Home repairs business breaks through £1bn revenue barrier
Home repairs business HomeServe has seen revenue exceed £1bn, boosted by strong trading in North America which is now the the company’s largest business.
Walsall-based Homeserve, whose UK chief executive Greg Reed was crowned Leader of the Year at TheBusinessDesk’s Midlands Leadership Awards last year, reported adjusted operating profit up 14% to £174.8m with statutory operating profit up 13% to £152.6m for the 12 months to the end of March.
UK adjusted operating profit was up 8% to £66m, with income per customer up 15% as the business continued its focus on delivering additional products to customers.
Adjusted operating profit in North America was up 37% to $88.1m, with an adjusted operating margin of 20% as customers reached four million, making it HomeServe’s largest business in terms of both customer numbers and adjusted operating profit, overtaking the UK.
France and Spain both delivered good growth in adjusted operating profit, up 6% and 5% respectively.
In the period, Homeserve established a presence in Japan via a joint venture agreement with Mitsubishi Corporation.
“The Japanese market meets all of the search criteria we apply to new markets, notably a strong economy, a large and high quality housing stock and the potential to form strong utility partnerships. Mitsubishi is not itself a utility but has unrivalled market knowledge and is well placed to introduce the new JV to potential utility partners,” Homeserve said.
Richard Harpin, founder and chief executive, HomeServe, said: “HomeServe delivered another very good year with further profit growth across the group. North America was once again the outstanding performer and our progress there continues at pace. Allied to good performances in the UK, France and Spain, our membership business is strong and I remain excited about its prospects.
“Checkatrade is already making great strides to strengthen its position as the UK market leader and offer an even better trade and consumer experience. In Home Experts we have a business line with huge potential. The progress we have made this year has confirmed that we are developing a winning model and gives us the confidence to increase our annual investment.
“Our mission is to make home repairs and improvements easy for both homeowners and trades and I remain as passionate as ever about our efforts to provide great service to achieve this.”
