News - Midlands

HomeServe promises "decisive action"

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HomeServe has pledged to take "decisive action" to improve practices following a probe that led to the suspension of its telesales activity.

Richard Harpin, chief executive of the Walsall-based home repairs business, said the board was "disappointed to have found evidence of a shortfall in our standards in our UK sales and marketing procedures".

"Our UK business has put in place a programme to reinvigorate our customer focus. There will be some additional costs to achieving this but we firmly believe that the programme is in the interests of our customers, our affinity partners, our staff and our shareholders," said Harpin.

The company is bringing Jonathan King, chairman of HomeServe USA, in to lead its UK operations in the wake of the difficulties. It has also appointed a new director of customer relations, will be reviewing staff procedures including remuneration, and will be drafting in extra call centre staff to deal with another harsh winter should one arise.

Despite the customer service problems HomeServe posted solid results for the six months to September 2011, with a 25 per cent rises in revenue to £213.1m.

Pre-tax profit, factoring in joint venture tax and acquisition costs, was £18.2m, up by 2 per cent from the previous year.

The company's performance was led by international expansion and a high global retention rate of 83.3 per cent.

 
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