30th Sep 2013 09:01
LONDON (Alliance News) - HomeServe Plc (HSV.L) Monday said it expects first-half earnings to be broadly similar to the previous year, and that its trading will be weighted towards the second half of the financial year, reflecting seasonality of its marketing activity and related renewals profile.
For the first half of fiscal 2013, the British home insurance firm had posted earnings of 25.6 million pounds.
In a trading update prior to the first half ending September 30, 2013, the company said its businesses have continued to deliver results consistent with its earlier announcement on July 26.
HomeServe noted that it has increased UK customer acquisition marketing activity and also improved its retention rate. In addition, it has continued to grow customer numbers in its International businesses.
The company said it is confident of achieving its full year targets of 0.2 million gross new customers in the UK, a retention rate of over 80 percent and stabilizing year end customer numbers at 1.9 million.
In the US, customer numbers in the first half of the year are expected to be around 20 percent higher than the same period last year. Meanwhile, the seasonality of policy renewals, services and repairs in the US business is expected to result in a small operating loss in the first half.
In France, customer and policy numbers remain stable, HomeServe said. In Spain, Reparalia is continuing to achieve strong growth in customer and policy numbers, and it is reporting a small operating profit in the first half, compared to last year's small loss, the firm added. It was in 2007, that HomeServe acquired property repair company Reparalia in Spain.
HomeServe is scheduled to publish its first-half interim results on September 30.
HSV.L is currently trading at 254.7 pence, down 1.28 percent.
Copyright RTT News/dpa-AFX
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