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20 Jun 2019 | 09:08

HomeServe details milestones to spur growth; enters home warranty market in North America

HomeServe laid out a number of milestones to improve growth and confirmed its entry into the whole home warranty market in North America, with the launch of its total home Protection product. The company also said it acquired the remaining 30% stake in Habitissimo, its Spanish Home Experts business for €8.6m. The company set out a number of milestones for its businesses to support growth: for Checkatrade, it aimed to attract 150,000 - 200,000 trades onto the platform, achieve revenue per trade of £1200-£1300, achieve operating margins of 25-35% and generate medium to long-term adjusted operating profits of £45-90m in the UK. In its membership businesses, the company also announced a new medium to long-term adjusted operating profit milestone of $230m, based on recruiting 6-7m customers, achieving income per customer of $120-125, building margins to 24-26% and adding $30-45m of profit from Heating, Ventilation and Air Conditioning (HVAC). 'The new financial year has started well, and performance is in line with expectations and the guidance given in May,' the company said. In May, HomeServe stated that it expected to deliver further strong growth in 2020, with increased P&L investment in Home Experts offset by strong performance in Membership, particularly in North America. The net operating investment in Home Experts in 2020 was expected to be £10-12m, plus £2-3m in New Markets. Capital investment across all business lines in FY20 was expected to be about £50m.

At 9:08am: (LON:HSV) Homeserve PLC share price was +11.5p at 1239.5p

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