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 half year ending 30 September 2010.

Summary and Outlook

HomeServe has continued to grow and develop its membership businesses in the first six months of the financial year, with increasing customer and policy numbers and retention rates remaining high across all territories.

We expect profits for the first half of the year to be ahead of the same period last year and in line with our expectations.

As in previous years, profits and customer growth will be weighted towards the second half reflecting the seasonality of our marketing activity and associated renewals profile.

Our outlook for the full year remains unchanged, and we continue to look forward to delivering another year of strong growth.

United Kingdom

Gross new policy sales are expected to be around 720k, over 12% higher than in the same period last year (HY10: 640k). Policy numbers are expected to be around 5% higher and customer numbers slightly ahead of the same period last year (HY10: 6,828k and 2,832k respectively). We remain on track to achieve our full year 3-4% customer growth target.

The UK retention rate has remained high at around 83% (HY10: 83.4%) and we are on track to achieve our full year target of at least 82% (FY2010: 83.0%).

We continue to make progress with our customer growth initiatives and have recently signed an agreement with Northern Rock to promote our home emergency policies to their customers and have seen positive results from test marketing with a credit card company.

Continental Europe

In our French joint venture, Domeo, customer numbers are expected to increase by around 10% to 790k (HY10: 718k) with total policies over 17% higher at 2,010k (HY10: 1,717k). Gross new policy sales are expected to be around 165k (HY10: 230k), with the retention rate remaining high and stable at 88%.

In Spain, we have more than doubled the number of customers and policies compared to HY10. During the first half of the year we have increased our marketing activity to both Endesa and Agbar customers.

We are pleased to announce the opening of our Italian business in Milan with the appointment of a local Managing Director and the signing of a 15 month test marketing agreement with Enel Energia, part of the Enel group Italy's largest energy company. Test marketing to around 1m households is expected to start in the second half of the year.

USA

In the US we continue to make good progress and now have around 835k customers and 1,210k policies (HY10: 492k and 629k respectively), following completion of the acquisition of the National Grid Energy Services business ("NGES") on 11 August. The integration of NGES is progressing well with test marketing already underway ahead of a full campaign over the winter period.

Gross new policy sales (excluding NGES) in the first half of the year are expected to be 160k, up around 21% (HY10: 132k) with the retention rate expected to be around 82% (HY10: 81.3%).

We continue to grow the underlying profitability of our US business (excluding NGES acquisition and integration costs) and remain on track to deliver our full year target including a £3m operating profit contribution from NGES.

Conference Call

A conference call for analysts and investors will take place at 7.45 am this morning. The conference call can be accessed by dialling +44 (0) 1452 56 80 51 and pin code 13937701#. A replay of this call can be heard by dialling +44 (0) 1452 55 00 00 and pin code 13937701# later in the day for a period of 2 weeks.

Contacts

HomeServe plc

Richard Harpin, Chief Executive

Martin Bennett, Chief Financial Officer

Mark Jones, Head of Investor Relations Tel: 01922 427979

Tulchan Group

Andrew Honnor Tel: 020 7353 4200

Martin Robinson

More information on HomeServe plc can be found on our corporate website: www.HomeServeplc.com

HomeServe's interim results for the 6 months ended 30 September 2010 will be announced on Tuesday 23 November 2010.

Note

All key performance indicators reported for the UK are on a core renewable customer basis as announced in our 2010 preliminary results in May.