Express & Star

Strong first half from HomeServe

A strong performance from household assistance group HomeServe has seen a rise in half year sales and profits as it added another half a million customers.

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HomeServe has hailed a strong performance in the first half of its year.

The Walsall-based business, which sells policies covering repairs from leaking fridges and dodgy boilers to faulty wiring, has seen its adjusted profits rise 10 per cent in what is normally its quieter first half, up to £31.8 million.

But when the costs associated with recent takeovers is taken account of, its statutory profit in the six months to the end of September slipped nine per cent to £19.3m.

Revenue, whoever, surged by 10 per cent to £404.3 million thanks to a strong operational performance and good progress with a series of growth initiatives across the business. It also saw its customers base in the UK, USA and Europe rise to 8.3 million from 7.8m a year ago.

HomeServe's founder and chief executive Richard Harpin said: "We have delivered a strong first half and remain confident in our growth prospects for the full year. Business performance has been good in all our geographies and we have made progress on strategic initiatives in all four of our global business lines.

"HomeServe has just celebrated its 25th anniversary. I am as excited as ever by the opportunities to continue to build our business so that we can help homeowners with every job, in every home."

The company – which employs around 1,100 at its Green Lane headquarters in Walsall and is a major sponsor of the town's football club – completed its takeover of Checkatrade last year in a £54m deal.

HomeServe said it had seen an improved performance in the UK, with adjusted operating profit up 11 per cent to £10.2m and three new energy partners signed

At the same time there was continued strong growth in North America – now HomeServe's biggest single market – with adjusted operating profit up 28 per cent to £16.8m.

There was also good progress in France and Spain.

HomeServe also hailed 'excellent progress' in its Home Experts network of directly employed and sub-contract engineers, plumbers and tradesmen. Trade subscribers rose 17 per cent to 54,000 while website visits jumped 17 per cent to £51.7 million.

HomeServe also underlined its strong financial position, with £200m of headroom in its debt facilities.

As a result of its performance, the company has hiked its half year dividend payout to shareholders by 11 per cent to 5.2p per share.