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 to 25 July 2013. This statement coincides with the company's Annual General Meeting which takes place today.

HomeServe is trading in line with expectations. In the first four months of the current financial year we have, as planned, increased our UK customer acquisition marketing activity and improved our retention rate. In our International businesses we are continuing to grow our customer numbers.

Trading, as usual, will be weighted towards the second half of the financial year, reflecting the seasonality of our marketing activity and associated renewals profile.

UK

We are making progress towards achieving our target of 0.2m gross new customers during FY2014 with our direct mail, digital and sales through partner call centres marketing activity in line with expectations. We are also on track to achieve our targets of around 1.9m customers at 31 March 2014 and a FY2014 retention rate of around 80%.

We are continuing to improve our customer service and have now rolled out our improved Plumbing and Drains policy to new and existing customers.

Customer complaints in the first three months of this financial year are 39% lower than in the same period last year.

The Financial Conduct Authority's investigation into our past issues is continuing.

International Businesses

Our established International businesses in USA, France and Spain continue to grow their customer numbers.

In the USA we have signed four new marketing agreements so far this financial year: SourceGas covering 200k gas households in Colorado, Nebraska and Wyoming; Dublin San Ramon, a California based municipal water utility serving 25k households; Park Water, also serving 45k households in California and Westbury Water, a small utility serving 6k households on Long Island, New York. Customer numbers in the first half of the year are expected to be around 20% higher than the same period in FY2013.

Retention in our USA business remains high with the rate in the first half of FY2014 expected to be in line with the 80% reported for FY2013.

We remain on track to deliver strong growth in USA operating profit for the full year. The seasonality of policy renewals, services and repairs in our USA business will, as expected, result in a small operating loss being reported for the first six months of FY2014.

In France, Doméo has maintained a high retention rate of around 88% and is continuing discussions with potential new affinity partners.

In Spain, as we expected, customer and policy numbers are continuing to see strong growth, principally as a result of sales made by Endesa's call centre agents.

Financial Position

HomeServe's financial position remains strong with net debt at 30 June 2013 of £26m, compared to £43m at 31 March 2013.

26 July 2013

Contacts

HomeServe plc Tel: 01922 427979

Richard Harpin, Group Chief Executive

Johnathan Ford, Chief Financial Officer

Mark Jones, Head of Investor Relations

Tulchan Group Tel: 0207 353 4200

Ed Orlebar

Martin Robinson

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