 7HJ
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 11
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Directors’ Report
The Directors present their report and accounts for the year ended 31 December 2011.
Principal activities and review of the business
Reviews of the development and performance of the business during the year and an analysis of its position at the end of the year are contained
within the Chairman’s Statement, the Chief Executive’s Report and the Finance Director’s Review on pages 2-7. The business of the Group is the
repair of motor vehicles and the provision of accident claim management services.
The strategy for 2011 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. 2011 presented another challenging economic climate. The Group was successful in
developing its Fleet and Retail work, but claims volumes within the insurance market dropped which caused a drop in turnover in this sector. Margins
fell as a result of a decline in lighter cosmetic work which typically has a higher margin. This strategy will be maintained in 2012. 
Principal risks and uncertainties
The Directors regularly review principal risks and uncertainties that affect the Group. In addition to credit risk and liquidity risk which are detailed in
note 28, the Directors recognise that there are areas of key risk and uncertainty specific to the Group.
Risk Area and Potential Impact
MARKET
The economic cycle and cyclical
downturns can affect the level of claims
and particularly the volume of small
repair jobs. 
Dependence on key clients is an area
which is inevitable within the industry,
but needs to be monitored from the
perspective of both work provision and
management of receivables.
A shortage of key candidates can be
a limiting factor at both managerial and
skilled technician levels.
FINANCIAL AND COMPLIANCE
Financing and Cash Management. 
A failure to maintain adequate 
financing and cash management could
prevent expansion or have a material
affect on the results. 
Integrity of Financial Controls.
A failure to maintain sufficient internal
and financial controls could potentially
lead to incorrect information being 
used to manage the business.
STRATEGIC AND OPERATIONAL
Loss of key management and staff
could potentially lead to a lack of
necessary expertise and continuity.
Technology and Data Security.
There is the risk that IT systems become
outdated or unsupported.
Loss of Business Continuity.
Disruption to IT systems or bodyshop
activities could potentially impact on
finances and operations.
Group Strategy
The Group is proactive in ensuring that its
bodyshop capacity meets demand.
The Group strives not only to maintain a
broad base of blue chip customers, but
also to diversify into different markets.
This is a key strategy discussed regularly
at Board level. The Board also aims to
secure 4 to 5 year deals with its major
customers to mitigate the short-term risk.
The Group focuses heavily on candidate
attraction, to ensure that we maintain the
necessary skill sets to provide a unique
offering to our customers.
The Group views cash management and
control of trade receivables as a key
indicator of success. 
The Group seeks to ensure that it has
good financial controls at all times.
The Group places significant emphasis on
staff retention.
The Group outsources its IT management
and regularly reviews its software
requirements.
There is a formal plan in place to redirect
work to an alternative site, in addition to
a comprehensive disaster recovery plan.
Mitigation
• In the second half of 2011, the Group implemented a cost 
reduction program to balance capacity with demand. Significant 
cost savings were generated.
• Despite 38% of revenue being derived from the 2 largest 
customers, 75% of revenue is obtained from the top 20 customers, 
all of which are significant. The Group has a customer base well in 
excess of 300.
• The strong growth in both fleet and retail sales cannot fully offset 
the weakening insurance volumes at present, but there are 
significant expansion opportunities in both markets.
• The Group employs a dedicated recruitment team who have access 
to the most suitable and current candidates.
• There is a full training program with our partners within the 
insurance industry, to monitor and maintain ongoing skills.
• The Group runs a unique recruitment and training program to 
secure the best apprentices available in the market.
• The Group maintains a significantly positive cash balance by the 
careful control of receivables and payables.
• There are long-standing relationships with the banks.
• Contract margins are reviewed regularly, to ensure adequate 
cash generation.
• The Group maintains a financial control framework which is 
reviewed and audited annually.
• The controls include the Board review of the Group’s financial 
performance every month.
• An internal audit is undertaken annually of all companies within 
the Group. 
• The Group maintains short lines of communication to senior 
managers and Group directors.
• There are structured bonus and commission schemes in place, to 
reward and retain key staff.
• The Group considers teamwork, enthusiasm and innovation to be 
important tools for staff to develop their career paths within the 
organisation.
• The Group has its own single IT platform and information systems, 
which have been developed to provide industry-leading data with 
significant commercial and operational advantages.
• Reliance on external software is limited to specialist software only.
• The Group has previously implemented its business continuity plan 
when it suffered two fires in 2009. There was little or no disruption 
to operations.
• There is a formal IT Disaster Recovery Plan and procedures for Data 
Security are regularly tested. 12
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Directors’ Report 
Results and dividends
The Group’s sales revenue amounted to £172,937,000 (2010: £172,251,000) and the loss before taxation amounted to £2,588,000 (2010: profit of
£6,034,000). Taxation was a credit of £206,000 (2010: charge of £1,550,000) and the net loss for the year was £2,382,000 (2010: profit of £4,484,000).
The Directors are proposing a final dividend in respect of the results for the year ended 31 December 2011 of 3.6p per share. 
Subject to approval by shareholders at the Annual General Meeting, this will be paid on 2 July 2012 to shareholders on the Register at the close of
business on 1 June 2012.
During 2011 the Group paid dividends of £2,333,000 (2010: £2,203,000) to its equity shareholders. These comprised a final dividend in respect of 2010
of 3.5p per share paid in June 2011 (£1,512,000), and an interim dividend in respect of 2011 of 1.9p per share paid in November 2011 (£821,000).
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 UK Corporate Governance Code (June 2010).
The Board consists of three executive and three independent non-executive Directors, who take an active role in Board matters, and meets eight
times in every year. The Board is responsible for maintaining a sound system of internal controls 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 2012 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
with regards to training, career development and promotion opportunities. The Group operated this policy throughout the year.
