23rd Sep 2009 07:00
PRE CLOSE TRADING STATEMENT
HomeServe plc today publishes the following statement prior to entering its close period for the half year ending 30 September 2009.
We anticipate first half profits for our core membership operations to be ahead of last year and in line with our expectations. Our membership businesses continue to perform well with high renewal rates and good levels of policy growth demonstrating the attractiveness of our products to our customers and resilience of the business.
As in previous years, the phasing of profits and policy growth will be weighted towards the second half reflecting the seasonality of our marketing activity and associated renewals profile.
UK Membership
We are pleased to report another good performance in our UK Membership business with gross new policy sales in line with the same period last year at around 0.75m (2008: 0.77m) and retention rates remaining high at 83%.
Continental Europe
Our French joint venture, Domeo, continues to grow its policy base and the retention rate remains high at 88%. In Spain, Reparalia has had another good first half and we have made progress growing our policy business with Endesa during the traditionally quiet summer period. We have also completed the integration of Reparalia's network and claims management operations with our policy business creating a single operation which replicates our successful membership model in the UK.
USA
We continue to grow the policy book in the US with new policy sales in line with last year and the retention rate remains high at 80%. We are making progress with a number of potential affinity partners as we look to expand our footprint of marketable households.
UK Emergency Services
UK Emergency Services, particularly Property Repairs, continues to suffer from reduced volumes which will be reflected in this division reporting a loss for the period.
As previously announced, we continue to progress a range of options to exit from our UK Emergency Services business. We will provide a further update on our progress in due course.
Outlook
HomeServe has made good progress in the first half and remains well funded with low levels of gearing and significant headroom in its banking facilities. The financial year continues to develop in line with our expectations and our outlook for the year remains unchanged.
HomeServe expects to announce its interim results during the week commencing 23 November 2009.
A conference call for analysts will take place at 8am this morning, dial-in details for which can be obtained from Tulchan.
HomeServe is hosting an investor and analysts' seminar on its membership businesses tomorrow, Thursday 24 September 2009, at which no new material information will be disclosed. Copies of the slides provided during the course of the day will be available on the Company's website ( www.HomeServe.com/investors ) from 12.00 noon on that date.
23 September 2009
Enquiries:
HomeServe plc
Richard Harpin, CEO
Martin Bennett, CFO
Mathew Wootton, Investor Relations Director
Tel: 01922 655332
TulchanAndrew HonnorStephen MalthouseTel: 0207 353 4200
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