TIDMMONY
RNS Number : 8572G
Moneysupermarket.com Group PLC
24 July 2023
24 July 2023
Moneysupermarket.com Group PLC interim results for the six
months ended 30 June 2023
Strong brands and technology platforms drive good trading in
mixed markets
6 months ended 30
June 2023 2022 Growth %
Group revenue GBP213.8m GBP193.2m 11
---------- ---------- ---------
Adjusted EBITDA * GBP67.7m GBP56.6m 20
---------- ---------- ---------
Profit after tax GBP41.0m GBP33.7m 22
---------- ---------- ---------
Adjusted basic EPS
** 8.3p 7.0p 19
---------- ---------- ---------
Basic EPS 7.6p 6.1p 25
---------- ---------- ---------
Operating cashflow GBP41.1m GBP45.9m (10)
---------- ---------- ---------
Net debt *** GBP54.4m GBP69.1m (21)
---------- ---------- ---------
Interim dividend 3.2p 3.1p 3
---------- ---------- ---------
Good trading performance
-- Revenue up 11%, gross margin maintained at 68%; and adjusted EBITDA up 20%.
- Insurance up 23% led by car, winning share in a growing market
rebounding from FCA General Insurance Pricing regulations.
- Travel continued strong recovery in Insurance and Ice Travel Group.
- Headwinds from interest rates hit loans and mortgage
conversion; cost of living impacted broadband.
-- Ready for energy switching return - historically a market
leader. No significant return expected in 2023.
-- Cost discipline in face of inflation - rise in operating costs kept to 3%.
-- Strong cash conversion - GBP41.1m of operating cashflow during the period.
-- Returned to dividend growth - 3% increase to 3.2p, reflecting
our strategic progress, confidence in growth prospects and
continued good cash generation.
Continued s trategic progress
-- Development of data capabilities, common technology and
scalable platforms has laid foundation to start to enhance customer
retention and cross-selling:
- Starting roll out of proprietary 'Dialogue' platform to
improve speed of enquiry across products.
- Trialling a MoneySuperMarket cash rewards and loyalty club: 'SuperSaveClub'.
- Adding "MSE ChatGPT" and testing personalised notifications on the MoneySavingExpert App.
-- Leading platforms for Pay Per Click, Search Engine
Optimisation and Customer Relationship Management now installed and
delivering value.
Peter Duffy, CEO of Moneysupermarket Group, said:
"Our purpose is to help everyone save money on their household
bills, and this has never been more vital as cost-of-living
pressures bite. But it has got to be easy to use our site. And
that's where we've made good progress. The tech behind our trusted
brands has been modernised and made increasingly common across the
Group. The more scalable it is, the more efficient our business is
and the more we can invest in new tools and personalised features
that help people save on more of their bills."
Outlook
This is a strong first half performance, particularly in
Insurance where we have won market share in a growing switching
market. We expect the trends seen in Insurance and Money in the
period to continue. As we said before, we do not expect significant
revenues from energy switching this year. The continued strategic
progress and measures we are taking to drive growth, gives the
Board confidence the Group will be towards the upper end of market
expectations for the year.
Results presentation
A presentation for investors and analysts will be available from
7am at
http://corporate.moneysupermarket.com/Investors/results-centre .
A Q&A session will be held at
9.30am with Peter Duffy (CEO) and Niall McBride (CFO). This
session can be accessed via
https://edge.media-server.com/mmc/p/2j63qs24 .
For further information, contact:
Niall McBride, Chief Financial Officer Niall.McBride@m oneysupermarket.com / 0203 826 4667
Alvaro Aguilar, Strategy & IR Director Alvaro.Aguilar@moneysupermarket.com / 0203 846 2760
Emma Darke, Head of Investor Relations
Emma.Darke@moneysupermarket.com / 0203 846 2434
William Clutterbuck, H/Advisors Maitland W illiam.Clutterbuck@h-advisors.global / 07785 292617
About Moneysupermarket Group
Moneysupermarket Group is a successful digital marketplace
business, driven by a clear purpose of helping households save
money. The Group operates a tech-led savings platform supporting
leading UK brands including price comparison (MoneySupermarket),
cashback (Quidco), a consumer finance content led brand
(MoneySaving Expert) and a B2B business (Decision Tech). Our
purpose is to help households save money by giving them access to
free online tools that enable them to compare and switch products.
We operate a marketplace business model, matching consumers to
providers in an efficient way for both sides. Consumers can come to
a single site, answer a simple question set and let us do the work
of providing them with a wide choice of relevant products. For
providers it is a cost-effective and flexible way to access
millions of customers.
Cautionary note regarding forward looking statements
This announcement includes statements that are forward looking
in nature. Forward looking statements involve known and unknown
risks, assumptions, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Except as required by the Listing Rules, Disclosure
Guidance and Transparency Rules and applicable law, the company
undertakes no obligation to update, revise or change any
forward-looking statements to reflect events or developments
occurring on or after the date such statements are published.
Notes:
*Adjusted EBITDA is operating profit before depreciation,
amortisation and impairment and adjusted for other non-underlying
costs as detailed on page 7. This is consistent with how business
performance is measured internally.
**Adjusted basic earnings per share is profit before tax
adjusted for amortisation of acquisition related intangible assets
and other non-underlying costs, divided by the number of weighted
average shares. A reconciliation of adjusted basic earnings per
share to the interim financial statements is included in note
5.
***Net debt is cash and cash equivalents of GBP20.2m (2022:
GBP28.5m) less borrowings of GBP63.0m (2022: GBP84.0m), deferred
consideration of GBP9.8m (2022: GBP13.6m) and loan notes payable to
Podium's non-controlling interest of GBP1.8m (2022: GBPnil). It
does not include lease liabilities.
Quarter 2 trading and H1 performance
Revenue for the 3 Revenue for the 6 months
months ended 30 June ended 30 June 2023
2023
GBPm Growth %* GBPm Growth %*
--------- ---------- --------------
Insurance 55.0 23 105.6 23
Money 25.0 (12) 51.9 (2)
Home Services 9.1 (6) 18.7 (1)
Travel 6.2 28 11.6 42
Cashback 13.9 (1) 29.0 1
Inter-vertical
eliminations* (1.7) 122 (3.0) 114
Total 107.5 7 213.8 11
--------- ------------ ---------- --------------
* Growth % reflects changes to the comparative revenue for each
vertical for the 3 months and 6 months ended 30 June 2022 to align
with the change in presentation of inter-vertical eliminations (see
note 2)
Revenue in the second quarter ended 30 June grew 7%, driven by
strong trading in Insurance and Travel.
-- In Insurance, car and home insurance rebounded to double
digit growth following introduction of the FCA General Insurance
Pricing regulations last year.
-- Money was affected by rising interest rates making loans and
mortgages more expensive. While banking performance (current
accounts and savings products) remained robust in the quarter, it
is lapping a period with very strong savings and current account
deals last year.
-- In Home Services, we saw a fall in broadband switching market
volumes. Mobiles continued in double digit growth, helped by
attractive offers from providers.
-- Travel continued to recover with revenue returning towards
2019 pre-pandemic levels in the quarter. Note that travel insurance
is contained within Insurance.