Employee involvement
Effective employee relations are seen as key drivers in moving the Group forward. Consequently human resources, quality, health and safety and
training functions need to establish good communications with individual sites and are therefore organised on a divisional basis. This structure
enables staff to obtain the help and guidance they may need and keeps them informed of, and effectively involved in, the development of the
Group’s business. Regular review meetings are held at local, divisional and Group level to ensure that all employees are kept informed of the Group’s
objectives. Progress towards those objectives is measured and reported back to individual sites.
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 62 (2010: 56). The Company trade
creditor days at the end of the year were 35 (2010: 30).
Share capital
Full details of the authorised and issued share capital of the Group are set out in note 22 to the accounts.
Summary of key performance indicators
The key performance indicators are discussed in detail in the Finance Director’s review.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as auditor.
On behalf of the Board:
Michael Wilmshurst
Chief Executive
30 March 2012 13
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Statement of Directors’ Responsibilities
to the members of Nationwide Accident Repair Services plc
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). Under company law
the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or
loss of the Group and Parent Company 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 are sufficient to show and explain the Company’s transactions and
disclose with reasonable accuracy, at any time the financial position of the Company and Group 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 Group and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as each of the Directors are aware:
•
there is no relevant audit information of which the Company’s auditor is unaware; and
•
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that 
the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from other legislation in 
other jurisdictions.
Michael Wilmshurst
Chief Executive
30 March 2012 14
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
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 2012, 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:
2011
Employer’s Total (excl Pension
Salary National Annual Pension contribution 2011 2010
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 148 13 34 40 235 21 256 270
S D G Thompson 136 7 27 68 238 16 254 201
Non-executive Directors
M H Marx 35 —— — 35 — 35 35
Lady Judge 30 —— — 30 — 30 30
C H B Mills 30 —3 — 33 — 33 32
Total Directors’ emoluments 713 20 65 108 906 37 943 903
Other Key Management’s emoluments 276 31 43 33 383 8 391 382
Total 989 51 108 141 1,289 45 1,334 1,285
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 26). 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 discusses both financial and operational issues.
£49,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2011 (2010: £98,000),
relating to share based payments. 
During the year the Company entered into incentive arrangements with M A Wilmshurst and S D G Thompson providing for contingent cash
bonuses of up to £1,033,835 and £403,096 respectively, subject to continued employment, in the event of a change of control of the Company
prior to 31 December 2014, linked to the price at which any change of control occurred.  These arrangements formed part of a review of strategic
options which has now been completed. No consideration was given for the grant of these arrangements.
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 22.
None of the Directors (2010: 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
2011 2011
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 65,348
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 (2010: 13,773,214 shares). 15
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Report of the Independent Auditor
to the members of Nationwide Accident Repair Services plc
We have audited the financial statements of Nationwide Accident Repair Services plc for the year ended 31 December 2011 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 2011 and 
of the group's loss for the year then ended;  
• the Group financial statements have been properly prepared in accordance with IFRS as adopted by the European Union; 
•
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; and
• 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
30 March 2012 16
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Consolidated Statement of Comprehensive Income 
for the year ended 31 December 2011
2011 2010
Notes £’000 £’000
Revenue 4 172,937 172,251
Cost of sales (94,080) (90,901)
Gross profit 78,857 81,350
Distribution costs (45,461) (46,492)
Administrative expenses (28,131) (28,335)
Share option charge (49) (98)
Operating profit before non-recurring items 5,216 6,425
Non-recurring items - administrative costs 5 (8,093) (5)
Operating (loss)/profit 6 (2,877) 6,420
Finance income 8 289 5 
Finance costs 8 — (391)
(Loss)/profit before tax (2,588) 6,034
Income tax credit/(expense) 9 206 (1,550)
(Loss)/profit for the period (2,382) 4,484
Other comprehensive income — —
Total comprehensive income for the period (2,382) 4,484
Attributable to:
Equity holders of the parent (2,382) 4,484
Earnings per share 
Basic 10 (5.5p) 10.4p
Diluted 10 (5.5p) 10.4p
The accompanying notes form an integral part of these financial statements.  17
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Consolidated Statement of Financial Position
as at 31 December 2011
2011 2010
Notes £’000 £’000
Assets
Non-current assets
Goodwill 11 6,266 7,768
Property, plant and equipment 13 11,353 12,066
Pension assets 15 11,391 9,589
29,010 29,423
Current assets
Inventories 16 2,459 3,148
Trade and other receivables 17 28,113 27,322
Current tax receivable 18 692 —
Cash and cash equivalents 20 7,995 7,459
39,259 37,929
Total assets 68,269 67,352
Liabilities
Non-current liabilities
Long-term provisions 23 2,621 40
Deferred tax liabilities 19 2,525 2,621
5,146 2,661
Current liabilities
Short-term provisions 23 1,353 31
Trade and other payables 24 35,740 33,800
Current tax liabilities 25 — 164
37,093 33,995
Total liabilities 42,239 36,656
Net assets 26,030 30,696
Equity
Equity attributable to the shareholders of the parent
Share capital 22 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Revaluation reserve 8 8
Retained earnings 8,309 12,975
Total equity 26,030 30,696
The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2012. 
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 2011
Company Statement of Financial Position
as at 31 December 2011
2011 2010
Notes £’000 £’000
Assets
Non-current assets
Investments in subsidiary undertakings 12 37,496 37,496
Property, plant and equipment 13 90 174
Pension and other employee assets 15 11,391 9,589
48,977 47,259
Current assets
Trade and other receivables 17 6,035 2,836
Cash and cash equivalents 20 8,957 10,706
14,992 13,542
Total assets 63,969 60,801
Liabilities
Non-current liabilities
Deferred tax liabilities 19 2,817 2,330
Current liabilities
Trade and other payables 24 29,015 27,872
Current tax payable 25 469 353
Total liabilities 32,301 30,555
Net assets 31,668 30,246
Equity
Share capital 22 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Retained earnings 13,955 12,533
Total equity 31,668 30,246
The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2012. 
