HomeServe plc reported group earnings results for the year ended March 31, 2016. For the period, the company reported revenue was £633.2 million against £584.2 million reported last year. Operating profit was £86.9 million against £79.1 million reported last year. Profit before tax was £82.6 million against £76.7 million reported last year. Profit for the year, being attributable to equity holders of the parent was £61.6 million or 19.3 pence diluted per share against £56.1 million or 16.8 pence diluted per share reported last year. Net cash inflow from operating activities was £101.1 million against £67.4 million reported last year. Purchases of intangible assets were £56.8 million against £46.9 million reported last year. Purchases of property, plant and equipment was £7.1 million against £5.9 million reported last year. Adjusted EBITDA was £122.7 million against £109.4 million reported last year. Adjusted profit before tax was £93.0 million or 21.8 pence diluted per share against £85.4 million or 19.0 pence diluted per share reported last year. Net debt was £169.5 million against £64.1 million reported last year.

The group anticipates further good growth in fiscal 2017, alongside continued investment in marketing, business development, and international expansion and innovation initiatives. The company expects total capital expenditure to be around £55 million, made up of £35 million in systems and technology and around £20 million in respect to partner payments.

The company expects adjusted EBITDA in fiscal 2018, the first full year of ownership of USP, to be enhanced by around £15 million. Total capital expenditure is expected to then decrease to around £30 million in fiscal year 2018 before normalizing at around £25 million in fiscal year 2019.