-- In Cashback, online retail headwinds and the cost-of-living
pressures hit discretionary spending. Travel categories continued
to grow; general retail and broadband products were down.
Business review
Over the last two years, we have developed our advanced data
capabilities, common technology and scalable platforms. Our
efficient acquisition platforms, SA360 for Pay Per Click ('PPC'),
Contentful for Search Engine Optimisation ('SEO') and Braze for
Customer Relationship Management ('CRM') are installed and in use,
attracting customers in a cost-effective way. From this foundation,
we are introducing or trialling more impactful propositions for our
customers as part of our customer retention and cross-sell
strategy.
We continued to fulfil our purpose of saving households money,
and in the first half, the Group saved households an estimated
GBP1.3bn.
MoneySuperMarket ('MSM') is a well trusted "go-to" brand for
price comparison, ahead of our peer group for customer
satisfaction. Direct to site traffic is up more than 25%,
reflecting the success of the MoneySuperSeven advertising campaign.
MSM had 11.3m active users in the 12 months to 30 June 2023. We
continued to drive brand support and build on the MoneySuperSeven
marketing campaign with the launch of a new and well-received
advert starring Dame Judi Dench.
MoneySavingExpert ('MSE' ) continues to help millions of
consumers with information and tools to save money, particularly
valuable during the current cost of living crisis. We've seen
strong uptake with MSE App downloads and nearly 9 million people
receive Martin Lewis's weekly tip email.
Quidco is one of the UK's leading cashback sites. Leveraging the
strength of the Group and using our B2B capabilities, we are now
powering Quidco comparison journeys for car insurance, launched in
February, and home insurance, launched in June, in addition to
broadband, travel and pet insurance.
Ice Travel Group ('ITG') continues to benefit from the
combination of TravelSupermarket and Icelolly.com as the travel
market continues to recover strongly post-pandemic, returning
towards 2019 levels.
The Group is committed to becoming Operational Net Zero by 2030.
We continue to evolve our sustainability strategy and are working
on obtaining approval and verification of our carbon emissions
targets by the Science Based Target initiative with the aim of
submitting our targets by the end of the year. We will continue to
disclose our environmental impact via the Carbon Disclosure
Project, for which we obtained a "C" rating and maintain our
'Beyond Carbon Neutral' status, with our commitment of offsetting
150% of our carbon emissions.
We have maintained our focus on Diversity Equity Inclusion and
Belonging, with a variety of programmes to support colleagues
mental and physical wellbeing, attract diverse talent to our
business and promote awareness.
Strategic progress
-- Efficient acquisition
Our efficient acquisition platforms, SA360 for PPC, Contentful
for SEO and Braze for CRM are installed and being used to attract
users cost-effectively.
We continue to improve the efficiency of our paid search
advertising making more use of our first party data and machine
learning capabilities in SA360. We frequently add new datapoints
and refine and test bidding strategies to continuously improve PPC
performance.
SEO brings substantial volumes of free search traffic to our
sites and remains a dynamic area. In 2023 we extended successful
techniques that worked from MSM to other brands in the Group.
Contentful, the market leading tool we use for SEO is supporting
our strength in core channels, for example we've grown our market
leading position in Broadband in a challenging market
environment.
Braze, our CRM tool, has enabled greater customer engagement
through bespoke email marketing. Using Braze, we can deliver
tailored messages to our users based on progress of their enquiry.
This allows us to find new opportunities to contact our users when
they are in the market. Making our communications more relevant has
improved our conversion rates on campaigns by 9%pts.
-- Retain and grow
The foundations laid since 2021 in our data capability, common
technology and scalable platforms has given us a solid foundation
to deliver customer retention and cross selling. We want to retain
users and help them switch more of their household bills with us,
ultimately increasing customer lifetime value. We do this with
timely reminders and an easier and rewarding experience for
returning users.
We are creating a club that rewards loyalty, the
"SuperSaveClub". The pilot for the SuperSaveClub was launched in
May and we are trialling the reward and loyalty scheme to help
households find even more ways to save. SuperSaveClub members
receive rewards when they buy selected products and get rewards for
referring friends. The Club includes a SuperSave Price Promise
which promises to price match and more if the customer finds a
better deal elsewhere. SuperSaveClub and the Price Promise and are
being trialled in home, car, annual travel insurance and broadband.
The SuperSaveClub also gives access to offers powered through
Quidco, leveraging the breadth of our group.
To simplify the experience for returning users we are rolling
out Dialogue, a proprietary platform that reduces the number of
questions a customer has to complete for each additional product
enquiry. Our proprietary technology stack builds a shared profile
for users across more than one channel meaning for example,
customers wanting to compare a loan or credit card problem can
answer just 3 additional questions instead of 16, whilst still
meeting all the requirements of regulators and providers. We have
launched Dialogue on Loans, Credit Cards, Quidco Compare for Home
and Motor and our SuperSaveClub. Dialogue will not only enable a
simpler user experience by cutting the number of questions, but
also prompt a switch in other products as we highlight to customers
where they could save on further bills.
We continue to develop the MSE App to offer a suite of more
personalised experiences that will help users be in control of
their finances and help them save across a broader range of
categories. We have launched a "single sign on" capability which
will help users by bringing MSE's different clubs and services into
a single account. We have added "Bill Buster", the App's Open
Banking service that finds personalised opportunities to save and
notifies the user when they could save from switching broadband and
mobile tariffs. Our Braze CRM capability has enabled us to push
urgent and relevant MSE content to App users, helping to grow
traffic and foster a habit-forming relationship with the App. It
has also enabled us to test personalised notifications, based on
users' spending habits and interests. Most recently we launched our
prototype 'MSE ChatGPT' on the app so users can interrogate
MoneySavingExpert content via AI technology.
-- Expanding our offer
We continue to grow and expand the portfolio of the Group with
new propositions, distribution routes and channels. In the first
half of 2023 we have made progress in bringing the strength of our
technology and data platform to Quidco and expanded our newest B2B
and tenancy offers. 'Tenancy' is a featured position for a provider
on a site page.
We are expanding the range of services we offer to providers.
Revenue from tenancy, which enables providers to promote their
brands in designated spots on our sites, is up 48%. After starting
this in Money in 2022, tenancy is now live in all our key
verticals. We have extended the range of placements beyond our
results pages, giving providers exposure at different points of the
user journey.
Our Group technology now powers Quidco Compare journeys car and
home, launched in the first half, adding to Home Services, travel
and pet insurance launched in 2022. Braze, the Group CRM platform
is also managing communications with Quidco members, improving
efficiency and personalisation of our offering.
Key performance indicators
The Board reviews key performance indicators (KPIs) to assess
the performance of the business against the Group's strategy. The
KPIs are largely brand focused and therefore span multiple
segments. We measure six key strategic KPIs: estimated group
customer savings, group marketing margin, MSM and MSE net promoter
score, MSM active users, MSM revenue per active user and MSM
cross-channel enquiry.
We will continue to evaluate and broaden the KPIs as needed to
ensure they provide visibility of our strategic progress under a
framework that measures the strength of the Group and our
brands.
