Homeserve posts higher revenue as it eyes US expansion
Emergency repairs business Homeserve saw revenue jump 13 per cent in its latest half-year results.
That led it to hike its interim dividend as it announced a $140m deal for a controlling stake in US firm eLocal, as it boosts its presence across the pond.
Read more: Shareholders rebel at Homeserve over ex-director payouts
The figures
Revenue rose 13 per cent year on year to hit £457.7m in the six months to the end of September.
Profit before tax inched up two per cent to £19.7m while basic earnings per share climbed nine per cent to 5p.
Operating profit increased 17 per cent to £70.9m.
That came despite a one per cent decline in customer numbers to 8.2m.
Net debt rose 55 per cent year on year to £451.4m after new accounting rules forced Homeserve to recognise lease liabilities on its balance sheet.
Homeserve raised its interim dividend 12 per cent to 5.8p per share.
Read more: Homeserve maintains strong outlook after robust US performance
Why it’s interesting
Homeserve cited a strong performance in its membership businesses, such as heating, ventilation and air conditioning services.
It saw strong profit growth in the US, where customer numbers have hit 4.2m, as well as the UK, where operating profit rose 38 per cent to £14m, over its half-year.
Revenue from trade review site Checkatrade also grew 34 per cent, with a 28 per cent jump in website visitors to 11.5m.
The firm also agreed to buy 79 per cent of eLocal for around $140m as a way to expand its presence in the US.
Homeserve has also appointed a new senior independent director in Katrina Cliffe to replace outgoing non-executive director Stella David.
Cliffe is currently a non-executive director of Cembra Money Bank, London and Country Mortgages Limited and Majestic Wine.
What Homeserve said
Richard Harpin, founder and group chief executive, said:
I am very pleased with our financial performance and strategic progress in the first half of this year. All of our Membership businesses performed well, with North America continuing to deliver strong growth, and interesting opportunities in all our European businesses to develop new partnerships, harness new technology and continue to improve customer service and efficiency. Our buy-and-build approach to HVAC added five profitable new acquisitions and will become a significant business line for us for the first time this year. In Home Experts, we have another business line with global appeal. Checkatrade and Habitissimo are both market leaders and in eLocal, we have agreed to acquire a majority stake in a high growth business which gives us a profitable entry into Home Experts in North America.