Emergency repairs specialist HomeServe chief executive Richard Harpin is selling 16 million shares in the firm raising around £66 million as the firm reports turnover of £171 million in the first half of its financial year.
Turnover at Homeserve, for the six month period to 30 September, increased by 19 per cent to £171m. Turnover in the same period last year was £143.5m.
In the first six months of its financial year, Homeserve’s unadjusted pre tax profits were £17.8m, a fall of 32 per cent compared to £26m it made last year. After allowing for amortisation of goodwill, joint venture tax and exceptional items, its profit increased by 13 per cent, from £18.9m last year, to £21.3m this year.
Homeserve chief executive Richard Harpin said: “HomeServe has delivered another period of double-digit earnings growth whilst continuing to invest in both its UK and International businesses. This good performance has been driven by strong customer and policy growth, with retention rates remaining at high levels across the business as customers continue to turn to HomeServe membership to protect themselves against unexpected and costly home emergencies, demonstrating the value of our business model.”
Mr Harpin added: “We are making good progress towards achieving our goals for the year and remain on track to meet our target 3-4 per cent customer increase in the UK. The significant International growth opportunity is exciting and it is particularly pleasing to have seen such strong policy sales in the US during the first half.
“Whilst recognising the global economic uncertainties, all business areas continue to perform well and we remain confident of delivering another year of strong profits growth.”
Homeserve has 10.5m customer insurance policies around the world and while the renewal of customer contracts is generally weighted towards the second half of the financial year, it is on track to achieve its target of between 3-4 per cent growth in UK customer numbers over the financial year.
Mr Harpin also announced the sale of almost one third of his shareholding in the firm. Around 16 million shares held in a family trust will be placed on the open market today, which based on the current share price of 416 pence per share, should raise around £66.6m.
After the sale he will continue to own around 12 per cent of the firm’s shares, currently worth around £164m.