30 June 30 June
2023 2022
--------------------------------- -------- --------
Estimated Group customer savings GBP1.3bn GBP0.9bn
Group marketing margin 58% 57%
MSM and MSE net promoter score 71 72
MSM active users 11.3m 10.8m
MSM revenue per active user GBP17.64 GBP15.86
MSM cross-channel enquiry 20.6% 20.6%
--------------------------------- -------- --------
Estimated Group customer savings: This is calculated by
multiplying sales volume by the market average price per
product
based on external data compared to the cheapest deal in the
results table for core
channels. Savings for non-core channels are estimated by
applying the savings for
core channels proportionally to non-core revenue. The cashback
earned by Quidco members is included in this KPI.
Group marketing margin: The inverse relationship between Group
revenue and total marketing spend
represented as a percentage. Total marketing spend is the direct
cost of sales plus
distribution expenses.
MSM and MSE net promoter score: The 12 monthly rolling average
NPS (1 July 2022 - 30 June 2023 inclusive) measured by YouGov Brand
Index service Recommend Score weighted by revenue for MSM and
MSE to create a combined NPS.
MSM active users: The number of unique accounts running
enquiries in our core seven channels for MSM
(car insurance, home insurance, life insurance, travel
insurance, credit cards, loans and
energy) in the last 12-month period.
MSM revenue per active user: The revenue for the core seven MSM
channels divided by the number of active users for the last 12
months.
MSM cross-channel enquiry: The proportion of MSM active users
that enquire in more than one of our core channels
within a 12 month period.
Estimated customer savings increased to GBP1.3bn in the half
driven by strong car insurance volumes and increased savings for
customers from each sale as premiums rose.
The small increase in marketing margin reflects movements in
gross margin, described below, and the timing of brand marketing
spend.
Trust and satisfaction in our brands remained strong despite a
slight decrease in NPS to 71.
Active user numbers rose by 0.5m to 11.3m driven by strong car
performance and the recovery of travel insurance, partly offset by
a modest decline in energy enquiries as the switching market
remained closed.
Revenue per active user grew by GBP1.78p to GBP17.64p with a mix
away from Energy (which currently has negligible conversion because
of a lack of switchable tariffs) and into other higher average
revenue per user channels. Travel insurance in particular showed
higher enquiry volumes and conversion as it recovered following the
pandemic.
The cross-channel enquiry rate was unchanged at 20.6% with
declining energy enquiries compensated by combinations of other
channels, primarily insurance.
Financial review
Group revenue increased 11% to GBP213.8m (2022: GBP193.2m), with
profit after tax increasing 22% to GBP41.0m (2022: GBP33.7m). When
reviewing performance, the Board reviews several adjusted measures,
including adjusted EBITDA which increased 20% to GBP67.7m (2022:
GBP56.6m) and basic adjusted EPS which increased 19% to 8.3p (2022:
7.0p), as shown in the table below.
Extract from the Consolidated Statement of Comprehensive
Income
for the six months ended 30 June
2023 2022 Growth
GBPm GBPm %
------------------------------ ------ ------ ------
Revenue 213.8 193.2 11
Cost of sales (68.4) (62.0) 10
------------------------------ ------ ------ ------
Gross profit 145.4 131.2 11
Operating costs (89.7) (87.4) 3
------------------------------ ------ ------ ------
Operating profit 55.7 43.8 27
Amortisation and depreciation 12.0 12.8 (6)
EBITDA 67.7 56.6 20
------------------------------ ------ ------ ------
Reconciliation to adjusted EBITDA*:
EBITDA 67.7 56.6 20
Adjusted EBITDA 67.7 56.6 20
------------------------------------- ---- ----
Adjusted earnings per share**:
* basic (p) 8.3 7.0 19
* diluted (p) 8.2 7.0 18
------------------------------------- ---- ----
*See footnote on page 2 for definition of Adjusted EBITDA
**A reconciliation of adjusted EPS is included within note
5.
Alternative performance measures
We use a number of alternative (non-Generally Accepted
Accounting Practice ("non-GAAP")) financial measures which are not
defined within IFRS. The Board reviews adjusted EBITDA and adjusted
EPS alongside GAAP measures when reviewing the performance of the
Group. Executive management bonus targets include an adjusted
EBITDA measure and the long-term incentive plans include an
adjusted basic EPS measure.
The adjustments are separately disclosed and are usually items
that are non-underlying to trading activities and that are
significant in size. Alternative performance measures used within
these statements are accompanied with a reference to the relevant
GAAP measure and the adjustments made. These measures should be
considered alongside the IFRS measures.
Revenue
for the six months ended 30 June
2023 2022* Growth
GBPm GBPm %
----------------------------- ----- ----- ------
Insurance 105.6 85.9 23
Money 51.9 53.0 (2)
Home Services 18.7 18.8 (1)
Travel 11.6 8.2 42
Cashback 29.0 28.7 1
Inter-vertical eliminations* (3.0) (1.4) 114
Total 213.8 193.2 11
------------------------------ ----- ----- ------
* The comparative revenue for the period ended 30 June 2022 has
been restated to align with the change in presentation of
inter-vertical eliminations. The inter-vertical eliminations
revenue line reflects transactions where revenue in Cashback and
Travel has also been recorded as cost of sales in other
verticals.
Revenue grew 11% in the half, with double digit growth in
Insurance and Travel offsetting headwinds in other verticals.
Insurance
Insurance revenue increased 23% with all channels in growth and
particularly strong performance in car, the group's largest
insurance channel.
Following the introduction of the FCA General Insurance pricing
regulations which reduced the switching market in 2022, the rebound
in the switching market, rising insurance premiums and the squeeze
on consumer finances, created favourable switching conditions in
car and continued recovery in home.
Travel insurance continued to perform well, in double digit
growth for the half and remains the second-largest insurance
channel by revenue, having surpassed its 2019 level.
Money
Money revenue in Q1 was up 9%, but in Q2, performance lapped a
period last year with particularly attractive banking products
contributing to '23 revenues in Money being overall 2% lower in
H1.
Rising interest rates impacted conversion in loans and
mortgages. This was partly offset by good demand and product
availability in credit cards where we also launched initiatives to
improve user journeys .
Banking performance remained strong, with attractive incentives
to switch available in current accounts.
Home Services
Home Services revenue was down 1%, with less broadband switching
in the market and indications consumers are exiting contracts
because of the cost-of-living pressures. This was mostly offset by
continued double digit growth in mobiles, where attractive deals
were available.
Despite more stable wholesale energy prices in Q2, MSM hosted a
limited size deal in March. Revenues from this were immaterial.
1(st) July was the first time the Energy Price Cap ('EPC') had
fallen below the Energy Price Guarantee ('EPG') since the EPG
inception in October 2022. However, volatility remains in wholesale
energy markets and as yet, only limited deals have been in
market.
Travel
Travel, comprising our Icelolly and TravelSupermarket brands,
continued to grow double digit for the half, up 41% as it continued
its rebound from pandemic related disruption, returning towards
2019 levels.
Cashback
Quidco grew 1% despite continuing headwinds in online retail,
with rising costs of living impacting discretionary spending.
