Shares in emergency home repairs business HomeServe soared more than 12 per cent this morning on bumper results, after a "transformational year" in its North American business.
Read more: US serves up profits for HomeServe
Home repairs firm HomeServe has announced revenues up 24 per cent to £785m as pre-tax profits rose 19 per cent to £98.3m in the year to the end of March.
Basic earnings per share were up more than a fifth to 24p.
The FTSE 250 company noted a solid UK performance, edging up one per cent to 2.2m customers. And customer numbers in France and Spain were up four and seven per cent, respectively.
Shares were up 12.54 per cent to 790p in morning trading.
Why it's interesting
While HomeServe reported solid results across the board, the real driver behind its performance was its North American business. HomeServe has been rapidly expanding there with 100 new partners, and it experienced significant growth in customer numbers and adjusted operating profit in the region. These were up 28 per cent to three million and 75 per cent to £21.2m, respectively.
While HomeServe did flag earlier this year that profits will likely be at the "upper end" of expectations, investors were still impressed by the rise of its North American business.
It acquired Utility Services Partners for $75m (£52.2m) in March last year, a deal it said would increase its footprint by 9.4m households.
What the company said
Richard Harpin, Chief Executive, HomeServe, said: "In North America we had a transformational year, achieving the three million customer milestone and signing 100 new partners. The acquisition of Utility Service Partners (USP) has accelerated our progress in this large and important market.
"The investments we have made in Checkatrade and Habitissimo are a major step forward and position HomeServe at the fore of the online revolution we are seeing in home services. We are focused on developing an online platform to connect a wider customer demographic to a broader range of expert tradespeople – ‘Home Experts’."
With these opportunities, and the positive outlook for the rest of our business, HomeServe has an exciting future this coming year and beyond.