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Floated on AIM in July, Nationwide is the leading provider of car crash repair and accident administration services offered to motor insurers and fleet operators. ‘We go from Dundee to Plymouth,’ explained chief executive Michael Wilmshurst, who can point to R&SA and Norwich Union and DHL as customers.

Nationwide motored home with stellar figures for the year to December, with underlying pre-tax profits (before non-recurring costs) accelerating by 67% to �5.9m, ahead of the forecast �5.8m, on sales of �151m (�139.6m). Thanks to strong cash generation, Nationwide closed the year with �6.9m net cash in the bank and no debt, enabling declaration of a 2.6p dividend.

Profits growth reflected the benefits of 2005 acquisition Gemini, double-digit growth into both R&SA and Zurich, and the overall improved operational efficiency of the business.

Nationwide has a twin-track approach to earnings growth, focused on leveraging its cost base and making acquisitions in a consolidating accident repair market. One of the year’s highlights was the �1.275m December acquisition of Aquilo Motor Services, which provides motor claims management services to insurers and fleet managers, enhancing prospects within the ‘Network Services’ division. Since the year-end, additional bodyshops in Llandudno and Lincoln have been acquired.

This year, analysts are looking for a rise in profits to �6.9m, giving 12.2p of earnings and a 4.5p dividend, placing the shares trading on a forward multiple of only 13.9, with a prospective yield of 2.6%. Like its smaller AIM-quoted collision repair rival Just Car Clinics, Nationwide offers strong earnings growth in a consolidating though non-cyclical industry and the shares are worthy of investigation. Buy.

Nationwide Accident Repair Services	AIM	�79.65m	177.50p	2.00p
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