Travel categories continued to grow; general retail and broadband
products were down.
Gross profit
We maintained our gross margin of 68.0%, with gross profit up
11% to GBP145.4m. The margin reflects the strong performance in
insurance and was offset by smaller declines in other verticals
including Money, where rising interest rates impacted conversion in
mortgages and loans, and Home Services, where a weaker broadband
market impacted conversion. Several new B2B contracts won in the
half had a dilutive effect on margin.
Operating costs
for the six months ended 30 June
2023 2022 Growth
GBPm GBPm %
------------------------------------------------------ ---- ---- ------
Distribution expenses 20.6 21.5 (4)
Administrative expenses 69.1 65.9 5
------------------------------------------------------- ---- ---- ------
Operating costs 89.7 87.4 3
------------------------------------------------------- ---- ---- ------
Within administration expenses:
Amortisation of technology related intangible assets 4.4 5.1 (15)
Amortisation of acquisition related intangible assets 5.5 5.2 6
Depreciation 2.1 2.5 (15)
------------------------------------------------------- ---- ---- ------
Amortisation and depreciation 12.0 12.8 (6)
------------------------------------------------------- ---- ---- ------
Operating costs were 3% up on last year reflecting cost
discipline in the face of inflationary pressures.
Distribution costs are 4% down in the half, reflecting marketing
phasing for the second half. We plan to hold distribution costs
flat for the full year, including absorbing additional investment
in the Icelolly brand.
Administrative expenses increased by 5%, driven partly by the
consolidation of Podium post the acquisition of a majority stake in
December 2022. Efficiency gains from simplifying the organisation
and improving our technology estate continued to help offset wider
inflationary pressures and talent market headwinds.
Adjusting items*
for the six months ended 30 June
2023 2022 Growth
GBPm GBPm %
------------------------------------------------------ ---- ---- ------
Amortisation of acquisition related intangible assets 5.5 5.2 6
------------------------------------------------------- ---- ---- ------
* Amortisation of acquisition related intangible assets is not
included in EBITDA and therefore is only included as an adjusting
item in the adjusted EPS calculation.
Amortisation of acquisition related intangible assets relates to
technology, brands and customer / member relationships arising on
the acquisitions of MSE, Decision Tech, CYTI, Quidco and Podium as
well as the combination of TravelSupermarket and Icelolly, in prior
years. These assets are being amortised over periods of three to
ten years. The charge has increased this year due to the
acquisition of Podium in December 2022.
Dividends
The Board has recommended a return to dividend growth with a 3%
increase to the interim dividend to 3.2 pence per share (2022:
3.1p). This reflects the ongoing good cash conversion of the
business, strong balance sheet and the Board's confidence in the
future prospects of the Group.
The interim dividend will be paid on 8 September 2023 to
shareholders on the register on 4 August 2023.
Tax
The effective tax rate of 23.1% is below the UK standard rate of
25.0%. This is primarily due to the change in tax rate from 19.0%
in April 2023, which has resulted in a blended rate for the year of
23.5%. The effective tax rate is lower than this blended rate due
to an adjustment in respect of the prior period which has reduced
the tax charge. Last year, the effective rate of 20.0% was above
the standard rate of 19.0% due to the impact of expenses not
deductible for tax.
Earnings per share
Basic reported earnings per share for the six months ended 30
June 2023 was 7.6p (2022: 6.1p). The increase from last year is
higher than the increase in EBITDA due to lower depreciation and
amortisation partially offset by higher taxation and finance
costs.
Adjusted earnings per share is based on profit before tax before
the adjusting items detailed above. A tax rate of 23.5% (2022:
19.0%) is applied to calculate adjusted profit after tax. The tax
rate this year reflects the change in standard rate from 19.0% to
25.0% in April 2023. Adjusted basic earnings per ordinary share
increased by 19% to 8.3p per share (2022: 7.0p) which is driven by
the increase in EBITDA.
Cashflow and balance sheet
At 30 June 2023, the Group had net assets of GBP210.5m (30 June
2022: GBP196.8m) which included cash and cash equivalents of
GBP20.2m (30 June 2022: GBP28.5m). The Group had net current
liabilities of GBP41.9m (30 June 2022: GBP36.1m) primarily due to
its borrowings falling due within one year of GBP48.0m (30 June
2022: GBP49.0m).
The Group generated operating cash flows of GBP41.1m (30 June
2022: GBP45.9m) and finished the period with a net debt position of
GBP54.4m (30 June 2022: GBP69.1m). Net debt includes GBP63.0m (30
June 2022: GBP84.0m) of borrowings, GBP9.8m (30 June 2022:
GBP13.6m) of deferred consideration and GBP1.8m (30 June 2022:
GBPnil) of loan notes. Deferred consideration in relation to the
Quidco acquisition will be due in H2 subject to legal and
regulatory conditions under the terms of the agreement.
Refinancing of the Revolving Credit Facility (RCF) was delivered
in June, increasing the size of the facility to GBP125m from GBP90m
and extending the maturity from three years to up to five years
providing greater flexibility for the Group. The Group's external
debt comprises GBP28m (30 June 2022: GBP39m) drawn down on the RCF
and GBP35m (30 June 2022: GBP45m) outstanding on an amortising
loan.
The working capital outflow of GBP13.1m comprises an increase in
receivables of GBP20.1m driven by higher revenue compared to the
final quarter of 2022, partially offset by an increase in payables
of GBP7.0m, primarily due to the timing of supplier payments as
well as an increase in trade related spend categories.
Cash outflows on investing activities of GBP6.0m relates to cash
capital expenditure.
Capital expenditure
Capital expenditure was GBP6.0m (2022: GBP5.9m) of which
technology spend was GBP5.6m (2022: GBP5.8m). For the year, we
expect technology capex to be in the region of GBP13m.
We expect the technology amortisation charge for the year to be
in the region of GBP9m, excluding acquired intangibles.
