DOMESTIC repairs group Homeserve reported a surge in first-half profits yesterday, as it recovered from its mis-selling scandal.
Pre-tax profits came to £25.3m for the six-month period, compared with just £600,000 in the first half of last year. Revenues edged up on the year to £241.7m.
The results were also slowed by the strong pound – on a constant-currency basis, the firm’s profits rose by another £8.6m.
Mis-selling had landed a £30.6m fine from the Financial Conduct Authority and forced the firm to suspend telephone sales at the end of the previous financial year.
That sent UK customer numbers down from 2.2m to 2.1m over the year. But the company hopes to gain another 300,000 over the rest of the year, now it has reformed its sales processes.
Globally, customer numbers rose more rapidly, up from 5.1m to 5.9m on the year.
Homeserve’s shares fell 1.74 per cent on the day.