Trading Statement

HomeServe plc

Capital Markets event and trading update

HomeServe plc, the international home emergency business, will today host a Capital Markets event for institutional investors and analysts. The event, hosted by Richard Harpin, Group Chief Executive, alongside the senior management team of HomeServe plc and a number of its businesses, will discuss the growth opportunities for our business in the USA, our plans for further international expansion together with our investments in technology and innovation. Presentation material will be available at www.homeserveplc.com shortly after the event.

As part of the further acceleration of our business in the USA, we are pleased to announce today that we have signed five new affinity partnerships, Washington Suburban Sanitary Commission, Severn Trent Services, Wyandotte Kansas City, North Myrtle Beach and North Fayette County adding a total of 0.8m households.

We expect the acquisition of Utility Service Partners (USP) to complete following normal course regulatory approvals. Combining USP with our business we will be offering our products to 43m households through an affinity brand and serving over 2.7m customers.

Given the progress to date and the strength of our new partner pipeline with negotiations at all stages of the process, in the long term we would anticipate having access to around 80m households in the USA via affinity relationships with a penetration level of around 10% and a net income per customer in the order of $100. We maintain our long term expectation of achieving a 20% margin in our US business, which would be achievable today if we scaled back the investment in growth.

During June, we launched our water leak detector and have commenced a trial with Aviva, a leading general insurer in the UK, to distribute the device to its customers.

The Group confirms that it continues to trade in line with the guidance provided in its Preliminary Results Announcement on 24 May 2016. HomeServe is well positioned to meet the challenges of the UK's exit from the European Union and its growth prospects remain strong. Our businesses each operate in their own territories and have proved resilient to economic turmoil. Indeed given the significant contribution from our international businesses our reported profits would benefit from the translation effects of a decrease in the value of sterling.

HomeServe will issue a further trading update at its Annual General Meeting on 15 July 2016. No additional material new information will be provided at today's event.

Enquiries

HomeServe plc

Richard Harpin, Group Chief Executive

David Bower, Chief Financial Officer

Linda Hardy, Investor Relations Director Tel: 01922 427 997

Tulchan Group

Martin Robinson Tel: 0207 353 4200

Martin Pengelley