Annual Report & Accounts 2009 Nationwide provides
automotive crash repair 
and accident administration
services principally to the 
UK insurance industry.
IFC Corporate Statement
1 Highlights
2 Chairman’s Statement 
4 Chief Executive’s Report 
6 Finance Director’s Review
8 Board of Directors
10 Directors & Advisers
11 Directors’ Report
13 Statement of Directors’ Responsibilities
14 Remuneration Report
15 Report of the Independent Auditor
16 Consolidated Statement of Comprehensive Income 
17 Consolidated Statement of Financial Position
18 Company Statement of Financial Position
19 Consolidated Statement of Changes in Equity
20 Consolidated Cash Flow Statement
21 Company Cash Flow Statement
22 Notes to the Accounts
37 Financial Calendar
The business is underpinned
by a strong balance sheet
and good cash flow and,
looking ahead, we are
encouraged by the growth
opportunities available to
Nationwide and view long
term prospects positively”
Michael Marx
Chairman Highlights
� Very creditable performance in challenging 
market conditions
- reduced insurance claims across the industry
- decrease in higher margin, light cosmetic 
repair work as consumers deferred spend
� Revenue of £170.9m (2008: £179.3m) – 
but significant change in sales mix
� Gross profit margin increased to 46.9% 
(2008: 46.5%)
- after strong turnaround in margins in H2 
as benefits of actions implemented in H1 
came through
� Profit before tax before non-recurring items: 
£5.4m (2008: £7.8m)
Profit before tax after non-recurring items: 
£5.1m (2008: £7.1m)
� Earnings per share before non-recurring items:
8.9p (2008: 12.8p)
� Earnings per share after non-recurring items: 
8.4p (2008: 11.6p)
� Strong balance sheet with net cash up 53% at
year end to £8.3m (2008: £5.4m)
� Final dividend of 3.3p per share recommended,
maintaining total for the year at 5.0p 
(2008: 5.0p)
� Continuing penetration of motor 
insurance marketplace 
- major RSA contract extended and new 
name insurance wins 
� New three year growth plan in place – 
supported by £1m investment in 2010
- build non-insurance work, especially in 
Retail and Fleet markets
- launch of ‘mobile restore’ unit, offering light
repairs at customers’ premises
- launch of ‘motorglass’ unit, providing 
specialist glass repair skills
- drive further operational efficiencies
� Board views prospects positively
With a national network of 71 accident repair
centres located across England, Scotland and
Wales employing over 2,300 people, it is the
largest dedicated provider of accident repair
services in the UK. 
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
1 Introduction
Trading conditions in 2009 were some of the
toughest the automotive repair industry has seen
in recent times. Many smaller insurance repairs left
our marketplace as insurance policy excesses rose,
consumers tightened spending and the volume of
insurance claims reduced. Overall, I am pleased to
report that the Group negotiated these challenges
effectively and after a difficult first half, Nationwide’s
performance strengthened in the second half as
the management’s prompt actions took effect.   
Against this backdrop, results for the year are very
creditable and demonstrate the strengths of our
industry-leading business systems and processes,
which have enabled us to manage a volatile work
flow effectively.  
Nationwide’s financial position continues to be
very strong. The Group generates good cash
flows, has no borrowings and at the year end, its
net cash position stood at  £8.3m, substantially
higher than at the same point last year.   
We are pleased to recommend the payment of a
final dividend which maintains the total dividend
for the year at last year’s level.
Financial Results
Revenues for the year ended 31 December 2009
of £170.9m showed a 5% decrease on last year
(2008: £179.3m). This partly reflected the
reduction in insurance claims evident over the
year.  More significantly in terms of profitability,
the sales mix also changed as consumers
responded to the economic downturn and we saw
a marked drop in smaller cosmetic repair work,
which typically offers higher margins.  As we
reported at the half year, this change in the sales 
mix impacted gross margins in the first half,
reducing profitability by some £2.1m.  Following
management actions, I am pleased to report that
gross margins in the second half of the year
recovered strongly, moving from 44.3% in the first
half to 50.0% in the second half.  This six
percentage point improvement represents a very
strong turnaround and meant that the gross
margin for the year improved to 46.9%, from
46.5% in 2008. 
The statutory profit before tax (after non-recurring
items) was £5.1m against £7.1m in 2008.  Of this
£2.0m decline, £1.3m is attributable to an
increase in the IAS19 pension charge, which rose
significantly, from £209,000 in 2008 to £1.553m
in 2009. This higher level of charge is likely to be
maintained in 2010. The profit before tax before
non-recurring items was £5.4m (2008: £7.8m) and
earnings per share before non-recurring items
were 8.9 pence (2008: 12.8 pence).
The Group continues to generate very strong cash
flows and Nationwide’s balance sheet remains
robust, with nil borrowings and net cash of £8.3m
at 31 December 2009, some 53% higher than at
the same point last year (2008: £5.4m). This increase
in the Group’s net cash position reflects our focus
on improving working capital management.
Dividend
The Board is pleased to recommend a final
dividend of 3.3 pence per share (2008: 3.3 pence
per share), which maintains the total dividend for
the year at last year’s level of 5.0 pence per share
(2008: 5.0 pence per share). Subject to
shareholder approval at the Annual General 
Chairman’s Statement
2
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
“...results for the
year are very
creditable and
demonstrate the
strengths of our
industry-leading
business”
Michael Marx
Chairman Meeting on 15 June 2010, the final dividend will
be paid to shareholders on the register at the
close of business on 28 May 2010.
Trading overview
It was a difficult year. The sharp and rapid drop in
smaller repair work was a marked feature in the
first half, with consumers avoiding non-essential
insurance repairs. The volume of repair jobs also
fell year on year, with the work flow harder to
predict than usual on a localised basis. While
trading conditions in the second half of the year
did not ease, there was a clear improvement in
the Group’s profitability as the measures we took
in the first half to protect and restore margins
yielded results.    
A large part of the management’s ability to manage
volatile trading conditions successfully derives from
Nationwide’s national scale and unrivalled operating
systems, which are underpinned by a single IT
platform. Our technology and systems enable us 
to manage our national network of bodyshops, 
call centres and mobile repair fleet in an integrated
manner for commercial and competitive advantage.
We believe that there is scope to drive further
operational efficiencies throughout the business 
and this remains a focus in 2010. 
It is pleasing to report that we were able to grow
our market share over the year, expanding our
relationship with RSA and signing new insurance
customers as well as new fleet customers.  
Our initiative to expand outside the insurance
market into the retail sector (where consumers pay
for vehicle repairs rather than insurers) continued 
to demonstrate good growth over the year. We are
now investing more significantly to develop our
retail sales and as part of this investment, we will be
making appointments to our senior management
team and expanding our mobile repair fleet.
Outlook
We do not expect market conditions in 2010 to
improve materially over last year.  However, as the
UK’s largest dedicated provider of accident repair
services, the group is well-positioned to trade well
and to execute its planned growth. We intend to
invest some £1m in the current financial year, over
and above our normal business development
spend, to support our expansion plans, which
have the objective over the next three years of
broadening Nationwide’s customer base and
developing additional income streams. Alongside
this, we will continue to build our insurance
customer business and to leverage further
operational efficiencies.
The business is underpinned by a strong balance
sheet and good cash flow and, looking ahead, 
we are encouraged by the growth opportunities
available to Nationwide and view long term
prospects positively.
Michael Marx
Chief Executive
22 March 2010
Chairman’s Statement Continued
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
3
Revenue
£170.9m
Profit before tax before 
non-recurring items
£5.4m
Accident Repair Centres
71 Introduction
In a testing year, with reduced insurance claims
and a decrease in higher margin, light-damage
repair work, I am pleased to report that the
business has performed robustly. Nationwide
continues to generate high levels of cash and
profits and our dividends are comfortably
supported by earnings.  
I am especially encouraged by the recovery in 
the Group’s gross margins in the second half of
the year as the actions we took to manage the
downturn delivered the anticipated benefits.
Managing work flow efficiently through our
bodyshops is important in protecting gross
margins and our IT and integrated operations,
which include accident management call centres
and a mobile repair fleet alongside our national
network of bodyshops, are key to this. We aim to
lead our industry in service levels and customer
satisfaction and our focus on internal efficiency
also helps us to do this.  
The overall accident repair market is substantial
and, according to market analysts, generates five
million repair opportunities per year.  This equates
to a market spend in excess of £5 billion. As our
current market share is modest, the opportunity to
increase our market penetration remains exciting.
Currently, our core repair customers are motor
insurers and over the next three years, we aim to
broaden our customer base outside the insurance
marketplace, targeting consumers as well as fleet
operators. At the same time, we will continue to
develop our insurance relationships and to
capitalise on operational efficiencies.
Operations and Customer Relations
The accident repair market is mature and price
sensitive. Operating in such markets requires 
a methodical, measured approach to both
continuous business improvement and to
acquisitions. In 2009, as well as managing the 
downturn, our focus was on business
improvement and integrating previously acquired
sites. The six sites we acquired in 2008,
Scunthorpe, Gravesend, Redruth, Bristol, Kettering
and Perth, demonstrate the enhanced returns that
can be generated by the Nationwide model. In
2008, these sites incurred aggregate losses of
£230,000; by contrast, in 2009, the same sites
cumulatively contributed £273,000 to Group
profits. This process of looking for ‘continuous
improvement in performance’ is a key part of 
our culture and across our network of over 70
bodyshops, we see significant scope to continue
to raise performance levels to the benefit of both
customers and the business.
Our Operational Team focuses on delivering our
customers:-  
� Quality    � Value    � Speed    � Service
Our 2009 Customer Satisfaction Survey, which
contacts approximately 17,000 customers annually,
shows that the overall satisfaction of our customers
has increased to a record 87%, from 85% last year.
The same customers rated the “quality of the
repair” at 93%, reinforcing our confidence that we
deliver in this important area. The integrity of our
vehicle repairs is important to all of our customers
and to support this, in 2009, we took the decision
to implement, where appropriate, the industry’s
recently adopted British Standards Institution
Kitemark Standard (PAS 125). This standard allows
us to verify and demonstrate independently the
integrity of our repairs and equipment, the quality
of components used and the skill and competence
of our team. At the time of writing, out of a total
of 637 approved sites in the UK, 66 are Nationwide
bodyshops, representing some 10% of the total.