Directors' responsibility statement in respect of the
half-yearly financial report
Each of the directors, whose names and functions are listed
below, confirms that, to the best of his or her knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted
for use in the UK;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
Group during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
Name Function
Robin Freestone Chair
Peter Duffy Chief Executive Officer
Niall McBride Chief Financial Officer
Caroline Britton Senior Independent Non-Executive Director
Sarah Warby Independent Non-Executive Director
Lesley Jones Independent Non-Executive Director
Rakesh Sharma Independent Non-Executive Director
Mary Beth Christie Independent Non-Executive Director
Consolidated statement of comprehensive income
for the six months ended 30 June 2023 and 30 June 2022
Note 2023 2022
GBPm GBPm
Revenue 2 213.8 193.2
Cost of sales (68.4) (62.0)
---------- ---------
Gross profit 145.4 131.2
Distribution expenses (20.6) (21.5)
Administrative expenses (69.1) (65.9)
Operating profit 55.7 43.8
Finance expense 3 (2.4) (1.7)
Profit before taxation 53.3 42.1
Taxation 4 (12.3) (8.4)
---------- ---------
Profit for the period 41.0 33.7
Other comprehensive income - 0.6
Total comprehensive income for
the period 41.0 34.3
========== =========
Profit attributable to:
Owners of the Company 40.7 33.0
Non-controlling interest 11 0 .3 0.7
---------- ---------
Profit for the period 41.0 33.7
========== =========
Total comprehensive income attributable
to:
Owners of the company 40.7 33.6
Non-controlling interest 11 0 .3 0.7
---------- ---------
Total comprehensive income for
the period 41 .0 34.3
========== =========
Earnings per share:
Basic earnings per ordinary share
(pence) 5 7.6 6.1
Diluted earnings per ordinary
share (pence) 5 7.6 6.1
Consolidated statement of financial position
as at 30 June 2023, 31 December 2022 and 30 June 2022
Note 30 June 31 December 30 June
2023 2022 2022
GBPm GBPm GBPm
Assets
Non-current assets
Property, plant and equipment 33.7 35.4 37.3
Intangible assets and goodwill 7 275.6 279.9 283.9
Equity accounted investments - - 0.1
Other investments 5 .5 5.5 8.1
-------- ------------
Total non-current assets 314.8 320.8 329.4
-------- ------------ --------
Current assets
Trade and other receivables 82.2 63.5 79.3
Prepayments 9.7 8.3 8.9
Current tax assets 0.4 - -
Cash and cash equivalents 20.2 16.6 28.5
--------
Total current assets 112.5 88.4 116.7
-------- ------------
Total assets 427.3 409.2 446.1
======== ============ ========
Liabilities
Non-current liabilities
Borrowings 8 15.0 30.0 35.0
Other payables 26.4 27.7 37.1
Deferred tax liabilities 21.0 22.5 24.4
-------- ------------ --------
Total non-current liabilities 62.4 80.2 96.5
-------- ------------ --------
Current liabilities
Trade and other payables 106.4 99.5 103.2
Borrowings 8 48.0 14.0 49.0
Current tax liabilities - 0.8 0.6
--------
Total current liabilities 154.4 114.3 152.8
-------- ------------ --------
Total liabilities 216.8 194.5 249.3
-------- ------------ --------
Equity
Share capital 0.1 0.1 0.1
Share premium 205.4 205.4 205.4
Reserve for own shares (2.7) (2.4) (2.4)
Retained earnings (62.3) (58.1) (77.0)
Other reserves 63.7 63.7 65.7
-------- ------------ --------
Equity attributable to the
owners of the Company 204.2 208.7 191.8
Non-controlling interest 11 6 .3 6.0 5.0
-------- ------------ --------
Total equity 210.5 214.7 196.8
-------- ------------ --------
Total equity and liabilities 427.3 409.2 446.1
======== ============ ========
Consolidated statement of changes in equity
for the period ended 30 June 2023, 31 December 2022 and 30 June
2022
Equity
attributable
to the
Reserve owners
Share Share for own Retained Other of the Non-controlling Total
capital premium shares earnings reserves Company interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January
2022 0.1 205.4 (2.6) (64.7) 65.1 203.3 4.3 207.6
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Profit for the
period - - - 33.0 - 33.0 0.7 33.7
Other
comprehensive
income - - - - 0.6 0.6 - 0.6
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Total
comprehensive
income - - - 33.0 0.6 33.6 0.7 34.3
Exercise of LTIP
awards - - 0.2 (0.2) - - - -
Equity dividends - - - (46.2) - (46.2) - (46.2)
Share-based
payments - - - 1.1 - 1.1 - 1.1
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 30 June 2022 0.1 205.4 (2.4) (77.0) 65.7 191.8 5.0 196.8
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 1 July 2022 0.1 205.4 (2.4) (77.0) 65.7 191.8 5.0 196.8
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Profit for the
period - - - 35.3 - 35.3 0.3 35.6
Other
comprehensive
income - - - (0.6) (2.0) (2.6) - (2.6)
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
Total
comprehensive
income - - - 34.7 (2.0) 32.7 0.3 33.0
Acquisition of
subsidiary with
non-controlling
interest - - - - - - 0.7 0.7
Purchase of
shares
by employee
trusts - - (0.3) - - (0.3) - (0.3)
Exercise of LTIP
awards - - 0.3 (0.3) - - - -
Equity dividends - - - (16.6) - (16.6) - (16.6)
Share-based
payments - - - 1.1 - 1.1 - 1.1
At 31 December
2022 0.1 205.4 (2.4) (58.1) 63.7 208.7 6.0 214.7
--------- ---------- --------- ---------- ---------- ------------- ---------------- --------
At 1 January 2023 0.1 205.4 (2.4) (58.1) 63.7 208.7 6.0 214.7
---- ------ ------ ------- ----- ------- ----- -------
Profit for the
period - - - 40.7 - 40.7 0.3 41.0
Other comprehensive - - - - - - - -
income
---- ------ ------ ------- ----- ------- ----- -------
Total comprehensive
income - - - 40.7 - 40.7 0.3 41.0
Purchase of shares
by employee trusts - - (0.5) - - (0.5) - (0.5)
Exercise of LTIP
awards - - 0.2 (0.2) - - - -
Equity dividends - - - (46.2) - (46.2) - (46.2)
Share-based payments - - - 1.5 - 1.5 - 1.5
---- ------ ------ ------- ----- ------- ----- -------
At 30 June 2023 0.1 205.4 (2.7) (62.3) 63.7 204.2 6 .3 210.5
---- ------ ------ ------- ----- ------- ----- -------
Consolidated statement of cash flows
for the six months ended 30 June 2023 and 30 June 2022
2023 2022
GBPm GBPm
Operating activities
Profit for the period 41.0 33.7
Adjustments to reconcile Group
profit to net cash flow from operating
activities:
Amortisation of intangible assets 9.9 10.3
Depreciation of property, plant
and equipment 2.1 2.5
Net finance costs 2.4 1.7
Equity settled share-based payment
transactions 1.5 1.1
Taxation expense 12.3 8.4
Changes in trade and other receivables (20.1) (13.6)
Changes in trade and other payables 7.0 10.7
Taxation paid (15.0) (8.9)
Net cash flow from operating activities 41.1 45.9
-------- --------
Investing activities
Acquisition of property, plant and
equipment (0.4) (0.4)
Acquisition of intangible assets (5.6) (5.5)
Acquisition of subsidiaries, net
of cash acquired - (1.0)
Acquisition of investments - (0.1)
Net cash used in investing activities (6.0) (7.0)
-------- --------
Financing activities
Dividends paid (46.2) (46.2)
Purchase of shares by employee trusts (0.5) -
Proceeds from borrowings 40.0 44.0
Repayment of borrowings (21.0) (17.5)
Interest paid (2.4) (1.8)
Repayment of lease liabilities (1.4) (1.4)
Net cash used in financing activities (31.5) (22.9)
Net increase in cash and cash equivalents 3 .6 16.0
Cash and cash equivalents at 1 January 16.6 12.5
-------- --------
Cash and cash equivalents at 30
June 20.2 28.5
======== ========
Notes
1. Basis of preparation
Moneysupermarket.com Group PLC (the Company) is a public limited
company registered and domiciled in England and Wales and listed on
the London Stock Exchange.
