Richard Harpin’s HomeServe, the Walsall-based home maintenance and insurance firm, had more than £450 million wiped off its share value in November 2011 when it suspended its telesales activities following an independent inquiry into its selling practices. The review, by accountant Deloitte found cases where sales processes did not meet required standards.

Homeserve reacted quickly, suspending marketing calls, changing its marketing processes and launching into a retraining process for almost 500 call centre staff. Sales scripts were rewritten. Business-generated calls were suspended.

In addition, Homeserve fell foul of Ofcom and was fined three quarters of a million pounds for making an excessive number of silent and abandoned telephone calls.

All of this added up to 2011 being described by Homeserve as the most challenging year in its history. Richard Harpin waived his six-figure bonus for the year, although his basic pay rose 2.5 per cent and he earned £4.5 million in income from dividends.

Despite this, the company is turning things round, with increases in profits and turnover.

In the year to March 31 2012 HomeServe reported a 14 per cent rise in revenue from £467 million to £535 million. Its growth came mainly from the development of its international business and the benefits from acquiring full control of its French operation, Domeo, in an £83 million deal.

Pre-tax profits for the year climbed 32 per cent to £138 million despite the £24 million one-off costs resulting form the mis-selling inquiry, although the Financial Service Authority stated that it intends to continue investigations into “historic issues.” That announcement knocked 29 per cent off the share price. Net debt for the year increased to £66 million up from £11.8 million.

In the six months to September 30 2012 revenue was up a further eight per cent and half-year adjusted profit before tax was up nine per cent to £25.6 million.

While HomeServe’s UK business is shrinking – with 450 less jobs and half a million less customers – international growth continues, particularly in the USA and Spain.

Despite selling five per cent of his stake in the company in 2010, reaping a reported £66 million, Richard Harpin is still a significant shareholder with 12 per cent of the issued share capital. He remains chief executive at HomeServe and still commutes from his home in North Yorkshire, getting up at 5am to make sure he gets a swimming session in before starting work before 9am.

Richard Harpin is an enthusiastic supporter of apprenticeships and in 2010 helped to set up the nationwide Apprenticeship Ambassadors Network. He chairs the West Midlands branch.

With HomeServe, Richard Harpin has turned an emergency plumbing business backed by South Staffordshire Water into a multinational company. Aged 48, he graduated from the University of York and joined Procter & Gamble’s marketing department. He became a brand manager but left after three and a half years to become a management consultant with Deloitte. He stayed there a year before setting up his own management consultancy.

It was when he saw how difficult it was to get a reliable plumber in an emergency that he formulated his business model; an insurance product which would ensure a fast and efficient plumbing emergency service.

After several let-downs, he managed to sell the idea to South Staffordshire Water who gave him £100,000 for 52 per cent of the company. In 1993 HomeServe was born, offering plumbing and drains insurance to water company customers.

Within two years HomeServe was turning in profits, and Richard Harpin successfully marketed the idea to other water companies, giving him total UK coverage. Having access to a large customer base through the water companies, he was able to offer other services. HomeServe now covers electrical wiring, pest control, home decorating, central heating boilers, and glazing.