HomeServe grows at home and abroad

Profits and turnover both grew for home emergency cover group HomeServe in the year to the end of March.

The Walsall-based business also saw good customer growth of 11% to seven million.

Revenue was up 8% to £633.2 million with pre-tax profits up by the same level to £82.6m.

In the UK customer numbers increased 3% from 2.1m to 2.2m with profits also increasing 3% to £58m. A good marketing performance delivered 400,000 new customers with the group achieving a retention rate of 82% reflecting an increased number of first year renewals.

In the United States profits were up 89% to £12.1m combined with 17% customer growth to 2.3m. France saw customer numbers rise by 7% to a million with stable profits of £23.2m and for Spain customers rose 11% to 1.2m with profits up 7.5% to £9.9m.

Chief executive Richard Harpin said: "This has been another very good year for HomeServe with all businesses performing well.

"We are particularly excited by the prospects for our US business. Profits have increased significantly whilst at the same time delivering strong customer growth."

He said the agreement to acquire Utility Service Partners would increase US affinity partner households by 9m to 42m and would enable HomeServe to accelerate its growth.

Mr Harpin said that in the UK, HomeServe had a strong business, which has grown profit and customers.

"I am confident we will deliver on our expectation of further good growth in financial year 2017, alongside continued investment in marketing, business development, international expansion and innovation initiatives," he added.

More than two thirds of HomeServe's customers are now outside the UK.

During the year it completed more than two million repairs across the group and delivered an improved customer experience, with a reduction in customer complaints and increased levels of customer satisfaction.

It expects growth to be driven primarily by its international businesses, with the UK continuing to deliver a solid performance.