StockMarketWire.com - Homeserve said it expected adjusted profit before tax to be at the upper end of market expectations as its membership business in North America grew strongly and racked up record customers.

Analysts expect Homeserve to generate adjusted profit before tax in the range of £159.5m to £161.7m with a mean average of £160.6m, that would be significantly ahead of the £141.7m delivered in 2018.

The upbeat outlook on profits comes as its membership business in North America reached the milestone of 4.0m customers, up from 3.6m last year as the business continued to grow strongly.

In the UK, customer numbers fell to 2.0m for the year from 2.2m a year earlier, reflecting continued good retention but no policy book acquisitions in 2019.

In Spain, customers reduced to 1.1m from 1.3m following the end of the affinity partnership with Endesa.In France, customer numbers saw a small increase to 1.1m as a new partnership was signed with Saur, the third largest water utility.

'The Group retention rate remained strong at 82% and across all geographies, HomeServe's focus on delivering additional products to those customers who value its services drove increases in net income per customer, said HomeServe.

In Home Experts, HomeServe's online trades marketplace, revenue at Checkatrade increased by over 30% and trades recruitment grew strongly.

Homeserve said it would hold an Investor Day at Checkatrade's headquarters in Portsmouth on Thursday 20 June 2019.




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