Value remains more difficult to quantify.  Insurance
companies are, by nature, price sensitive and our
ability to offer value remains a key factor in our
continued success. The 2009 account renewals 
Chief Executive’s Report
4
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
“...customers rated
the “quality of the
repair” at 93%,
reinforcing our
confidence that 
we deliver in this
important area.”
Michael Wilmshurst
Chief Executive and wins suggest that we continue to offer value
and the recently released average repair cost data
confirms that we remain competitive.
The speed and the efficiency with which we repair
our customers’ vehicles is important to both car
owners who naturally want their vehicle repaired
and returned speedily and to insurers who can
often mitigate claim costs by rapid settlement and
repair. Our “cycle time” (key to key) measures the
time taken to complete a repair, from the day we
receive a vehicle on site to the day it is returned to
the customer. In 2009, this cycle time increased
marginally, from 12.5 days in 2008 to 12.7 days.
This increase is partially attributable to the slightly
larger types of repair we carried out in the period
but remains an area we can further improve.  
We believe that our planned expansion of our
currently small Mobile Restore operation (enabling
off-site repairs at customers’ premises), will assist
in the achievement of this objective, as will the
planned operational improvements at our sites.  
Offering a high level of customer service remains
at the heart of our offer and a key focus for us all.
The average satisfaction level confirms that we
continue to improve in this area. It remains our
objective to be a trusted and reliable provider of
automotive related services whether it be to
insurers, fleet operators or retail consumers.  
2009 also saw the continued development of our
Fast Fit+ offer, which provides MOTs and other “bolt
on” services, such as exhausts and tyres. Currently,
Fast Fit+ is being offered on a pilot basis at two of
our sites, at Kettering and Leicester. The move has
given us significant market knowledge and it
remains a potential area for further expansion.
Our national network of 71 wholly-owned
operational sites, linked by a single IT platform,
offers us unique capability in a highly fragmented
marketplace. This industry leading capability 
continues to prove attractive to existing and new
customers. As a result, 2009 saw the renewal and
expansion of our relationship with RSA as well as
new contracts with Equity Light Commercial
Vehicles, Broker Direct, Newline Insurance and BSM.
Network Services
Network Services provides our national network of
sites with important support. Key to this support is
its accident management service, which captures
new repair business for us and, critically, also enables
us to deploy repair work across our bodyshops in an
efficient manner. Our ability to direct work flow into
our national branch network continues to offer us
considerable market advantage.
Network Services also manages our Mobile Restore
and Mobile Solutions operations. Mobile Restore
currently operates a small fleet of vans which are
able to complete certain kinds of repair work ‘off-
site’ at customers’ premises or other preferred
locations. Typically this repair work comprises light
cosmetic damage, such as scratches, dents and
scuffs. We have now finalised our three year growth
plans for this business and will be launching a
‘business-to-consumer offer’, branded as ‘mobile
restore’ in the early summer. This business is
targeting, in particular, the ‘retail’ market, which 
we broadly define as those repairs not paid for by
insurers.  The retail market is estimated at £540
million and is currently growing, partly as a result of
increased excesses passed on by insurers. In 2009,
our retail sales generated £5 million of revenues and
the major part of this was achieved “on-site” i.e. at
our bodyshops. We are very confident that the
scope for us to increase our penetration of the retail
market through our ‘Mobile Restore’ operations and
our bodyshop network is significant.  
Our Mobile Solutions operations focus on glass,
electronic and air-conditioning related repairs,
which require specialist equipment and skills.  
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
5
Originally established as a shared resource for
our bodyshops, this unit has potential for
growth and we have established a three year
plan for the business. As part of our growth
strategy, we have refined and enhanced its
offer and in the early summer, we will be re-
branding and launching it as ‘motorglass’.
Leading the development of both ‘mobile
restore’ and ’motorglass’ will be Steve
Thompson, one of our Executive Directors. We
will be strengthening our operational team to
support the growth plans of both businesses.
Looking Ahead
Nationwide has a sound balance sheet and its
model is highly cash generative.
Our unique operating platform gives us
considerable advantages in a market in which
we can significantly increase our penetration.
In the medium term, our objectives are:-
� to continue to improve our operations, 
increasing our ability to offer value, service, 
quality and speed to the benefit of our 
customers and our shareholders;
� to increase our share in the motor insurance 
company repair market and
� to identify and secure additional, and for us, 
largely new market opportunities in the fleet 
and retail market.
We are assuming that the economy will remain
challenging but are confident that the Group is
well placed for medium term growth.
Michael Wilmshurst
Chief Executive
22 March 2010
Chief Executive’s Report Continued 6
Operating results
Overall turnover reduced by 5% from £179.3m to
£170.9m, which was indicative of a reduction in
claims volumes and consumer spending in general.
The change in sales mix and resultant decrease in
margin meant that operating profit after non-
recurring items fell by 18% to £5.5m from £6.7m. 
The Group reduced its cost base accordingly to
pre-empt any volume shortfall, with a year on year
reduction in distribution and administration costs
of £1.5m. 
Profit before tax after non-recurring items fell 
by 28% to £5.1m from £7.1m and earnings per
share has decreased by 28% to 8.4p.
Non-recurring items
During the year the group incurred a number of
non-recurring items. Firstly it recovered £171k
against the bad debt it provided for in 2008.
Secondly, the Group closed its Kidderminster site
and incurred a cost of £187k to exit the site. The
year also saw a significant drive to reduce costs
across the Group. This regrettably meant making
people redundant and £492k was incurred on
redundancy costs. Finally, as stated in note 5, the
Group experienced fires at two of its sites. A profit
of £200k was recognised on the “disposal” of the
assets at Norwich based on expected insurance
proceeds. The profit on the “disposal” of the
assets at Manchester was not recognised in 2009
as the insurance proceeds were not reasonably
certain. It will be recognised in 2010.
Pension scheme
The Group operates a defined benefit and defined
contribution pension scheme. The defined benefit
scheme was closed for future accruals on 31st July 
2006 with active members transferred to a new 
defined contribution section of the scheme.Under
IAS 19 the deficit in the scheme as at 31st
December 2009 was £20.3m (2008: £16.5m) or
£14.6m (2008: £11.9m) 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 9 years.
The Group has opted to amortise all actuarial
gains and losses above the corridor (10% of the
greater of assets and liabilities) over the future
working lifetime of the active membership. A full
actuarial valuation of the defined benefit scheme
was carried out as at 31 December 2008 and was
updated to 31 December 2009 by a qualified
independent actuary.
Cash flow
The net increase in cash during the year was
£2.9m (2008: an increase of £0.2m) which
produced a net cash balance at 31st December
2009 of £8.3m. This increase in cash is the result
of excellent working capital management and
credit control. Accordingly, trade receivables
decreased by £6.5m. 
The Company continues to invest in new plant
and equipment and in improvements to its sites;
£2.1m (2008: £2.8m). In addition, the Company
continues to pay a deficit contribution to its pension
fund of £2.6m (2008: £2.6m) and a dividend of
£2.2m was paid in 2009 (2008: £2.0m).
Allthough cash positive, the Group has a
committed bank facility with the Royal Bank of
Scotland for £8m until 31st December 2010.
“The net increase 
in cash during the
year was £2.9m”
Finance Director’s Review
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
David Loftus
Finance Director Trade receivables
The Group’s trade receivables of £17.5m can 
be analysed between the three principal trading
units, NCRC (the bodyshops), Network Services
(the accident management company) and 
Mobile Solutions.
NCRC’s trade receivables are principally owed by
insurance companies and debtor days as at 31st
December 2009 were 33 days (2008: 38 days).
Network Services customer base includes
insurance customers and fleet operators and
includes debt invoiced by NCRC as well as its
Approved Repairer Network. Network Services
debtor days as at 31st December 2009 were 
31 days (2008: 47 days). 
Both business sectors have made a significant
improvement in their credit control procedures.
Tax
The effective tax rate is 28.5% which is slightly
ahead of the company’s effective rate of tax of
28%. The Group has no income tax losses
available but has capital losses of £4.1m available. 
Earnings per share 
The basic earnings per share are 8.4p (2008: 11.6p) 
a reduction of 28%. As a result of share options
being granted on 4th July 2006 and the average
market price of £0.90, the share options are not
included in the dilutive earnings per share calculation,
which remains at 8.4p.
Dividends 
The Board is proposing a final dividend in respect
of the results for the year ended 31 December
2009 of 3.3p per share (2008: 3.3p per share)
making 5.0p for the year as a whole (2008: 5.0p).
Subject to approval by shareholders at the Annual
General Meeting, this will be paid on 21 June
2010 to shareholders on the Register at the close
of business on 28 May 2010. The annual dividend
is covered 1.7 times by underlying earnings.
Key performance indicators
The Group reviews certain financial and non-
financial key performance indicators on a regular
basis and year-on-year comparisons are included
within the Directors’ Report. Despite inflationary
pressure it is very pleasing to report that the gross
profit margin has increased to 46.9% from 46.5%
in 2008. Cycle time is also a key measure of
performance and is measured across the group on
a weekly basis. The “key to key” measure i.e how
long a car is on site for has deteriorated slightly in
the year from 12.5 days to 12.7 days. 
Measurement of customer satisfaction is also a key
indicator and is measured monthly via a sample of
independent telephone surveys across all customers.
This has been increased to a creditable 87% from
85% in 2008.
David Loftus
Finance Director
22 March 2010
2008
£6.7m
2007
£6.6m
Operating Profit
2009
£5.5m
2009 2008
£m £m
NCRC 12.4 15.8
Network Services 3.8 6.5
Mobile Solutions 0.7 0.5
Other 0.6 1.2
17.5 24.0
Turnover 
2008
£179.3m
2007
£151.9m
2009
£170.9m
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
7
Finance Director’s Review Continued Michael Marx
Non-executive Chairman
(aged 62)
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 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 50)
Michael has extensive automotive sector
experience, with TWR, HR Owen, and
European Motor Holdings. At HR Owen, 
he was head of the luxury division including
Rolls Royce, Jaguar, Ferrari and Land Rover.
