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Homeserve’s American dream

HomeServe chairman backs US ambitions
December 9, 2021

Shares in HomeServe (HSV) have struggled for much of this year. The emergency home repair specialist’s UK division has seen customer numbers shrink and income per customer fall. Meanwhile, debt levels are rising and a forward rating of over 17 times adjusted consensus earnings doesn’t yell value. 

However, at the end of November, HomeServe chairman Tommy Breen bought 50,000 shares, costing him £455,000. Breen also forked out £466,500 on 50,000 shares in May, a few months after joining HomeServe.

His confidence may be linked to HomeServe’s US ambitions. While UK growth has stalled, the group says the US market is relatively untapped and that US consumers tend to be more insurance-minded than their UK counterparts. In the six months to 30 September, the group’s North American customer base increased by 8 per cent to 4.8m (compared with the UK’s 1.5m). US retention rates and income per customer are also on the rise. 

In the wake of the group’s half-year results, Liberum slightly increased its financial year 2023 EPS estimate, “helped by the strength of outlook in the US”. HomeServe’s share price has shown signs of recovery over the past two months. Breen will be hoping this revival lasts.

 

Buys    
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)
3i GroupDavid Hutchison (ch)29 Nov 211,39721,078
AbrdnHannah Grove02 Dec 2123075,900
AbrdnStephen Bird (ce)03 Dec 21231231,010
AbrdnStephanie Bruce (cfo)03 Dec 21234123,978
AJ BellAndy Bell (ce) *02 Dec 21378994,990
AltitudeDavid Smith (ch) *30 Nov 213430,008
AlumascSimon Dray (cfo)29 Nov 2121042,000
Amryt PharmaRay Stafford (ch)29 Nov 21706 †352820 †
Aston Martin LagondaMichael de Picciotto *26 Nov-2 Dec 211,430714,750
BurberryDanuta Gray30 Nov 211,75752,710
City of London InvestmentBarry Aling (ch)02 Dec 21476238,000
City of London InvestmentBarry Olliff02 Dec 21475475,000
Conduit HoldingsElaine Whelan26 Nov 2141499,240
Conygar Investment Bimaljit Sandhu26 Nov 2116473,800
Countryside PropertiesJohn Martin (ch)01 Dec 21421199,990
D4t4 SolutionsBill Bruno (ce)03 Dec 2128537,050
D4t4 SolutionsAsh Mehta (cfo)03 Dec 2128748,725
DFS FurnitureMike Schmidt (cfo) *29 Nov 2124824,800
DiplomaDean Finch24 Nov 213,13120,038
easyJetStephen Hester (ch)01 Dec 21513138,564
ElixirrNicholas Willott (cfo)29 Nov 2165049,985
GB GroupDavid Rasche (ch)30 Nov 2178978,936
GB GroupDavid Ward (cfo)30 Nov 2178994,723
GB GroupNick Brown (PDMR)30 Nov 2178997,786
GB GroupElizabeth Catchpole01 Dec 2178029,406
HalfordsKeith Williams (ch) **02 Dec 2132064,000
HalfordsLoraine Woodhouse (cfo) **02 Dec 2132024,999
Hill & SmithAnnette Kelleher30 Nov 211,67229,820
HomeServe Tommy Breen (ch)26-29 Nov 21910455,026
K3 CapitalTony Ford (PDMR) *01 Dec 2130746,000
KerryPhilip Toomey (ch)26 Nov 219,186 †275,642 †
Light Science Technologies HoldingsAndrew Hempsall (coo)30 Nov 212225,000
M&GMassimo Tosato01 Dec 2118956,882
Manolete PartnersLord Leigh of Hurley (ch)29 Nov 2125949,210
MondiMike Powell (cfo) *29 Nov 211,76499,243
Ocean WilsonsCaroline Foulger 29 Nov 2189926,970
QuilterChris Samuel29 Nov 2114028,016
Sirius Real Estate Andrew Coombs (ce)01 Dec 21136137,001
SoftlineIgor Borovikov (ch)30 Nov-1 Dec 21484 † (GDRs)861,238 †
Standard CharteredByron Grote30 Nov 21 418 †41,826 †
STM GroupAlan Kentish02 Dec 213192,535
Symphony InternationalAnil Thadani (ch)01-02 Dec 2132 †139,040 †
The Restaurant GroupKen Hanna (ch from 1 Jan)01 Dec 218484,000
Venture Life Jerry Randall (ce)03 Dec 213534,990
Venture Life Sharon Collins (PDMR)03 Dec 213534,990
Venture Life Gianluca Braguti (PDMR)03 Dec 2135

34,990

 

Sells    
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)
EJF InvestmentsHammad Khan (PDMR)30 Nov 2112990,915
System1 GroupJohn Kearon (PDMR)30 Nov 21320320,000
Telecom Plus Charles Wigoder (ch)30 Nov 211,45029,000,000
URU MetalsJohn Zorbas30 Nov 2121541,514
*Spouse/Family/Close Associate. ** Placing / Open Offer  † Converted from € / $