Property repairs cost Homeserve

23rd Sep 2009 07:42

Homeserve expects interim profits to be on track with an improved performance in its core home maintenance business offset by losses in emergency services.UK Emergency Services, particularly Property Repairs, continues to suffer from reduced volumes which will be reflected in this division reporting a loss for the period, the statement said, adding Homeserve is still trying to exit the business.Elsewhere, first half profits in the core membership operations were ahead of last year and in line with our expectations. Renewal rates are high. Gross new policy sales were in line with the same period last year at around 0.75m (2008: 0.77m) and retention rates remaining high at 83%.The French joint venture, Domeo, continues to grow its policy base and the retention rate remains high at 88%. In Spain, Reparalia has had another good first half. US new policy sales are in line with last year and the retention rate remains high at 80%. As in previous years, the phasing of profits and policy growth will be weighted towards the second half reflecting the seasonality of our marketing activity and associated renewals profile, Homeserve added.