Homeserve buoyed by international growth
Strong growth internationally saw home emergency repairs group HomeServe achieve a decent increase in revenue and profit in the first half despite a slight fall in customer numbers over the period, as it continues to refocus its UK business.
Strong growth internationally saw home emergency repairs group HomeServe achieve a decent increase in revenue and profit in the first half despite a slight fall in customer numbers over the period, as it continues to refocus its UK business.
Revenue during the six months to September 30th totalled £229.6m, up 8% on the £213.1m reported last year. Meanwhile, adjusted profit before tax rose 9% from £23.5m to £25.6m.
Customer numbers were 2.5m at the end of the period, down from 3.0m at the half-year stage last year, while policy numbers fell from 7.5m to 6.0m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company, which is still subject to a Financial Services Authority (FSA) investigation into so-called "certain historic issues", said that it is making progress in transitioning its UK business to a "smaller, more customer-focused operation".
Chief Executive Officer Richard Harpin said: "In the UK we are currently testing a number of new marketing and product propositions, the effectiveness of which will determine the future shape and size of our UK business.Our business improvement initiatives are delivering increased customer satisfaction, significantly reduced complaint numbers and strengthened governance and control processes in the UK."
Nevertheless, in the International business customers numbers have grown rapidly, up 20% and 42% in the US and Spain, respectively.
As for the FSA issue, the regulator is continuing to gather and review information and HomeServe does not yet know of any findings.
"Therefore, at this stage no provisions have been made for a fine, should one arise, or the costs of the FSA investigation.We expect the costs of the actions we are taking to address the sales and marketing, controls and governance and complaints handling issues in our UK business to remain in line with our previous expectations."
The company reported free cash flow of £10.3m for the period, up from just £2.3m last year. Net debt increased from £66.0m at the end of the previous year to £78.1m.
The interim dividend was maintained at 3.63p per share.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
73% of savers plan to rely on partner’s pension in retirement
A new survey suggests the majority of people may lack financial independence in retirement, with almost three-quarters set to rely on their partner’s pension
-
How much you need to follow the 25x retirement rule – will you have enough to be financially independent?
We explain what the 25x retirement rule is and the amount you would need to be financially independent in retirement.