NEWS

2010-05-25

Homeserve Profits Rise

Home maintenance company Homeserve has posted a 13 per cent increase in annual profits on the back of strong growth in the UK and abroad.

The Walsall-based group, which insures households against broken boilers and burst water pipes, revealed pre-tax profits rose to £100.6 million for the year to Apro, compared to £88.7 million a year before.

Sales across the period rose by 21 per cent, to £369 million.

Homeserve’s chief executive Richard Harpin said the new financial year has started positively with all of its membership businesses performing in line with company expectations.

He added: “We are pleased to announce another year of strong growth with profit before tax increasing by 13 per cent to £100.6m and earnings per share by 14 per cent.

“This strong financial performance has been driven by an eight per cent increase in customers worldwide, with high levels of retention in all countries demonstrating the resilience of our business model.

“We have achieved our growth targets in the UK and internationally with our affinity partner households in the US doubling to over 20 million and the financial contribution from our international operations increasing by 72 per cent.”

Homeserve told investors that the number of policies sold rose to 10.3 million over the period, compared to 9.2 million in 2009 and the total number of customers increased to 4.7 million from 4.3 million.

Homeserve said it remains well positioned for the future and looks forward to another year of strong growth.

The group, which exited from UK Emergency Services, resulting in loss of £42.0 million in discontinued operations, posted a three per cent rise in customer growth in the UK and a retention rate of 82.5 per cent compared to 83 per cent in 2009.

International operating profits rose sharply to £8.7 million from £5.1 million the year earlier.

Revenues increased 31 per cent at its European business over the year while in the US revenue increased 41 per cent and policies grew 38 per cent.