HomeServe's New Markets segment to post 62 rise in operating loss

FTSE 250-listed international home emergency business HomeServe has reported that it expects its New Markets segment to report a fiscal year 2013 operating loss of approximately 5.5m pounds, representing a 61.8 per cent rise compared to the fiscal year 2012, when the business reported a 3.4m loss.

FTSE 250-listed international home emergency business HomeServe has reported that it expects its New Markets segment to report a fiscal year 2013 operating loss of approximately 5.5m pounds, representing a 61.8 per cent rise compared to the fiscal year 2012, when the business reported a 3.4m loss.

HomeServe forecast adjusted profit before tax for the year ending March 31st would be 'in line with market expectations', stating that it was continuing to grow its international businesses with new affinity partnerships and growing customer numbers and earnings.

In the UK, it reported that it was continuing its transition to a smaller, more focused business. Customer numbers in the fiscal year 2013 were reported to be around 2.25m, well within the lower end of the target range previously outlined by the company of between 2.2 and 2.4m.

Looking to the web for new businessUK retention rates increased slightly from the reported 78% for the first half of the year and HomeServe reported that it was expanding its channels for attracting new customers including through using the internet.

"Direct mail and outbound telephony sales channels have historically provided the majority of our new customers in the UK. Whilst direct mail will continue to be a key channel going forward, take up rates from current campaigns are still lower than historic levels and we are currently focusing outbound telephony channel on sales to existing customers only.

"We are therefore developing additional ways of acquiring new customers through a broader range of channels including the internet and sales through our partners' call centres. The effectiveness of our marketing campaigns and our retention rate will help to determine the future shape and size of the UK business," the management statement reported.

In the US, the group reported its business had secured two new affinity partnerships representing 224,000 affinity partner households and in France and Spain, the group reported "good financial performance" and "strong growth in customer and policy numbers", respectively.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020
How will we repay our vast debt pile? Do we even need to?
Sponsored

How will we repay our vast debt pile? Do we even need to?

In his recent articles looking at different aspects of the fixed-income investing world, David Stevenson looked at inflation. Today he looks at a clos…
19 Oct 2020
Buying bitcoin could be the best way to play the remote working boom
Bitcoin

Buying bitcoin could be the best way to play the remote working boom

The coronavirus pandemic has accelerated the move to home working, flexible employment practices and the rise of the “digital nomad”. One of the best …
21 Oct 2020