Homeserve sets £6m aside in FCA inquiry
Wednesday 22 May 2013
Homeserve, the emergency repairs company at the centre of a long-running inquiry into alleged mis-selling, is bracing itself for a £6m fine from the City's watchdog.
The company, which insures customers against domestic mishaps such as broken boilers, made the provision for costs relating to the Financial Conduct Authority investigation launched last year. Shares in Homeserve have halved since October 2011 when it suspended its call-centre sales force after the claims emerged. Profits for the year to 31 March, down 51 per cent at £67m, were also hit by costs of 300 UK job losses earlier this year, write-offs on its French business and weaker trading.
The shares ticked 10 per cent higher to 250.2p, however. Andy Brown, an analyst at Panmure Gordon, said: "The provision for its costs and potential fine, if achieved, is lower than expected and removes a major uncertainty."
Richard Harpin, the chief executive, said complaints had fallen 40 per cent. But Homeserve lost 400,000 customers last year, leaving it with 2.3 million in the UK.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...