He formally joined Nationwide in May 2002,
having been an active member of the team
that took the Company private. 
David Loftus
Finance Director, FCA, MBA, BA (Hons)
(aged 48)
David joined Nationwide in January 2003 
as Finance Director. After qualifying as a
Chartered Accountant with Spicer & Pegler
(now part of Deloitte) he spent four years
as an audit manager. In 1990, he joined
Brunel Holdings plc (formally BM Group plc)
as Group Accountant and in 1995 he was
appointed Finance Director.
Board of Directors
8
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 Stephen Thompson
Executive Director
(aged 37)
Stephen has extensive multi-site experience
in the automotive sector. He was
Operations Director with Silver Shield
windscreens and was also a divisional
Director for KwikFit. Prior to that he was 
a Commercial Managing Director for
Phones4U Limited (part of the Caudwell
Communications Group). He joined
Nationwide in January 2005 and since then
he has been responsible for developing
Network Services (Nationwide) Limited 
and Mobile Solutions.
Christopher Mills
Non-executive Director
(aged 57)
Christopher was appointed non-executive
Director in June 2009. Christopher is a
founding director of JO Hambro Capital
Management, Chief Investment Officer of
North Atlantic Value LLP and Chief Executive
of North Atlantic Smaller Companies
Investment Trust plc. Before joining JO
Hambro Capital Management Limited he
worked for Samuel Montagu Limited,
Montagu Investment Management Limited
and its successor company, Invesco MIM until
1993. He was a director of Invesco MIM and
held positions as Head of North American
Investments and Head of North American
Venture Capital.
Lady Judge
Non-executive Director
(aged 63)
Barbara was appointed non-executive
Director in June 2006 and is a lawyer 
and international banker. She is currently
Chairman of the UK Atomic Energy
Authority and The School of Oriental &
African Studies. In addition, Barbara is
Deputy Chairman of Friends Provident plc.
She was formerly a Commissioner of the US
Securities and Exchange Commission.
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
9
Board of Directors Continued 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
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
HSBC Bank plc
29 King Street
Leeds LS1 2HL
Solicitors
K&L Gates
110 Cannon Street
London EC4N 6AR
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol BS1 6EG
Financial Adviser and Corporate
Stockbroker
Arbuthnot Securities Ltd
20 Ropemaker Street
London EC2Y 4GE
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
W. Yorkshire HD8 0GA
Registered Office
17A Thorney Leys Park
Witney
Oxfordshire OX28 4GE
Website Address
www.narsplc.com
10
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 The Directors present their report and accounts for the year ended 31 December 2009.
Principal activities and review of the business
As noted in the business review within the Chief Executive’s Report and Finance Director’s Review, the business of the Group is the repair of motor
vehicles and the provision of accident claim management services.
The strategy for 2009 was to improve margins within the core business and to introduce new insurance companies to branches where possible.
Considering the challenging economic climate, the Directors are pleased with the results for the year, which are in line with market expectations. 
This strategy will be maintained in 2010, together with a strategy to develop the Group’s mobile business and its retail sales opportunities. 
Principal risks and uncertainties
The Directors regularly review principal risks and uncertainties that affect the Group. These include avoiding the reliance on key customers for work
provision by diversifying contracts and extending the duration of contracts. The Group has implemented, where appropriate, the industry’s British
Standards Institution Kitemark Standard (PAS 125). This demonstrates our commitment to ensuring quality repairs.
The Group’s business continuity has been addressed by adopting a comprehensive disaster recovery program, which has been approved by the
Directors. In the event of a systems failure, work can be re-directed to an alternative bodyshop.
The details of the Group’s financial risk management objectives and policies are detailed in note 27 to the financial statements.
Results and dividends
The Group’s sales revenue amounted to £170,890,000 (2008: £179,337,000) and the profit before taxation amounted to £5,057,000 (2008:
£7,052,000). Taxation was a charge of £1,440,000 (2008: charge of £2,030,000) and the net profit for the year was £3,617,000 (2008: £5,022,000).
The Directors are proposing a final dividend in respect of the results for the year ended 31 December 2009 of 3.3p per share. 
Subject to approval by shareholders at the Annual General Meeting, this will be paid on 11 June 2010 to shareholders on the Register at the close of
business on 28 May 2010.
During 2009, the Group paid dividends of £2,160,000 (2008: £2,030,000) to its equity shareholders. These comprised a final dividend in respect of 2008
of 3.3p per share paid in June 2009 (£1,426,000) and an interim dividend in respect of 2009 of 1.7p per share paid in November 2009 (£734,000).
Non-current assets
The movement of non-current assets is set out in notes 11, 12 and 13 to the accounts.
Directors and their interests
The Directors who served during the year and their interests in the shares of the Group are shown in the Remuneration Report on page 14. The Group has
taken out Directors and Officers liability insurance. J J Brade resigned as a director on 4 June 2009 and was replaced on the same date by C H B Mills.
Corporate governance
The Board is committed to the highest principles of corporate governance. As a Group quoted on AIM, the Group is not required to comply with the
requirements of the Combined Code.
The Board consists of three executive and three independent non-executive Directors, who take an active role in Board matters, and it meets eight times
in every year. The Board is responsible for maintaining a sound system of internal control to safeguard shareholders’ investment and Group assets.
The Board has appointed an Audit Committee, consisting of the Chairman and C H B Mills, a Remuneration Committee consisting of the Chairman
and C H B Mills and a Nominations Committee consisting of the Chairman and Lady Judge.
The Audit Committee meets regularly with the external auditor and with the executive Directors to review the interim and final results, key areas of
accounting treatment and risk and control procedures. The Committee can meet with the external auditor without any of the executive Directors
being present.
The Remuneration Committee met in February 2010 and the Nominations Committee met in March 2009.
Employment of disabled persons
The Group gives full and fair consideration to applications for employment received from disabled persons having regard to their particular aptitudes
and abilities and wherever possible the Group continues the employment of, and arranges for reasonable adjustments to the working conditions of,
employees who become disabled persons while employed by the Group. Disabled employees are treated no differently from any other employees as
regards training, career development and promotion opportunities. The Group operated this policy throughout the year.
Directors’ Report
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
11 Directors’ Report 
Employee involvement
Effective employee relations are seen as key drivers in moving the Group forward. Consequently human resources, quality, health and safety and
training functions need to establish good communications with individual sites and are therefore organised on a divisional basis. This structure
enables staff to obtain the help and guidance they may need and keeps them informed of, and effectively involved in, the development of the
Group’s business. Regular 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 54 (2008: 52). The Company trade
creditor days at the end of the year were 31(2008: 29).  
Share capital
Full details of the authorised and issued share capital of the Group are set out in note 21 to the accounts.
Summary of key performance indicators
The Directors have monitored the progress of the overall Group/Company strategy and the individual strategic elements by reference to certain
financial and non-financial key performance indicators.
Key performance indicator 2009 2008 Method of calculation
Turnover £170.9m £179.3m External turnover excluding value added tax 
Gross profit margin (%) 46.9% 46.5% Gross profit margin is the ratio of gross profit to sales 
revenue expressed as a percentage
Cycle time (key to key) 12.7 days 12.5 days Cycle time measures the days from receipt of the vehicle on
site to return to the customer
CSI 87% 85% A measure of customer satisfaction derived from the results
of independent telephone surveys
12
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
Turnover and gross margin are reviewed by individual bodyshop on a monthly basis, in order that the operational team can address work provision or
operating practices respectively. Cycle times are indicative of vehicle throughput and de minimis targets have been set, based on weekly data. CSI
targets are also specified and monitored in conjunction with the service level agreements specified by insurance companies.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as auditor.
On behalf of the Board:
Michael Wilmshurst
Chief Executive
22 March 2010 The Directors are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare
financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs). The financial
statements are required by law to give a true and fair view of the state of affairs of the Group and Parent Company and of the profit or loss of the
Group for that period. In preparing these financial statements the Directors are required to:
�
select suitable accounting policies and then apply them consistently;
�
make judgements and estimates that are reasonable and prudent;
�
state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the financial statements; and
�
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any time the financial position of the
Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Directors are aware:
�
there is no relevant audit information of which the Company’s auditor is unaware; and
�
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that 
the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from other legislation in 
other jurisdictions.
Michael Wilmshurst
Chief Executive
22 March 2010
Statement of Directors’ Responsibilities
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
13 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 2010, 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:
2009
Total (excl Pension
Salary Annual Pension contribution 2009 2008
and fees Benefits bonus contributions) DC Scheme Total Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
M A Wilmshurst 334 — — 334 — 334 334
D J Loftus 147 14 — 161 11 172 252
S D G Thompson 126 21 — 147 10 157 216
Non-executive Directors
M H Marx 33 — — 33 — 33 30
Lady Judge 25 — — 25 — 25 20
J J Brade (resigned 4/6/09 8 — — 8 — 8 20
C H B Mills (appointed 4/6/09) 17 — — 17 — 17 —
Total Directors’ emoluments 690 35 — 725 21 746 872
Key Management’s emoluments 367 43 7 417 12 429 379
Total 1,057 78 7 1,142 33 1,175 1,251
Fees of £323,400 are paid to Troy Solutions Limited via a consultancy agreement and are incorporated in the amount shown in respect of
M A Wilmshurst in the above table. M A Wilmshurst is a Director of Troy Solutions Limited (see note 25).
The above disclosure on Directors’ emoluments forms part of the financial statements as stated in note 7.
Key Management are those managers involved in the senior operations meeting, which is held monthly and discusses both financial and 
operational issues.
£169,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2009 (2008:
£240,000), relating to share based payments.
Share options
Share options were granted to M A Wilmshurst, D J Loftus and S D G Thompson on 4 July 2006. Details are given in note 21.
