HomeServe customer numbers up 14%

HomeServe, the responsive maintenance firm which sells insurance policies for household boilers and water pipes, expects to report an increase in customer numbers and insurance policies of 14%, when it releases its results for the full year to 31 March 2011.

An interim management statement, released to the stock exchange today, said: “HomeServe has continued to grow and develop its membership businesses, with good growth in customer and policy numbers. Our outlook for the full year remains unchanged, and we look forward to delivering another year of strong growth in line with market expectations.

“The business continues to be highly cash generative with low levels of net debt and we remain on track for another year of strong earnings growth”.

Its UK business is more mature than that of its overseas divisions and will see customer and policy numbers increase by 3-4%, while its fast growing US business will see growth of 50% and 75% respectively.

HomeServe reported a strong set of results in November last year, covering the six months to 31 September 2010.

Turnover for the six month period increased by 19% to £171m, compared with £143.5m at the same time a year earlier. Its unadjusted pre tax profits were £17.8m, a fall of 32% compared to £26m it made last year.

After allowing for amortisation of goodwill, joint venture tax and exceptional items, its profit increased by 13%, from £18.9m last year, to £21.3m.

It said at the time: “This good performance has been driven by strong customer and policy growth, with retention rates remaining at high levels across the business as customers continue to turn to HomeServe membership to protect themselves against unexpected and costly home emergencies, demonstrating the value of our business model.”