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 19
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Consolidated Statement of Changes in Equity
for the year ended 31 December 2011
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2010 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
Share option charge — — — — 49 49
Dividend paid (see note 10) — — — — (2,333) (2,333)
Transactions with owners —— — — (2,284) (2,284)
Loss for the year — — — — (2,382) (2,382)
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — (2,382) (2,382)
Balance at 31 December 2011 5,400 1,209 11,104 8 8,309 26,030
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2010 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 subsidiary (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
Share option charge — — — — 49 49
Dividend paid (see note 10) — — — — (2,333) (2,333)
Transactions with owners —— — — (2,284) (2,284)
Profit for the year — — — — 3,706 3,706
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 3,706 3,706
Balance at 31 December 2011 5,400 1,209 11,104 — 13,955 31,668
The accompanying notes form an integral part of these financial statements.  20
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Consolidated Cash Flow Statement 
for the year ended 31 December 2011
2011 2010
£’000 £’000
Operating Activities
(Loss)/profit for the year (2,382) 4,484
Adjustments to arrive at operating cash flow:
Net finance income — (5)
Depreciation 2,380 2,144
Goodwill written off on sites (non-recurring item) 1,502 —
Loss/(Profit) on sale of property, plant and equipment (incl. non-recurring items) 410 (820)
Taxation recognised in profit or loss (206) 1,550
Changes in inventories 689 (831)
Changes in trade and other receivables (791) (3,862)
Changes in trade and other payables 1,940 4,230
Changes in provisions 3,903 37
Movement in pension fund asset - IAS 19 798 1,661
Share option scheme charge 49 98
Outflow from pension obligations (2,600) (2,600)
Outflow from provisions — (83)
Net cash flow from operating activities 5,692 6,003
Tax paid (746) (1,187)
4,946 4,816
Investing activities
Additions to property, plant and equipment (2,396) (4,325)
Proceeds from the disposal of property, plant and equipment 319 897
Interest received — 5
(2,077) (3,423)
Financing activities
Dividend paid (2,333) (2,203)
(2,333) (2,203)
Net increase/(decrease) in cash and cash equivalents 536 (810)
Cash and cash equivalents at beginning of year 7,459 8,269
Cash and cash equivalents at end of year 7,995 7,459
The accompanying notes form an integral part of these financial statements. 21
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Company Cash Flow Statement 
for the year ended 31 December 2011
2011 2010
£’000 £’000
Operating Activities
Profit for the year 3,706 4,116
Adjustments to arive at operating cash flow:
Net finance cost/(income) 84 (37)
Depreciation 74 97
(Loss)/profit on sale of property, plant and equipment (41) 1
Taxation recognised in profit or loss 1,345 1,101
Changes in trade and other receivables (3,199) (178)
Changes in trade and other payables 1,143 (3,953)
Movement in pension fund asset - IAS 19 798 1,661
Share option scheme charge 49 98
Outflow from pension obligations (2,600) (2,600)
Net cash flow from operating activities 1,359 306
Tax paid (742) (770)
617 (464)
Investing activities
Additions to property, plant and equipment — (133)
Proceeds from the disposal of property, plant and equipment 51 54
Dividend received from subsidiary — 1,764
Interest (paid)/received (84) 37
(33) 1,722
Financing activities
Dividend paid (2,333) (2,203)
(2,333) (2,203)
Net decrease in cash and cash equivalents (1,749) (945)
Cash and cash equivalents at beginning of year 10,706 11,651 
Cash and cash equivalents at end of year 8,957 10,706
The accompanying notes form an integral part of these financial statements. 22
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts 
for the year ended 31 December 2011
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. The measurement basis for individual items has been noted in the accounting policies below.
3. Summary of accounting policies
Basis of preparation
Estimates and assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the
application of the Group’s accounting policies, reported amounts of assets, liabilities, income and expenses, and disclosures made. They are assessed
on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable
under the circumstances. 
Critical judgements 
The judgements made which, in the opinion of the Directors, are critical in drawing up the financial statements are as follows:
Goodwill: The carrying amount of goodwill (note 11) is based on the Directors’ best estimate taking into account the future and other key sources of
estimation uncertainty at the Statement of Financial Position date.
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 assets have arisen on acquisitions. Management estimates the useful lives of property, plant and equipment to be
within 2 to 10 years. These are common life expectancies applied in the industry in which the Group operates. Changes in the expected level of
usage and technological development could impact the economic useful lives and the residual values of these assets, therefore future depreciation
charges could be revised.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date are discussed
below. These are included for completeness, although it is the Directors’ view that none of these have significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.
Onerous leases: Consideration has been given to the liabilities over the remaining life of leases in respect of closed sites where there are empty
properties and the probability of sub-letting these properties (note 23). Future strip out and dilapidations costs have been estimated and provided for
where necessary. These judgements are areas where there are areas of estimation uncertainty.
Impairment Loss of Trade and Other Receivables: The Group’s policy for doubtful receivables is based on the on-going evaluation of the collectability
and ageing analysis of the trade and other receivables and on management’s judgements. Considerable judgement is required in assessing the
ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each debtor. If the financial
conditions of the Group’s receivables were to deteriorate, resulting in an impairment of their ability to make payments, additional impairment loss of
trade and other receivables may be required. The carrying amounts of these assets are shown in note 17.
Pension Assumptions: The present value of the defined benefit obligation (DBO) at the balance sheet 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 recognition of an asset in respect of the defined benefit pension scheme is in accordance with the corridor approach and is a
judgement regarding the application of the accounting policy adopted by the Group.