The financial statements are prepared on the historical cost
basis. Comparative figures presented in the financial statements
represent the six months ended 30 June 2022.
The financial statements have been prepared on the same basis as
those for the year ended 31 December 2022.
Statement of compliance
This condensed set of financial statements has been prepared in
accordance with IAS 34 - Interim Financial Reporting as adopted for
use in the UK.
The annual financial statements of the group are prepared in
accordance with UK-adopted international accounting standards. As
required by the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, the condensed set of financial
statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the company's
published consolidated financial statements for the year ended 31
December 2022.
These condensed consolidated interim financial statements were
approved by the board of directors on 21 July 2023.
Going concern
The Directors have prepared the condensed set of consolidated
interim financial statements on a going concern basis for the
following reasons.
As at 30 June 2023, the Group's external debt comprised an
amortising loan (with a balance outstanding of GBP35m, repayable by
October 2024) and a revolving credit facility ('RCF'), (of which
GBP28m of the GBP125m available was drawn down). In June 2023, the
RCF was increased from GBP90m to GBP125m and its term was extended
from three to four years, with the option of a further year. This
means that the current RCF is due for renewal in June 2027 unless
the option of an additional year is taken. Since 30 June 2023, no
further amounts have been drawn down on the RCF and repayments of
GBP7.5m have been made. The operations of the business have been
impacted by macroeconomic uncertainty caused by high inflation and
rising interest rates, as well as the continued impact of high
wholesale prices on the energy switching market. However, the Group
remains profitable, cash generative and compliant with the
covenants of the bank loan and RCF.
The Directors have prepared cash flow forecasts for the Group
for a period of at least 12 months from the date of approval of the
condensed set of consolidated interim financial statements. The
Directors note the Group's net current liability position and have
also considered the effect of potential cost-of-living trading
headwinds and recession and competition such as new entrants upon
the Group's business, financial position, and liquidity in severe,
but plausible, downside scenarios. The scenarios modelled take into
account the potential downside trading impacts from recession,
sustained cost-of-living increases, competitive pressures and any
one-off cash impacts on top of a base scenario derived from the
Group's latest forecasts. The severe, but plausible, downside
scenarios modelled, under a detailed exercise at a channel level,
included minimal recovery over the period of the cash flow
forecasts and in the most severe scenarios reflected some of the
possible cost mitigations that could be taken. The impact these
scenarios have on the financial resources, including the extent of
utilisation of the available debt arrangements and impact on
covenant calculations has been modelled. The possible mitigating
circumstances and actions in the event of such scenarios occurring
that were considered by the Directors included cost mitigations
such as a reduction in the ordinary dividend payment, a reduction
in operating expenses or the slowdown of capital expenditure. A
reverse stress test has also been performed, which assumes the
maximum available drawdown of borrowings, whilst maintaining
covenant compliance.
The scenarios modelled and the reverse stress test showed that
the Group will be able to operate at adequate levels of liquidity
for at least the next 12 months from the date of signing the
condensed set of consolidated interim financial statements. The
Directors, therefore, consider that the Group has adequate
resources to continue in operational existence for at least 12
months from the date of approval of the condensed set of
consolidated interim financial statements and have prepared them on
a going concern basis.
2. Segmental information
Below we report a measure of profitability at segment level that
reflects the way performance is assessed internally. The Group has
a number of teams, capabilities and infrastructure which are used
to support all verticals e.g. data platform and brand marketing.
These are shared costs of the Group rather than "central costs". We
have concluded there is no direct or accurate basis for allocating
these costs to the operating segments and therefore they are
disclosed separately, which is how they are presented to the Chief
Operating Decision Maker.
The Group's reportable segments are Insurance, Money, Home
Services, Travel and Cashback. These segments represent individual
trading verticals which are reported separately for revenue and
directly attributable expenses. Net finance costs, tax and net
assets are only reviewed by the Chief Operating Decision Maker at a
consolidated level and therefore have not been allocated between
segments. All assets held by the Group are located in the UK.
The following summary describes the products and services in
each segment.
Segment Products and services
------------- --------------------------------------------------------------
Insurance Customer completes transaction for insurance policy
on any of the following: provider website, our website
or a telephone call.
Money Customer completes transaction for money products such
as credit cards, loans and mortgages on provider website.
Home Services Customer completes transaction for home services products
such as energy and broadband on provider website.
Travel Customer completes transaction for travel products
on provider website or our website.
Cashback Customer completes transaction for retail, telecommunications,
services and travel products with a cashback incentive
on merchant website. Customer receives confirmed cashback
incentive on our site.
------------- --------------------------------------------------------------
Segment
Home Shared Inter-vertical
Insurance Money Services Travel Cashback costs eliminations Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Period ended 30
June 2023
Revenue 105.6 51.9 18.7 11.6 29.0 - (3.0) 213.8
Directly attributable
expenses (45.3) (16.9) (6.2) (8.2) (24.0) (48.5) 3.0 (146.1)
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Adj. EBITDA contribution 60.3 35.0 12.5 3.4 5.0 (48.5) - 67.7
Adj. EBITDA contribution 67 67 29
margin* 57 % % % % 17 % - 32 %
Depreciation and
amortisation (12.0)
Net finance costs (2.4)
Profit before tax 53.3
Taxation (12.3)
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Profit for the period 41.0
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Segment
Home Shared Inter-vertical
Insurance Money Services Travel Cashback costs eliminations** Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Period ended 30
June 2022**
Revenue 85.9 53.0 18.8 8.2 28.7 - (1.4) 193.2
Directly attributable
expenses (37.5) (16.1) (7.5) (4.8) (23.3) (48.8) 1.4 (136.6)
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Adj. EBITDA contribution 48.4 36.9 11.3 3.4 5.4 (48.8) - 56.6
Adj. EBITDA contribution 42
margin* 56 % 70% 60% % 19 % - 29%
Depreciation and
amortisation (12.8)
Net finance costs (1.7)
Profit before tax 42.1
Taxation (8.4)
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
Profit for the period 33.7
------------------------- --------- ------ --------- ------ -------- ------ ---------------- -------
* Adjusted EBITDA contribution margin is calculated by dividing
adjusted EBITDA contribution by revenue.
** The comparative revenue and directly attributable expenses
for the period ended 30 June 2022 have been restated to align with
the change in presentation of inter-vertical eliminations. The
inter-vertical eliminations revenue line reflects transactions
where revenue in Cashback and Travel has also been recorded as cost
of sales in other verticals.
Insurance adjusted EBITDA contribution margin increased from 56%
to 57%, mixing into higher margin channels and effective cost
control.
Money saw a reduction in adjusted EBITDA contribution margin
from 70% to 67%, primarily reflecting the Podium acquisition at the
end of last year.
Home Services adjusted EBITDA contribution margin improved from
60% to 67%, with a temporary reduction due to redistribution of
operating costs relating to the energy market.
Travel adjusted EBITDA contribution margin declined from 42% to
29% with reduced marketing spend in the prior year when the sector
was early in its post-covid recovery.
Margin for Cashback is significantly lower than other verticals
as a large proportion of commission is paid out to members as
cashback. Adjusted EBITDA contribution margin decreased from 19% to
17% reflecting increased investment in growth.
