Comparison site delivers strong results, despite downturn in energy market
Moneysupermarket.com, the price comparison site based in Ewloe, near Chester, reported a strong year of trading today, as turnover and pre-tax profits both improved.
However, the market responded badly to the figures in early morning trading before the share price began a rally.
Sales for the year to December 31, 2022, were £387.6m, up from £316.7m the previous year. Pre-tax profits of £85.2m were compared with £70.2m a year ago. The total dividend of 11.71p per share remains the same as 2021.
Operating cash flow also improved, from £65.7m a year ago to £104.4m, while the net debt figure reduced from £59.6m to £37.2m.
The group’s travel sector showed the biggest percentage rise over the year, as international travel restrictions were relaxed following the pandemic. Revenues soared 265% to £14.9m.
Money contributed a 37% jump in annual revenues, to £103.3m, while the insurance turnover of £172m represented an eight per cent improvement. Home services, which includes energy supplies, suffered a 42% reverse, at £39.8m in sales.
The group said the first few weeks of 2023 have seen similar trends as in the fourth quarter in insurance and money, which contributed turnover increases of 11% and 10%, respectively.
As previously guided, the ongoing conditions in the energy market mean it is unlikely that switching will return in 2023. On this basis the board is confident of delivering market expectations for the year.
Moneysupermarket chief executive, Peter Duffy, said: “I’m pleased to report a strong return to revenue and profit growth as we build strategic momentum.
“The progress we’ve made gives us the foundation for more product innovation which, amid a tough macroeconomic climate, will help households find even more ways to save with our portfolio of trusted brands.”
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “Moneysupermarket served up many right answers with its latest numbers but the market has given it a D-minus after picking holes in the results.
“Revenue and profit are both up by double-digits and net debt has come down a lot. That’s simply not enough to get a winning grade judging by the seven per cent dive in the share price.
“There have been some suggestions in recent days that energy switching activity could restart from July. Moneysupermarket has poured cold water over that thought by saying it is unlikely that energy switching will return this year, and that’s likely to have spooked investors hoping for a big part of its business to start earning again.
“The other negative is the lack of dividend growth which suggests Moneysupermarket is being cautious until all parts of its business are firing on all cylinders again.”
