Homeserve builds on domestic stability with growth abroad

26th Jul 2013 08:40

Emergency domestic repairs group Homeserve said it has improved its customer retention rates in the UK and grown customer numbers overseas in the first four months of the year.The FTSE 250 company, which stressed that trading is weighted towards the second half of the year, said it had increased its UK customer acquisition marketing activity as it made progress towards its target of 200,000 gross new customers during the financial year.Under its new strategic model, Homeserve boasted a 39% reduction in customer complaints although an investigation by the Financial Conduct Authority into its alleged mis-selling continues.The Walsall-headquartered group maintained it was on track to hit its target of 1.9m customers by end-March 2014 and a full year retention rate of 80%. International businesses in US, France and Spain all continued to grow customer numbers.The US is on track to deliver "strong growth" in full year operating profits, but seasonality of policy renewals, services and repairs means it will report a small operating loss for the first six months.With four new marketing agreements signed in the US so far this financial year, customer numbers in the first half of the year are expected to be around 20% higher than the same period in the prior period, with retention rates expected to be in line with the 80% last year. In Spain, strong growth continued in customer and policy numbers, largely as a result of call centre sales.Under the Doméo brand in France, the group has preserved a high retention rate of around 88% and is in discussions with potential new product partners.Press rumours regarding a private equity bid have not solidified since emerging in June. Shares in Homeserve were up 1.82% to 280p at 09:01 on Friday.OH