Nationwide crash repairer highlight money-saving trend
Crash repairer Nationwide has said more cars are having part replaced at a lower margin Chairman, Michael Marx will tell its Annual General Meeting today.
He will tell the AGM: “There is no doubt that the current trading environment presents more challenges to the business and we are seeing some types of repair spend being deferred.
“Sales in the first four months of the current financial year have been broadly in line with expectations however the mix of repair work included a greater element of parts replacement which generally carries lower margins.
“In recent weeks, we have seen the profile of repair work recover and gross margins have improved.
“We have also taken various actions to improve our position but the benefits of these will not show through fully until the second half of the year.
“The balance sheet remains strong and cash generation is good. As at 31 May 2009, Group held net cash of £7.4m.
“We continue to execute our strategy of organic and acquisitive growth and so build on our market-leading position. While we expect the economic environment in 2009 to remain difficult, we are well-placed for long term growth.”
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