Price comparison is a competitive space, so it is little wonder that today’s results from Moneysupermarket.com (MONY) are being received so positively by the market.
The shares are marked 5.5% higher to 329.7p as the company reports growth in revenue, earnings and the dividend.
Drilling down a bit further the company’s two biggest verticals (or sectors) Insurance and Money, which together account for some three quarters of total business, both chalk up solid growth. Insurance notably up 4% against 2% growth in the first nine months of the year.
STRONG CASH FLOW
Net cash is only a smidge lower over the course of the year at £29.8m, impressive given the company paid out £40m in cash for home communications and mobile phone comparison platform Decision Technologies in April.
Good businesses tend to deliver for their customers so the fact it saved a record £2.1bn for users of its website in 2018, up from £2bn in 2017, is more than just a marketing line.
ANALYST POSITIVE ON OUTLOOK
Shore Capital analyst Roddy Davidson comments: ‘We are pleased to note the solid performance, positive outlook comments and intention to return excess cash to shareholders flagged within this morning’s release.
‘More broadly, we are also positive on the medium-term outlook for growth across the price comparison sector and on MONY’s potential to capitalise thanks to strong brand awareness, the breadth of its inventory and the very substantial investment that it has made in technology / mobile functionality.
‘We are also drawn to the group’s cash generative qualities - last year’s performance provided a clear reminder of these and added to an impressive track record in this regard.’
CHAIRMAN SET TO DEPART
Elsewhere, Moneysupermarket announces its chair Bruce Carnegie-Brown is set to step down in May to be replaced by current non-exec director and former Pearson (PSON) finance chief Robin Freestone.
