Nationwide Accident Repair Svc Share Discussion Threads

[spob] 25/9/2013 09:51

What sort of price are we looking at when/if QPP make an offer for the remaining shares ?

[spob] 25/9/2013 09:50

QPP Broker note

" We would expect Quindell to increase its shareholding in NARS in due course. "


CANNACORD - BUY 41p - NARS Mission to NARS What's new?

Quindell has announced that it has acquired a 22.5% stake in Nationwide Accident Repair Services plc (NARS) for just over £8m, payable in Quindell shares. NARS is the UK leader in the field of accident repair services, with a network of 60 bodyshops across the UK and a fleet of mobile repair vans and courtesy vehicles.Impact on the Canaccord Genuity viewManagement has made no secret of its desire to acquire a chain of repair shops as part of its integrated supply chain for motor insurance claims processing, legal and medical services, vehicle repair and replacement car hire. The group currently uses a number of third party garage chains for repair services; consolidating these into one or two wholly- or partly-owned chains could have a material impact on volumes, capacity utilisation and hence profitability. We therefore see this as a sensible move in line with the previously stated strategy. We would expect Quindell to increase its shareholding in NARS in due course. We make no changes to our forecasts at this stage other than a minor adjustment to the number of shares in issue.ValuationIn spite of the recent outperformance – the shares are up 70% since we initiated coverage in late July – the shares are still cheap at just under 5x December 2014 earnings and a 10% free cash flow yield. We see substantial further upside from these levels. The default Quest value is 21p but inputting our forecasts and delaying the fade by three years to account for the rapid growth expected for the foreseeable future, that fair value increases to 40p.Share performance catalystManagement recently signalled that it had a strong pipeline of deals and that it expected to announce further contracts before the end of the year.

[m1das_touch] 25/9/2013 09:31

TIDMNARS

RNS Number : 8506O

Nationwide Accident Repair Srvs PLC

25 September 2013

25 September 2013

Nationwide Accident Repair Services PLC

("Nationwide" or "the Company")

Response to announcement by Quindell Portfolio Plc ("Quindell")

Nationwide, the largest dedicated provider in the UK of accident repair services to the insurance, fleet and retail markets, notes the announcement released today by Quindell advising that it has acquired shares representing 22.5 per cent of the Company's issued share capital. Nationwide further notes Quindell's desire to explore future opportunities for working together. Aside from being informed of Quindell's share purchases and that Quindell has no current intention of making an offer for the entire issued share capital of the Company, Nationwide can confirm that it has not yet entered into any discussions with Quindell concerning its investment in the Company.

Nationwide, which announced its half year results for the six months ended 30 June 2013 earlier today, remains focused on providing its support service solutions to its customers and the Board is confident that Nationwide's growing position in its markets leaves it well positioned over the medium term to create the leading integrated automotive support services group.

[steveglobal4] 25/9/2013 08:45

now live on igindex

[steveglobal4] 25/9/2013 08:10

just asked ig to add to there platform now quindell own part

[spob] 25/9/2013 08:07

Embargoed for release until 7.00 25 September 2013

Quindell Portfolio Plc

("Quindell" or the "Group")

22.5% Investment in Nationwide Accident Repair Services plc

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to announce that the Company has acquired 22.5% of Nationwide Accident Repair Services plc (AIM:NARS.L) ("NARS"), the largest dedicated provider of accident repair services in the UK.

9,700,423 shares, representing approximately 22.5%, in aggregate, of the issued share capital of NARS were acquired on 24 September 2013 from the shareholders listed in the table below in exchange for the issue by Quindell of 50,151,187 new Ordinary Shares of 1 penny each in the Company, a ratio of 5.17 new Quindell shares for each NARS share.


NARS Shareholding
Shareholder pre- investment Shares sold to Quindell Shareholding post
investment
% Number % Number %

Miton Group (note 1) 14.5 6,261,000 14.5 - -
Octopus Investments Nominees
Limited 8.0 3,439,423 8.0 - -
Total 22.5 9,700,423 22.5 - -


Note 1: As investment manager subject to necessary consents

At the closing mid market price on 23 September 2013 for Quindell shares of 16.25p, the share exchange values each ordinary share in NARS at 84.0 pence, representing a 71.5% premium on the closing mid market price of 49.5 pence per NARS share on the same date, or a 29.2% premium on the average closing mid market price of 65.0 pence per NARS share over the last six months.

Application has been made for 50,151,187 shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 3 October 2013. Following Admission, Quindell will have 4,277,312,805 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 4,277,312,805 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Rob Terry, Founder and Chief Executive of Quindell said: "We are delighted to be announcing this latest strategic investment in line with our stated strategy of having a direct ownership stake in repair services networks that can take advantage of the volume we manage for our clients. We look forward to exploring with the Board at NARS future opportunities for working together in the market leveraging our combined volume, driving forward the lowering of the costs of claims for the insurance industry and broadening our overall proposition in insurance outsourcing."

[spob] 25/9/2013 08:06

Embargoed for release until 7.00 25 September 2013

Quindell Portfolio Plc

("Quindell" or the "Group")

22.5% Investment in Nationwide Accident Repair Services plc

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to announce that the Company has acquired 22.5% of Nationwide Accident Repair Services plc (AIM:NARS.L) ("NARS"), the largest dedicated provider of accident repair services in the UK.

