Price is right as Moneysupermarket shareholders in line for £20m bonus

PRICE comparison website Moneysupermarket yesterday promised a £20 million bonus for shareholders after delivering better-than-expected profits.

The company, which has benefited from its sponsorship of hit ITV show Britain's Got Talent and adverts featuring comedian Omid Djalili, said underlying profits rose 27 per cent to 23m in the six months to 30 June.

Chief executive Peter Plumb said the uncertainty around the economy was prompting more cash-strapped households to turn to comparison websites in the search to save money on their bills.

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The group saw a 57 per cent increase in revenues from customers seeking insurance, while recent increases in energy prices sparked a surge in the number of consumers looking for better utilities deals.

The improved performance comes despite strong competition from rivals with their own high-profile advertising campaigns, including Compare the Market's talking meerkats and Go Compare's opera singer.

Moneysupermarket is paying a special dividend of 3.93p per share, worth 20m, to its shareholders, while its interim dividend increased by 15 per cent to 1.5p per share. Shares rose 8.5p or 7.6 per cent to 120.4p as investors applauded the pay-out.

Plumb said the shareholder windfall reflected a "great six months" and its confidence in the future growth of the market. "While the outlook for the economy remains uncertain, we are confident that our markets will continue to grow," he said. "More consumers are going online to find the best deals."

He said the company's confidence is underlined by its return to investors. "We remain highly cash-generative and are delighted to announce both an increase in our interim dividend and a further special dividend."

Group revenues increased 28 per cent to 91.7m, while bottom-line profits more than quadrupled to 8.8m after it won a 3.5m rebate from the taxman. Current trading has met expectations, with revenues up 15 per cent in July. The group last month launched an advert to promote its new discount vouchers range.

Investec Securities analyst Gareth Davies said the revenues and underlying profits were "a touch ahead" of those flagged in a recent trading update, while the results for money and insurance products topped expectations. He is to review his forecasts following the results.

Alan Howard, at Canaccord Genuity, said: "There were no surprises in the numbers, but encouraging signs that the strong growth that the company has enjoyed for the past 12 months is continuing through the second half, where comparatives are much tougher. We continue to expect 2011 to be a record year in terms of revenues and earnings, forecasting 19 per cent growth in both sales and EBITDA."He said the business was benefiting from brand-building television campaigns and a continuing recovery in the availability of money products, leading to a sharp increase in revenue per visitor which was up 26 per cent, as higher-margin products like credit cards and loans grow in availability.

"Longer-term, we remain bullish on Moneysupermarket.com's positioning. A business with a strong and growing brand, delivering significant cost savings to UK households in a time of consumer anxiety."

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