FTSE-250 firm reveals strong results in midst of £4.1bn takeover bid

HomeServe has revealed it has continued to grow revenues and profits in what is likely to be its final set of results as a public company.

The Walsall-based company’s board agreed a £4.1bn takeover offer from Brookfield Infrastructure Funds last week and is recommending shareholders approve the deal.

The 1200p-per-share offer was 71% above the closing share price before takeover talk began in March.

Richard Harpin, founder and chief executive of the home emergency repairs business, said the offer “recognises the high quality of our businesses, our people and our future growth potential”.

He added: “HomeServe has emerged from the Covid-19 pandemic with all three of our business divisions performing strongly.

“Our membership-based business model continues to be resilient, predictable and highly cash generative, and we are well positioned for continued growth.”

Its key profit measure, adjusted pre-tax profits, rose 15% to £220m – continuing a strong trend that has been maintained through the pandemic years. Revenues rose 10% in the year to March to £1.43bn, having been at £1.00bn three years ago.

Harpin said the growth was “well balanced between organic revenue growth and a successful acquisition strategy, particularly in HVAC buy and build and with the acquisition of CET to create a market-leading Claims Assistance business in the UK”.