As we reported a few months ago the domestic insurance group Homeserve have said today it has sold off its loss-making repair services in an £11 million deal. The firm now aims to concentrate on its insurance arm.
Homeserve announced in May that it planned to sell off the emergency services business, set up to supply skilled tradesmen to solve a range of household problems from leaking pipes and faulty wiring to stained carpets and, we believe, appliance repairs.
Because of falling sales and profits, Homeserve had to slash £97 million from the value of the business, which employs 2,400 of Homeserve’s 5,500 strong workforce at bases in Beverley, Norwich and Nottingham.
The emergency services operation has now been bought by its own management with finance from Lloyds TSB Development Capital, in Birmingham.
The total sale price is expected to be up to £11m, with £7.2m paid in cash.
In the year to March, the Emergency Services Division lost £2.4m, and Homeserve says it expects to make a loss on the sale of £25m. The new owners are renaming it the Evander Group.