Interim Management Statement

Pre-Close Trading Statement

HomeServe plc, the international home emergency business, today publishes the following trading update prior to entering its close period for the half year ending 30 September 2011.

Summary and Outlook

HomeServe has continued to grow and develop its membership business in the first six months of the financial year, with increasing customer and policy numbers and retention rates remaining high across all territories.

We now have over 5m customers and 11.7m policies across the Group. We expect profits in the first half of the year to be ahead of the same period last year and in line with our expectations.

As in previous years, profits and customer growth will be weighted towards the second half reflecting the seasonality of our marketing activity and associated renewals profile. Our outlook for the full year remains unchanged, and we continue to look forward to delivering another year of strong growth.

United Kingdom

We continue to grow our UK business with customer and policy numbers increasing and the retention rate remaining high at around 82.5%.

Gross new policy sales are expected to be similar to the same period last year (HY2011: 0.7m). In addition we are currently testing an initiative offering existing customers additional cover as part of an enhanced renewal offer. This initiative is expected to deliver an additional 0.25m new policies in the first half of the year.

Customer numbers at 30 September are expected to be around 5% higher than a year ago, with total policies expected to be around 8% higher. We remain on track to achieve our c.3% full year customer growth target.

USA

We expect gross new policy sales in the first half of the year to be over 30% higher than in HY2011 (HY2011: 179k), reflecting the continued growth in our marketing activity.

Customer numbers are expected to be around 15% higher and policy numbers around 20% higher than at the end of the first half of 2011, with retention remaining high at around 81%.

As previously communicated, our US business is expected to report a higher operating loss in HY2012 than in HY2011 (£1.2m), reflecting the cost of additional marketing activity together with the seasonality of the National Grid business acquired in August 2010. We continue to expect strong growth in operating profit over the full financial year.

Doméo

In our French joint venture, Doméo, gross new policies in the first half of the year are expected to be around 15% higher than in HY2011 (HY2011: 164k) maintaining the momentum seen in the second half of 2011.

Customer and policy growth is expected to be around 12% with retention remaining high and stable at around 88%.

Spain

In Spain, we expect to more than double the number of customers and policies compared to a year ago. We have seen good revenue growth in both the membership and claims handling businesses, although the increased marketing activity is expected to result in Spain continuing to make a small operating loss in the first half of the year.

New markets

In the first half of the year we expect to report a higher operating loss compared to £0.5m in HY2011, reflecting the increased investment in marketing in Italy and SFG in France.

Financial position

HomeServe's financial position remains strong with net debt at 30 September 2011 expected to be lower than at 30 September 2010 (HY2011: £61.5m).

Conference Call

A conference call for analysts and investors will take place at 8.30am this morning. The conference call can be accessed by dialling +44 (0)20 3140 0668 and pin code 986566#. A replay of this call can be heard by dialling +44 (0)20 3140 0698 and pin code 379840# later in the day for a period of 2 weeks.

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