International growth keeps HomeServe on the right track

HOME maintenance and repairs group HomeServe is seeing its policy of targeting the US market paying off. 

In November the Walsall-based group announced it is to invest £5m into its US operation after seeing business levels escalate and today it has reported strong growth in its customer numbers there.

Announcing its interim results for the six months ended September 30, the firm revealed customer numbers in the US have now reached 1.7m, an increase of 20% over the period.

It has signed five new utility partners and extended an existing agreement, which has added 1.6m households, and signed an agreement with AARP, one of the largest membership organisations in the US with 22m households.

All told, international customer number are up by 31% ro 3.8m with strong growth also coming from Spain where customer numbers are up 77% to 1m.

Its total number of customers has increased from 5.1m to 5.9m although the more mature UK market has seen a slight decline in customers from 2.2n to 2.1m.

HomeServe saw revenue stay fairly constant at £241.7m (Six months to Sept 2013: £241.3m) while adjusted profit before tax was £26m (Six months to Sept 2013: £25.6m).

Its net debt level has increased from £40.7m to £75.8m.

HomeServe chief executive Richard Harpin said: “I am pleased with the performance in the first half of the year. Our UK business ended the period with 2.1m customers and is on track to acquire around 0.3m gross new customers in the year. 

“The international businesses continue to deliver strong growth in customer numbers. In the USA, we have signed six new partnerships, including one with AARP, an organisation with 22m member households. 

“Across the group we continue to focus on delivering consistently high levels of customer service.  We remain confident in meeting our expectations for the full year.”