Basis of preparation
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 2015) 
- IFRS 10 Consolidated Financial Statements (effective 1 January 2013)
- IFRS 11 Joint Arrangements (effective 1 January 2013)
- IFRS 13 Fair Value Measurement (effective 1 January 2013)
- IAS 19 Employee Benefits (Revised June 2011) (effective 1 January 2013)
- IAS 27 (Revised), Separate Financial Statements (effective 1 January 2013)
- 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)
- Presentation of Items of Other Comprehensive Income - Amendments to IAS 1 (effective 1 July 2012)
- Disclosures - Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7 (effective 1 January 2013)
- Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 (effective 1 January 2014)
- Mandatory Effective Date and Transition Disclosures - Amendments to IFRS 9 and IFRS 7 (effective 1 January 2015)
The Standards and Interpretations are not expected to have any significant impact on the Group’s financial statements in their periods of initial application,
except for the implementation of IAS 19 Employee Benefits. This will mean that the Group will no longer be able to adopt the “corridor” approach and so
all actuarial gains and losses will be recognised in the period in which they arise. The Group’s management has yet to assess the impact of this revised
standard on the Group’s consolidated financial statements. 
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 £3,706,000 (2010: £4,116,000). 23
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
3. Summary of accounting policies continued
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 29 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.
The Company has considerable financial resources including a significantly positive cash balance, together with long-term contracts with a number of
key blue chip insurance customers and suppliers across different geographic areas and industries. 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 acquisition method. This involves the recognition 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.
Income and expense recognition
Revenue for Nationwide Crash Repair Centres Limited is recognised as the service is performed. 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 statement
of comprehensive income upon utilisation of the service. Interest income and expenditure are reported on an accruals basis. Mobile Vehicle Repairs
Limited recognises revenue as the service is performed.
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 the excess of the fair value of the consideration transferred over the fair value of the
Group’s share of identifiable net assets acquired less accumulated impairment losses. Goodwill on closed sites has been impaired on a site-specific
basis, by assessing the proportion of work provision which cannot be transferred to an alternative site. When work cannot be transferred, that
proportion of goodwill has been impaired accordingly.
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. 24
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
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 share options 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 profit or loss. 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. Tax
relating to items recognised in other comprehensive income is recognised in other comprehensive income.
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 that are readily convertible to known amounts of cash which are subject to an insignificant risk of changes in value.
Financial assets
Trade receivables and cash and cash equivalents are loans and receivables and initial recognition is at fair value, with subsequent measurement being
at amortised cost using the effective interest rate method, as reduced by appropriate allowances for estimated irrecoverable amounts.
Equity
Share capital is determined using the nominal value of shares that have been issued.
Share premium includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are
deducted from share premium, net of any related income tax benefits.
The revaluation reserve comprises gains and losses due to the 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.
3. Summary of accounting policies continued
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.
Sites which were closed in the year were subject to a review of the transferability of work to an alternative site. An adjustment was made to impair
the goodwill where it was considered that a proportion of work could not be transferred within the Group.
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. 25
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
3. Summary of accounting policies continued
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 profit or
loss 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 22. 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 balance sheet date less the fair value of the plan assets, together with adjustments for unrecognised actuarial gains or losses
and past service costs. The DBO is calculated annually by independent actuaries using the projected unit credit method. The present value of the DBO
is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the
currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are not recognised as an expense unless the total unrecognised gain or loss exceeds 10% of the greater of the obligation
and related plan assets. The amount exceeding this 10% is charged or credited to profit or loss over the employees’ expected average remaining
working lives. Actuarial gains and losses within the 10% corridor are disclosed separately. Past service costs are recognised immediately in profit or
loss, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period).
In this case, the past service costs are amortised on a straight line basis over the vesting period.
The contributions recognised in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognised if
underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short-term nature.
Financial liabilities
The Group’s financial liabilities include bank 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 profit or loss, 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.
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. 26
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
4. Segment Analysis
The chief operating decision maker, as defined by IFRS 8, has been identified as the Board of Directors of Nationwide Accident Repair Services plc.
The information reported below is consistent with the reports regularly provided to the Board of Directors. The Group operates three main operating
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.
Intra-group transactions with Network Services are accounted for including VAT, as the segment is within a separate VAT group. All intra-group
transactions are invoiced or recharged at cost.
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 2011 £’000 £’000 £’000 £’000
Revenue from external customers 150,744 15,791 6,402 172,937
Inter-segment revenues — 21,801 1,823 23,624
Total revenues 150,744 37,592 8,225 196,561
Depreciation 2,058 133 189 2,380
Non-recurring items 8,093 —— 8,093
(Loss)/Profit before tax (2,537) 206 (257) (2,588)
Total assets 58,926 6,657 2,686 68,269
Additions to non-current assets 2,236 — 160 2,396
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
Depreciation 1,898 52 194 2,144
Non-recurring items 5— — 5
Profit/(Loss) before tax 6,693 311 (970) 6,034
Total assets 59,815 5,776 1,761 67,352
Additions to non-current assets 4,120 39 770 4,929
Major Customers
During the year there were two customers (2010-three) who each accounted for more than 10% of the Group’s revenues as follows.
2011 2010
Sales £’000 % of total Sales £’000 % of total
Customer 1 44,585 25.7% 41,214 23.9%
Customer 2 22,002 12.7% 23,224 13.5%
Customer 3 —— 20,529 11.9%
66,587 38.4% 84,967 49.3%
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. 27
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
5. Non-Recurring Items - administrative costs
2011 2010
£’000 £’000
Profit on assets destroyed in fire — 845
Redundancy costs (996) (337)
Site closure costs (5,595) (513)
Goodwill impaired relating to closed sites (1,274) —
Goodwill impaired relating to current site (228) —
(8,093) (5)
Eight sites were closed in December 2011 and one site in June 2011. The redundancy costs relate to amounts paid in 2011 in relation to these
closures as well as costs in relation to the centralisation of the Group’s finance and administration staff in Bristol. The site closure costs include £471k
of asset loss on disposals and impairments, operating losses since the date of the closure announcement of £800k and provisions made for future
rental commitments, dilapidations and closure costs of £4.3m. The future rental commitments have been subject to a discounted cash flow
calculation using a rate of 5%.
Goodwill relating to the closed sites was impaired in 2011 by £1,274k. In addition, following an assessment of the work provision at the Gravesend
site, which was acquired in February 2008, the goodwill was impaired by the full carrying amount of £228k.
