Online price comparison group Moneysupermarket.com (MONY) fell 6.9% to 322.4p on a mixed trading update this morning.
The company reported a 22% decline in car insurance search volumes in April due to COVID-19, while its money business remained 'significantly suppressed' as provider appetite for lending tightened, and in travel insurance global restrictions meant there was no demand.
The company said that market-wide search demand for credit products had decreased materially, down 37% year on year for loans and cards combined in April as consumers postponed significant spending.
Meanwhile the proportion of consumers eligible for loan products on its site in April fell from above 85% to below 65%, with a 'very significant reduction' in the attractiveness and availability of credit and banking products as lending criteria tightened and interest rates fell.
Its home insurance business has been hit by the closure of estate agents and restrictions on home moving, although the company said it expects performance to improve as the housing market reopens. Home services, which compares products like broadband and energy, have performed well as more of us have been stuck indoors.
Chief executive Mark Lewis said: 'Through this difficult time for household finances, the group has continued to help our customers save money - over £800m so far this year.
AJ Bell investment director Russ Mould says: ‘While an entirely online business like comparison site Moneysupermarket.com has been in the enviable position of being able to operate throughout lockdown, today’s trading statement shows it has not exactly been business as usual.
‘This is reflected both in the continued suspension of forward guidance, the absence of any activity on travel-related products and the significant pressure on its money division as lenders withdraw products from the market.
‘Government pressure may see this situation reverse as the banks are encouraged to support a financial recovery and elsewhere the company is already seeing some recovery in motor insurance switching as people return to the roads.’
