18th Jul 2014 08:12
LONDON (Alliance News) - Homeserve PLC Friday said it is trading in line with its expectations, and reported "solid progress" in its UK business in the first three months of the current financial year, as well as growing customer numbers and securing partnerships in its international businesses.
In a statement covering April 1 and July 18, the home emergency and repair company said that trading will, as usual, be weighted towards the second half of the financial year, reflecting the seasonality of its marketing activity and associated renewals profile.
Homeserve said its UK business is on track to meet its 300,000 gross new customer target in the 2015 financial year. It expects to have at least 2.0 million customers in the UK during the year, with an 82% retention rate.
The company said that its international businesses continue to grow their customer numbers and are performing as expected, helped by an increase in customers in the US, where it reported strong retention.
Homeserve reported an 89% retention rate in France, where it said it is continuing discussions with potential new affinity partners. In Spain, Homeserve said its expectation that customer and policy numbers would continue to grow strongly has come through, mainly due to its relationship with utility company Endesa. In Italy, customer numbers increased in the first quarter, according to Homeserve, which added that it is continuing to conduct test activity in Germany.
Homeserve said its net debt increased to GBP48.0 million at the end of June, from GBP42.0 million at the end of March.
The statement was issued to coincide with Homeserve's annual general meeting taking place Friday.
Homeserve shares were Friday quoted up 0.3% at 304.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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