Homeserve reveals soaring revenues and profits amid £4bn takeover
Repair and emergency services business Homeserve has revealed full-year revenue growth of 10 per cent, climbing from £1.3bn to £1.43bn over 12 months of trading.
Profits at the domestic specialist spiked a whopping 182 per cent, with earnings soaring to £202.6m compared to £71.6m the year before.
The strong headline performance was reflected in a sharp increase in earnings per share from 9.3p to 39.5p.
In the UK, customer numbers ended the year at 1.5m in line with expectations, while policy retention rose for the first time in seven years to 79 per cent.
Adjusted operating profits were also nominally higher at £72.9m.
Richard Harpin, founder and chief executive, said: “HomeServe has emerged from the Covid-19 pandemic with all three of our business divisions performing strongly. Our membership-based business model continues to be resilient, predictable and highly cash generative, and we are well positioned for continued growth.”
The results follow last week’s announcement that HomeServe will be sold to a Canadian alternative investment group in a £4.1bn takeover deal, which will net Harpin and his wife almost £500m.
The Walsall-based FTSE 250 company accepted a £12 per share offer from Brookfield Asset Management.
The deal values Harpin’s 7.38 per cent stake, and the 4.76 per cent stake controlled by his wife, Kate, at a combined £495m.
Homeserve has operations across UK, Europe, Asia and US, making it highly attractive to buyers.
The offer is a 71 per cent premium on HomeServe’s share price the day before Brookfield’s interest in the company became public, but is lower than the £13.65 peak in 2020 when the group was seen as a winner from the pandemic.