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Home emergency repairs company Homeserve raised its interim dividend after reporting that annual profit was expected 'slightly ahead' of market expectations following a better-than-expected performance in the first half of the year.
HomeServe now expected to grow in the year and deliver pre-tax and amortisation profit, or PBTA, for fiscal 2021, slightly ahead of current consensus earnings estimates of 186.2 million. That would be above the £181m reported for 2020.
For the six months ended 30 September, pre-tax profit fell to 49% to £10.1 million year-on-year as revenue rose 17% to £536.7m.
The reduction in profit was blamed on the absence of exceptional gains reflected in the prior period of £7.4m, and higher acquisition-related amortisation of £23.0m from £16.3m a year earlier.
Revenue growth was driven by 'strong' growth in North America and the inclusion of revenue from eLocal, the company said.
'HomeServe exited the first half with the business trading well, having recovered earlier and more strongly from the effects of the first global lockdown than originally anticipated,' the company said.