Nationwide Accident Repair Svc Share Discussion Threads

[twirl] 17/10/2014 19:58

Agreed. I have an irritating feeling I need to buy more but this is a dodgy market and don't intend being left high and dry.

[gutterhead] 16/10/2014 20:18

Showing resilience against market slippage. Insurers are going to struggle to find qulIty repair capacity soon as so many repairers have disappeared, that means nationwide will be able to charge more. I feel very positive about this share and can see 100p on a bit of positive news, let alone a bid
Dyor

[topvest] 03/10/2014 07:02

Yes, agree with you coolen on the exceptional items point, but it's a trick many a company makes. Was a bit surprised by another one in the half year results, but if that's the end of it for a while then on a forward look basis looking better.

[coolen] 01/10/2014 21:50

Inspired by TopVest's valid comments above, I wonder if there is creative accounting going on here ?

Following acquisitions, profitable parts are added to P&L in the normal way.

But loss-making units appear to be regularly deleted from P&L and tucked away under "exceptional/non-recurring closure costs".

As always, I stand to be corrected

[topvest] 01/10/2014 21:07

Yes, they are cheap given the growth momentum behind the business. They should hit £1 in the short-medium term in my view.

[gutterhead] 01/10/2014 20:42

Presume today was due to profit taking? Or maybe cash strapped quindell are going to dump their nars shares? Still think this co is recovering well after a difficult couple of years. I'm holding up to, £1 or year end results or takeover, whichever comes first.

[spooky] 30/9/2014 10:16

Have these been tipped somewhere?

[topvest] 23/9/2014 21:06

Very strong underlying results, somewhat spoilt by exceptional site closure costs. Looks very good for the future with this sort of revenue growth coming through. Looks undervalued.

[davebowler] 23/9/2014 11:07

Westhouse;

Following the recent two £10m pa contract wins and £9.5m acquisition of Gladwins, in line interim results mean that NARS is firmly back on the growth track in our view. Adj. PBT was up 86% to £2.5m on revenue of £90.0m (up 13.8%). The interim dividend was maintained at 1p on adj. EPS up 91% at 4.4p. With good levels of cash generation NARS remains well-financed to grow its leading share of its market via further acquisitions, in our view. We introduce forecasts for FY2015 and keep our 100p target price and Buy rating.

[gutterhead] 23/9/2014 07:34

Great half year results

[davebowler] 18/9/2014 10:49

westhouse;

Acquisition

NARS has completed the acquisition of Cambridgeshire-based automotive body shop operator Derek Gladwin Ltd (Gladwins) for a total net cash consideration of £9.5m, including freehold properties of £4.0m, which is being financed through a combination of NARS’ cash resources and banking facilities. Management expects the acquisition to be earnings enhancing in its first full year following the acquisition. Therefore, we leave our current estimates unchanged.

Gladwins operates eight bodyshops, which provide automotive repair services to motor insurers, consumers and fleet operators. For the year ended 30 September 2013, Gladwins generated revenues of £13.4m and an EBITDA profit of £0.7m. Its net assets stood at £3.2m at 30 September 2013. Unaudited management accounts for the eleven months to 31 August 2014 show an improved trading performance over the prior year and certain costs historically incurred by Gladwins are avoidable going forward.

This acquisition is in line with NARS’ acquisition strategy of expanding in selective regions and benefitting from economies of scale and improved flow of work. The addition of Gladwins is highly complementary to Nationwide’s existing operations and provides NARS with a significantly enhanced presence in the Eastern region. It also helps to increase Nationwide’s presence in its target markets of insurance, fleet and retail. This follows NARS’ acquisitions of other body shop chains: Howard Basford, based in the North West of England in February this year; and Exway, based in the South West, in August 2013.

With the stock trading on FY2014 P/E and EV/EBITDA multiples of 9.0x and 6.0x, and offering a dividend yield of 3.8%, we remain happy to maintain our 100p target price and Buy recommendation.

[gutterhead] 18/9/2014 07:37

Looks like a good acquisition, geographically and earnings.

[topvest] 13/9/2014 13:17

I don't think that NASCIT will be interested unless the price is well over a £ to be honest. Probably best to ride the recovery for 1-2 years before any deal. Happy to hold while things are moving in the right direction.

[gutterhead] 12/9/2014 22:37

Results will be announced this month and there must be some optimism and news, maybe more expansion. September and remainder of the year could be interesting.
Could get taken over with big national parts supplier being favourite.
All IMO

[topvest] 12/9/2014 20:47

Yes, starting to motor!! lol

[captainhindsight] 12/9/2014 11:42

Simon Thompson pushing this; on a quiet Friday may have some reaction.

[topvest] 06/9/2014 16:15

It wouldn't be a surprise to me if this company was taken out at some point to be honest. Harwood and Quindell hold over 55% and so any deal would be a done deal if these two agree.

However, that to one side I think recovery prospects are genuinely very sound. My average purchase price was about a £1 so its certainly not been a great investment for me.

The company is on a historical p/e of 10 and a forward p/e of 8.6. If it shows an ability to start growing again, the rating could almost double.

[deanowls] 06/9/2014 15:02

25th sept last year, also in here but I am told that qpp are not putting work there way yet.

[topvest] 06/9/2014 13:56

All very quiet on this BB which probably bodes well. I'm pretty bullish on these now as they have the scope for a strong recovery. We have had one major contract win, but hopefully the Quindell connection will help with other large contracts in due course.

[paduardo] 06/9/2014 13:48

Does anyone know when the H1 results are going to be released?

[topvest] 03/9/2014 20:46

Well this now definitely seems to be heading in the right direction. With an improving market, tight cost control and contract wins this could start to move back to a £1 or so.

[spob] 03/9/2014 09:39

yeah, I was just trying to get a grasp on the relative size of this contract win

I notice the share price dropped quite significantly through the second half of 2012 due to the Aviva contract loss

[m1das_touch] 03/9/2014 09:34

No I think you've read it right spob, my error sorry - "From 2 July 2012, Nationwide will no longer undertake work in certain geographical regions for Aviva resulting in a revenue shortfall of approximately GBP10 million for the current financial year ending 31 December 2012." That does suggest that the full year loss of revenue was more like £20m.

Anyway, it's history now and already in the price. New contracts are being won and along with some canny earnings-enhancing acquisitions this should help to drive the recovery. The dividend has already been rebased, so hopefully the interims will show that we're entering a phase of upwards earnings / dividend momentum - with the possibility of NARS being taken over not dead either, albeit more unlikely for the time-being.

[spob] 03/9/2014 08:55

I thought they lost 10m from Aviva PER half year

maybe I need to read it again

[m1das_touch] 03/9/2014 08:39

They lost £10m in revenue from Aviva, but then gained £10m from the contract extension with Axa announced back in June. Overall they seem to be moving in the right direction, making decent acquisitions in a highly fragmented market and picking up some good contracts, probably helped (surprisingly!) by having QPP as as a major shareholder, with all their relationships with insurance companies.