16th Dec 2005 07:00
Homeserve Plc16 December 2005 Homeserve Acquires Improveline Homeserve plc today announces the expansion of its repair network activitieswith the acquisition of Recommend Limited trading as Improveline ('Improveline')for an initial cash consideration of £14.0 million on a debt free and cash freebasis. Further performance-related cash consideration of a total of up to £4.0million is payable in 2007 and 2008. Improveline is one of the UK's leading home insurance repairers providingproperty repair services. Improveline currently has contractual arrangementswith five leading household insurers. The company operates from a head office inChiswick and six branches in the South East of England. The company has 320employees including 155 directly employed trade operatives.For the year ended 31st December 2004, the audited accounts for Improvelinereported profit before tax of £0.6 million on turnover of £15.4 million. For theten months to 31st October 2005, the management accounts for Improvelinereported a profit before tax of £1.2 million on turnover for the period of £23.1million. Gross assets (including cash of £3.3 million) at 31st October 2005 were£9.3 million. The acquisition of Improveline follows Homeserve's purchase in December 2004 ofSergon BRM (now named Homeserve Property Repairs) and represents a furtherdevelopment of its property services offering. Improveline introduces newinsurers to our property repairs business and offers synergies with our otherEmergency Repair businesses allowing Homeserve to enhance its service toinsurers by offering repairs completed through a directly controlled network ofsurveyors and tradesmen. Richard Harpin, Chief Executive of Homeserve commented: "The acquisition of Improveline is a significant step in the growth of ourEmergency Repair operations. The acquisition extends our relationships withinsurers in the property services market whilst bringing the benefit of adirectly employed network." 16th December 2005 Enquiries: Homeserve plc Brian Whitty, Chairman Tel: 01922 427900Richard Harpin, Chief ExecutiveAndrew Belk, Group Finance Director Tel: 01922 427903 Tulchan Andrew Honnor Tel: 020 7353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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