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Homeserve Plc

HomeServe plc Strong results across the Group

HomeServe plc (LON:HSV), today announced Preliminary results for the year ended 31 March 2019.


2019
2018¹Change²
Revenue£1,003.6m£899.7m+12%
Statutory operating profit£152.6m£135.0m+13%
Statutory profit before tax£139.5m£123.3m+13%
Basic earnings per share32.7p30.2p+8%
    
Adjusted operating profit³£174.8m£153.4m+14%
Adjusted profit before tax³£161.7m£141.7m+14%
Adjusted earnings per share³37.5p33.6p+12%
Adjusted EBITDA³£221.9m£197.6m+12%
    
Ordinary dividend per share21.4p19.1p+12%
Net debt£304.7m£237.8m+28%
Total number of customers8.4m8.4m– 

· Group revenue exceeded £1.0bn (FY18: £899.7m)

· Adjusted operating profit up 14% to £174.8m with statutory operating profit up 13% to £152.6m

· UK adjusted operating profit up 8% to £66.0m, with income per customer up 15% as the business continued its focus on delivering additional products to customers

· Adjusted operating profit in North America up 37% to $88.1m; with an adjusted operating margin of 20% (FY18: 17%) as customers reached 4.0m (FY18: 3.6m). France and Spain both delivered good growth in adjusted operating profit, up 6% and 5% respectively

· Established presence in Japan via a joint venture agreement with Mitsubishi Corporation

· Pro forma revenue growth of 33% at Checkatrade and a 23% increase in trades to 36k

· Group remains highly cash generative with a strong financial position: 116% cash conversion³; within target leverage range at 1.4x Net Debt: Adjusted EBITDA

· Proposed final dividend of 16.2p, to take the total dividend for the year to 21.4p, up 12%, in line with earnings

Richard Harpin, Founder and Chief Executive, HomeServe plc, said: “HomeServe delivered another very good year with further profit growth across the Group. North America was once again the outstanding performer and our progress there continues at pace. Allied to good performances in the UK, France and Spain, our Membership business is strong and I remain excited about its prospects.

“Checkatrade is already making great strides to strengthen its position as the UK market leader and offer an even better trade and consumer experience. In Home Experts we have a business line with huge potential. The progress we have made this year has confirmed that we are developing a winning model and gives us the confidence to increase our annual investment.

“Our mission is to make home repairs and improvements easy for both homeowners and trades and I remain as passionate as ever about our efforts to provide great service to achieve this.”

Outlook

HomeServe expects to deliver further strong growth in FY20, with increased P&L investment in Home Experts expected to be offset by strong performance in Membership, particularly North America. HomeServe increased its P&L investment in Home Experts and New Markets to £9.8m in FY19 (FY18: £4.4m), and expects to increase it to between £12m to £15m across these two areas in FY20.