Walsall-based HomeServe predicting 'significant' jump in profits this year
Walsall-based household repairs and insurance group HomeServe is predicting a 'significant' hike in profits this year on the back of a strong performance at home and abroad.
The size of its US operations has now overtaken its UK HomeServe Membership business and the group has hailed an 'excellent performance' in North America in the second half of its year.
In a trading update today the company said it has had 'another strong year' and adjusted pre-tax profit is expected to be in line with market expectations and significantly ahead of the £112.4 million delivered in FY17."
Current estimates for adjusted profit before tax range from £135m to £142m.
Meanwhile HomeServe saw its total customer numbers rise to 8.4 million from 7.8m in March 2017. The group's customer retention rate remains at 82% which it said was "reflecting an ongoing global focus on customer satisfaction".
The update said all businesses had traded as expected in the second half, with North America's performance driven by organic growth, the successful integration of Utility Service Partners and the acquisition of the policy book of Dominion Products and Services (DPS).
The first tranche of DPS policies were transferred in December, adding around 300,000 customers. The second tranche, of 200,000 customers, is on track to complete this autumn.
Meanwhile, since HomeServe completed its 100 per cent takeover of Checkatrade in November, testing of its new Home Experts model has accelerated. This link-up aims to put customers in touch with 26,000 independent tradespeople, from plumbers and heating engineers to electricians, painters and roofers.
HomeServe has also announced a shake-up of its management structure to prepare for fresh growth across its business. Tom Rusin, CEO of HomeServe North America, becomes Global CEO of HomeServe's largest business line, Membership, with immediate effect. The CEOs of HomeServe's Membership businesses in the UK, France, Spain and North America now report to him.
Mr Rusin is succeeded in North America by John Kitzie, COO, HomeServe North America, who has been instrumental to the growth of the North American business since he joined six years ago. Both Tom and John continue to be based in Norwalk, Connecticut.