None of the Directors (2008 : 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
2009 2009
Executive Directors
M A Wilmshurst 1,351,351 1,351,351
D J Loftus 54,054 54,054
S D G Thompson — —
Non-executive Directors
M H Marx 30,000 30,000
Lady Judge 55,348 55,348
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 (2008: 13,773,214 shares).
14
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 We have audited the financial statements of Nationwide Accident Repair Services plc for the year ended 31 December 2009 which comprise the
consolidated statement of comprehensive income, the consolidated and parent company statement 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 5, 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 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/UKNP.
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 2009 and 
of the group's profit for the year then ended; 
�
the group financial statements have been properly prepared in accordance with IFRS as adopted by the European Union; and
�
the parent company financial statements have been properly prepared in accordance with IFRS as adopted by the European Union and as applied 
in accordance with the provisions of the Companies Act 2006; 
�
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
I
n 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
22 March 2010
Report of the Independent Auditor
to the members of Nationwide Accident Repair Services plc
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
15 Consolidated Statement of Comprehensive Income 
for the year ended 31 December 2009
2009 2008
Notes £’000 £’000
Revenue 170,890 179,337
Cost of sales 4 (90,681) (95,857)
Gross profit 80,209 83,480
Distribution costs (46,647) (46,933)
Administrative expenses (27,544) (28,822)
Share option charge (169) (240)
Operating profit before non-recurring items 5,849 7,485
Non-recurring items - Administrative costs 5 (307) (750)
Operating profit 6 5,542 6,735
Finance income 8 5 325 
Finance costs 8 (490) (8)
Profit before tax 5,057 7,052
Income tax expense 9 (1,440) (2,030)
Profit for the period 3,617 5,022
Other comprehensive income — —
Total comprehensive income for the period 3,617 5,022
Attributable to:
Equity holders of the parent 3,617 5,022
Earnings per share 
Basic 10 8.4p 11.6p
Diluted 10 8.4p 11.5p
The accompanying notes form an integral part of these financial statements. 
16
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 2009 2008
Notes £’000 £’000
Assets
Non-current assets
Goodwill 11 7,768 7,752
Property, plant and equipment 13 9,962 9,811
Pension and other employee assets 15 8,649 7,619
26,379 25,182
Current assets
Inventories 16 2,317 2,678
Trade and other receivables 17 23,460 29,500
Cash and cash equivalents 19 8,269 5,395
34,046 37,573
Total assets 60,425 62,755
Liabilities
Non current liabilities
Long-term Provisions 22 86 86
Deferred tax liabilities 18 2,112 1,678
2,198 1,764
Current liabilities
Short-term provisions 22 31 4
Trade and other payables 23 29,568 33,728
Current tax liabilities 24 311 568
29,910 34,300
Total liabilities 32,108 36,064
Net assets 28,317 26,691
Equity
Equity attributable to the shareholders of the parent
Share capital 21 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Revaluation reserve 8 8
Retained earnings 10,596 8,970
Total equity 28.317 26,691
The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2010. 
They were signed on its behalf by:
Michael Wilmshurst
Chief Executive
The accompanying notes form an integral part of these financial statements.
Company Number 966807
Consolidated Statement of Financial Position
as at 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
17 2009 2008
Company Notes £’000 £’000
Assets
Non-current assets
Investments in subsidiary undertakings 12 37,496 37,496
Property, plant and equipment 13 193 337
Pension and other employee assets 15 8,649 7,619
46,338 45,452
Current assets
Trade and other receivables 17 2,764 949
Cash and cash equivalents 19 11,651 10,200
14,415 11,149
Total assets 60,753 56,601
Liabilities
Non-current liabilities
Deferred tax liabilities 18 2,458 2,104
Current liabilities
Deferred tax liabilities 23 31,824 28,291
Total liabilities 34,282 30,395
Net Assets 26,471 26,206
Equity
Share capital 21 5,400 5,400
Capital redemption reserve 1,209 1,209
Share premium account 11,104 11,104
Retained earnings 8,758 8,493
Total equity 26,471 26,206
The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2010. 
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
Company Statement of Financial Position
as at 31 December 2009
18
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 Consolidated Statement of Changes in Equity
for the year ended 31 December 2009
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2008 5,578 1,031 11,104 8 7,426 25,147
Share buyback (178) 178 — — (1,688) (1,688)
Share option charge — — — — 240 240
Dividend paid (see note 10) — — — — (2,030) (2,030)
Transactions with owners (178) 178 — — (3,478) (3,478)
Profit for the year — — — — 5,022 5,022
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 5,022 5,022
Balance at 31 December 2008 5,400 1,209 11,104 8 8,970 26,691
Share option charge — — — — 169 169
Dividend paid (see note 10) — — — — (2,160) (2,160)
Transactions with owners — — — — (1,991) (1,991)
Profit for the year — — — — 3,617 3,617
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 3,617 3,617
Balance at 31 December 2009 5,400 1,209 11,104 8 10,596 28,317
Capital Share
Share redemption premium Revaluation Retained
capital reserve account reserve earnings Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2008 5,578 1,031 11,104 — 8,835 26,548
Share buyback (178) 178 — — (1,688) (1,688)
Share option charge — — — — 240 240
Dividend paid (see note 10) — — — — (2,030) (2,030)
Transactions with owners (178) 178 — — (3,478) (3,478)
Profit for the year — — — — 3,136 3,136
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 3,136 3,136
Balance at 31 December 2008 5,400 1,209 11,104 — 8,493 26,206
Share option charge — — — — 169 169
Dividend paid (see note 10) — — — — (2,160) (2,160)
Transactions with owners — — — — (1,991) (1,991)
Profit for the year — — — — 2,256 2,256
Other comprehensive income — — — — — —
Total comprehensive income for the year — — — — 2,256 2,256
Balance at 31 December 2009 5,400 1,209 11,104 — 8,758 26,471
The accompanying notes form an integral part of these financial statements. 
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
19 Consolidated Cash Flow Statement
for the year ended 31 December 2009
2009 2008
£’000 £’000
Operating Activities
Profit for the year 3,617 5,022
Adjustments to arrive at operating cash flow:
Net finance costs (5) 8
Depreciation 1,828 2,303
(Profit)/loss on sale of property, plant and equipment (incl. non recurring items) (211) 35
Taxation recognised in profit or loss 1,440 2,030
Changes in inventories 361 (87)
Changes in trade and other receivables 6,040 (2,955)
Changes in trade and other payables (4,176) 6,369
Changes in provisions 60 —
Movement in pension fund asset – IAS 19 1,553 209
Share option scheme charge 169 240
Outflow from pension obligations (2,582) (2,555)
Outflow from provisions (33) (49)
Net cash flow from operating activities 8,061 10,570
Tax paid (1,263) (1,817)
6,798 8,753
Investing activities
Additions to property, plant and equipment (2,088) (2,788)
Proceeds from the disposal of property, plant and equipment 319 273
Acquisition of businesses – cost — (2,296)
(1,769) (4,784)
Financing activities
Dividend paid (2,160) (2,030)
Interest received/(paid) 5 (8)
Purchase of own shares — (1,688)
(2,155) (3,726)
Net increase in cash and cash equivalents 2,874 243
Cash and cash equivalents at beginning of year 5,395 5,152
Cash and cash equivalents at end of year 8,269 5,395
The accompanying notes form an integral part of these financial statements.
20
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 2009 2008
£’000 £’000
Operating Activities
Profit for the year 3,199 4,587
Adjustments to arrive at opening cash flow:
Net finance costs 81 4
Depreciation 141 157
Loss/(Profit) on sale of property, plant and equipment 2 (18)
Changes in trade and other receivables (1,856) 4,590
Changes in trade and other payables 3,533 1,659
Movement in pension fund asset – IAS 19 1,553 209
Share option scheme charge 169 240
Outflow from pension obligations (2,582) (2,555)
Outflow from provisions — (18)
Net cash flow from operating activities 4,240 8,855
Tax paid (548) (1,373)
3,692 7,482
Investing activities
Additions to property, plant and equipment — (242)
Proceeds from the disposal of property, plant and equipment — 18
Interest paid (81) (4)
(81) (228)
Financing activities
Dividend paid (2,160) (2,030)
Purchase of own shares — (1,688)
(2,160) (3,718)
Net increase in cash and cash equivalents 1,451 3,536
Cash and cash equivalents at beginning of year 10,200 6,664 
Cash and cash equivalents at end of year 11,651 10,200
The accompanying notes form an integral part of these financial statements.
Company Cash Flow Statement
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
21 Notes to the Accounts
for the year ended 31 December 2009
1. Nature of operations
Nationwide Accident Repair Services plc and its subsidiaries’ (the Group) principal activity is the provision of support services to the motor insurance
industry. Currently, this includes the repair of motor vehicles in the Group’s wholly owned sites and the provision of accident claim management services.
The strategy for 2009 was to maintain the profitability of the core business, to achieve consistency in margins and to introduce new insurance companies
to branches where possible. The integration of newly acquired sites was also paramount. Considering the challenging economic climate, the Directors are
comfortable with the results for the year and this strategy will be maintained in 2010, together with a strategy to develop the Group’s mobile business
and its retail sales opportunities.
The following is a list of the principal subsidiary undertakings of which Nationwide Accident Repair Services plc is either directly, or through subsidiary
undertakings, the beneficial owner of the whole of the equity share capital. All companies are engaged in motor trade activities. All are incorporated in
England and Wales.
�
Nationwide Crash Repair Centres Limited
�
Nationwide Crash Repair Centres (Staff) Limited
�
Network Services (Nationwide) Limited
�
Mobile Vehicle Repairs Limited (trading as Mobile Solutions)
�
Nationwide Fast Fit Plus Limited (previously W Harold Perry Limited)
2. General information
The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) as
adopted by the EU and as developed and published by the International Accounting Standards Board (IASB).
The measurement basis for individual items has been noted in the accounting policies below.
3. Summary of accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention. The accounting policies have remained unchanged from the previous year,
except as noted below with regard to IAS 1 and IFRS8.
