Domestic & General FY23 results – UK based group posts 20 years of sustained revenue and earnings growth
Domestic & General (D&G), the London headquartered insurer and appliance care specialist with policies in around 1 in 3 UK households, has today published its financial results for the 12 months ended 31 March 2023.
Another year of increasing revenue and earnings marks over 20 uninterrupted years of organic growth for the Group. Despite various economic shocks over that period, including the global financial crisis and the COVID-19 pandemic, the compound annual growth rate of EBITDA was 13%.
In June, the business successfully closed a transaction to acquire the US post-sale warranty provider, After Inc. The US warranty market presents a significant opportunity for D&G and the combination with After will help D&G’s US business accelerate its growth, complementing the Group’s subscription-based revenue model.
Earlier this year, D&G moved into its new operations hub in Nottingham city centre. The site has secured D&G’s position as a major part of the Midlands’ commercial landscape. It has also completed an internal programme to transform the UK real estate footprint to allow for modern, flexible, and hybrid-working practices. The Nottingham hub can support around 850 employees. D&G has about 3,000 employees worldwide and partners with over 9,000 manufacturer approved engineers.
Group financial highlights:
7% total revenue growth to £983m (FY22 restated: £920m)
8% subscription revenue growth to £871m (FY22 restated: £803m)
12% adjusted EBITDA (incl. US) growth to £124m (FY22 restated: £110m)
Net debt of £707m (FY22: £688m) with leverage reduced by 0.5x
D&G’s policies protect individuals and families against the unexpected costs and inconvenience of appliance breakdowns. Present in 12 international markets including the UK, Germany and the US, D&G protects over 21 million appliances. It repairs around 2.5 million appliances every year saving them from prematurely going to landfill.
Matthew Crummack, CEO of D&G, said: “Over 20 uninterrupted years of organic growth for the Group is an impressive achievement. I believe this is testament to the quality and importance of the products and services offered to customers, as well as our focus on growing the quality of revenue through a proven subscription model.
“We are highly focused on improving further the quality of our customer service in all our geographic markets, using digital systems, and an approach consistent with our ambitious sustainability goals.
“In the US, we are delighted to have successfully closed the acquisition of After Inc. last month, which will enable us to accelerate growth in a huge but fragmented market. The USA has five times the number of households that the UK has, and the volume of major domestic appliances sold there every year is six times the number in the UK.
“I’d like to thank our talented and hard-working employees for their commitment and innovative contributions over the last financial year.”
