FTSE 250 firm’s share price hits seven-year high

FTSE 250 firm HomeServe’s share price reached a seven-year high after investors responded positively to a 20% increase in profits.

The group’s chief executive Richard Harpin had reported “a very good year” for the Walsall-based business, which added £150m in revenues to reach £785m in the year to March.

A “transformational year” in North America, where it now covers 50m households, also boosted its performance and future prospects.

Its share price climbed more than 10%, reaching 777p at the close. It is its highest level since 2010, when HomeServe’s shares lost 80% of their value.

The fallout from a mis-selling scandal drove its share price even lower in 2011, to around 150p, but has been on an upward trend for most of the past four years.

Yesterday’s share price rise added £240m to the company’s market value, which is at £2.4bn.

Harpin, who founded the business in 1993, said investments in recent acquisitions Checkatrade and Habitissimo were “a major step forward”.