HomeServe sees FY profit in line with market expectations

FTSE 250 home emergency repairs business HomeServe said on Thursday that its full-year adjusted pre-tax profit should be in line with market expectations following "another strong year".

Adjusted pre-tax profit for the year to the end of March 2018 is expected to meet market expectations of between £135m and £142m and surpass the previous year's £112.4m.

The group said total customers rose to 8.4m from 7.8m, while the retention rate was steady at 82%. All businesses traded as expected in the second half, with an "excellent" performance in North America driven by further organic growth, the successful integration of Utility Service Partners and the acquisition of the policy book of Dominion Products and Services Inc.

HomeServe also said that since taking 100% ownership of Checkatrade in November 2017, testing of the home experts model has accelerated.

The company also announced changes to its management structure to help drive performance across geographies and prepare for growth across its four global business lines: home assistance membership, home experts, heating installations and smart home.

As part of the changes, Tom Rusin, chief executive of HomeServe North America, will become global CEO of the membership business with immediate effect. He will be succeeded by John Kitzie, who is chief operating officer of HomeServe NA. They will both continue to be based in Connecticut.