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21 May 2019 | 09:09

Homeserve meets expectations amid 'very successful' year in North America

Homeserve met its expectations as profits rose 14% following a 'very successful' year in North America. 

 For 12 months ended 31 March, adjusted profit before tax rose 14% to £161.7m and revenue grew 12 % to £1.0bn. Homeserve earlier this year said it expected to generate adjusted profit before tax in the upper range of market expectations of £159.5m to £161.7m. The company attributed the growth to 'outstanding' performance in North America amid 'strong' customer additions in the region, though this was offset by declines in Spain and the UK. Total customers at the year end were flat at 8.4m year-on-year as 'strong growth in North America was offset by expected declines in Spain following the end of the Endesa partnership in May 2018 and in the UK, in the absence of a policy book acquisition this year,' the company said. France, however, grew slightly with 1.1m customers, unchanged from 1.1m a year earlier, but the group retention rate remained strong at 82%, also unchanged from a year earlier. Pro forma revenue grew 33% at Checkatrade as trades rose 23% increase to 36,000, the company said. The company declared a 12% increase in the total dividend payment for the year of 21.4p. HomeServe said it expected to deliver further strong growth in 2020, with increased P&L investment in Home Experts expected to be offset by strong performance in Membership, particularly North America.

HomeServe also expected to increase its P&L investment in Home Experts and New Markets to between £12m to £15m in 2020, following an increase to £9.8m in 2019.

At 9:09am: (LON:HSV) Homeserve PLC share price was +26.5p at 1118.5p

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