20th Oct 2009 07:00
HomeServe announces the proposed closure of the remaining
part of its UK Emergency Services business
On 24 September 2009, we announced the sale of our Emergency Services Division, excluding our Property Repairs businesses, to a newly incorporated company backed by Lloyds TSB Development Capital Limited and management for total consideration of up to £11 million.
At the same time, we announced that the Board would continue to review a range of exit options for Property Repairs, which consists of HomeServe Property Repairs ("HPR"), based in Nottingham and Anglia, based in Dyserth, North Wales.
Since then, the performance of Property Repairs has continued to suffer from challenging market conditions including the loss of a major client. In light of this and following a full review of all options, including the sale of the businesses, we are announcing today the proposed closure of HPR and Anglia. In addition to ongoing operating losses within HPR and Anglia, we anticipate the costs associated with closing these businesses to be approximately £15m.
HomeServe's core membership operations continue to perform well and are not impacted in any way by the proposed closure of Property Repairs.
20 October 2009
Enquiries:
HomeServe plc Tel: 01922 655 332
Martin Bennett, Chief Financial Officer
Mathew Wootton, Investor Relations Director
Tulchan Group Tel: 020 7353 4200
Andrew Honnor
Stephen Malthouse
Related Shares:
HSV.L