British repair and insurance group HomeServe posted a 10 percent rise in first-half pretax profit and said it was confident on 2012, despite facing one-off costs related to a suspension of its marketing activities.
The group has endured a series of market downgrades in recent weeks and has seen its value halve after it suspended telesales operations following one of several internal reviews being undertaken by the firm.
Customer retention rates in the UK, which makes up over 80 percent of operating profit, had remained stable at around 82.5 percent, in the six months to the end of September the company said on Tuesday.
First half adjusted pretax profit was 23.5 million pounds on revenue up 25 percent to 213.1 million pounds.
The FTSE 250 group, which sells cover for, and fixes burst pipes and boilers, said it expected one-off restructuring costs of up to 10 million pounds in the second half of the year, with on-going additional costs of up to 10 million pounds per annum.
In addition, it said reduced marketing in the current year would reduce customers by up to 5 percent and as a result renewals income in 2013 by around 15 million pounds.
Continued growth of our international operations and the resilience of the UK business model give us confidence that we can continue to deliver a good financial performance in 2012 and beyond, a statement read.
HomeServe said it had now received detailed feedback from the Financial Services Authority concerning internal reviews of telesales scripts, direct mail marketing and customer complaints from last winter, all of which was consistent with the issues the firm have been addressing.
Shares in the company, which also operates in the U.S., France, Spain and Italy, closed at 249.5 pence on Monday, down 42 percent in the last month, valuing the business at 855 million pounds.
(Reporting by Neil Maidment; Editing by Sarah Young)