HomeServe upbeat on first-half performance

(Sharecast News) - HomeServe reported "strong" operational performance and "good progress" on its growth initiatives in its half-year report on Tuesday, with adjusted profit before tax rising 10% in the seasonally quieter first half to £31.8m.The FTSE 250 company said its statutory profit before tax was down 9% for the six months ended 30 September, which it said reflected straight-line amortisation charges linked to prior period acquisitions.Revenue was 10% higher year-on-year at £404.3m, while statutory operating profit was down 11% at £24.6m and basic earnings per share slid 10% to 4.6p.Adjusted earnings per share were 10% higher at 7.5p.It said it saw "improved performance" in the UK, with adjusted operating profit there up 11% to £10.2m and three new energy partners signed.There was also continued strong growth in North America, with adjusted operating profit rising 28% to $18.9m.Good progress was reportedly made with business development in France, with a new long-term contract signed with Veolia, while the firm's adjusted operating profit in Spain progressed 9% to €9.8m, which was in line with expectations.HomeServe said it saw "excellent progress" in its home experts division, with trades subscribers up 17% to 54,000 and website visits ahead 17% to 51.7 million, which the board said indicated increased consumer engagement.The company said it was in a strong financial position, with more than £200m of headroom against total debt facilities as at 30 September, and an additional £174.2m arranged via a US private placement on 25 October.HomeServe's board declared an interim dividend of 5.2p, up 11% year-on-year."We have delivered a strong first half and remain confident in our growth prospects for the full year," said HomeServe founder and chief executive officer Richard Harpin."Business performance has been good in all our geographies and we have made progress on strategic initiatives in all four of our global business lines."HomeServe has just celebrated its 25th anniversary - I am as excited as ever by the opportunities to continue to build our business so that we can help homeowners with every job, in every home."At the same time, HomeServe also announced two changes to the composition of its board, with group chief operating officer Johnathan Ford to step down and leave the business on 31 December.HomeServie said his COO responsibilities would be shared between Richard Harpin, as well as global chief executive officer of membership Tom Rusin and group chief financial officer David Bower.Chris Havemann was also set to step down as a non-executive Director at the end of his three-year term, on 1 December."On behalf of the board, I would like to thank Johnathan for his outstanding contribution to the development of HomeServe over the past 6 years, firstly as group chief financial officer and latterly as group chief operating officer," said chairman Barry Gibson."Following the successful reorganisation of the group along four global business lines and the subsequent reduction in Johnathan's responsibilities, he has decided to pursue other opportunities."We respect his decision and wish him well for the future."