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Homeserve H1 Pretax Profit Slightly Declines, Revenue Up 17% - Quick Facts

Homeserve Plc (HSV.L) reported that the Group had a good first six months and remains on track to deliver further strong growth in fiscal 2018. Statutory profit before tax was 21 million pounds for the six months ended 30 September 2017 compared to 22 million pounds in the prior year due to an increase in interest and amortisation charges as a result of investments and acquisitions in 2017. Adjusted profit before tax was flat year-over-year at 29 million pounds. Group adjusted operating profit was up 13% on prior year at 35 million pounds with the benefit of 2 million pounds in favourable exchange movements. Group revenue rose 17% to 366 million pounds, 12% on a constant currency basis.

Richard Harpin, HomeServe Chief Executive, stated, "We have made excellent progress in the first six months of this financial year, with continued investment for growth in our UK business and progress with key partners in France, Spain and Italy. We remain confident that we will deliver further strong growth in the full year."

Separately, the Group announced, through HomeServe USA Repair Management Corp., it has entered into an agreement to acquire certain of the trade and assets of the home assistance cover business of Dominion Products and Services, Inc., a subsidiary of Dominion Energy, Inc based in Richmond, Virginia. The transaction has an enterprise value of $143 million.

To fund the transaction and retain balance sheet strength, HomeServe has separately announced its intention to raise up to 125 million pounds by way of a cash placing, the equivalent of approximately 5% of issued share capital.

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