Trading Statement

HOMESERVE PLC

TRADING UPDATE

LONDON - 5 April 2018 - HomeServe plc ("HomeServe", "the Group"), the international home repairs and improvements business, today publishes the following update in respect of its financial year ended 31 March 2018.

Trading update

HomeServe has had another strong year, with adjusted profit before tax (PBT) expected to be in line with market expectations¹ and significantly ahead of the £112.4 million delivered in FY17. Total customers increased to 8.4m from 7.8m (March 2017). The Group retention rate remained at 82% reflecting an ongoing global focus on customer satisfaction. Net debt at 31 March 2018 was c.1.3x EBITDA, in line with expectations and within the Group's target leverage range of 1.0 to 1.5x.

All businesses traded as expected in the second half, with an excellent performance in North America driven by further organic growth, the successful integration of Utility Service Partners and the acquisition of the policy book of Dominion Products and Services Inc. (DPS). The first tranche of DPS completed on schedule in December 2017, contributing c.0.3m customers to the year end total and marketing to Dominion Energy households launched in the final quarter. The second tranche, which is expected to bring an additional c.0.2m customers, remains on track to complete in autumn 2018.

Since taking 100% ownership of Checkatrade in November 2017, testing of the Home Experts model has accelerated. Further details on all our businesses will be provided in HomeServe's preliminary results on 22 May 2018.

¹ Estimates for adjusted profit before tax range from £135m to £142m with a mean average of £139.5m. Adjusted PBT excludes the impact of the amortisation of acquisition intangible assets.

Change in Director's Responsibilities

HomeServe is adjusting its management structure to help drive performance across multiple geographies and prepare for growth across four global business lines - Home Assistance Membership ("Membership"); Home Experts; Heating Installations; and Smart Home.

As part of these changes, Tom Rusin, CEO of HomeServe North America, becomes Global CEO of HomeServe's largest business line, Membership, with immediate effect. The CEOs of HomeServe's Membership businesses in the UK, France, Spain and North America now report to Tom.

Tom is succeeded in North America by John Kitzie, COO, HomeServe North America, who has been a key part of the team and instrumental to the growth of the North American business since he joined six years ago. Both Tom and John continue to be based in Norwalk, Connecticut.

About HomeServe

HomeServe is an international home repairs and improvements business, with 8.4 million customers in the UK, North America, France, Spain and Italy as at March 2018. Its comprehensive range of water, heating and electrical assistance and repair products provide customers with peace of mind. HomeServe is listed on the London Stock Exchange, with a market capitalisation of £2.4 billion.

ENDS