Annual Financial Report

HomeServe plc(the "Company")

Annual Financial Report and Shareholder Circular

Further to the release of the Company's preliminary results announcement on 19 May 2015, the Company announces that it has published its Annual Report and Accounts for the year ended 31 March 2015. The Company also announces that it has today posted to shareholders a Circular setting out the details of the proposed special dividend and share consolidation and the notice of Annual General Meeting ("AGM") to be held at 10.00am on Friday, 17 July 2015 at The Hyatt Regency, 2 Bridge Street, Birmingham B1 2JZ.

In accordance with Listing Rule 9.6.3, copies of the documents listed below have been submitted to the National Storage Mechanism, where they will shortly be available for viewing at www.morningstar.co.uk/uk/NSM:

· Annual Report and Accounts for the year ended 31 March 2015; and

· Shareholder Circular and notice of AGM to be held on Friday, 17 July 2015.

The documents are also available to view as PDF documents on the Company's website at www.homeserveplc.com/investors.

Special dividend and share consolidation

On 19 May 2015, in the announcement of preliminary results for the year ended 31 March 2015, the Company confirmed its intention to declare a special dividend of 30 pence per share and conduct an associated share consolidation. The Shareholder Circular sets out full details of the proposed special dividend and associated share consolidation.

Special dividend

Subject to shareholder approval at the AGM, the Board proposes the payment of a special dividend of 30 pence per existing ordinary share. Payment would be made to shareholders who are on the register of members at 5.00pm on 17 July 2015. The special dividend is expected to be paid to shareholders on 24 July 2015.

Share consolidation

It is proposed that the payment of the special dividend be accompanied by a consolidation of the Company's ordinary issued share capital. The consolidation will replace every 14 existing ordinary shares of 2.5 pence each with 13 new ordinary shares of 29/13 pence each. Fractional entitlements arising from the share consolidation will be aggregated and sold in the market as soon as practicable on behalf of the relevant shareholders. The net proceeds of the sale, after the deduction of expenses of the sale, are expected to be paid in due proportion to the relevant shareholders on 24 July 2015, except that individual amounts of £3 or less will be donated to Marie Curie Cancer Care, the Company's charity partner.

At the close of business on 5 June 2015 (being the latest practicable date prior to the publication of the Shareholder Circular), when there were 331,332,902 existing ordinary shares in issue, the total amount of the special dividend was equivalent to approximately 7 per cent of the market capitalisation of the Company. The effect of the share consolidation will be to reduce the number of existing ordinary shares in issue by approximately the same percentage.

As all ordinary shares will be consolidated, each shareholder's shareholding as a proportion of the total number of issued ordinary shares in the share capital of the Company will be the same immediately before and after the implementation of the share consolidation (save in respect of fractional entitlements).

The expected timetable for the final dividend, AGM, special dividend and share consolidation is set out below:

Notes:(1) References to times in this Circular are to London time unless otherwise stated.(2) If any of the above times or dates should change, the revised times and/or dates will be notified to shareholders by an announcement on a Regulatory Information Service.(3) All events in the above timetable scheduled to take place after the Annual General Meeting in respect of the special dividend and the share consolidation are conditional on approval by shareholders of resolution 15 as proposed. The dispatch of certificates for New Ordinary Shares (where applicable) and the payment of fractional entitlements (where applicable) are conditional upon an amendment to the Official List of the UK Listing Authority and on the New Ordinary Shares being admitted to trading on the London Stock Exchange.

15 June 2015

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