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Homeserve sees FY ahead of expectations despite Covid-19 crisis

By Frank Prenesti

Date: Tuesday 07 Apr 2020

(Sharecast News) - Home repair company Homeserve said it expected to deliver profits ahead of expectations as it maintained a full workforce during the coronavirus crisis.
The company, which provides emergency repairs and heating services, said full year adjusted profit before tax was expected to be ahead of consensus expectations at ?181m, up 12%. Designated as an essential service, it has remained open and not furloughed or fired any staff, with its 6,000 office-based staff working from home.

"HomeServe is continuing to respond to emergency repair requests from customers in all the countries where it operates, and is completing an average 150 jobs every hour," the company said.

HomeServe said it had borrowing facilities of ?780m, including the addition of a new ?50m revolving credit facility on March 30 with ?37m of loans maturing in the next 12 months. The Group had gross debt of ?585m and cash on hand of ?125m giving headroom of ?320m.

Customer numbers were expected to end the year at 8.3m, up from 8.2m in 2019, with customer growth in North America and France offsetting expected reductions in the UK and Spain.

Policy retention held firm at 82% driven by a substantial rise in net income per customer in the UK and North America.

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