Homeserve FY revenue jumps, dividend hiked 10%
Homeserve posted a jump in full-year revenue on Tuesday and hiked its dividend but warned that Checkatrade breakeven will be delayed due to the coronavirus pandemic.
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In the year to the end of March, revenue rose 13% to £1.13bn, with adjusted pre-tax profit 12% higher at £181m. The total dividend per share for the year was lifted 10% to 23.6p.
Homeserve hailed a strong performance across its membership and heating, ventilation and air conditioning (HVAC) business, with 8.3m customers and retention in line with the previous year at 82%.
"North America remains the outstanding growth driver, and we also saw efficiency gains in the UK, record new customers in France and a good performance in Spain, particularly in the Claims business," the company said.
Revenue in the HVAC segment surged 83% to £80.9m, driven by 15 acquisitions completed for around £25m. Homeserve also highlighted "good progress" in Home Experts, where total revenue grew 78% to £71.8m.
The company said: "The situation with Covid-19 is unprecedented and continually evolving, and it has never been more difficult to predict the year ahead. In light of this we are taking action to preserve profitability and reduce discretionary spend and capital expenditure, while at the same time preparing to meet pent-up demand for home repairs and improvements as our customers come out of lockdown.
"Our current working assumption is that the world will gradually come out of lockdown over the summer months of 2020. In this scenario, we will continue to work towards our stated medium to long term targets for growth in North American Membership & HVAC, and Checkatrade, with breakeven at Checkatrade likely to be delayed from FY22 until FY23."