Strong results for HomeServe ahead of takeover

The Walsall-based home repairs group saw pre-tax profits rise 271 per cent from £47.2 million in 2020-2021 to £175.1m for the year to the end of March.

Revenue was ahead by 10 per cent at £1.42bn.

The board has agreed the takeover offer from Brookfield Infrastructure Funds and is recommending shareholders approve the deal.

Growth in 2021-2022 was driven by continued growth in North America, good progress across Europe, the Middle East and Africa and a first profitable year in Home Experts.

In the UK, there was good early progress on business transformation with customer numbers ended the year at 1.5 million.Policy retention rose for the first time in seven years to 79 per cent.

In light of the recommended cash offer for the group, the board is not recommending a final dividend. The total dividend for the year is made up only of the interim dividend of 6.8p per share declared in November.

Richard Harpin, founder and chief executive, said: "HomeServe has emerged from the Covid-19 pandemic with all three of our business divisions performing strongly. Our membership-based business model continues to be resilient, predictable and highly cash generative, and we are well positioned for continued growth.

"In North America, we delivered our seventh consecutive year of double digit adjusted operating profit growth. We now have access to 73m households, nearly half of the total. With a very strong pipeline of new utility partners, we can continue to extend our position in this under-penetrated market."

He said that Brookfield's offer for HomeServe, announced on May 19, recognised the high quality of the businesses, its people and future growth potential.

"Brookfield is committed to providing long-term capital and global expertise, which I am confident will accelerate progress towards our vision to be the world's largest, most trusted provider of home repairs and improvements, delivering for customers and tradespeople," added Mr Harpin.