Shared costs stayed broadly flat year on year with disciplined
cost control offsetting inflation.
3. Finance expense
2023 2022
GBPm GBPm
Revolving credit facility 0.5 0.5
Bank loan 1.3 0.6
Leases 0.5 0.5
Loan notes 0.1 -
2.4 1.7
====== ===========
4. Taxation
The effective tax rate of 23.1% is below the UK standard rate of
25.0%. This is primarily due to the change in tax rate in April
2023, which has resulted in a blended rate for the year of 23.5%.
The effective tax rate is lower than this blended rate due to an
adjustment in respect of the prior period which has reduced the tax
charge. For the six months ended 30 June 2022, the effective rate
was 20% which was above the standard rate of 19.0% due to the
impact of expenses not deductible for tax.
2023 2022
GBPm GBPm
Current tax
Current tax on income for the period 14 .3 9.4
Adjustments in respect of prior (0.4) -
periods
13.9 9.4
------ ------
Deferred tax
Origination and reversal of temporary
differences (1.6) (1.0)
(1.6) (1.0)
------ ------
12.3 8.4
====== ======
5. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or
loss for the period attributable to ordinary equity holders of the
Company, by the weighted average number of ordinary shares
outstanding during the period. The Company's own shares held by
employee trusts are excluded when calculating the weighted average
number of ordinary shares outstanding.
Diluted earnings per share
Diluted earnings per share is calculated by dividing the profit
or loss for the period attributable to ordinary equity holders of
the Company, by the weighted average number of ordinary shares
outstanding during the period plus the weighted average number of
ordinary shares that would be issued on the conversion of all
dilutive potential ordinary shares into ordinary shares.
Basic and diluted earnings per share have been calculated on the
following basis:
2023 2022
GBPm GBPm
Profit after taxation attributable to the owners
of the Company 40.7 33.0
Basic weighted average ordinary shares in issue
(millions) 536.4 536.4
Dilutive effect of share-based instruments (millions) 2.4 0.7
------- ------
Diluted weighted average ordinary shares in issue
(millions) 538.8 537.1
======= ======
Basic earnings per ordinary share (pence) 7.6 6.1
Diluted earnings per ordinary share (pence) 7.6 6.1
Adjusted basic and diluted earnings per share are based on profit
before tax after adding back adjusting items. They have been
calculated as follows:
2023 2022
GBPm GBPm
Profit before tax 53.3 42.1
Adjusted for profit before tax attributable to
non-controlling interest (0.4) (0.9)
------- ------
Profit before tax attributable to the owners of
the Company 52.9 41.2
Amortisation of acquisition related intangible
assets 5.5 5.2
Amortisation of acquisition related intangible
assets attributable to non-controlling interest (0.4) (0.2)
58.0 46.2
Estimated taxation at 23.5%* (2022: 19%) (13.6) (8.8)
------- ------
Profit for adjusted EPS purposes 44.4 37.4
======= ======
Adjusted basic earnings per share (pence) 8.3 7.0
Adjusted diluted earnings per share (pence) 8.2 7.0
* Estimated taxation at 23.5% is derived from the standard rate
of corporation tax increasing from 19% to 25% in April 2023.
6. Dividends
2023 2022
GBPm GBPm
Equity dividends on ordinary shares:
Final dividend for 2022: 8.61 pence per share
(2021: 8.61 pence per share) 46.2 46.2
Proposed for approval (not recognised as a liability
as at 30 June):
Interim dividend for 2023: 3.20 pence per share
(2022: 3.10 pence per share) 17.2 16.6
7. Intangible assets
Market Customer Technology
related relationships related Goodwill Total
GBPm GBPm GBPm GBPm GBPm
Cost
At 1 January 2022 169.6 21.2 123.4 289.1 603.3
Additions - - 5.8 - 5.8
Transfers - 0.5 (0.5) -
-------- -------------- ---------- -------- -----
At 30 June 2022 169.6 21.2 129.7 288.6 609.1
======== ============== ========== ======== =====
Amortisation
At 1 January 2022 150.5 0.4 89.7 74.3 314.9
Charge for the period 1.5 1.0 7.8 - 10.3
-------- -------------- ---------- -------- -----
At 30 June 2022 152.0 1.4 97.5 74.3 325.2
======== ============== ========== ======== =====
Carrying value
At 1 January 2022 19.1 20.8 33.7 214.8 288.4
At 30 June 2022 17.6 19.8 32.2 214.3 283.9
======== ============== ========== ======== =====
Cost
At 1 January 2023 169.6 21.2 137.1 288.6 616.5
Additions - - 5.6 - 5.6
At 30 June 2023 169.6 21.2 142.7 288.6 622.1
======== ============== ========== ======== =====
Amortisation
At 1 January 2023 153.3 2.5 106.5 74.3 336.6
Charge for the period 1.0 1.1 7.8 - 9.9
At 30 June 2023 154.3 3.6 114.3 74.3 346.5
======== ============== ========== ======== =====
Carrying value
At 1 January 2023 16.3 18.7 30.6 214.3 279.9
At 30 June 2023 15.3 17.6 28.4 214.3 275.6
======== ============== ========== ======== =====
Goodwill is allocated to each vertical, or cash generating unit
('CGU'), as follows:
30 June 31 December 30 June
2023 2022 2022
GBPm GBPm GBPm
Insurance 46.5 46.5 46.5
Money 33.2 33.2 33.2
Home Services 54.8 54.8 54.8
Travel 11.5 11.5 11.5
Cashback 68.3 68.3 68.3
------- -------------- -------
214.3 214.3 214.3
======= ============== =======
The Group had significant balances relating to goodwill as at 30
June 2023 as a result of acquisitions of businesses in previous
years. Goodwill balances are tested annually for impairment or if
events or changes in circumstances indicate that the carrying
amount of these assets may not be recoverable.
In accordance with IAS 36 - Impairment of Assets, the Group has
considered whether there have been any indicators of impairment
during the six months ended 30 June 2023, which would require an
impairment review to be performed. The continued impact of high
inflation and rising interest rates on discretionary online spend
has been identified as an indicator of impairment in the Cashback
CGU. We have therefore performed an impairment test on this CGU
which demonstrated that the recoverable amount of the assets
allocated to it exceeds their carrying value by GBP14m.
The recoverable amount is a value in use derived from the latest
Board approved five-year forecast which requires the Group to make
judgements over key inputs. These are revenue growth, terminal
growth and the discount rate applied to cash flows.
The assumed terminal growth rate is 2.8% (31 December 2022:
2.7%) which is an average rate taken from the UK Gross Domestic
Product growth rates calculated by the Office for Budget
Responsibility. A compound annual revenue growth rate (CAGR) is
implied in the five year cashflow forecasts based on external
source market data and management's view of growth in the active
member base due to initiatives that are being introduced. A pre-tax
discount rate of 15.3% has been applied (31 December 2022: 15.5%).
This reflects a change in approach from the year end with regards
to the discount rate. The cashflow forecasts have been risk
adjusted and the risk premium that was previously applied to the
Cashback CGU has been removed. This decrease in the discount rate
has been offset by an increase in the underlying rate arising from
macroeconomic factors.
