Interim Management Statement

HomeServe plc

Interim Management Statement

HomeServe plc, the international home emergency business, today publishes its Interim Management Statement for the period 1 April 2011 to 29 July 2011. The publication of this trading statement coincides with the company's Annual General Meeting which takes place today.

HomeServe has continued to grow and develop its membership businesses in the first four months of this financial year, with increasing customer and policy numbers and retention rates remaining high and in line with those reported for 2011. Earlier this month we were pleased to announce the recruitment of our five millionth customer, Mrs. Elise Sassaman, an Aqua America customer from Pennsylvania USA.

UK

The UK has made a good start to the year with continued growth in customer and policy numbers and the retention rate remains high and in line with the 82.7% reported for 2011. We are on track to deliver customer growth of around 3% for the full year.

USA

Our US business also continues to deliver good growth in customer and policy numbers, with the retention rate remaining high.

Over the past twelve months our marketing activity has significantly increased as we have rolled out our products to additional partners and our growing customer base. The cost of this marketing activity together with the seasonality of the National Grid business acquired in August 2010 will, as we expected, result in our US business reporting a higher operating loss in H1 2012 than in H1 2011 (£1.2m).

We continue to expect significant growth in US operating profit for the full year.

Doméo

In Doméo, we have maintained the good momentum seen in the second half of 2011 with gross new policy sales higher than in the same period a year ago. Doméo's retention rate remains high at around 88%.

Spain

In Spain we are delivering strong growth in customer and policy numbers with good revenue growth in both the membership and claims handling businesses. We continue to develop our outbound telesales activity with good results from our most recent Agbar campaign.

New markets

We are continuing to invest in our businesses in Belgium, SFG in France and Italy with marketing take-up rates in line with our expectations. In Italy we have signed an agreement with a small water company, Società dell'Acqua Potabile, to complement our existing relationships with Enel and Unicasa.

Financial Position

HomeServe's financial position remains strong with low levels of net debt. On 22 July we renewed our banking arrangements with an increased credit facility of £250m.

Outlook

We have made a good start to the financial year and continue to expect to deliver another year of strong growth.

As in previous years, the phasing of profits will be weighted towards the second half reflecting the seasonality of our marketing activity and associated renewals profile.

We will, as usual, provide a further trading update on our performance in the first six months of our financial year before we enter the close period at the end of September 2011.

Analyst and Investor event

On 7 September we will be holding an Analyst and Investor event in London at which our US management team will give a series of presentations and answer questions on our US operations.

Contacts

HomeServe plc Tel: 01922 427979

Richard Harpin, Chief Executive

Martin Bennett, Chief Financial Officer

Mark Jones, Head of Investor Relations

Tulchan Group Tel: 0207 353 4200

Christian Cowley

Martin Robinson

More information on HomeServe plc can be found on our corporate website: www.HomeServeplc.com