£30m fine for mis-selling hurts profits at Homeserve
The slump in profits to £24.4m, from £66.5m a year earlier, follows a fine of more than £30m from the Financial Conduct Authority (FCA) for ‘’serious, systemic and long-running failings’’ between 2005 and 2011.
Homeserve has overhauled its management team and systems since the matters came to light two years ago and said yesterday that it had made good progress in stabilising the UK business.
Advertisement
Hide AdAdvertisement
Hide AdCustomer numbers reduced by 200,000 to 2.1 million in the year to March 31 but this was a smaller reduction than the company anticipated a year ago.
It is hopeful of maintaining its customer base at above two million this year as it expects to acquire 300,000 new customers with a retention rate of 82 per cent.
Chief executive Richard Harpin said: “We have made good progress in stabilising the UK business by focusing on improving customer service, increasing retention and delivering effective marketing.”
Shares rose following the update.