Pre-tax profits at home assistance specialists HomeServe have jumped by 25% in the last year, boosted by contract wins with Eon and Octopus Energy.
The home services company revealed its latest set of financial figures today, which show pre-tax profits of £123.3 million for 2018, compared with £98.3million in 2017.
Revenue for the last 12 months was £899.7 million, compared to £787 million in 2017.
Speaking to Utility Week, the company’s founder and chief executive, Richard Harpin, said although its American business was the “standout performance” of the last year, there have also been “real moves forward” here in the UK, including the signing of two new energy partners.
“We’ve principally been a business that worked with water companies, offering home assistance cover,” explained Harpin.
‘So to sign Eon and Octopus Energy brings us 2 million additional households to market to under those combined brands.
“We are also developing our heating, ventilation and air conditioning business,” added Harpin.
“We bought the second-largest boiler installer in the UK last August, which was Helplink. We are developing a connected boiler with a finance proposition over 12 years, which would include plumbing and electrics cover.
“We would like to see that as a line item on an energy bill, with a boiler branded with the energy company’s name. One of the things the larger energy companies are struggling with in the UK is increasing customer churn. We think a 12-year boiler rental model could be a winning proposition, so we’re looking for an additional energy company to test that proposition with.”
Harpin also revealed HomeServe is in discussions with Ofwat over getting its LeakBot smart device, which clips on to cold water pipes and monitors them for any signs of leakage, adopted by a utility firm.
“We want to find a way that water companies could take on board LeakBot,” he commented. “We are also working in parallel with eight UK home insurers, because damage following the escape of water is a £660 million problem in the UK alone. Our business model is rent the LeakBot to the home insurer for £1.50 a month and they will get a saving of £30 a year on their household insurance claims bill.
“Our vision is to become the world’s most trusted provider of home repairs and improvements,” he added.