24th May 2022 10:49
(Alliance News) - Homeserve PLC, which is under a takeover offer, on Tuesday posted an annual earnings rise thanks to growth from all three of its business units.
Pretax profit for the financial year ended March 31 rose to GBP175.1 million from GBP47.2 million a year ago. Adjusted pretax profit increased by 15% to GBP220.3 million from GBP191.3 million.
Earnings per share climbed to 39.5 pence from 9.3p.
Revenue grew 10% to GBP1.43 billion from GBP1.30 billion.
"Homeserve has emerged from the Covid-19 pandemic with all three of our business divisions performing strongly. Our Membership-based business model continues to be resilient, predictable and highly cash generative, and we are well positioned for continued growth," Chief Executive Richard Harpin said.
The Walsall, England-based home repairs company did not declare a final dividend, keeping the total dividend at 6.8p, down 74% from 26.0p a year ago.
Homeserve explained it is not issuing a final dividend due to its takeover offer. Last Thursday, it agreed to a bid from Hestia Bidco Ltd, a subsidiary of Brookfield Infrastructure Partners LP, in a deal worth GBP4.08 billion. HomeServe directors intend to recommend unanimously that shareholders back the deal.
Brookfield has offered 1,200p per share in cash for each HomeServe share. This represents a 71% premium to HomeServe's closing price on March 23, being the last business day before the start of the offer period.
Homeserve shares were slightly higher at 1,161.05 pence each in London on Tuesday morning.
Harpin added: "Brookfield's offer for HomeServe recognises the high quality of our businesses, our people and our future growth potential, and allows shareholders to realise their investment at an attractive valuation. Brookfield is committed to providing long-term capital and global expertise, which I am confident will accelerate progress towards our vision to be the world's largest, most trusted provider of home repairs and improvements, delivering for customers and tradespeople."
By Tom Budszus; [email protected]
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