It should be noted that accounting estimates and assumptions are used in preparing the financial statements including the carrying amount of
goodwill (note 11) and provisions (note 22). Although these estimates are based on management’s best knowledge of current events and actions,
actual results may ultimately differ from those estimates. The following significant judgements have been made in the financial statements: 
Intangible assets : Provisional fair values are placed on all property, plant and equipment at the date of acquisition, as certain asset values are
required to be estimated. No intangible asset arises on acquisition.
Onerous leases : Consideration has been given to the liabilities over the remaining life of  leases in respect of empty properties and the probability of
sub-letting these properties
Bad Debts : Consideration is given to those amounts which are overdue by more than 120 days and for which no cash has been received after the
year end. Impairment of those amounts is made where considered necessary.
Fire Claim : The directors have only included the estimated insurance proceeds from the fire claim where they could be reliably measured. Further
details are provided within note 5 to the financial statements
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.
Depreciation : In accordance with  IAS 16, the Group has revised its estimate of the useful economic life of certain items of property, plant and
equipment. The impact on the financial statements was to reduce the depreciation charge by £545k (2008 : Nil)
The adoption of IAS 1 (Revised 2007) has not affected the financial position or profits of the Group, but gives rise to additional disclosures. IAS 1
(Revised 2007) introduces a “Statement of comprehensive income” The Group has chosen to prepare a single statement of comprehensive income
which incorporates the income statement and statement of other comprehensive income. The adoption of IFRS 8 has changed the segments that are
disclosed in the financial statements. Under IFRS 8, the accounting policy for identifying segments is now based on the internal management
reporting information that is regularly reviewed at Board level. Consequently, the results for the year of Network Services (Nationwide) and Mobile
Solutions have been separately identified and have been disclosed in note 4. Although the change in accounting policies in adopting IFRS 8 is
retrospective, the third balance sheet for the year ended 31 December 2007 has not been presented, because the information is unchanged from the
previously published financial statements.
The following Standards and Interpretations have been issued, but are not yet effective and have not been early adopted by the group: 
- IFRS 9 Financial statements (effective 1 January 2013) 
- IAS 24 (Revised 2009) Related Party Disclosures (effective 1 January 2011) 
- IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective 1 July 2009) 
- Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items (effective 1 July 2009) 
- Group Cash-settled Share-based Payment Transactions – Amendment to IFRS 2 (effective 1 January 2010) 
- Improvements to IFRSs 2009 (various effective dates, earliest of which is 1 July 2009, but mostly 2010) 
- IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009) 
- IFRIC 17 Distributions of Non-cash Assets to Owners (effective 1 July 2009) 
- IFRIC 18 Transfers of Assets from Customers (effective prospectively for transfers on or after 1 July 2009) 
22
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 3. Summary of accounting policies continued
Basis of preparation continued
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective 1 July 2010) 
- Prepayments of a Minimum Funding Requirement – Amendments to IFRIC 14 (effective 1 January 2011) 
- Amendments to IFRS 1 Additional Exemptions for First-time Adopters (effective 1 July 2010) 
- Amendments to IAS 32 Classification of Rights Issues (effective 1 February 2010) 
The Standards and Interpretations are not expected to have any significant impact on the group’s financial statements in their periods of initial application.
As permitted by section 408 of the Companies Act 2006, an income statement is not presented for Nationwide Accident Repair Services plc. Profit
for the year for Nationwide Accident Repair Services plc (the Company) was £2,255,984 (2008: £3,136,323).
Going Concern
The company’s business activities, together with the factors likely to affect its future development performance and position are set out in the
Business Review on pages 2 to 5. The financial position of the company, its cash flows, liquidity position and borrowing facilities are described in the
Finance Director’s Review on pages 6 to 7. In addition, note 27 to the financial statements includes the company’s objectives, policies and processes
for managing its capital, its financial risk management objectives, details of its financial instruments and its exposures to credit risk and liquidity risk.
Based on their review of the above, and consideration of the long term contracts with some of the main insurance companies and key suppliers, 
the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The
directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Consolidation
Subsidiaries are all entities over which the Group has power to control the financial and operating policies, with a view to obtaining benefits. The
consolidated financial statements incorporate the financial statements of the Parent Company as well as those entities controlled by the Group by 
full consolidation.
In addition, acquired subsidiaries and non subsidiary acquisitions are subject to the application of the purchase method. This involves the revaluation 
at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not
they were recorded in the financial statements of the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the subsidiary are
included in the consolidated balance sheet at their fair values, which are also used as the bases for subsequent measurement in accordance with Group
accounting policies. Goodwill represents the excess of acquisition cost over the fair value of the Group’s share of identifiable net assets of the acquired
subsidiary at the date of acquisition. Unrealised gains on transactions between the Group and its subsidiaries are eliminated and unrealised losses are
eliminated, unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
The results of subsidiary undertakings acquired or disposed of during the year are included in the consolidated 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 Ltd is recognised upon the completion of the service after authority has been given by the customer to
undertake this work. Network Services (Nationwide) Limited recognises referral fee income based upon the number of jobs invoiced in a particular
accounting period. Intra-Group sales and value added tax are excluded from the consolidated financial statements. Operating expenses (with the
exception of the IAS 19 pension adjustment) are recognised in the statement of comprehensive income upon utilisation of the service. Interest income
and expenditure are reported on an accruals basis.
Fire Claims
Gains arising from the receipt of insurance proceeds in excess of asset net book values, are only recognised when the insurance proceeds can be
determined with reasonable certainty. This is dependent on the site’s planned reopening date.
Goodwill
Goodwill is tested annually for impairment and carried at cost of acquisition over the fair value of the Group’s share of identifiable net assets
acquired less accumulated impairment losses.
Property, plant and equipment
All property, plant and equipment is recognised at cost.
Buildings, fittings and furniture are carried at acquisition cost less subsequent depreciation and impairment losses.
The cost of property, plant and equipment is depreciated on a straight line basis taking into account estimated residual values. Both estimated
residual values and useful economic life are reviewed annually.
The useful lives of property, plant and equipment can be summarised as follows:
Land – Nil
Buildings – 5 to 25 years
Plant and equipment – 3 to 10 years
IT equipment – 2 to 5 years
Land is not depreciated as it has an unlimited useful economic life.
On adopting IFRS, the Group and Company have taken advantage of the transitional rule that allows previously revalued fixed assets to be deemed 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.
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
23 Notes to the Accounts continued
for the year ended 31 December 2009
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.
Inventories
Inventories comprise materials and direct labour. At the balance sheet date inventories are carried at the lower of cost and net realisable value.
Inventories are valued using the weighted average cost method. Net realisable value is the estimated selling price in the ordinary course of business
less any applicable selling expenses.
Accounting for income taxes
Current income tax assets and/or liabilities comprise those obligations to, or claims from fiscal authorities relating to the current or prior reporting
period, that are unpaid at the balance sheet date. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which
they relate, based on the taxable income for the year. All changes to current tax assets or liabilities are recognised as a component of tax expense in
the 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 balance sheet date. Deferred tax is on the annual
share option is recognised as a deferred tax asset on the balance sheet.
Most changes in deferred tax assets or liabilities are recognised as a component of tax expense in the statement of comprehensive income. Only
changes in deferred tax assets or liabilities that relate to a change in value of assets or liabilities that are charged directly to equity are charged or
credited directly to equity.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid investments such as money market instruments and
bank deposits.
Financial assets
Trade receivables do not carry any interest and are recognised, after initial recognition, at amortised cost using the effective interest rate method, as
reduced by appropriate allowances for estimated irrecoverable amounts.
Equity
Share capital is determined using the nominal value of shares that have been issued.
Share premium includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are
deducted from share premium, net of any related income tax benefits.
The revaluation reserve comprises gains and losses due to the revaluation of property, plant and equipment.
Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income.
The capital redemption reserve was created on the acquisition by the Company of its own shares.
Share based payments
The Group operates two employee share option schemes. The fair value at the date at which the share options are granted is recognised in the
statement of comprehensive income on a straight line basis over the vesting period, taking into account the number of options that are expected to
vest. In valuing the share options the Group has utilised the Black-Scholes option pricing model for tranche 1 of the options and the Monte Carlo
model for tranche 2 of the options with the weighted average share price being factored into the model. The expected life of the options has been
assumed to be three years for tranche 1 and five years for tranche 2 with the options being exercisable between three and ten years. The tranche 2
options have market conditions taken into account in the calculation of the fair value at grant date and do not impact the number of awards expected
to vest. The model assumptions used are included within note 21. No adjustments are made if the conditions are not met.
24
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 3. Summary of accounting policies continued
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 balance sheet for defined benefit pension plans is the present value of the defined benefit obligation (DBO) at the
balance sheet date less the fair value of the plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs.
The DBO is calculated annually by independent actuaries using the projected unit credit method. The present value of the DBO is determined by
discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which
the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are not recognised as an expense unless the total unrecognised gain or loss exceeds 10% of the greater of the obligation
and related plan assets. The amount exceeding this 10% is charged or credited to profit or loss over the employees’ expected average remaining
working lives. Actuarial gains and losses within the 10% corridor are disclosed separately. Past service costs are recognised immediately in the
statement of comprehensive income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified
period of time (the vesting period). In this case, the past service costs are amortised on a straight line basis over the vesting period.
The contributions recognised in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognised if
underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short term nature.
Financial liabilities
The Group’s financial liabilities include bank loans and overdrafts, trade and other payables. They are included in balance sheet line item ‘long term
financial liabilities’ and ‘trade and other payables’. 
Trade payables are recognised initially at their fair value and subsequently measured at amortised cost, through the statement of comprehensive
income, less settlement payments.
Dividend distributions to shareholders are included in ‘other short term financial liabilities’ when the dividends are approved by the shareholders’ meeting.
Other provisions, contingent liabilities and contingent assets
Other provisions are recognised when present obligations will probably lead to an outflow of economic resources from the Group and they can be
estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive
commitment that has resulted from past events. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the
balance sheet date, including the risks and uncertainties associated with the present obligation. Any reimbursement expected to be received in the
course of settlement of the present obligation is recognised, if virtually certain as a separate asset, not exceeding the amount of the related provision.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class
of obligations as a whole. In addition, long term provisions are discounted to their present values, where time value of money is material.
