The big surprise in these solid first-half results from MoneySupermarket.com (MANY) was the announcement that veteran chief Peter Plumb plans to step down before next summer. The revelation somewhat overshadowed a 6 per cent rise in adjusted operating profits, to £53.8m.
Revenues from the flagship MoneySupermarket.com website climbed 12 per cent to £142m. The key insurance subdivision swung to sales growth of 2 per cent as platform upgrades and greater marketing spend paid off. Moreover, turnover leapt 18 per cent in the money segment as customers switched current accounts and credit cards, and 43 per cent in the home services business as cheap energy tariffs and offers spurred utility switching. MoneySavingExpert also posted sales growth of nearly a third due to similar factors. But the recent spate of terrorist attacks weighed on traffic to TravelSupermarket.com, sending sales down 19 per cent in that smaller segment.
Management ramped up technology investments by 30 per cent to £10.4m. It's betting that a better platform and smoother customer experience will encourage switching and attract more providers. Recent new products include an updated mobile app and MoneySavingExpert's credit club. Broker Peel Hunt thinks the group's cash pile leaves scope for a special dividend next financial year. It expects adjusted pre-tax profits of £105m, giving EPS of 15.3p (from £99.5m and 14.5p in 2015).
| MONEYSUPERMARKET.COM (MANY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 295.8p | MARKET VALUE: | £1.62bn | |
| TOUCH: | 295.7-295.8p | 12-MONTH HIGH: | 382p | LOW: 226p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 30p* | NET CASH: | £10.7m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 144 | 37.8 | 5.5 | 2.55 |
| 2016 | 158 | 47.1 | 6.9 | 2.75 |
| % change | +10 | +25 | +25 | +8 |
Ex-div: 18 Aug Payment: 16 Sep *Includes intangible assets of £162m, or 30p a share | ||||
