Annual profits significantly up for HomeServe
Home repairs group HomeServe, which has its head office in Walsall, says annual pre-tax profits are expected to be significantly up on its previous financial year.
In a trading statement HomeServe said it had has another very good year.
Adjusted pre-tax profit for the year to the end of March is expected to be at the upper end of market expectations – between £159.5 million to £161.7m. The figure for 2017-2018 was £141.7m.
In the membership business, North America reached the milestone of four million customers, up from 3.6m a year before as the business continued to grow strongly.
In the UK however customer numbers were down from 2.2m to 2m.
The group said it reflected continued good retention of customers but no policy book acquisitions in 2018-2019. In Spain, customers reduced from 1.3m to 1.1m following the end of the affinity partnership with Endesa, but in France, customer numbers saw a small increase and were at 1.1m.
The group retention rate remained strong at 82 per cent and across all geographies, HomeServe's focus on delivering additional products to those customers who value its services drove increases in net income per customer.
In Home Experts, HomeServe's online trades marketplace, revenue at Checkatrade increased by more than 30 per cent and trades recruitment grew strongly.
HomeServe ill report its preliminary results for 2018-2019 on May 21.