In 2009, the Company suffered two fires at its sites in Manchester (August 09) and Norwich (September 09). The Group’s insurers accepted liability.
Both claims were fully settled in 2010, 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.
6. Operating (loss)/profit
Operating (loss)/profit is stated after charging/(crediting):
2011 2010
£’000 £’000
Depreciation 2,380 2,144
Operating lease rentals:
Land and buildings 6,478 6,463
Courtesy cars 5,207 5,580
Plant and machinery 151 197
Auditor’s remuneration:
Audit services 5 5
Non Audit services:   
Audit of subsidiary companies pursuant to legislation 85 95
Other services relating to tax and IFRS assistance 3 9
Profit/(Loss) on disposal of property, plant and equipment (non-recurring) 61 (25)
Bad debt expense 159 178
7. Employee remuneration
The aggregate payroll costs of the Group’s employees are analysed as follows:
2011 2010
£’000 £’000
Wages and salaries 50,572 48,429
Social security costs 4,800 4,753
Other pension costs (contributions paid) 2,822 2,864
58,194 56,046
The amount of pension contributions paid to defined contribution scheme 222 264
The average number of employees during the year was made up as follows:
Number Number
Motor accident repair operations 1,982 2,095
Accident claim management operations 99 99
Central and other 65 28
2,146 2,222
The remuneration of the Directors and Key Management is disclosed in the Remuneration Report on page 14. There is no compensation relating
solely to the parent company. 28
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
8. Finance income and finance costs
2011 2010
£’000 £’000
Finance income
Interest receivable on bank balances — (5)
Pension costs (see note 15):
Interest on obligation 4,031 —
Expected return on assets (4,320) —
(289) (5)
Finance costs
Pension costs (see note 15):
Interest on obligation — 4,331
Expected return on assets — (3,940)
— 391
9. Tax (credit)/expense
2011 2010
£’000 £’000
Current tax:
United Kingdom corporation tax at 26.5% (2010: 28%) (102) 1,140
United Kingdom corporation tax at 21% (2010: 21%) — (12)
Adjustments in respect of prior years (8) (87)
(110) 1,041
Deferred tax:
Movement relating to pension asset (IAS 19) 259 167
Temporary differences origination and reversal 32 362
Losses carried forward (589) —
On share options 202 (20)
(206) 1,550
The tax assessed for the period is lower (2010: lower) than the effective rate of corporation tax in the UK of 26.5% (2010: 28%). The differences are
explained as follows:
2011 2010
£’000 £’000
(Loss)/Profit for the year before tax (2,588) 6,034
(Loss)/Profit on ordinary activities before tax multiplied by effective rate of UK corporation tax of 26.5% (2010: 28%) (686) 1,689
Effect of: Adjustments in respect of prior years (8) (87)
Re-measurement of deferred tax – change in UK tax rate (228) (97)
Marginal rate adjustment — (4)
Deferred tax on share options written off 202 —
Items not deductible for tax purposes 302 26
Differences between capital allowances and depreciation 212 23
Total tax (credit)/charge for the year (206) 1,550
Future Tax Rate Changes
On 21 March 2012, the Chancellor announced a reduction in the main rate of corporation tax to 24% with effect from 1 April 2012.
The Chancellor also proposed changes to further reduce the main rate of corporation tax to 22% by 1 April 2014, but these changes have not yet been
substantively enacted. It has not yet been possible to quantify the full anticipated effect of this further 2% rate reduction, although this will further
reduce the Group’s future current tax charge and reduce the Group’s deferred tax assets and liabilities accordingly. 29
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
10. Earnings per share and dividends
Basic earnings per share
Basic earnings per share has been calculated using the net loss attributable to the shareholders of the Company of £2,382,000 (2010: £4,484,000
profit). The weighted average number of outstanding shares used for basic earnings per share amounted to 43,197,220 (2010: 43,197,220).
Diluted earnings per share
Diluted earnings per share has been calculated using the net loss attributable to the shareholders of the Company of £2,382,000 (2010: £4,484,000
profit). The weighted average number of outstanding shares used for diluted earnings per share amounted to 43,197,220 (2010: 43,197,220).
In the current year due to the average market price of £0.92, the share options are not included in the dilutive earnings per share calculation. In 2010,
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:   
2011 2010
£’000 £’000
(Loss)/Profit before tax (as stated) (2,588) 6,034
Non-recurring items (note 5) 8,093 5
5,505 6,039
Tax credit/(expense) (as stated) 206 (1,550)
Tax effect on non-recurring items (1,747) (1)
3,964 4,488
Adjusted earnings per share 9.2p 10.4p
Dividends
Group
During 2011, the Group paid dividends of £2,333,000 (2010: £2,203,000) to its equity shareholders. 
These comprised:
– a final dividend in respect of 2010 of 3.5p per share paid in June 2011 (£1,512,000); and
– an interim dividend in respect of 2011 of 1.9p per share paid in November 2011 (£821,000).
The Board is proposing a final dividend in respect of the results for the year ended 31 December 2011 of 3.6p per share.
Company
During 2011 the Company received a dividend of £Nil (2010: £1,764,000) from Nationwide Crash Repair Centres (Staff) Limited.
11. Goodwill
Group
2011 2010
£’000 £’000
Cost or valuation:
1 January and 31 December 7,828 7,828
Accumulated Impairment
1 January 60 60
Impairment in the year 1,502 —
31 December 1,562 60
Net book value at 31 December 6,266 7,768
Net book value comprises:
Business of Gemini Accident Repair Centres acquired in July 2005 3,719 4,648
Business of Aquilo Motor Services acquired in December 2006 1,481 1,481
Businesses acquired in 2007 543 888
Businesses acquired in 2008 523 751
6,266 7,768 30
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
11. Goodwill continued
Aquisition Goodwill
Date impairment
Site £’000
Gemini Accident Repair Centres (Stourport, Stratford and Wednesbury) 2005 930
Llandudno 2007 221
Lincoln 2007 77
Matlock 2007 46
Gravesend 2008 228
Impairment in the year 1,502
No goodwill arose on the business acquired in 2010, the Newcastle Central bodyshop. 
