International home repairs and improvements company Homeserve (HSV) bolstered previous hopes of ‘strong growth’ this year in a largely upbeat trading update.
Covering the period between 1 April to 18 July, drew attention to its booming Membership programme, particularly in North America, without giving specific details. Membership is effectively offering insurance and emergency care cover for homes, things like boiler, plumbing and electrical repairs and even furniture restoration.
INVESTING FOR THE FUTURE
News that business is going largely to plan saw the share price nudge 10p higher to £11.45.
Homeserve is going through a period of substantial investment which it hopes will power growth into the future. It expects to plow between £12m and £15m in its Home Experts business plus another £2m to £3m in opening up new markets.
This compares with £9.8m of investment in the last full year to 31 March 2019.
READ MORE ABOUT HOMESERVE HERE
Some of that investment is paying off very well, it seems. An advertising campaign across the north west of England is producing positive results for Checkatrade, the directory business it took full ownership of a couple of years ago.
TELLY ADS PAYING OFF
TV ads across the region saw a 22% increase in web traffic, the company has previously said, compared with historical averages.
Elsewhere, a five-year extension of a customer billing arrangement in Spain should support customer retention rates, although Homeserve has decided to pull out of Italy completely, seeing limited growth opportunity there.
The company believes expansion opportunities are better in Japan, where it has secured joint-venture with Mitsubishi.
