Gocompare drives profit growth

It's too easy to get carried away with top-line expansion and the pursuit of market share in the digital economy. Some analysts argue that profit growth is more important, assuming the resultant cash generated is used to pay down debt, facilitate future M&A and fund shareholder returns. Thankfully, (GOCO) has given analysts little to gripe about on that score: last year operating profit increased by half to £33m, following a 220-basis point hike in the marketing margin to 40.5 per cent, the result of solid revenue growth combined with improved operating efficiencies. On an adjusted basis, the level of net cash generated rose from £23.1m to £30.5m in 2017.

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