HomeServe plc (HSV.L), in its interim management statement for the period from October 1, 2011, said it expects adjusted pre-tax profit for the year ending March 31, 2012 to be in line with market view. The company said it is progressing in reinvigorating its customer focus and restarting marketing activity in the UK, with overall retention in the UK remaining strong.
Reflecting fewer customers in the UK and the continued refinement of its marketing and customer contact strategies, the company has commenced a consultation period with employees regarding a reduction in the UK headcount of about 200, reflecting a smaller outbound telephony operation and a more focused marketing function. HomeServe now sees one-off costs in the UK, including the re-organisation and redundancy costs and additional third party support to be nearly 20 million pounds in fiscal 2012, versus its previous outlook of 10 million pounds. The reduced headcount is expected to reduce operating costs by up to 5 million pounds in fiscal 2013.
Also, HomeServe continues to develop and grow its international operations, taking full ownership of Doméowith the purchase of Veolia's 51% shareholding on 7 December 2011 and the signing of a new water utility partner in the USA.
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