The UK's largest independent bodyshop chain saw profits increase to just short of £6m in 2006 against £3.5m for the previous year.

Sales rose 8 per cent to £151.2m during the year compared to a figure of £139.6m in 2005.

The company said its cash position remained strong and it would seek to grow through acquisition.

Chairman Michael Marx said the group would continue to pursue its “twintrack approach” of improving existing businesses whilst exploring new opportunities.

He added: “We will continue to expand out bodyshop capacity and improve our efficiency, whilst exploring additional opportunities for growth through acquisition.”

Last year saw the group acquired Aquilo Motor Services for £1.5m and this year bought bodyshop businesses in Llandudno and Lincoln.

Nationwide launched on AIM, the junior stock exchange, last summer.