29th Jun 2016 07:01
LONDON (Alliance News) - HomeServe PLC on Wednesday said it has signed five new affinity partnerships in the US and said it continued to trade in line with its guidance offered in May, with the "significant contribution" from its international businesses to benefit from foreign exchange effects coming from the UK vote to leave the European Union.
The international home emergency business said, through signing the five affinity partnerships, its products are being offered to a further 800,000 households in the US. The partnerships are with Washington Suburban Sanitary Commission, Severn Trent Services, Wyandotte Kansas City, North Myrtle Beach and North Fayette County, HomeServe said.
HomeServe added that its deal to purchase Utility Service Partners was expected to complete following normal course regulatory approvals, and, once combined with its business, said it will be offered its products to 43.0 million households through an affinity brand and serving over 2.7 million customers.
Given the progress to date, HomeServe said in the long-term, it would anticipate having access to around 80.0 million households in the US via affinity relationships, with a penetration level of around 10% and a net income per customer order of USD100. The company said it maintained its long-term expectation of achieving a 20% margin in our US business, which it said would be achievable currently if it scaled back the investment in growth.
During June, HomeServe said it launched its water leak detector and commenced a trial with insurer Aviva PLC to distribute the device to its customers.
The company also noted that it continued to trade in line with its guidance provided in May, and was well positioned to meet the challenges of the UK's exit form the European Union, with its growth prospects remaining strong.
"Our businesses each operate in their own territories and have proved resilient to economic turmoil. Indeed given the significant contribution from our international businesses our reported profits would benefit from the translation effects of a decrease in the value of sterling," HomeServe said in a statement.
By Hannah Boland; [email protected]; @Hannaheboland
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