ERT Information

D & G receives more offers from interested parties
28 June 2007

Warranty specialist Domestic & General Group says it has received more approaches from parties that may lead to an offer for the company.

In late May, it announced it had received an approach from Homeserve about a possible offer.

In a trading update, Domestic & General, which protects more than 6 million appliances in the UK, said an announcement on the approaches will be made when appropriate. It added that trading in its core warranty business remains strong.

After its Inkfish Call Centres unit lost a contract with the Post Office, and after increasing call centre demand from the group's warranty business, Domestic & General said it is reviewing the overall strategy of its third party call centre business.

“The lost contribution to operating profit from the contract termination would be no more than £1.5m in the year to 31 March 2008, before taking account of any action arising from the strategic review,” said the company.