All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
In those cases where the possible outflow of economic resource as a result of present obligations is considered improbable or remote, or the amount
to be provided for cannot be measured reliably, no liability is recognised in the consolidated balance sheet, unless assumed in the course of a
business combination. These contingent liabilities are recognised in the course of the allocation of purchase price to the assets and liabilities acquired
in the business combination. They are subsequently measured at the higher amount of a comparable provision as described above and the amount
initially recognised, less any amortisation.
Probable inflows of economic benefits to the Group that do not yet meet the recognition criteria of an asset are considered contingent assets.
Investment in subsidiaries
Investments are valued at cost less any impairment and after deducting any dividends paid out of pre-acquisition profits.
4. Segment Analysis
The Group operates three main business segments, Nationwide Crash Repair Centres (NCRC), Network Services and Mobile Solutions (which
incorporates Mobile Restore). The former 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 Mobile Solutions provides glass, air conditioning and auto-electronic services to the automotive
industry. Mobile Restore provides minor cosmetic repairs at the customers’ premises. The income and costs of the holding company are shown within
NCRC, which acts as the support function for the Nationwide Crash Repair Centres bodyshops.
The revenues and net result generated by the three business segments are summarised as follows:
Network  Mobile 
NCRC Services Solutions Total
Year to 31 December 2009 £’000 £’000 £’000 £’000
Revenue from external customers 152,809 15,855 2,226 170,890
Inter-segment revenues — 20,095 1,299 21,394
Profit before tax 4,950 52 55 5,057
Total Assets 52,992 6,223 1,210 60,425
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
25 Notes to the Accounts continued
for the year ended 31 December 2009
4. Segment analysis continued
The revenues and net result generated by the three business segments are summarised as follows: continued
Network  Mobile 
NCRC Services Solutions Total
Year to 31 December 2008 £’000 £’000 £’000 £’000
Revenue from external customers 158,734 19,537 1,066 179,337
Inter-segment revenues — 20,346 1,936 22,282
Profit before tax 6,857 (132) 327 7,052
Total Assets 48,646 13,288 821 62,755
Major Customers
During the year there were three customers (2008-three) who each accounted for more than 10% of the group’s revenues as follows. All are included
within Nationwide Crash Repair Centres Limited.
2009 2008
Sales £’000 % of total Sales £’000 % of total
Customer 1 34,224 20.0% 39,064 21.8%
Customer 2 28,602 16.7% 18,423 10.3%
Customer 3 21,118 12.4% 25,007 13.9%
83,944 49.1% 82,494 46.0%
As the Group operates in a single geographical market, the United Kingdom, no secondary segmentation is provided.
5. Non Recurring Item - Administrative costs
2009 2008
£’000 £’000
Bad debt provision for debtor in administration — (750)
Amounts recovered against above 2008 bad debt 171 —
Profit on Norwich assets destroyed in fire 200 —
Kidderminster closure costs (186) —
Redundancy Costs (492) —
(307) (750)
During the year, the company suffered two fires at its sites in Manchester (August 09) and Norwich (September 09). The Group’s insurers have
accepted liability for the respective claims, which cover the loss of assets and business interruption (lost profits).
Included within Trade and other receivables as at 31 December 2009 is an amount of £1,336k which relates to amounts claimed under the policy.
This is after taking into account an interim payment from the insurers of £675k that was received in December 2009.
The Norwich site is planned to reopen in April 2010 and since the insurance proceeds could be reliably measured, a profit of £200k has been
recognised. The profit has arisen as the insurance proceeds of £300k are in settlement of fixed assets with a net book value of £100k. The gain on
the Manchester site could not be reliably measured, as the site is not expected to be operational until July 2010 and insurance recoveries were not
reasonably certain.
6. Operating profit
Operating result is stated after charging/(crediting):
2009 2008
£’000 £’000
Depreciation 1,828 2,303
Operating lease rentals:
Land and buildings 7,098 6,192
Courtesy cars 5,513 5,616
Plant and machinery 186 178
Auditor’s remuneration:
Audit services 5 5
Non Audit services:   
Audit of subsidiary companies pursuant to legislation 90 107
Other services relating to tax and IFRS assistance 9 —
Loss/(profit) on disposal of property, plant and equipment 11 (11)
Bad debt expense 123 132
26
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 7. Employee remuneration
The aggregate payroll costs of the Group’s employees are analysed as follows:
2009 2008
£’000 £’000
Wages and salaries 49,237 51,589
Social security costs 4,871 5,126
Other pension costs (contributions paid) 2,867 2,857
56,429 59,572
The amount of pension contributions paid to defined contribution scheme 285 302
The average number of employees during the year was made up as follows:
Number Number
Motor accident repair operations 2,182 2,319
Accident claim management operations 107 122
Central and other 22 18
2,311 2,459
The remuneration of the Directors and Key Management is disclosed in the Remuneration Report of the Directors’ and Key Management’s
emoluments on page 14.
8. Finance income and finance costs
2009 2008
£’000 £’000
Finance income
Interest receivable on bank balances 5 —
Pension credit (see note 15): :
Interest on obligation — 3,911
Expected return on assets — (4,236)
5 325
Finance costs
Interest payable on bank balances — 8
Pension costs (see note 15):
Interest on obligation 3,842 —
Expected return on assets (3,352) —
490 8
9. Tax expense
2009 2008
£’000 £’000
Current tax:
United Kingdom corporation tax at 28% (2008: 28.5%) 1,007 1,418
Adjustments in respect of prior years (1) (64)
1,006 1,354
Deferred tax:
Movement relating to pension asset (IAS 19) 288 657
Temporary differences origination and reversal 193 86
On share options (47) (67)
1,440 2,030
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
27 Notes to the Accounts continued
for the year ended 31 December 2009
9. Tax expense continued
The tax assessed for the period is higher (2008: higher) than the effective rate of corporation tax in the UK of 28% (2008: 28.5%). The differences
are explained as follows:
2009 2008
£’000 £’000
Profit for the year before tax 5,057 7,052
Profit on ordinary activities before tax multiplied by effective rate of UK corporation tax of 28% (2008: 28.5%) 1,416 2,010
Effect of: Adjustments in respect of prior years — (10)
Deferred tax provided at 28% — (13)
Capital item covered by capital losses brought forward (75) (32)
Items not deductible for tax purposes 22 52
Depreciation in excess of capital allowances 77 23
Total tax charge for the year 1,440 2,030
10. Earnings per share and dividends
Basic earnings per share
Basic earnings per share has been calculated using the net results attributable to the shareholders of the Company of £3,617,000 (2008: £5,022,000).
The weighted average number of outstanding shares used for basic earnings per share amounted to 43,197,220 (2008: 43,264,023).
Diluted earnings per share
Diluted earnings per share has been calculated using the net results attributable to the shareholders of the Company of £3,617,000  (2008: £5,022,000).
The weighted average number of outstanding shares used for diluted earnings per share amounted to 43,197,220 (2008: 43,672,070) and assumes that
none of the share options detailed in note 21 would be exercised given the average market price of £0.90
In the current year due to the average market price of £0.90, the share options are not included in the dilutive earnings per share calculation. In 2008,
the average market price was £1.23 and on this basis, the dilutive effect on weighted average shares at this price was 408,047.   
Underlying earnings per share
The underlying earnings per share has been calculated as follows:   
2009 2008
£’000 £’000
Profit before tax (as stated) 5,057 7,052
Non recurring item 307 750
5,364 7,802
Tax expense (as stated) (1,440) (2,030)
Tax effect on non recurring item (86) (214)
3,838 5,558
Adjusted earnings per share 8.9p 12.8p
Dividends
During 2009, the Company paid dividends of £2,160,000 (2008: £2,030,000) to its equity shareholders. 
These comprised:
– a final dividend in respect of 2008 of 3.3p per share paid in June 2009 (£1,426,000); and
– an interim dividend in respect of 2009 of 1.7p per share paid in November 2009 (£734,000).
The Board is proposing a final dividend in respect of the results for the year ended 31 December 2009 of 3.3p per share.
28
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 Notes to the Accounts continued
for the year ended 31 December 2009
11. Goodwill
Group
2009 2008
£’000 £’000
Cost or valuation:
1 January 7,812 7,098
Reassessment of previous goodwill 16 (21)
Additions — 735
31 December 7,828 7,812
Accumulated Impairment
1 January and 31 December 60 60
Net book value at 31 December 7,768 7,752
Net book value comprises:
Business of Gemini Accident Repair Centres acquired in July 2005 4,648 4,648
Business of Aquilo Motor Services acquired in December 2006 1,481 1,481
Businesses acquired in 2007 888 888
Businesses acquired in 2008 751 735
7,768 7,752
During the year, an adjustment of £16,000 was made to increase the goodwill of the Perth acquisition by £11,000 and the Redruth acquisition by
£5,000. This related to further costs of acquisition which were known but not quantifiable at that 31 December 2008.
All the above acquisitions are acquisitions on behalf of Nationwide Crash Repair Centres Limited, with the exception of Aquilo Motor Services which
was on behalf of Network Services (Nationwide) Limited.
Business of Gemini Accident Repair Centres
The carrying amount of goodwill is allocated to the cash-generating units acquired. The recoverable amounts for the cash-generating units
determined above are based on value in use calculations, covering a detailed one year forecast, followed by an extrapolation of expected cash flows
using a 2.5% growth rate. These cash flows were extrapolated over ten years and discounted using a rate of 5%. A ten year period has been chosen
because management’s experience and knowledge of the business indicates that equivalent sites have a useful economic life in excess of ten years.
Management’s key assumptions for these cash-generating units include stable profit margins and resulting cash flows which have been determined
based on past experience in this market. The Group is not currently aware of any reasonable possible changes which would necessitate changes in its
key assumptions. 
