TIDMMONY
RNS Number : 8971F
Moneysupermarket.com Group PLC
18 July 2019
18 July 2019
Interim results: Encouraging trading performance as momentum in
strategy continues
6 months ended 30 June 2019 2018* Change %
Group revenue GBP199.4m GBP173.7m 15
----------- ---------- ---------
Adjusted EBITDA* GBP72.9m GBP62.2m 17
----------- ---------- ---------
Operating profit GBP61.4m GBP52.0m 18
----------- ---------- ---------
Profit after tax GBP50.2m GBP42.5m 18
----------- ---------- ---------
Adjusted basic EPS* 9.4p 8.4p 12
----------- ---------- ---------
Basic EPS 9.4p 7.9p 19
----------- ---------- ---------
Operating cashflow GBP51.4m GBP43.0m 20
----------- ---------- ---------
(Net debt)/ Net cash GBP(12.6)m GBP24.4m n.m.
----------- ---------- ---------
Interim dividend for
the period 3.10p 2.95p 5
----------- ---------- ---------
-- Encouraging trading performance, with revenue growth ahead of
the market for the six months.
-- Reinvent strategy continues to reaccelerate core growth and
unlock new market growth.
-- Revenue grew 15% to GBP199.4m driven by exceptional energy
switching, the acquisition of Decision Tech in August 2018 and our
ongoing customer experience optimisation.
-- Adjusted EBITDA of GBP72.9m, in line with expectations. This
is growth of 15% if 2018 is adjusted for IFRS 16.
-- Strong operating cash generation of GBP51.4m during the
period, increasing 20% year on year.
-- Interim dividend increased 5% reflecting our progressive
dividend policy.
Mark Lewis, Chief Executive Officer of Moneysupermarket Group,
said:
"We grew the business strongly in the first half, already
helping households save over GBP1bn this year, particularly after
the energy price cap came in and then went up. Millions of people
faced rising energy bills and we helped many of them to find a
better deal, saving them hundreds of pounds in just a few minutes
on our sites.
"Our Reinvent strategy continues to make it easier and quicker
to save and is now supported by the new MoneySuperMarket branding,
which encourages people to 'Get Money Calm' by using our site to
pay less across a broad range of bills."
Outlook
The Board is confident of delivering market expectations for the
year.*
* Notes:
As the Group adopted IFRS 16 using the modified retrospective
approach, prior year comparative numbers are not restated. Reported
year on year EBITDA growth is higher than would be the case if the
comparative numbers were IFRS 16 adjusted. Adjusting for IFRS 16,
we expect 2018 adjusted EBITDA to have been GBP63.3m and adjusted
EBITDA growth in 2019 to have been 15%. An indicative guide to the
impact of this is included in the relevant areas of this
document.
Adjusted EBITDA is operating profit adjusted for depreciation,
amortisation and other non-underlying costs (including impairments
and strategy related costs) as detailed on page 4. The adjusted
results are consistent with how business performance is measured
internally.
Adjusted basic earnings per ordinary share is profit before tax
adjusted for amortisation of acquisition related intangible assets
and other non-underlying costs described in the financial review. A
tax rate of 19% (2018: 19%) has been applied to calculate adjusted
profit after tax.
Market expectations of Adjusted EBITDA for the 12 months to 31
December 2019 from the analyst consensus on our investor website
are in a range of GBP136.6m to GBP145.4m, with an average of
GBP141.9m.
Quarter 2 Trading
Revenue for the Revenue for the
three months to six months to 30
30 June 2019 June 2019
GBPm Growth GBPm Growth
% %*
-------- --------- --------- ---------
Insurance 47.8 4 96.1 3
Money 21.3 (1) 46.5 5
Home Services 14.6 34 34.2 52
-------- --------- --------- ---------
83.7 7 176.8 10
Other revenue 10.9 57 22.6 67
-------- --------- --------- ---------
Total 94.6 11 199.4 15
-------- --------- --------- ---------
* Revenue growth 4% Q2 and 8% H1 excluding Decision Tech.
-- Good momentum in Insurance and trading in life insurance
recovered.
-- With fewer strong promotional products, Money switching
reduced.
