Harpin to sell shares as HomeServe profits rise
HomeServe chief executive Richard Harpin is selling shares worth £68m, it has been announced this morning. The move came as the Walsall-based company said its first half pre-tax profits rose 13 per cent to £21.3m with revenue for the six months ended September 2010 up 19 per cent to £171m.
Harpin, who has been the chief executive since 2004, is to sell 16 million shares - representing 29 per cent of his total interest in the company. But following the placing, Harpin will continue to be a significant shareholder in the company holding about 12 per cent of the issued share capital.
The company, which provides cover for burst pipes and broken boilers, also said it was set to make its full-year targets. It is also aiming to push into the American market following the acquisition of National Grid Energy Services (NGES) in the USA.
Harpin said: "HomeServe has delivered another period of double-digit earnings growth whilst continuing to invest in both its UK and International businesses.
"This good performance has been driven by strong customer and policy growth, with retention rates remaining at high levels across the business as customers continue to turn to HomeServe membership to protect themselves against unexpected and costly home emergencies, demonstrating the value of our business model.
"We are making good progress towards achieving our goals for the year and remain on track to meet our target 3 to 4 per cent customer increase in the UK. The significant international growth opportunity is exciting and it is particularly pleasing to have seen such strong policy sales in the US during the first half."
