Member Article

HomeServe hit by mis-selling costs but expands overseas customer base

HomeServe plc, the home insurance and emergency repair provider co-founded by North East businessman Jeremy Middleton, has expanded its overseas reach.

The firm, which suffered a fall in pre-tax profit to £24.4 million from £66.5 million the year before, has expanded with 12 new partnership agreements in the US and has doubled its customer base in Spain.

In its results for the year ended March 31, HomeServe said the US remained its most significant market opportunity with 26 million households it could target via affinity partnerships with utility providers.

While profits grew 36% in the US and 29% in Spain, HomeServe was impacted by £46.7 million costs associated with a mis-selling episode that included a £30.6 million fine from the Financial Conduct Authority.

Richard Harpin, chief executive, HomeServe plc, said: “We have made good progress in stabilising the UK business by focusing on improving customer service, increasing retention and delivering effective marketing.

“Strong customer growth in the USA and Spain has contributed to the growth in total customer numbers to 5.5 million.

“I am delighted with the significant new affinity partner signings in the USA and Spain. The USA remains our greatest opportunity and during FY15 we intend to increase investment in marketing and business development to take advantage of this. All our businesses are progressing in line with our expectations and we are confident of making further progress in FY15.”

This was posted in Bdaily's Members' News section by Tom Keighley .