That has come at a cost, however, with marketing investment having grown 24 per cent to £78m. But, with visitor numbers in money and insurance divisions up 11 per cent and 12 per cent, respectively - these two divisions generate 86 per cent of group revenues - it looks like money well spent. Moreover, Mr Plumb says that the start to the year has been good with revenues up 15 per cent on the same period last year. Still, at the travel business there's evidence that people are browsing rather than buying - revenue there fell 4 per cent. Although, with energy costs soaring, the home services side reported more visitors and a 48 per cent revenue hike. The gross margin rose to 71.9 per cent from 71.3 per cent, too, and cash generation remains robust - which helped drive an impressive dividend hike.
Numis Securities expects adjusted EPS of 7p for 2012 (6.3p in 2011).
|ORD PRICE:||126p||MARKET VALUE:||£642m|
|TOUCH:||126-127p||12-MONTH HIGH:||127p||LOW: 82p|
|DIVIDEND YIELD:||3.6%||PE RATIO:||38|
|NET ASSET VALUE:||33p*||NET CASH:||£35m|
MoneySupermarket.com's offering is well matched to today's austere times and the group is investing appropriately to support growth. That said, MoneySupermarket operates in a highly competitive market and the shares, trading on a toppy 18 times forecast earnings, fully reflects its prospects. Hold.
Last IC view: Good value, 121p, 3 August 2011