Homeserve to sell stake in Italian business; Trading in line

Emergency household repairs business Homeserve said it was selling its 49% shareholding in its Italian associate, Assistenza Casa, to its partner Edison due to “limited opportunities” for customer growth.

International business development resources would be focused on the recently announced joint venture with Mitsubishi in Japan and prospecting “other more attractive markets”, Homserve said in a trading statement ahead of its annual shareholder meeting today.

It added that trading had been in line with guidance given in May. HomeServe continues to expect further strong growth in FY20, with increased investment in its Home Experts unit offset by strong performance in its Membership business, particularly in North America.

“The planned increase in investment in Checkatrade is proceeding well, with strong results from recent advertising campaigns in North West England. HomeServe's business remains highly seasonal with trading weighted towards the second half,” the company said.

In Spain, the company said it had had reached agreement to secure the ongoing billing arrangements for customers acquired through the Endesa partnership for the next five years.

“This enables HomeServe to continue to use on-bill arrangements for existing customers beyond the initial two year period in force when the Endesa partnership ended in May 2018 and will support the ongoing retention rate,” it said.