AGM TRADING UPDATE
LONDON - 19 July 2019- HomeServe, the international home repairs and improvements business, publishes 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 plans to announce its interim results for the six months to 30 September 2019 on 19 November 2019.
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Miriam McKay - Group Communications and IR Director
Simon Lewis - Head of Investor Relations
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HomeServe is an international home repairs and improvements business which provides people with access to tradespeople and technology to make home repairs and improvements easy. HomeServe is listed on the London Stock Exchange, with a market capitalisation of c. £3.8 billion.
This announcement contains forward-looking statements with respect to the financial condition, results and business of HomeServe plc. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. HomeServe's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.
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