HomeServe chairman to step down after 14 years

THE chairman of home maintenance specialist HomeServe has announced he is to step down from the board after 14 years with the company.

Brian Whitty, who became chairman in 2004, will leave on March 31 and will be replaced by Barry Gibson, currently the senior independent non-executive director.

The announcement came as the Walsall company issued an interim management statement showing that its policy membership businesses were performing well and were set for growth in the year ahead.

The company said it had also achieved a major milestone of 10m policies worldwide, representing a spread of 4.5m customers globally.   
 
Speaking on Mr Whitty’s decision to step down, chief executive Richard Harpin, said he would like to thank the chairman for his service during his 14 years with the company, and before that as chief executive of utility South Staffordshire Group.

“During his time at HomeServe, Brian has been instrumental in helping to grow and develop the business from its origins within South Staffordshire Water to the international business it is today,” he said.

He said Mr Gibson was a worthy replacement and brought with him a wealth of experience, both of the retail sector and developing international businesses.

“This makes him an excellent choice to take HomeServe through its next stage of development to become a truly international home assistance membership business,” said Mr Harpin.

Mr Whitty said: “I have thoroughly enjoyed being part of the development and success of HomeServe over the last 14 years.

“I would like to thank everyone who has been involved in the success of the company for their hard work and dedication over the years and wish you all every success for the future.”       

The management statement, for the period from October 1, shows that the company’s UK operation has performed well and remains on track to achieve customer growth and new policy sales targets for the full year.
 
In France, its joint venture, Doméo, continued to deliver good sales and high retention rates, while it was also making progress in Spain through its marketing partnership with Endesa.

It said it had also signed a new long-term partnership with Agbar, Spain’s largest water company with over 4m direct customers.  

“The agreement represents an important step for the Spanish business enabling us to launch full scale marketing in Spain under a water brand for the first time,” said the statement.
 
In the United States, its business performed well and recently  exceeded 700,000 policies. It is now focused on growing opportunities in this market.

The company said its exit from its non-core emergency services business was completed at the end of January with the closure of its Property Repairs operation.

The statement continued: “We remain well funded with low levels of net debt and significant headroom on our banking facilities.”

In outlook, it added: “Our membership businesses continue to perform well demonstrating the strength of the business model and attractiveness of our products and we expect to deliver another year of strong growth.”

The board has recommended the payment of a second interim dividend of 24p per share.