Fallen 25% om profit warning... one to steer clear of..

Among the mid-caps, Homeserve (Dusseldorf: XHSA.DU - news) was strong throughout the day and closed up 8.1 to 220.6p. Dealers said the move was likely a relief rally after the drop the shares suffered last week, when market rumours the company could issue a profits warning knocked the price. However, some traders also pointed out that Homeserve did surge in July on the back of takeover talk.

Homeserve, the FTSE 250 home repair and insurance company, has endured a turbulent few months since admitting it was being investigated by the Financial Services authority over allegations of mis-selling.

Despite the current regulatory probe, Homeserve's financial performance has gone from strength to strength since 2010. In May, it reported a 14pc increase in full-year revenues to £535m and a 32pc jump in profits to £138m, thanks to its international arm. By Telegraph staff
4:32PM BST 23 Sep 2012
Comment
Not only that, but earlier this year, the group knocked back private equity bidders looking to pay up to £1bn to take the company private.

The company is understood to have been approached by buyout groups Cinven, KKR and Apax.

The chief executive, Richard Harpin, who owns about 12pc of the company, will be hoping to convince investors that the next few months will be smoother when the company issues a pre-close trading update on Wednesday.

Despite the current regulatory probe, Homeserve's financial performance has gone from strength to strength since 2010. In May, it reported a 14pc increase in full-year revenues to £535m and a 32pc jump in profits to £138m, thanks to its international arm.

The company carries out an estimated 1.6m repairs each year.

Sold ahead of update

Ex-divi wed 4th Dec (3.63p)

RNS Homeserve anticipate £34.5m FCA fine.

StockMarketWire.com
HomeServe, the international home emergency business, says that, in line with its expectations, HomeServe USA has now reached 2 million customers and 3 million policies.

HomeServe expects to announce its preliminary results on 19 May.