The value in use is sensitive to key assumptions such as the
discount rate and revenue. An increase in the discount rate to 16%
would reduce the headroom to GBP9m. A reduction in the revenue CAGR
by 30% would bring the headroom down to GBPnil.
No indicators of impairment were identified in respect of the
Group's other CGUs.
8. Borrowings
30 June 31 December 30 June
2023 2022 2022
GBPm GBPm GBPm
Non-current
Loan 15.0 30.0 35.0
======== ============ ========
Current
Revolving credit facility 28.0 4.0 39.0
Loan 20.0 10.0 10.0
-------- ------------ --------
48.0 14.0 49.0
======== ============ ========
In June 2023, the revolving credit facility was increased from
GBP90m to GBP125m and its term was extended from three years to up
to five years.
9. Related party transactions
Peter Duffy, Robin Freestone and Rakesh Sharma in total received
dividends from the Group totalling GBP23,108 (2022: Peter Duffy,
Robin Freestone, Scilla Grimble, James Bilefield and Sally James in
total received GBP27,560).
10. Commitments and contingencies
At 30 June 2023, the Group was committed to incur future capital
expenditure of GBP1.2m (2022: GBPnil).
Comparable with most companies of our size, the Group is a
defendant in a small number of disputes incidental to its
operations and from time to time is under regulatory scrutiny.
As a leading website operator, the Group occasionally
experiences operational issues as a result of technological
oversights that in some instances can lead to customer detriment,
dispute and potential cash outflows. The Group has a professional
indemnity insurance policy in order to mitigate liabilities arising
out of events such as this. The contingencies outlined above are
not expected to have a material adverse effect on the Group.
11. Non-controlling interest
The Group recognises two non-controlling interests, one in
respect of Ice Travel Group Limited and its two wholly owned
subsidiaries Travelsupermarket Limited and Icelolly Marketing
Limited (together "Ice Travel Group"), and secondly in respect of
Podium Solutions Limited.
The following table summarises the financial performance and
position of these companies at the period end before any
intra-group eliminations.
At 30 June 2023 Podium Solutions Limited Ice Travel Group Total
------------------------ ---------------- -----
Non-controlling interest 48% 33%
------------------------ ---------------- -----
GBPm GBPm GBPm
Non-current assets* 2.7 14.4 17.1
Current assets 0.3 10.9 11.2
Non-current liabilities (1.9) (5.3) (7.2)
Current liabilities (0.3) (2.2) (2.5)
------------------------ ---------------- -----
Net assets 0.8 17.8 18.6
------------------------ ---------------- -----
Net assets attributable to non-controlling interest 0.4 5.9 6.3
======================== ================ =====
Revenue 0.2 11.4 11.6
(Loss)/profit (0.8) 2.0 1.2
Total comprehensive income (0.8) 2.0 1.2
======================== ================ =====
(Loss)/profit attributable to the non-controlling interest (0.4) 0.7 0.3
Total comprehensive income attributable to non-controlling
interest (0.4) 0.7 0.3
======================== ================ =====
Cash flows from operating activities 0.0 0.9 0.9
Cash flows from investing activities (0.0) (0.4) (0.4)
Cash flows from financing activities - (0.3) (0.3)
------------------------ ---------------- -----
Net increase in cash and cash equivalents 0.0 0.2 0.2
======================== ================ =====
At 30 June 2022 Podium Solutions Limited Ice Travel Group Total
------------------------ ---------------- -----
Non-controlling interest - 33%
------------------------ ---------------- -----
GBPm GBPm GBPm
Non-current assets* - 14.5 14.5
Current assets - 7.5 7.5
Non-current liabilities - (0.3) (0.3)
Current liabilities - (6.6) (6.6)
------------------------ ---------------- -----
Net assets - 15.1 15.1
------------------------ ---------------- -----
Net assets attributable to non-controlling interest - 5.0 5.0
======================== ================ =====
Revenue - 8.0 8.0
Profit - 2.2 2.2
Total comprehensive income - 2.2 2.2
======================== ================ =====
Profit attributable to the non-controlling interest - 0.7 0.7
Total comprehensive income attributable to non-controlling
interest - 0.7 0.7
======================== ================ =====
Cash flows from operating activities - 1.9 1.9
Cash flows from investing activities - (0.1) (0.1)
Cash flows from financing activities - (0.1) (0.1)
------------------------ ---------------- -----
Net increase in cash and cash equivalents - 1.7 1.7
======================== ================ =====
* Non-current assets for Travelsupermarket Limited include
GBP7.4m of goodwill that was recognised on the Group's balance
sheet prior to the acquisition of ITG.
Profit and total comprehensive income for the period in respect
of Podium Solutions Limited and Ice Travel Group includes
amortisation of intangibles relating to the acquisition of these
companies by the Group of GBP0.8m (2022: GBP0.3m). Included in the
profit and total comprehensive income attributable to the
non-controlling interest is GBP0.4m (2022: GBP0.2m) of amortisation
of acquired intangibles.
Appendix
Statutory Information
The financial information set out above does not constitute the
Company's statutory accounts for the six months ended 30 June 2023
or 30 June 2022 but is derived from those accounts. The auditor has
reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006.
The Annual General Meeting took place on 4 May 2023. The interim
dividend will be paid on 8 September 2023 to shareholders on the
register at the close of business on 4 August 2023.
Presentation of figures
Certain figures contained in this announcement, including
financial information, have been subject to rounding adjustments.
Accordingly, in certain instances, the sum or percentage change of
the numbers contained in this announcement may not conform exactly
with the total figure given.
Independent Review Report to Moneysupermarket.com Group Plc
Conclusion
We have been engaged by Moneysupermarket.com Group plc ("the
company") to review the condensed set of financial statements in
the half-yearly financial report for the six months ended 30 June
2023 which comprises the consolidated statement of comprehensive
income, consolidated statement of financial position, consolidated
statement of changes in equity, consolidated statement of cash
flows and the related explanatory notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the
UK and the Disclosure Guidance and Transparency Rules ("the DTR")
of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity ("ISRE (UK) 2410") issued for use in the UK. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. We
read the other information contained in the half-yearly financial
report and consider whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed
set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of conclusion
section of this report, nothing has come to our attention that
causes us to believe that the directors have inappropriately
adopted the going concern basis of accounting, or that the
directors have identified material uncertainties relating to going
concern that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However, future events or
conditions may cause the Group to cease to continue as a going
concern, and the above conclusions are not a guarantee that the
Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
The annual financial statements of the Group are prepared in
accordance with UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of
financial statements included in the half-yearly financial report
in accordance with IAS 34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the
directors are responsible for assessing the Group's ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. Our conclusion, including our
conclusions relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for conclusion section of this report.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Jatin Patel
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
21 July 2023
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR NKDBPPBKDQOB
(END) Dow Jones Newswires
July 24, 2023 02:00 ET (06:00 GMT)
Moneysupermarket.com (LSE:MONY)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Moneysupermarket.com (LSE:MONY)
Gráfica de Acción Histórica
De May 2023 a May 2024