Business of Aquilo Motor Services
The carrying amount of goodwill is allocated to the cash-generating units acquired. The recoverable amounts for the cash-generating units
determined above are based on value in use calculations, covering a detailed one year forecast, followed by an extrapolation of expected cash flows
using a 2.5% growth rate. These cash flows were extrapolated over five years and discounted using a rate of 5%. A five year period has been
chosen because management’s experience and knowledge of the business indicates that equivalent business have a useful economic life in excess of
five years. Management’s key assumptions for these cash-generating units include stable profit margins and resulting cash flows which have been
determined based on past experience in this market. The Group is not currently aware of any probable changes which would necessitate changes in
its key assumptions.
Businesses acquired in 2008
During 2008 five businesses were acquired. Scunthorpe and Gravesend (February 08), Redruth (April 08), Kettering (October 08) and Perth
(November 08).The recoverable amounts for the cash-generating units determined above are based on value in use calculations, covering a detailed
one year forecast, followed by an extrapolation of expected cash flows using a 2.5% growth rate. These cash flows were extrapolated over ten years
and discounted using a rate of 5%. A ten year period has been chosen because management’s experience and knowledge of the business indicates
that equivalent sites have a useful economic life in excess of ten years. Management’s key assumptions for these cash-generating units include stable
profit margins and resulting cash flows which have been determined based on past experience in this market. 
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 recoverable amounts for the cash-generating units determined above are based on value in use calculations, covering a
detailed one year forecast, followed by an extrapolation of expected cash flows using a 2.5% growth rate. These cash flows were extrapolated over
ten years and discounted using a rate of 5%. A ten year period has been chosen because management’s experience and knowledge of the business
indicates that equivalent sites have a useful economic life in excess of ten years. Management’s key assumptions for these cash-generating units
include stable profit margins and resulting cash flows which have been determined based on past experience in this market. 
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
29 Notes to the Accounts continued
for the year ended 31 December 2009
12. Investments in subsidiary undertakings
Company
2009 2008
£’000 £’000
Cost or valuation:
1 January 37,506 39,506
Disposals — — 
31 December 37,506 37,506
Accumulated provisions:
1 January 10 10
On disposals — —
31 December 10 10
Net book value at 31 December 37,496 37,496
The significant investments comprise the following entities which are consolidated within the Group financial statements:
Subsidiary Country of residence Proportion of shares held
Nationwide Crash Repair Centres Limited England and Wales 100%
Nationwide Crash Repair Centres (Staff) Limited England and Wales 100%
Network Services (Nationwide) Limited England and Wales 100%
Mobile Vehicle Repairs Limited England and Wales 100%
Nationwide Fast Fit Plus Limited England and Wales 100%
All shareholdings are classified as direct.
13. Property, plant and equipment
Asset Plant
in the course equipment and
Land Buildingsof construction computers Total
Group £’000 £’000 £’000 £’000 £’000
Cost:
1 January 2009 248 5,725 — 22,570 28,543
Additions — 646604 838 2,088
Disposals —  (234) —  (735) (969)
31 December 2009 248 6,137 604 22,673 29,662
Accumulated depreciation:
1 January 2009 — 2,009 — 16,723 18,732
Disposals — (181)— (679)(860))
Charge for the year — 360 — 1,468 1,828
31 December 2009 — 2,188 — 17,512 19,700
Net book value at 31 December 2009 248 3,949 604 5,161 9,962
Cost:
1 January 2008 248 4,853 — 20,537 25,638
Acquisitions —564—9701,534
Additions —308—2,4802,788
Disposals ———(1,417)(1,417)
31 December 2008 248 5,725 — 22,570 28,543
Accumulated depreciation:
1 January 2008 — 1,705 — 15,833 17,538
Disposals ———(1,109)(1,109)
Charge for the year — 304 — 1,999 2,303
31 December 2008 — 2,009 — 16.723 18,732
Net book value at 31 December 2008 248 3,716 — 5,847 9,811
The net book value of land and buildings comprises: Short
Leasehold
Total Freehold improvements
£’000 £’000 £’000
Group as at 31 December 2009 3,701 248 3,949
Group as at 31 December 2008 3,964 248 3,716
The assets in the course of construction relate to £604,127 to acquire the “FNOL” system for Network Services (Nationwide) Limited.
30
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 13. Property, plant and equipment continued
Motor vehicles
2009 2008
Company £’000 £’000
Cost
1 January 639 516
Additions — 242
Disposals (22) (119)
31 December 617 639
Accumulated provisions:
1 January 302 264
Change for the year 142 157
On disposals (20) (119)
31 December 424 302
Net book value at 31 December 193 337
14. Leases
The total of future minimum lease commitments in respect of non-cancellable operating leases as at 31 December are as follows:
2008
2009 Restated
Group £’000 £’000
Land and buildings leases expiring:
Within one year 6,117 5,850
Two – five years inclusive 22,986 21,693
More than five years 29,312 32,738
58,415 60,281
Other leases expiring:
Within one year 3,381 2,361
Two – five years inclusive 1,072 306
More than five years — —
4,453 2,667
The total of future minimum sub-lease payments expected to be received under non-cancellable sub-leases at the balance sheet date is £1,207,000
(2008: £1,100,000).
2008
2009 Restated
Company £’000 £’000
Land and buildings leases payments falling due:
Within one year 39 31
Two – five years inclusive 158 197
197 228
Other leases payments falling due:
Within one year 5 5
Two - five years inclusive 10 15
15 20
The operating lease commitments have been restated to recognize lease payments as they fall due.
15. Pension and other employee assets/obligations
The Group operates a defined benefit scheme and a defined contribution pension scheme in the UK which offers both pensions in retirement and death
benefits to members. Since 1 January 2002 the defined benefit scheme has been closed to new members.  The assets of the schemes are administered by
trustees independent of the Group. The Company made contributions of £2,583,000 (2008: £2,555,000) to the defined benefit scheme during the year.
The defined benefit scheme was closed for future accruals on 31 July 2006 with active members transferred to a new defined contribution section of the
scheme. In 2010 the company agreed with the trustees of the pension scheme to make annual contributions of  £2.6 million and the contribution is
expected to be £2.6 million in the year to 31 December 2010. This was agreed with a view to eradicating the Scheme Specific Funding deficit over a
period of approximately nine 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 2008 and was updated to 31 December 2009 by a qualified
independent actuary.
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
31 Notes to the Accounts continued
for the year ended 31 December 2009
15. Pension and other employee assets/obligations continued
2009 2008 2007 2006
IAS 19 % % % %
The major assumptions used by the actuary were (in nominal terms):
Rate of increase in salaries n/a n/a n/a n/a
Rate of increase in pensions – accrued pre 5 April 1997 3.0 3.0 3.0 3.0
Rate of increase in pensions – accrued post 5 April 1997 3.50 2.70 3.15 2.85
Discount rate 6.0 6.5 6.1 5.4
Inflation assumption 3.50 2.70 3.15 2.85 
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:
2009 2008 2007 2006
Long Long Long Long
Term rate Term rate Term rate Term rate
of return Value of return Value of return Value of return Value
expected £’000 expected £’000 expected £’000 expected £’000
Equities 9.2% 33,940 9.6% 26,575 8.5% 37,044 8.1% 34,525
Bonds 5.2% 12,776 5.2% 9,668 5.3% 9,664 4.8% 9,341
Property 9.2% 4,212 9.6% 4,378 8.5% 6,055 8.1% 6,400
Other 4.2% 2,012 4.2% 3,047 4.3% 1,970 3.3% 94
Total market value of assets 52,940 43,668 54,733 50,360
Present value of defined  
obligations (funded plans) (73,195) (60,131) (65,040) (70,928)
Present value of 
unfunded obligations (20,255) (16,463) (10,307) (20,568)
Unrecognised actuarial losses 28,904 24,082 15,580 24,43
Net asset in balance sheet 8,649 7,619 5,273 3,867
Actual return on assets in period 8,752 (11,783) 3,540 4,719
The overall expected rates of return were determined by the Directors of the Group, with the advice of their actuarial advisers. The expected return 
available on equities has been taken as the dividend yield on the FTSE Actuaries All Share Index plus real dividend growth of 2.1% plus price inflation.
Reconciliation of opening and closing balances of the present value of the defined benefit obligations
2009 2008 2007 2006
£’000 £’000 £’000 £’000
Benefit obligation at beginning of year 60,131 65,040 70,928 65,552
Service cost — — — 613
Interest cost 3,842 3,911 3,786 3,262
Contributions by scheme members — — — 212
Actuarial (gain)/loss 11,284 (6,983) (8,042) 3,351
Curtailments and settlements — — — (611)
Benefits paid (2,062) (1,837) (1,632) (1,451)
Balance at end of year 73.195 60,131 65,040 70,928
Reconciliation of opening and closing balances of the fair value of plan assets
2009 2008 2007 2006
£’000 £’000 £’000 £’000
Fair value of scheme assets at beginning of year 43,668 54,733 50,360 44,519
Expected return on scheme assets 3,352 4,236 3,747 3,248
Actuarial gain/(loss) 5,400 (16,019) (207) 972
Contributions by employers 2,582 2,555 2,465 2,860
Contributions by scheme members — — — 212
Benefits paid (2,062) (1,837) (1,632) (1,451)
Asset at end of year 52,940 43,668 54,733 50,360
32
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 15. Pension and other employee assets/obligations continued
The amounts recognised in the statement of comprehensive income are:
2009 2008
£’000 £’000
Current service cost — —
Interest on obligation 3,842 3,911 
Expected return on assets (3,352) (4,236) 
Curtailments and settlements — —
Actuarial loss recognised in year 1,063 534 
1,553 209 
Charged to:
Administration expenses 1,063 534
Finance income — (325)
Finance costs 490 —
1,553 209 
History of scheme assets, obligations and experience adjustments
2009 2008 2007 2006 2005
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations (73,195) (60,131) (65,040) (70,928) (65,552)
Fair value of scheme assets 52,940 43,668 54,733 50,360 44,519
Deficit in scheme (20,255) (16,463) (10,307) (20,568) (21,033)
Experience adjustments arising on scheme liabilities 11,285 (6,983) (8,042) 3,351 323
Experience item as a % of scheme liabilities 15% (12%) (12%) 5% 0%
Experience adjustments arising on scheme assets 5,400 (16,019) (207) 972 3,113
Experience item as a % of scheme assets 10% (37%) 0% 2% 7%
16. Inventories
Group
2009 2008
£’000 £’000
Consumables 2,317 2,678
In 2009 total purchases of £42,690,000 of inventories were included in the statement of comprehensive income as an expense (2008: £47,161,000). 
