Headcount savings needed if customers to leave troubled emergency home business.
Home serve is to cut a further 300 jobs due to falling customer numbers, with the company expected to save around £ 10 m.
Home serve plc chief executive Richard Harpina psylla said that the number of customers would continue to fall until 2014. ' We expect the customer base to stabilize at around 1.9 million UK customers in March 2012 and this will be the financial performance of UK in FY14 FY15 and, "he said. "As a result, we announce the loss of 300 roles in the UK business."
The company expects to see a £ 35 m reduction in contributions in the year 2014 as a result of the departing customers. Income for 2015 must also be hit by a further £ 20 million due to fewer customers and the launch of new products and marketing campaigns.
However, Harpina psylla said the Group was expected to return to "modest growth" in 2015.
Home serve is under review by the FSA for poor customer service, complaints handling and sales techniques. Home serve UK chief executive Jonathan King (pictured) told this earlier Insurance Times was a result of trying to grow too fast. "We set for sales and profit targets that were maybe a little to stretch," he said. "We have our not concentrating enough on the way we monitor and control of the company."
The FSA investigation is still going on and can result in a fine, but Home serve the ways they already has improvements to do business. They experience now 41% fewer complaints than last year and customer satisfaction levels.
The company also invests in a new it system, spending £ 30 m over the next three years. It expects to start seeing the benefits for operational efficiency by 2015.
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