Nationwide make 48% profit

Crash repairer Nationwide reports H1 revenue of £87.25m, up 9% on the back end of 2009’s £90.94m (slighlty down on h1 2009's £90.94 m), with its profit margin increased from 44% to 48%.

Profit before tax increased by 26% to £3.03m from £2.41m. Partly responsible was a new insurance contract with Groupama, secured in April 2010 to manage all Groupama's vehicle repairs.

Michael Marx, chairman, said: "Results are very encouraging, with profit before tax up by 26% to £3.03m, and cash generation remains strong. In addition, Nationwide continues to maintain a robust balance sheet, with substantial net cash and no debt. This all provides a firm platform for the Board's progressive dividend policy and, accordingly, we have raised the interim dividend, reflecting the Group's good performance.

Investing

“Nationwide is well-positioned to continue to execute its growth plans. We are investing in the business to take advantage of the growth opportunities we see in our core insurance market as well as in the allied fleet and retail markets. At the same time, we are considering acquisition opportunities, which complement our existing operations.

“Given our good performance over the first half and current trading to date, we believe that results for the financial year to 31 December 2010 will be ahead of current market expectations."