Trading 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 six months ending 30 September 2013.

Summary and Outlook

Our businesses have continued to deliver results consistent with the comments we made in our Interim Management Statement published on 26 July 2013. In line with our plans, we have increased UK customer acquisition marketing activity and improved our retention rate, as well as continued to grow customer numbers in our International businesses.

Our outlook for the full year remains unchanged. Earnings in the first half of FY2014 are expected to be broadly similar to last year (HY2013: £25.6m). As usual, trading will be weighted towards the second half of our financial year reflecting the seasonality of our marketing activity and the associated renewals profile although this will be partially offset by the expected reduction in the UK business.

UK

In the UK, customer numbers at 30 September 2013 will be around 2.2m. We are confident of achieving our full year targets of 0.2m gross new customers, a retention rate of over 80% and stabilising year end customer numbers at 1.9m. We continue to see improvements in customer service and satisfaction.

The Financial Conduct Authority (FCA) investigation is ongoing.

USA

In the USA, we have signed four new marketing agreements so far this financial year representing around 275k households. The business development pipeline remains strong with contract negotiations underway with a number of utilities. Customer numbers in the first half of the year are expected to be around 20% higher than the same period in FY2013 and we remain on track to deliver strong growth in USA operating profit for the full year. The seasonality of policy renewals, services and repairs in our USA business will, as expected, result in a small operating loss being reported for the first six months of FY2014.

France

In France, Doméo has maintained a high retention rate of around 88% and customer and policy numbers remain stable. We continue to seek additional affinity partnerships in France.

Spain

Reparalia is, as we expected, continuing to achieve strong growth in customer and policy numbers as a result of its partnership with Endesa. The growth in customer numbers and a strong performance by the claims handling business is expected to result in Reparalia reporting a small operating profit in the first half of FY2014 compared to last year's small loss.

New Markets

We are continuing to invest in, and develop our businesses in Italy and Germany. As previously announced we expect the full year operating loss in this division to be around £6m in FY2014.

Financial Position

HomeServe's financial position remains strong with net debt of £47.0m at 31 August 2013.

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 3139 4830 and pin code 51167918#. A replay of this call can be heard by dialling +44 (0)20 3426 2807 and pin code 642124# later in the day for a period of 2 weeks.

Contacts

HomeServe plc Tel: 01922 427979

Richard Harpin, Chief Executive

Johnathan Ford, Chief Financial Officer

Mark Jones, Head of Investor Relations

Tulchan Group Tel: 0207 353 4200

Christian Cowley

Martin Robinson

HomeServe will publish its interim results for the 6 months ended 30 September 2013 on 19 November 2013. More information on HomeServe plc can be found on our corporate website: www.HomeServeplc.com