There were no write downs of inventories (2008: £nil).
17. Trade and other receivables
Company Group
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Trade receivables 327 209 17,457 24,000 
Provision for credit losses — — (226) (921)
Current tax receivable 106 147 — —
Taxes and social security costs 1,004 — — —
Amounts owed by subsidiary undertakings 233 418 — —
Prepayments and accrued income 1,094 175  6,229 6,421
2,764 949 23,460 29,500 
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
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Within terms 253 558 14,476 18,528
Overdue by 30 days 23 10 1,723 2,342
Overdue by 60 days 23 — 561 1,587
Overdue by 90 days 10 59 239 577
Overdue by more than120 days 18 — 458 966
327 627 17,457 24,000
Management considers that the value of debts within terms are not impaired. (2008 : £737k)
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
33 Notes to the Accounts continued
for the year ended 31 December 2009
17. Trade and other receivables continued
Company Group
2009 2008 2009 2008
Impaired receivables £’000 £’000 £’000 £’000
Within terms — — — 737
Overdue by 30 days — — — 5
Overdue by 60 days — — — 3
Overdue by 90 days — — — 5
Overdue by more than120 days — — 226 171
— — 226 921
2009 2008 2009 2008
Net (gain)/loss on receivables  £’000 £’000 £’000 £’000
Movement on bad debt provision — — (695) 776
Receivables written off — — 286 106
Net (gain)/loss on receivables — — (409) 882
The basis for identifying impaired receivables is to consider those amounts which are overdue by more than 120 days and for which no cash has
been received after the year end. Past history has indicated that this policy is reasonable.
18. Deferred tax assets and liabilities
2009 2008
Group £’000 £’000
Accelerated capital allowances 403 472
Pension fund asset (2,422) (2,133)
Goodwill (275) (166)
Short term temporary differences 182 149
Liability (2,112) (1,678)
Balance brought forward (1,678) (1,002)
Charge for the year (434) (676)
Balance carried forward (2,112) (1,678)
Company
Accelerated capital allowances 58 29 
Pension fund asset (2,422) (2,133) 
Short term temporary differences (94) —
Liability (2,458) (2,104) 
The Group and Company have capital losses available to be carried forward and offset against future capital gains of £4.1m (2008: £4.1m) for which
no deferred tax asset has been recognised.
19. Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid investments such as money market instruments and
bank deposits. Money market instruments are financial assets carried at fair value. The Company has a committed facility of £8m with The Royal
Bank of Scotland plc until December 2010. Any borrowings under this facility are guaranteed by a fixed charge on book debts. Under this facility, the
Company has given an unlimited guarantee for the borrowings of its trading subsidiaries.
20. Financial Instruments
Company Group
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Financial Assets
Trade receivables 327 209 17,457 24,000
Cash and cash equivalents 11,651 10,200 8,269 5,395
11,978 10,409 25,726 29,395
Financial Liabilities
Trade Liabilitiess 433 1,413 17,866 18,898
34
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 21. Equity
Share capital
2009 2008
Shares £’000 Shares £’000
Authorised
Ordinary shares of 12.5p (2007: 12.5p) each 64,000,000 8,00064,000,000 8,000
Issued and fully paid
Ordinary shares of 12.5p (2007: 12.5p) each 43,197,220 5,400 44,197,220 5,400
Of the 20,802,780 shares authorised, but not issued, 4,262,861 are reserved for issue in respect of the share options.
Share options
Number Exercise Exercise
of shares price period
M A Wilmshurst Approved 25,751 £1.165 2009–16
Unapproved 2,217,860 £1.11 2009–16
D J Loftus Approved 25,751 £1.165 2009–16
Unapproved 1,096,055 £1.11 2009–16
S D G Thompson Approved 25,751 £1.165 2009–16
Unapproved 871,693 £1.11 2009–16
4,262,861
All the above options were issued on 4 July 2006 and no additional share options have been granted since this date.
In total, £169,000 of employee compensation expense has been included in the consolidated statement of comprehensive income for 2009 (2008:
£240,000). The corresponding credit is taken to shareholders’ funds. No liabilities were recognised due to share based transactions.
Each Director has been granted two transfers of options. The first tranche is not subject to any vesting conditions and the second tranche is subject
to achievement of a Total Shareholder Return performance condition. Under both tranches, vested options can be exercised at any time between the
third and tenth anniversary of the date of the grant.
The accounting policy for share based payments is included within note 3, and the following have been factored into the model:
Exercise prices of £1.11 and £1.165, expected volatility of 25%, dividend yield of 3.00%, equivalent risk free rate of return being the rate of return
on zero-coupon Government bonds with a term equal to the expected life assumptions.
The Company’s assumptions regarding the volatility of its shares have been based on a review of market and competitors’ volatility.
The Group’s objectives when managing capital are:
i) to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for 
other stakeholders, and 
ii) to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in the light of 
changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
22. Provisions
Onerous lease costs:
Group
£’000
At 1 January 2009 90
Charged to the statement of comprehensive income to administrative expenses    60
Utilised (33)
At 31 December 2009 117
Current liability 31
Non-current liability 86
117
The Group vacated a number of properties over the last six years for which there is an ongoing liability in respect of leases and other costs. 
The potential cost of these onerous contracts has been provided in the accounts. Due consideration has been given to the likelihood of sub-letting
these properties, the potential outflows of which will occur in the period to December 2018.
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
35 Notes to the Accounts continued
for the year ended 31 December 2009
23. Trade and other payables
Company Group
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Trade payables 433 1,413 17,866 23,140
Amounts owed to subsidiary undertakings 27,020 24,212 — —
Taxes and social security costs 188 218  3,081 3,604 
Accruals 4,183 2,448  8,621 6,984 
31,824 28,291  29,568 33,728 
The Directors consider that the carrying amount of financial liabilities approximates to their fair values.
24. Current tax liabilities
Company Group
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Current tax liabilities — — 311 568
25. Related party transactions
Group
The Group paid £323,400 to Troy Solutions Limited in the year for management and consultancy services (2008: £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
Solutions Limited.  In addition, the Group paid Troy Solutions Limited £235,914 (2008: £295,653) in relation to the provision of office facilities, customer
satisfaction surveys and training services. The amount outstanding at the year end was £nil (2008: £34,350). The outstanding amount in 2008 was payable
within 30 days of the invoice date in cash.
Company
The Company paid £323,400 to Troy Solutions Limited in the year for management and consultancy services (2008: £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 Solutions Limited.  In addition, the Company paid Troy Solutions Limited £235,914 (2008: £295,653) in relation to the provision of office facilities,
customer satisfaction surveys and training services. The amount outstanding at the year end was £nil (2008: £34,350). The outstanding amount in 2008
was payable within 30 days of the invoice date in cash.
Balances with subsidiaries
Balance Balance
as at as at
31 December 31 December
2009 2008
£’000 £’000
Nationwide Crash Repair Centres Limited (2,885) 346
Network Services (Nationwide) Limited (838) (778)
Mobile Vehicle Repairs Limited — 27
Nationwide Fast Fit Plus Limited (247) (2,362)
Other non-trading subsidiaries (22,817) (21,027)
(26,787) (23,794)
During the year, the Company recharged various costs incurred to its subsidiaries including a £3.0m management charge to Nationwide Crash Repair
Centres Limited (2008 : £3.0m). The above balances are all repayable on demand. The Company was also charged interest of £246,575 (2008:
£840,000) 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.
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 (2008: 13,773,214 shares).
26. Contingent assets and contingent liabilities 
Various warranty and legal claims were brought against the Group and the Company during the year. Where these claims are not quantifiable no
provision is made in the accounts. At the balance sheet date management’s assessment of the value of contingent assets and liabilities was £nil for
both the Group and the Company.
36
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009 27. Risk management objectives and policies
Group and Company
The Group and Company is exposed to a variety of financial risks which result from both its operating and investing activities. The Group and Company’s risk
management is coordinated at its headquarters and is regularly discussed by the Board of Directors. The Group and Company does not engage in the trading
of financial assets nor does it write options. The most significant financial risks to which the Group and Company is exposed to are described below:
i) Credit risk
The Group and Company’s trade and other receivables are monitored actively to avoid significant concentrations of credit risk. The Group varies its
credit terms with new customers in order to reduce this risk. See note 17.
ii) Cash flow and interest rate risks
The Group and Company is in a cash positive situation and currently earns between 0.25% and 0.5% interest on its deposits. This interest earned is
dependent on bank rates and is not fixed. Other than this the Group and Company is not exposed to interest rate risk on its financial assets and
financial liabilities.
The Royal Bank of Scotland overdraft rate is only payable when the facility is utilised. The interest rate is dependent upon the bank base rate and is
not fixed.
iii) Market risk
The Group and Company hedge market risk by avoiding reliance on a few key customers. In addition, The Group and Company operate within a
vertical market, with the ability to influence a significant number of market sectors.
28. Capital Management
The Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of
capital growth and through the payment of annual dividends.
The Group has no debt.
Company Group
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Cash and cash equivalents 11,651 10,200 8,269 5,395
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 8,758 8,493 10,596 8,970
26,471 26,206 28,317 26,691
Preliminary Announcement 22 March 2010
Annual Report publication due 26 April 2010
Annual General Meeting 15 June 2010
2009 Interim Announcement September 2010
Notes to the Accounts continued
for the year ended 31 December 2009
Nationwide Accident Repair Services plc
Annual Report and Accounts 2009
37
Financial Calendar Nationwide Accident Repair Services plc
17a Thorney Leys Park
Witney
Oxfordshire OX28 4GE
www.narsplc.com