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. Management have applied the same assumptions regarding a discount rate of 10% and a
growth rate of 2.5%, as all sites are based in the UK and are similar businesses within the same operating segment. It is not practical to predict cash
flows beyond a useful economic life of ten years. 
In November 2011, the Group took decisive action to rebalance the cost base in view of economic conditions.  This decision did not affect the overall
operational capacity of the Group, as work was re-directed to alternative sites. The decision to close sites in December 2011 involved a detailed
impairment review.
Business of Gemini Accident Repair Centres
The carrying amount of goodwill is allocated to the cash-generating units acquired. Each site is considered to be a cash-generating unit. 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. 
In December 2011, three sites were closed in Stourport, Stratford and Wednesbury. Management estimated the work that could be transferred to
alternative sites and the goodwill was re-allocated to these sites. Impairment reviews were completed on the revised cash-generating units, which
indicated that impairment to the goodwill of £930,000 was required.
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 sites 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 08), Redruth (April 08), Kettering (October 08) and Perth
(November 08). 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 impairment assessment completed during the year of the goodwill attributed to the Gravesend site indicated that the goodwill was impaired. An
impairment loss of £228,000 has therefore been recognised.
Businesses acquired in 2007
During 2007 the trade and assets of four bodyshop businesses were acquired in Llandudno (January 07), Lincoln (March 07), Matlock (October 07)
and Hull (November 07). The 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.
In December 2011, three sites were closed in Llandudno, Lincoln and Matlock. Management estimated the work that could be transferred to
alternative sites and the goodwill was re-allocated to these sites. Impairment reviews were completed on the revised cash generating units, which
indicated that impairment to the goodwill of £344,000 was required, being Llandudno (£221,000), Lincoln (£77,000) and Matlock (£46,000). 31
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
12. Investments in subsidiary undertakings
Company
2011 2010
£’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%
Mobile Restore Limited England and Wales 100%
Voyager Systems (UK) Limited England and Wales 100%
Perrys Estate Agencies Limited England and Wales 100%
Perrylease Limited England and Wales 100%
International Motor Parts Limited England and Wales 100%
Gemini Accident Repair Centres Limited England and Wales 100%
Nationwide Crash Repair Services Limited England and Wales 100%
Nationwide Crash Repairs Limited England and Wales 100%
Nationwide Motor Glass Limited England and Wales 100%
Motor Glass Limited England and Wales 100%
Mobile Solutions (Nationwide) Limited England and Wales 100%
Nationwide Accident Repair Centres Limited England and Wales 100%
Accident Repair Services Limited England and Wales 100%
Nationwide Fast Fit Plus Limited England and Wales 100%
All shareholdings are classified as direct. 32
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
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 2011 643 6,923 — 25,809 33,375
Additions — 1,228 — 1,168 2,396
Disposals —  (585) — (3,328) (3,913)
31 December 2011 643 7,566 — 23,649 31,858
Accumulated depreciation:
1 January 2011 — 2,605 — 18,704 21,309
Disposals — (121) — (3,063) (3,184)
Charge for the year — 542 — 1,838 2,380
31 December 2011 — 3,026 — 17,479 20,505
Net book value at 31 December 2011 643 4,540 — 6,170 11,353
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
The net book value of land and buildings comprises: Short
Leasehold
Total Freehold improvements
£’000 £’000 £’000
Group as at 31 December 2011 5,183 879 4,304
Group as at 31 December 2010 4,961 879 4,082
Motor vehicles
2011 2010
Company £’000 £’000
Cost
1 January 643 617
Additions — 133
Disposals (276) (107)
31 December 367 643
Accumulated depreciation:
1 January 469 424
Charge for the year 74 97
Disposals (266) (52)
31 December 277 469
Net book value at 31 December 90 174 33
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
14. Leases
The total of future minimum lease commitments in respect of non-cancellable operating leases as at 31 December are as follows:
2011 2010
Group £’000 £’000
Land and buildings leases payments falling due:
Within one year 5,608 5,913
Two – five years inclusive 21,064 21,949
More than five years 17,582 23,929
44,254 51,791
Other leases payments falling due:
Within one year 3,250 3,410
Two – five years inclusive 633 1,716
More than five years — —
3,883 5,126
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 £728,000 (2010: £1,019,000).
2011 2010
Company £’000 £’000
Land and buildings leases payments falling due:
Within one year 30 30
Two – five years inclusive 30 60
60 90
Other leases payments falling due:
Within one year 11 11
Two - five years inclusive 11 23
22 34
There are no other significant leasing arrangements, such as contingent rents, renewal or escalation clauses or any other restrictions imposed by
leasing arrangements.
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 2012 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 15
years (2010: 17 years). 
