Homeserve well placed after Brexit; signs new affinity deals in US

Maintenance group Homeserve said it was “well positioned” to meet the challenges posed by Britain's exit from the EU, adding that growth prospects remained “strong”.

“Our businesses each operate in their own territories and have proved resilient to economic turmoil. Indeed given the significant contribution from our international businesses our reported profits would benefit from the translation effects of a decrease in the value of sterling,” Homeserve said in a trading statement.

The group confirmed that it continued to trade in line with the guidance provided in its full year results on 24 May.
Homeserve added that it had five new affinity partnerships in the US; Washington Suburban Sanitary Commission, Severn Trent Services, Wyandotte Kansas City, North Myrtle Beach and North Fayette County adding a total of 0.8m households.

“Given the progress to date and the strength of our new partner pipeline with negotiations at all stages of the process, in the long term we would anticipate having access to around 80m households in the USA via affinity relationships with a penetration level of around 10% and a net income per customer in the order of $100,” Homeserve said.

“We maintain our long term expectation of achieving a 20% margin in our US business, which would be achievable today if we scaled back the investment in growth. “