Homeserve expecting strong growth

29th Jul 2011 07:03

Emergency home repairs outfit Homeserve expects customer growth of around 3% in the UK in the current financial year.The first four months of the company's fiscal year, which runs to the end of March, has seen the business grow and develop, with increasing customer and policy numbers and retention rates remaining high and in line with those reported for 2011. In the UK,the retention rate remains high and in line with the 82.7% reported for 2011. In the USA, the company has ramped up marketing activity in the past twelve months, which will result in the division posting a higher operating loss in the first half of fiscal 11/12 than was seen in the corresponding period of last year, but the group continues to expect significant growth in US operating profit over the full year."Homeserve's financial position remains strong with low levels of net debt," the company statement said. On 22 July, the group renewed its banking arrangements with an increased credit facility of £250m."We have made a good start to the financial year and continue to expect to deliver another year of strong growth," the company said, adding that the results will, as usual, be second-half weighted. --jh