A full actuarial valuation of the scheme was carried out as at 31 December 2011 by a qualified independent actuary. The major assumptions used by
the actuary were (in nominal terms) as follows:
2011 2010 2009 2008
IAS 19 % % %%
Discount rate 4.8 5.6 6.0 6.5
Rate of increase to pensions in payment 3.0 3.0 3.0 3.0
RPI rate of inflation 2.8 3.3 3.5 2.7
CPI rate of inflation 2.1 2.6 n/a n/a 
Assumed life expectancies on retirement at age 65 are:
31 Dec 2011 31 Dec 2010
Current Current
Pensioners Pensioners
Retiring today: Males 21.2 21.1
Females 23.8 23.7
31 Dec 2011 31 Dec 2010
Future Future
Pensioners Pensioners
Retiring today: Males 20.9 20.8
Females 23.5 23.4
Retiring in 20 years time: Males 22.8 22.7
Females 25.4 25.3 34
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
15. Pension and other employee assets/obligations continued
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:
2011 2010 2009 2008
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 8.7% 37,563 8.5% 39,723 9.2% 33,940 9.6% 26,575 
Bonds 3.9% 13,093 4.9% 13,220 5.2% 12,776 5.2% 9,668
Property 8.7% 4,704 8.5% 4,570 9.2% 4,212 9.6% 4,378 
Other 2.9% 1,796 3.9% 1,793 4.2% 2,012 4.2% 3,047 
Total market value of assets 57,156 59,306 52,940 43,668
Present value of defined  
obligations (funded plans) (83,251) (73,366) (73,195) (60,131)
Present value of 
unfunded obligations (26,095) (14,060) (20,255) (16,463)
Unrecognised actuarial losses 37,486 23,649 28,904 24,082
Net asset in balance sheet 11,391 9,589 8,649 7,619
Actual return on assets in period (1,967) 5,781 8,752 (11,783)
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
2011 2010 2009 2008
£’000 £’000 £’000 £’000
Benefit obligation at beginning of year 73,366 73,195 60,131 65,040
Interest cost 4,031 4,331 3,842 3,911
Contributions by scheme members — —— — 
Actuarial loss/(gain) 8,637 (2,145) 11,284 (6,983)
Benefits paid (2,783) (2,015) (2,062) (1,837)
Balance at end of year 83,251 73,366 73,195 60,131
Reconciliation of opening and closing balances of the fair value of plan assets
2011 2010 2009 2008
£’000 £’000 £’000 £’000
Fair value of scheme assets at beginning of year 59,306 52,940 43,668 54,733
Expected return on scheme assets 4,320 3,940 3,352 4,236
Actuarial (loss)/gain (6,287) 1,841 5,400 (16,019)
Contributions by employers 2,600 2,600 2,582 2,555
Contributions by scheme members — —— —
Benefits paid (2,783) (2,015) (2,062) (1,837)
Asset at end of year 57,156 59,306 52,940 43,668
The amounts recognised in the statement of comprehensive income are:
2011 2010
£’000 £’000
Current service cost — —
Interest on obligation 4,031 4,331 
Expected return on assets (4,320) (3,940) 
Curtailments and settlements — —
Actuarial loss recognised in year 1,087 1,270 
798 1,661 
Charged to:
Administration expenses 1,087 1,270
Finance (income)/costs (289) 391
798 1,661  35
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
15. Pension and other employee assets/obligations continued
History of scheme assets, obligations and experience adjustments
2011 2010 2009 2008 2007
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations (83,251) (73,366) (73,195) (60,131) (65,040)
Fair value of scheme assets 57,156 59,306 52,940 43,668 54,733
Deficit in scheme (26,095) (14,060) (20,255) (16,463) (10,307)
Experience adjustments arising on scheme liabilities 8,637 (2,145) 11,284 (6,983) (8,042)
Experience item as a % of scheme liabilities 10% (3%) 15% (12%) (12%)
Experience adjustments arising on scheme assets (6,287) 1,841 5,400 (16,019) (207)
Experience item as a % of scheme assets (11%) 3% 10% (37%) 0%
16. Inventories
Group
2011 2010
£’000 £’000
Consumables 2,459 3,148
In 2011 total purchases of £43,736,000 of inventories were included in the statement of comprehensive income as an expense (2010: £45,643,000). 
There were no write downs of inventories (2010: £nil).
17. Trade and other receivables
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Trade receivables 820 559 16,167 22,065 
Provision for credit losses — — (200) (294)
Other receivables 235 137 — —
Amounts owed by subsidiary undertakings 3,287 1,199 — —
Prepayments and accrued income 1,693 941  12,146 5,551
6,035 2,836 28,113 27,322 
The Directors consider that the carrying amount of trade and other receivables approximates to their fair values.
Financial Assets can be analysed as follows:
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Within terms 604 401 11,167 18,314
Overdue by 30 days 216 156 2,015 2,729
Overdue by 60 days — 1 882 690
Overdue by 90 days — 1 588 26
Overdue by more than 120 days — — 1,515 306
820 559 16,167 22,065
Management considers that the value of debts within terms are not impaired. (2010: £nil)
Company Group
2011 2010 2011 2010
Receivables past due but not impaired £’000 £’000 £’000 £’000
Overdue by 30 days — — 2,015 2,729
Overdue by 60 days — — 882 690
Overdue by 90 days — — 588 26
Overdue by more than 120 days — — 1,315 12
— — 4,800 3,457
Company Group
2011 2010 2011 2010
Impaired receivables £’000 £’000 £’000 £’000
Within terms — — — —
Overdue by 30 days — — — —
Overdue by 60 days — — — —
Overdue by 90 days — — — —
Overdue by more than 120 days — — 200 294
— — 200 294 36
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
17. Trade and other receivables continued
2011 2010 2011 2010
Provision for credit losses £’000 £’000 £’000 £’000
At 1 January — — 294 226
Amounts written off — — (253) (42)
Impairment loss — — 159 110
At 31 December — — 200 294
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. Current tax receivable
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Current tax assets — — 692 —
19. Deferred tax assets and liabilities
2011 2010
Group £’000 £’000
Accelerated capital allowances 122 136
Pension fund asset (2,848) (2,589)
Goodwill (389) (371)
Share Options — 203
Losses 590 —
Liability (2,525) (2,621)
Balance brought forward (2,621) (2,112)
Charge for the year 96 (509)
Balance carried forward (2,525) (2,621)
Company
Accelerated capital allowances 31 54 
Pension fund asset (2,848) (2,589) 
Short-term temporary differences — 205
Liability (2,817) (2,330) 
The Group and Company have capital losses available to be carried forward and offset against future capital gains of £4.1 million (2010: £4.1
million) for which no deferred tax asset has been recognised.
20. 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 £11m 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
November 2013.
