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Homeserve sales up by 25pc

Repairs specialist Homeserve saw revenue increase by 25 per cent in the six months to 30 September.

Reporting its half year results this morning, the firm said sales were up to £213.1 million compared with £171m the same period last year, with pre tax profits up 10 per cent from £21.3m to £23.5m. 

In the UK, revenue increased by 14 per cent to £150.9m, with adjusted operating profit rising 7 per cent to £25.8m.

The firm said it is taking “decisive action” on its sales and marketing and complaints handling processes after a flurry of problems during the severe weather last winter. It said the appointment of Jonathan King as chief executive of the UK business was the first of a number of actions to restore customer focus. It has alsoreceived feedback from the FSA.

Group chief executive Richard Harpin said:  “The group delivered a good first half financial performance as customers continue to value our products and services as evidenced by our global retention rate which remains high at 83.3 per cent. 

“We were disappointed to have found evidence of a shortfall in our standards in our UK sales and marketing procedures.  We are taking decisive action to address these issues to ensure that our practices meet the high standards that both we and our customers expect. 

“Our UK business has put in place a programme to reinvigorate our customer focus.  There will be some additional costs to achieving this but we firmly believe that the programme is in the interests of our customers, our affinity partners, our staff and our shareholders.”

Group net debt reduced to £36.6m, from £61.5m last time, and the company expectes one-off restructuring costs, fees and other expenses of up to £10m in the second half.

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