GoCo profits fall on Covid hit, but upbeat on AutoSave prospects
Go-Compare owner GoCo reported lower interim profits due to the coronavirus pandemic and further investment in its “AutoSave” brands.
The price comparison platform company on Thursday reported a 20% fall in pre-tax profits to £6.1m, while revenue rose 9% to £82.8m. An unchanged interim dividend of 0.4p a share was declared.
GoCo cited Covid-19 on its price comparison and rewards segments and higher total administration costs, partly offset by a significant improvement in trading profit at AutoSave business.
The company acquired 183,000 new customers in the first half, affirming “the significant growth opportunity and the very attractive business model which has higher margin potential with good customer retention and lower marketing costs”.
“We continue to run two brands cost-effectively, Look After My Bills and weflip, around one integrated AutoSave team. We are focused on transforming the huge addressable auto-switching opportunity, generating savings for consumers, and have confidence we will continue to sustainably scale the business through the second half of 2020.”
“The group has seen an improvement in performance since the middle of May, however, we are aware that the consumer environment remains vulnerable and uncertain with a broad range of outcomes for the year still possible,” GoCo said.
“We are therefore continuing to suspend formal guidance for 2020 but we maintain our commitment to keep the market apprised of our position.”