We’re not in talks with a potential buyer, says HomeServe

HOME insurance and maintenance group HomeServe has issued a statement denying press speculation that it is in takeover talks with a potential buyer.

In a brief announcement to the stock exchange, the Walsall company said: “The board of HomeServe plc notes the recent press reports.

“HomeServe wishes to clarify that it has not, nor is currently, engaged in any discussions which could lead to a possible offer for the company.”

Speculation has mounted about the future of HomeServe following an unsettled period for the group.

In May it announced improved full year revenues and profits despite the business taking a £24m hit as a result of a mis-selling scandal.

But despite the improvements, the firm said it was having to make redundancies in order to align its sales and support functions with its marketing plans and a lower customer base resulting from a suspension of sales and marketing activity.

It cut 200 jobs in February and in May announced a further 250 staff are set to go as the process continues.

The problems began in October when the company suspended its sales and marketing activity after a business review identified problems over the mis-selling of policies to customers.

Speaking in May, Richard Harpin, HomeServe chief executive, said it has been “a challenging year for our UK business” and said that in the UK it would create a smaller, more focused and sustainable business from which to grow.