Amidst tough credit conditions, financial product and travel comparison website operator Moneysupermarket.com had a tough year. Indeed, the money division's revenues tumbled 44 per cent in the period to £38.1m as banks and other financial institutions continued to constrain lending.
The travel side suffered a 15 per cent revenue slide, too, although the insurance operation saw revenues dip just 3 per cent to £75.7m. Overall, Moneysupermarket's gross margin improved 3.6 percentage point to 68.9 per cent - helped by a 13 per cent cut in administrative and distribution costs. What's more, trading in 2010 has been fairly positive after something of a pick-up during February. Management is also confident about the group's ability to generate cash, which is reflected in the decision to pay shareholders two special dividends during 2009, worth a total of 9.84p.
Investing in the Moneysupermarket.com brand and website are the two key priorities for 2010 and marketing spend is already up 20 per cent year-on-year. But competition in this space looks intense - both Comparethemarket.com and Gocompare.com are working hard to boost their brand awareness through high profile TV advertising campaigns.
Broker Numis Securities expects adjusted EPS of 5p for 2010 (5.2p in 2009).
MONEYSUPERMARKET.COM (MONY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 73p | MARKET VALUE: | £370m | |
| TOUCH: | 72-73p | 12-MONTH HIGH: | 90p | LOW: 32.5p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 183 | |
| NET ASSET VALUE: | 43p* | NET CASH: | £53.8m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007** | 163 | 16.7 | na | na |
| 2008 | 179 | -51.5 | -11.8 | 3.50 |
| 2009 | 137 | 3.18 | 0.40 | 3.50*** |
| % change | -23 | - | - | - |
Ex-div: 1 Mar Payment: 1 Apr *Includes intangible assets of £198m, or 39p a share **Pro forma figures (prior to listing) ***Excludes special dividends of 9.84p | ||||
