Homeserve on track as FSA probe continues

HOMESERVE, the FTSE 250 home repair and insurance company, yesterday said full-year pre-tax profits are likely to be in line with expectations as it continues to scale down its UK business following allegations of mis-selling.

The group said UK customer numbers would hit 2.25m for the full financial year ending 31 March – at the lower end of its 2.2 to 2.4m target. However, the firm said its customer retention rate had increased slightly from the 78 per cent it reported for the first half of the year.

The firm, which spooked its investors last year by admitting it was being investigated by the FSA over allegations of potential misselling, said this investigation was ongoing and would continue for a “number of months”.