Sales grow as HomeServe completes Checkatrade takeover

The Walsall-based home repairs, insurance and improvements business said revenue in the first six months of the year rose 16 per cent to £366 million.

It attracted more customers across the UK, US and Europe and said its expectations for strong full-year growth remained on track.

The company, which employs around 1,100 at its Green Lane headquarters, has also spent £54m to buy the remaining 60% of trades website Checkatrade it did not already own after a deal in February.

Statutory operating profit rose 12% to £27.5m, including a £1.7m favourable foreign exchange movement, as the group continued to invest in its marketing and growth initiatives and completed more repairs for customers. Statutory profit before tax was £21.2m, down 5% from £22.2m a year ago, due to an increase in interest and other charges as a result of investments and acquisitions.

Founder and chief executive Richard Harpin said today: "I am delighted with the progress we made across our business in the first six months of this financial year.

"North America delivered outstanding organic growth, which will be further boosted by the acquisition of our largest ever policy book from Dominion Products and Services.

"The UK made a key strategic acquisition – Help-Link – to give us a stronger foothold in the attractive boiler installations market. France and Spain developed key partner relationships and we continued to explore other partnership-based opportunities for international expansion."

Mr Harpin added: "I am excited by the potential for HomeServe to become a global online home repairs and improvements platform, delivered via Checkatrade and Habitissimo where we already have a majority holding.

"Today's announcement that we are buying the remaining 60% of Checkatrade brings the realisation of this vision substantially closer. Checkatrade is the market leader in the UK, and delivers a first class customer experience. In our core home assistance business and with an even bigger opportunity in Home Experts, the prospects for growth at HomeServe have never been so strong."

The company has now expanded to 7.8 million customers in the UK, North America, France, Spain and Italy, offering them a range of water, heating and electrical assistance and repair products. It has 2.2 million customers in the UK but this has been overtaken by 3.1m in the US.