Floods provide mixed fortunes for Homeserve
HOMESERVE, which specialises in emergency call out repairs for major insurances companies for everything from blocked drains, burst water pipes and fire and flood damaged homes and buildings, has seen profits and turnover increase by 20 per cent.
Whilst its Beverley-based fire and flood business Chem-Dry received 20,000 more claims because of this summer's floods, Homeserve said that this had been offset by many major household insurers choosing to give cash settlements to customers for other repairs such as windows and locks and for plumbing and drainage work.
The group, which is based in Walsall, but whose chief executve Richard Harpin, lives near York, saw pre-tax profits increase from £16.2m to £19.4m and turnover up by 20 per cent to £247.5m.
In the UK Homeserve covers almost four million insurance company customers for plumbing, drains and water supply pipe work and another two million for repairs to electricity, gas and homes.
Homeserve is expanding its business overseas, working with two water companies in California and Louisville in the US as well as having a joint venture in
France and recently bought Reparalia in Spain which provides property repairs and emergency claims for home insurance companies.
The group bought Chem-Dry for £18.9m in 2005.
The deal for the Beverley-based business triggered a £1m windfall for the Mormon Church in the UK as Chem-Dry chairman Phillip Smith donated 10 per cent of the £10m he received from the sale to the organisation.
The former schools inspector, who joined the firm in 1989, a year after it was started by his brother-in-law, former Viking Radio and BBC Humberside disc jockey David Fewster, has remained as chairman of the company.
Chem-Dry is a franchise business which was founded in the US by Robert Harris, a member of the Church of Jesus Christ of Latter-day Saints, and was launched in Britain, Australia and New Zealand by fellow Mormons.
Homeserve chairman Brian Whitty said: “Homeserve's proven policy membership business and established relationships with household insurers continue to deliver strong recurring revenues and therefore good visibility of future profits.”
