7th Apr 2020 10:58
(Alliance News) - Homeserve PLC on Tuesday said it expects to report higher earnings for financial 2020, as it announced cost-cutting measures and a dividend review amid uncertainty caused by the Covid-19 outbreak.
The FTSE 250-listed home emergency repairs firm expects adjusted pretax profit for its financial year to the end of March to be ahead of expectations at around GBP181 million, up 12% from GBP161.7 million reported the year prior.
HomeServe said its Membership business delivered good growth with customer numbers for the period expected expected to be 8.3 million, subsequently driving profit growth. The company invested in marketing, technology and people for its Checkatrade platform, resulting in revenue increasing by around 30% from GBP1.00 billion reported for financial 2019
The company said that Checkatrade, Spanish Home Experts business Habitissimo and Home Experts business eLocal have seen demand fall since the middle of March on government-enforced restrictions amid the Covid-19 outbreak. It said it has implemented cash conservation methods including pausing most marketing campaigns and putting mergers & acquisition activity on hold.
It added that it will consider its full year dividend options before the publication of its full unaudited results on May 19.
The stock was trading 7.9% higher at 1,133.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
HSV.L