HomeServe plc (LON:HSV), the international home repairs and improvements business, has published the following trading update for the period 1 April to 16 July 2020, to coincide with its Annual General Meeting which takes place today.
In HomeServe’s Membership businesses, policy renewal and mid-term cancellation rates have continued in line with historic trends in this traditionally quieter period, with no impact from the COVID-19 pandemic. Customer acquisition marketing has now resumed, with initial small-scale campaigns producing better results than expected, notably in the UK and North America. While government guidance only permitted emergency repairs during the lockdown, all claims are now being completed in each of HomeServe’s territories, and customer satisfaction is at record highs reflecting strong service levels during the pandemic. In HVAC, M&A activity has restarted with a strong pipeline of attractive targets and four profitable acquisitions completed in May and June, with the most significant of these bringing 38,000 new policy customers in Spain.
In Home Experts, consumer demand for home improvements has recovered strongly across all businesses. Call traffic is at record highs at eLocal, while Checkatrade had its largest ever number of consumer web visits in June at 2.76m (June 2019: 1.74m). Among Checkatrade’s 43,000 members, 87% are now paying full monthly fees, with the remainder classed as free of charge affiliate members.
HomeServe continues to expect to deliver a solid performance in FY21.
HomeServe plans to announce its interim results for the six months to 30 September 2020 on 17 November 2020.