Home maintenance outfit HomeServe said its forecast for the year remained steady with first half earnings expected to be flat in comparison to last year.
The Walsall-based company, which was at the centre of a mis-selling scandal, claimed customer retention rates were increasing and it was attracting new international business as it recovered from the problem, which is subject on an ongoing Financial Conduct Authority probe.
A company update said: “In line with our plans, we have increased UK customer acquisition marketing activity and improved our retention rate, as well as continued to grow customer numbers in our international businesses.
“Our outlook for the full year remains unchanged. Earnings in the first half of 2014 are expected to be broadly similar to last year (HY2013: £25.6 million). As usual, trading will be weighted towards the second half of our financial year reflecting the seasonality of our marketing activity and the associated renewals profile although this will be partially offset by the expected reduction in the UK business.”
The firm currently has about 2.2 million UK customers and said it remained confident of achieving its full year target of 200,000 gross new customers.
Its added that the international business pipeline was strong with negotiations underway with a number of utilities in USA operations. HomeServe said its overall financial position remained strong with net debt of £47 million at the end of August.