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Homeserve spends £37mln on stakes in two tradesman checking sites in the UK and Spain

Last updated: 09:30 03 Feb 2017 GMT, First published: 07:39 03 Feb 2017 GMT

Repairman
Homeserve said it sees further "opportunity to develop scalable platforms with significant potential for future growth internationally.”

Home emergency cover provider Homeserve PLC (LON:HSV) is spending a total of £37mln on stakes in two tradesman checking sites, UK-based Checkatrade and Spanish firm Habitissimo.

The FTSE 250-listed firm has bought a 40% stake in Checkatrade, an online directory for tradespeople in the UK that attracts around 1.0mln unique users per month. It also has an option to increase its position by a further 35% in two years.

Homeserve has acquired a 70% holding in Habitissimo - a Spanish equivalent to Checkatrade - with an option to acquire the remaining 30% of that business within five years.

Homeserve said the buying spree “accelerates the development of its digital presence” and expands its “offering beyond home emergencies to help consumers looking for a single online source to solve home emergencies, repairs and improvements.”

The group said it sees further opportunity to develop scalable platforms "with significant potential for future growth internationally.”

Richard Harpin, Homeserve's chief executive, added: "Our investments in Checkatrade and Habitissimo underline Homeserve's ambition to be at the forefront of the technological revolution as the world's most trusted provider of home repairs and improvements.”

He said: "With leading positions in the home repair and improvements market, these businesses will broaden Homeserve's reach enabling us to meet the needs of younger, non-insurance minded customers who are looking to find immediate help from a wide range of home trades.”

Younger focus ...

Commenting on the deals, analysts at Liberum said: “The purpose is to appeal to the younger demographic, who have a lower propensity to insure.”

In a note to clients, they added: “The businesses are both profitable and will be reported in new markets and the investment will be counted there.”

Repeating a ‘buy’ rating and 660p price target on Homeserve shares, the analysts said they “expect a solid trading update” from the group on April 6.

In early trading Homeserve shares were up 1%, or 6.0p at 605.5p.

 -- Adds broker comment, share price --

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