HomeServe reports stable UK and overseas growth

30th Sep 2013 07:10

Emergency domestic repairs group HomeServe said its outlook for the full year remains unchanged, helped by growth at its International business and as its UK business stabilises.The group, which insures customers against burst pipes and broken boilers, said earnings in the first half of the full year 2014 are expected to be broadly similar to last year's £25.6m. "As usual, trading will be weighted towards the second half of our financial year reflecting the seasonality of our marketing activity and the associated renewals profile although this will be partially offset by the expected reduction in the UK business," the group explained. In its trading update ahead of its half-year results in mid-November, it said UK customer numbers at September 30th 2013 will be around 2.2m and is confident of achieving full-year targets of 0.2m gross new customers, a retention rate of over 80% and stabilising year end customer numbers at 1.9m. In the US customer numbers in the first half of the year are expected to be around 20% higher than the same period in FY2013 and it remains on track to deliver strong growth in US operating profit for the full year. Meanwhile in France, customer and policy numbers remain stable and it continues to seek further partnerships in France. Spain's Reparalia is expected to show a small operating profit in the first half compared to last year's loss after growth in customer numbers.Its new markets in Italy and Germany continue to develop and, as previously announced, it expects the full-year operating loss in this division to be around £6m for the full year 2014.Homeserve, which issued a profit warning in March, made no comment on the ongoing Financial Conduct Authority investigation into the group's alleged mis-selling of insurance. CJ