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Homeserve said profit will be high end of expectations

Home insurance and repair group Homeserve said full-year pre-tax profit would come in at the top end of market forecasts after it sold more new policies than expected.

In a trading update Homeserve said it sold a better than expected 1.75 million new policies in the year to end March, bringing total policies to seven million - up from 6.57 million this time last year.

It said the performance would push earnings to the top end of market forecasts, positioning the company well for future growth.

Analysts forecasts are for profit to come in at around £95 million, up from £85 million last year.

Homeserve, which has operations in Spain, France and the United States as well as Britain, said its emergency services divisions continued to struggle in the current market but had been reorganised at a one-off charge of £5 million.

Homeserve sends a wide range of tradesmen to people’s homes including carpenters and plumbers, although the division has generated historically lower margins than the insurance arm.

The statement said: “The steps taken to address lower volumes in emergency services will ensure ongoing profitability in this smaller division.”