26th Mar 2014 08:54
LONDON (Alliance News) - Home emergency company Homeserve PLC Wednesday said its expects its key profit measure to be in line with market expectations in its current financial year, as it also reiterated that costs related to the settling of previous regulatory issues in the UK had met its expectations.
The company provides services like boiler breakdown cover for individuals and through financial services companies. Last month it agreed to the final terms of a GBP30.6 million fine imposed by the Financial Conduct Authority following the regulator's probe into allegations that it mis-sold policies and mis-handled customer complaints.
In its trading statement Wednesday, the company re-iterated that all customers that may have been affected by what it called "historic practices" had now been contacted and the cost of the exercise was in line with its expectations.
The company also said it expects its underlying pretax profit for the year to end-March to be in line with market expectations. It said the range of analysts' forecasts for the figure currently is between GBP81.6 million and GBP86.3 million, and the average of the forecasts is GBP84 million.
The company's underlying pretax profit, which excludes exceptional items and the amortisation of acquisition intangibles, was GBP105.0 million in fiscal 2013, down from GBP126.0 million in fiscal 2012.
Its revenues and earnings have shrunk as it lost customers in the wake of the UK mis-selling allegations. In February, it said it thinks UK customer numbers will stabilise at above 2.0 million.
Homeserve shares were up 2.8% at 316.8 pence early Wednesday, one of the top gainers on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HSV.L