9,700,423 shares, representing approximately 22.5%, in aggregate, of the issued share capital of NARS were acquired on 24 September 2013 from the shareholders listed in the table below in exchange for the issue by Quindell of 50,151,187 new Ordinary Shares of 1 penny each in the Company, a ratio of 5.17 new Quindell shares for each NARS share.


NARS Shareholding
Shareholder pre- investment Shares sold to Quindell Shareholding post
investment
% Number % Number %

Miton Group (note 1) 14.5 6,261,000 14.5 - -
Octopus Investments Nominees
Limited 8.0 3,439,423 8.0 - -
Total 22.5 9,700,423 22.5 - -


Note 1: As investment manager subject to necessary consents

At the closing mid market price on 23 September 2013 for Quindell shares of 16.25p, the share exchange values each ordinary share in NARS at 84.0 pence, representing a 71.5% premium on the closing mid market price of 49.5 pence per NARS share on the same date, or a 29.2% premium on the average closing mid market price of 65.0 pence per NARS share over the last six months.

Application has been made for 50,151,187 shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 3 October 2013. Following Admission, Quindell will have 4,277,312,805 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 4,277,312,805 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Rob Terry, Founder and Chief Executive of Quindell said: "We are delighted to be announcing this latest strategic investment in line with our stated strategy of having a direct ownership stake in repair services networks that can take advantage of the volume we manage for our clients. We look forward to exploring with the Board at NARS future opportunities for working together in the market leveraging our combined volume, driving forward the lowering of the costs of claims for the insurance industry and broadening our overall proposition in insurance outsourcing."

[m1das_touch] 25/9/2013 08:04

Haha, well it was only fair :)

I managed to top up at 60p...this is seriously fantastic news for NARS and not everyone realises it yet!

[steveglobal4] 25/9/2013 07:59

thanks for telling everyone,lol

[spob] 25/9/2013 07:43

Please give source

[m1das_touch] 25/9/2013 07:40

Expecting a huge re-rating this morning, as Quindell Portfolio Services yesterday purchased 22.5% of the company from institutional investors for around 84p per share...this should finally out the value here.

[cjohn] 15/9/2013 13:26

Hi Aleman, the real discount rate needs to take into account the combination of gilt yields and the inflation rate. As both inflation rates are up, this is bad news for pension déficits. The overall effect of recent changes in gilt yields and the inflation rate is broadly neutral.

[bend1pa] 07/9/2013 13:46

Yes, but it isn't just about pension deficits. That applies to all companies in that situation. It's about growing your business, and it is becoming increasingly clear that NARS is struggling badly on that front. With the strong recovery in the car market, they can no longer blame the weather or the economy for their miserable performance.

[aleman] 07/9/2013 12:13

In H1, the yield on UK 10-year gilts rose from just over 1.8% to about 2%. One or two companies increased the discount rate on their pension liabilities on the back of that and saw modest deficit improvements. So far in H2, the 10-year gilt yield has risen another 1% to 3%. This could see a major rise in discount rates and a large reduction in NARS' pension deficit, enough that top-up payments might reduce markedly or pause. It is interesting to think that this company could end the year with a net cash position, a pension deficit that is considered modest, and better cashflow, even if results are nothing to write home about.

[dozey1] 23/8/2013 17:58

I think this outfit might make a good fit for Halfords. HFD's Autocentres are going from strength to strength, I used one recently and was favourably impressed. Only snag was it is within two miles of home and yet I didn't know of its existence (still, only been here 40 years). NARS repair shops could be integrated with their Autocentres, and where suitable offer servicing as well. Seems a logical step towards expanding Halfords offering.

You heard it here first ;-)

(Long NARS and HFD)

[aleman] 16/8/2013 14:29

I don't disagree with the longer term structural issues and NARS difficulty in overcoming them at all but I do think the weather will have had a short term effect. It's been dry generally in the UK and very dry in places. The rivers in Yorkshire at the end of June were between 40% and 90% of normal flow (and got even worse in July before recovering to about 75% typically).



I don't believe the broker has forecasted a fairly quick rebound in earnings just on NARS suddenly getting better at overcoming structural issues. I actually think part of the rebound is forecasted on the expectation the weather will not be as dry in future. I could be mistaken but I think it is an issue.

The large rise in gilts rates should have helped the deficit fall further and the company has a partially offsetting net cash position. I don't think it is a major issue here. Since the recession, I've made a habit of investing in companies where debt and deficit fears have been exaggerated and It has been extremely profitable for me. This doesn't mean NARS won't be the exception that proves the rule. I remain wary about how long it is taking them to get to grips with structural issues.

I hope you are keeping well, harrogate, and will be able to compare notes again next spring.

[harrogate] 16/8/2013 13:31

The focus on the weather is way off track here. The problem is the structural change in the marketplace and the pricing pressure the insurers hold over all these bodyshops. I am sure NARS have too many sites and there will be more closures to come. They are not the company they were not because of the weather but because of the market and with the risks of further turmail in the market I would have thought that there are better things elsewhere on a PE of 10 without a massive pension deficit and a reducing dividend.

[aleman] 16/8/2013 12:40

Yes. It's really poor that a stockbroking analyst can't forecast the weather 6 months ahead.

[bend1pa] 16/8/2013 12:35

Just one broker's opinion, and they've been wildly innacurate with their forecasts in the past. There's clearly something very adrift at NARS which they can no longer blame the economy for.

[xpan] 15/8/2013 12:08

Where can I get to download some broker notes on NARS?