21. Financial instruments
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Loans and receivables
Trade receivables 820 559 16,167 22,065
Other receivables 235 137 — —
Amounts owed by subsidiary undertakings 3,287 1,199 — —
Prepayments and accrued income 1,693 941 12,146 5,551
Cash and cash equivalents 8,957 10,706 7,995 7,459
14,992 13,542 36,308 35,075
Financial Liabilities
Trade payables 973 2,226 20,178 21,144
Accruals 1,336 2,448 11,702 10,353
Amounts owed to subsidiary undertakings 26,910 23,029 — —
29,219 27,703 31,880 31,497 37
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
22. Equity
Share capital
2011 2010
Shares £’000 Shares £’000
Authorised
Ordinary shares of 12.5p (2010: 12.5p) each 64,000,000 8,000 64,000,000 8,000
Issued and fully paid
Ordinary shares of 12.5p (2010: 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 Number Exercise Exercise
of share options of share options price period
Group 2011 2010
M A Wilmshurst Approved 25,751 25,751 £1.165 2009–16
Unapproved 1,096,055 2,217,860 £1.11 2009–16
D J Loftus Approved 25,751 25,751 £1.165 2009–16
Unapproved 535,150 1,096,055 £1.11 2009–16
S D G Thompson Approved 25,751 25,751 £1.165 2009–16
Unapproved 422,973 871,693 £1.11 2009–16
2,131,431 4,262,861
All the above options were issued on 4 July 2006 and no additional share options have been granted since this date.
2,131,430 TSR options lapsed in 2011.
In total, £49,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2011 (2010:
£98,000). 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.
23. Provisions
Onerous
Lease Restructuring Total
Provision Provision Provisions
Group £’000 £’000 £’000
At 1 January 2011 71 — 71
Charged to the statement of comprehensive income to administrative expenses    2,662 1,312 3,974
Utilised (71) — (71)
At 31 December 2011 2,662 1,312 3,974
Current liability 534 819 1,353
Non-current liability 2,128 493 2,621
2,662 1,312 3,974
The Group closed eight properties in December 2011 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. It is not considered that there will be any possibility of sub-letting
these properties, the potential outflows of which will occur in the period to December 2023.
24. Trade and other payables
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Trade payables 973 2,226 20,178 21,144
Amounts owed to subsidiary undertakings 26,910 23,029 — —
Taxes and social security costs 267 169  3,860 2,303 
Accruals 865 2,448  11,702 10,353 
29,015 27,872  35,740 33,800 
The Directors consider that the carrying amount of financial liabilities approximates to their fair values. 38
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
25. Current tax liabilities
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Current tax liabilities 469 353 — 164
26. Related party transactions
Group and Company
The Group paid £323,400 to Troy Customer Research Limited in the year for management and consultancy services (2010: £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 £204,660 (2010: £200,927) in relation to the
provision of office facilities, customer satisfaction surveys and training services. The amount outstanding at the year end was £44,222 (2010: £56,980). 
The outstanding amount in 2011 was payable within 30 days of the invoice date in cash.
Balances with subsidiaries
Balance Balance
as at as at
31 December 31 December
2011 2010
£’000 £’000
Nationwide Crash Repair Centres Limited 6,296 413
Network Services (Nationwide) Limited (1,205) (1,444)
Mobile Vehicle Repairs Limited 1,502 786
Nationwide Fast Fit Plus Limited (18,305) (18,192)
Other non-trading subsidiaries (11,911) (3,393)
(23,623) (21,830)
During the year, the Company recharged various costs incurred to its subsidiaries including a £3.5m management charge to Nationwide Crash Repair
Centres Limited (2010: £3.5m). The above balances are all repayable on demand. The Company was also charged interest of £225,000 (2010:
£235,000) on an intercompany loan with a subsidiary Nationwide Fast Fit Plus Limited. The interest was calculated using the average base rate plus
1% throughout the year.
The directors received dividends as follows. Further details of the dividend payments are provided within note 10 to the financial statements.
Dividend Paid
2011 2010
Executive Directors
M A Wilmshurst 72,973 68,919
D J Loftus 2,919 2,757
Non-executive Directors
M H Marx 1,620 1,530
Lady Judge 3,529 3,333
C H B Mills * 743,754 702,434
* 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 .
27. 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 balance sheet date management’s assessment of the value of contingent assets and liabilities was £nil
(2010: £nil) for both the Group and the Company. 39
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Notes to the Accounts continued
for the year ended 31 December 2011
28. 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. Risk management procedures have been established,
involving the identification and monitoring of strategic and operational risks at various levels of management. It is not, however, possible to fully mitigate all
risks that the Group encounters. 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 are exposed to are described below:
i) Credit risk
The Group trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that the
Group’s exposure to bad debts is not significant. The Group varies its credit terms with new customers in order to reduce this risk. See note 17. No
single debtor accounts for more than 15% of total receivables balances as at 31 December 2011 and the concentration and creditworthiness of
credit risk is closely monitored throughout the year.
ii) Liquidity risk
The Group’s Finance function is responsible for managing investment and funding requirements including banking and cash flow monitoring. It seeks
to ensure that adequate liquidity exists at all times in order to meet its cash requirements.
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 does not have any financial instruments which would be affected by changes in market prices. It is the view of management that the
Group is not exposed to a material degree of market risk.
29. 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.
Capital is monitored on the basis of the carrying amount of equity as presented on the face of the Statement of Financial Position.
The Group has no debt but does have a revolving credit facility of £11m with HSBC Bank plc. Any borrowings under this facility are guaranteed by a
fixed charge on book debts. As the Group has no borrowings, capital is managed on the basis of optimising its retained earnings by cost control,
enhancing margins and maximising revenue streams.
Company Group
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Cash and cash equivalents 8,957 10,706 7,995 7,459
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 13,955 12,533 8,309 12,975
31,668 30,246 26,030 30,696
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. 40
Nationwide Accident Repair Services plc
Annual Report and Accounts 2011
Financial Calendar 
Preliminary Announcement 2 April 2012
Annual Report publication due 30 April 2012
Annual General Meeting 25 June 2012
2012 Interim Announcement September 2012 Nationwide Accident Repair Services plc
17a Thorney Leys Park
Witney
Oxfordshire OX28 4GE
www.narsplc.com