Pre-tax profit has taken a heavy fall at domestic emergency repairs provider HomeServe as the company absorbs the impact of its recent £30.6 million fine for mis-selling.
In its final results for the year to 31 March 2014, the Walsall-headquartered company saw pre-tax profit drop to £24.4 million (2013: £66.5 million) while turnover was £568.3 million (2013: £546.5 million). Operating profit also tumbled to £27.2 million (2013: £69.1 million).
In February, the Financial Conduct Authority issued a £30.6 million fine against HomeServe following a lengthy inquiry into mis-selling of policies and failure to investigate complaints over a six-year period.
Today's final results said international businesses now accounted for 62 per cent of total customers, with strong profit growth in Spain and the US where it had signed 12 new affinity partnership agreements including one with American Electric Power, a utility serving 3.7 million households.
Chief executive Richard Harpin said: "We have made good progress in stabilising the UK business by focusing on improving customer service, increasing retention and delivering effective marketing.
"Strong customer growth in the USA and Spain has contributed to the growth in total customer numbers to 5.5 million.
"The USA remains our greatest opportunity and during 2014/15, we intend to increase investment in marketing and business development to take advantage of this.
"All our businesses are progressing in line with our expectations and we are confident of making further progress in 2014/15."
