(Sharecast News) - Home repairs and improvements business Homeserve posted a rise in interim revenue on Tuesday as it announced the acquisition of a controlling stake in US-based home experts business eLocal for around $140m.
In the six months to 30 September, revenue increased 13% to £457.7m, while statutory pre-tax profit ticked up 2% to £19.7m. Basic earnings per share grew 9% to 5p and the dividend was lifted 12% to 5.8p a share.
The company pointed to strong organic growth and the benefits of acquisitions in its heating, ventilation and air conditioning segment.
In addition, it saw continued profitable growth in North America, with customer numbers up 13% to 4.2m and adjusted operating profit 24% higher at $23.4m. Homeserve's other membership businesses also performed well, with efficiency-driven growth in the UK, where adjusted operating profit rose 38% to £14m. Meanwhile, France saw its strongest customer growth for four years, up 5%.
Revenue in the Checkatrade business was up 34%, while visitor numbers rose 28% to 11.5m.
Founder and chief executive Richard Harpin said: "I am very pleased with our financial performance and strategic progress in the first half of this year. All of our membership businesses performed well, with North America continuing to deliver strong growth, and interesting opportunities in all our European businesses to develop new partnerships, harness new technology and continue to improve customer service and efficiency.
"Our buy-and-build approach to HVAC added five profitable new acquisitions and will become a significant business line for us for the first time this year."
The company also announced that it had agreed to buy a 79% interest in eLocal, giving it "a profitable entry to the home experts market in North America".
In the financial year ending March 2020, eLocal is expected to add around $5m to adjusted operating profits, rising to approximately $16m in FY21 after further investment.
At 0905 GMT, the shares were up 7.4% at 1,286p.
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