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magazineHomeserve to keep growing through lockdown
Homeserve (HSV) £12.62
Gain to date: 9.3%
Original entry point: Buy at £11.45, 16 April 2020
Highlighted as a resilient company which should weather the coronavirus pandemic and get through relatively unscathed, home repairs firm Homeserve (HSV) is performing as well as expected as it forecast annual profit ahead of expectations (17 Nov).
Homeserve shares had been drifting lower from their July peak over the past few months, though to some analysts and investors it has not been entirely clear why, with the firm having reported that activity has been ‘business as usual’ during the pandemic.
In its half year results to 30 September, Homeserve reported a 16% increase in adjusted pre-tax profit to £33.1 million, as revenue rose 17% to £536.7 million.
The company said that having performed better than expected in the first half and with marketing and full claims handling now resumed, it now expects to grow in the year and deliver adjusted pre-tax profit slightly ahead of current consensus earnings estimates.
‘The latest wave of lockdowns has made no fundamental difference to our operations, and the good news for us and our customers is that engineers can continue to work in peoples’ homes,’ said CEO Richard Harpin.
SHARES SAYS: Unaffected by lockdowns and is able to continue growing. Still a buy.
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