May 24, 2011 / 6:44 AM / 7 years ago

UPDATE 2-HomeServe says new customers to boost growth

* Sees at least 3 pct growth in customers in core UK mkt

* Sees a retention rate of over 81.7 pct in UK

* Says eyeing German and Canadian markets

* FY adj pretax profit 117 mln stg vs 100.6 mln stg last yr (Adds CEO comments, share movement)

By Purwa Naveen Raman

May 24 (Reuters) - Emergency repair and insurance group HomeServe forecast further growth in the current financial year, as it expects to add more customers in its core UK market and expand its international business.

The company expects at least 3 percent growth in customers and a retention rate of over 81.7 percent in its core UK business, Chief Executive Richard Harpin told Reuters by phone.

The company got three-quarters of its revenue from the United Kingdom in the last financial year. However, growth was faster in the United States as revenue doubled to 52.6 million pounds.

Harpin said HomeServe was eyeing an entry into German and Canadian markets, even as it hoped to expand its footprint in the U.S. market.

“In Germany, we are looking at around 16 million households, which gives us a sufficient size of market to make it attractive,” he said.

The company, which had recently signed agreements with two water utilities in the United States, expects to sign more deals over the next year.

HomeServe sells insurance cover for, and fixes, burst pipes, broken boilers and drains through a network of utility partnerships in markets that have little or no competition.

HomeServe’s full-year adjusted pretax profit rose to 117.1 million pounds from 100.6 million pounds last year.

Revenue rose 27 percent to 467.1 million pounds.

The London-listed group, which also operates in France, Spain and Italy, saw customer numbers rising 14 percent.

It has proposed a final dividend of 7 pence per share, bringing the total dividend for the year to 10.3 pence, compared with 8.8 pence last year.

Shares in the company were trading almost flat at 512 pence at 0907 GMT on the London Stock Exchange. They have risen 13 percent in the past three months, compared with a 2.4 percent gain in FTSE Mid 250 Index . (Reporting by Purwa Naveen Raman in Bangalore; Editing by Don Sebastian)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below