HomeServe plc (LON: HSV), the international home repairs and improvements business, has today published the following trading update for the period 1 April to 18 July 2019, to coincide with its Annual General Meeting which takes place today.
Trading has been in line with the guidance given by the Company at its full year results on 21 May 2019. HomeServe continues to expect further strong growth in FY20, with increased P&L investment in Home Experts offset by strong performance in Membership, particularly in North America. The planned increase in investment in Checkatrade is proceeding well, with strong results from recent advertising campaigns in North West England. HomeServe’s business remains highly seasonal with trading weighted towards the second half.
HomeServe’s business in Continental Europe continues to evolve with two notable developments this month.
In Spain, HomeServe has reached agreement to secure the ongoing billing arrangements for customers acquired through the Endesa partnership for the next five years. This enables HomeServe to continue to use on-bill arrangements for existing customers beyond the initial two year period in force when the Endesa partnership ended in May 2018 and will support the ongoing retention rate.
HomeServe sees limited opportunities for Membership growth in Italy, so has reached agreement to sell its 49% shareholding in its Italian associate, Assistenza Casa, to its partner Edison. International business development resources will be focused on the recently announced joint venture with Mitsubishi in Japan and prospecting other more attractive markets.
HomeServe plc plans to announce its interim results for the six months to 30 September 2019 on 19 November 2019.