Moneysupermarket revenues rise, chairman standing down

Moneysupermarket.com posted a jump in full-year revenue and operating profit on Thursday as it announced that chairman Bruce Carnegie-Brown is stepping down.

In its preliminary results for the year to 31 December 2018, the price comparison website said group operating profit rose 14% to £108m as revenue pushed 8% higher to £355.6m. Adjusted earnings before interest, tax, depreciation and amortisation were 2% higher at £129.4m and the dividend per share was lifted 6% to 11.05p.

The company said its markets remain "dynamic and healthy" and it now expects growth of between 4% and 5% in core markets. This is lower than its previous estimate as it now sees a later recovery to motor insurance premium inflation.

Revenue in the insurance business rose 4% during the year to £183m, while revenue in the money segment was up 3% to £88.1m and home services revenue increased 15% to £49.2m.

The group also said that it will return an additional £40m to shareholders this year.

As far as the outlook is concerned, Moneysupermarket said it was confident of delivering market expectations for the year.

Chief executive officer Mark Lewis said: "In 2018 we made great progress on our Reinvent strategy. As well as growing the business we helped save customers a record £2.1bn. Our investment in optimising our sites means we have made saving even easier.

"In 2019 we are taking price comparison to the next stage by offering people more personalised ways to save and on more of their household bills."

The company, which said trading in the first six weeks of the year has been "encouraging", also announced that Bruce Carnegie-Brown will be standing down as chairman after nearly five years in the role. He will be succeeded by Robin Freestone, who has been a non-executive since 2015.

Freestone was chief financial officer of Pearson from 2006 to 2015 and has held a number of senior financial roles at Amersham, Henkel and ICI.

Shore Capital analyst Roddy Davidson said: "We are pleased to note the solid performance, positive outlook comments and intention to return excess cash to shareholders flagged within this morning’s release."

At 0810 GMT, the shares were up 1.5% to 317.30p.