Homeserve looks to foreign expansion after revenue hike

Steve Dinneen
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HOME insurance giant Homeserve says aggressive international expansion will fuel further revenue hikes after it smashed analyst expectations yesterday.

Its full-year figures showed revenue growth of 16 per cent and Ebitda up 10 per cent. It also upped its dividend by almost a quarter.

Chief executive Richard Harpin told City A.M.: “I have been at this company for 16 years and I have never known a period with the same opportunities for growth. Our earnings in all business areas have continued our strong momentum.

“The market was impressed with our dividend. This is reinforcing our message that our new membership only business is improving the quality of our earnings.”

The firm kept its churn – the number of customers defecting – at a record low as it added 1.1m subscribers, taking its total base to 10.3m.

There was a 72 per cent increase in international profits to £8.7m and Harpin says this will continue to thrive.

A new deal with US firm National Grid will increase its market exposure there from 760,000 to 1.1m, making it the number one player in the country. It already has 1.9m customers in France.

Homeserve says its potential market share abroad has opportunities for at least 70 per cent growth, making the firm a “truly international business”.