-- Energy switching remained very strong due to the combination
of attractive offers, the increase in the price cap and the
continued optimisation of our site.
-- Other revenue includes GBP5.2m attributable to Decision Tech
for the 3 months and GBP11.4m for the 6 months to 30 June.
Results presentation
There will be a presentation for investors and analysts at
Herbert Smith Freehills, Exchange House, Primrose Street, London,
EC2A 2EG, at 9.30am this morning. To hear the presentation being
streamed live, please visit: http://corporate.moneysupermarket.com
to register and listen.
For further information, contact:
Scilla Grimble, Chief Financial Officer Scilla.Grimble@moneysupermarket.com / 0207 379 5151
Jo Britten, Investor Relations Director Jo.Britten@moneysupermarket.com / 07896 469380
William Clutterbuck, Maitland AMO wclutterbuck@maitland.co.uk / 0207 379 5151
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 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.
Business review
2019 marks the second year of our Reinvent strategy and the
momentum continues in our delivery of the two key strategic
pillars: reaccelerating core growth and unlocking new market
growth. Growth has accelerated after we chose in 2018 to invest
into our product engineering teams, accelerating our optimisation
work and successfully integrating Decision Tech into the Group.
First half trading performance is encouraging, and we have returned
to profit growth. We have also benefitted from some favourable
market conditions in the Energy switching market.
Reinvent strategy
The first pillar of the Reinvent strategy focuses on the
optimisation of our customer journeys, making the site easier to
use, particularly for anyone accessing our services via a mobile
phone. The customer experience optimisation rollout is continuing
to deliver conversion gains across key verticals and this underpins
our revenue growth in the half. Later this year, we will be
consolidating our Manchester product engineering teams into one
permanent office.
Our customers have noticed the difference, with our Net Promoter
Score now at 73. This ease of use, alongside the existing strengths
of our brands, technology platform and provider relationships,
makes our business stronger.
The second pillar of the Reinvent strategy uses our technology
platform to enable us to lead the innovation of price comparison to
unlock new market growth:
-- Personalised MoneySuperMarket - during 2019, we are making
our services more proactive and personalized, driving customer
engagement. We launched our new MoneySuperMarket brand proposition,
'Get Money Calm' in March to enable personalised services. This new
brand identity was deployed across every customer touchpoint from
our website and apps, to our CRM and advertising. Following the
trial of the service within an app environment, customers are also
now able to access credit monitoring on the web, alongside
traditional price comparison that helps them save across a diverse
range of products.
-- Taking price comparison to the user - we are tapping into the
opportunity to take our products and services to the sites people
are already visiting regularly. Last year, we acquired Decision
Tech, which has leading B2B price and product comparison
capabilities. On a standalone basis this half, Decision Tech's
revenue grew c.30% year on year, driven by growth in home
communications. Decision Tech offers MoneySuperMarket's wider
comparison services to new audiences through B2B partnerships and
has a promising new partnerships pipeline.
-- Mortgage price comparison - millions of customers look to us
for help with mortgages every year. In 2019, we have continued to
enhance our proposition. We have added further eligibility factors
to the remortgage journey to help customers understand their
options, and we have started to deepen our broker and lender
integrations.
Financial Review
In this second year of Reinvent, we enjoyed encouraging revenue
growth across all segments, and we have successfully delivered on
our plans. Group revenue increased 15% to GBP199.4m (2018:
GBP173.7m) and profit after tax increased 18% to GBP50.2m (2018:
GBP42.5m). When reviewing performance, the Board reviews a number
of adjusted measures, including adjusted EBITDA which grew 17% to
GBP72.9m (2018: GBP62.2m) and adjusted basic EPS which grew 12% to
9.4p (2018: 8.4p). The comparative year in these and the reported
figures has not been adjusted for IFRS16.
Extract from the Consolidated Statement of Comprehensive
Income
for the six months ended 30 June
2019 2018*
GBPm GBPm
------------------------------------------------------- ------- -------
Revenue 199.4 173.7
Cost of sales (60.7) (49.3)
------------------------------------------------------- ------- -------
Gross profit 138.7 124.4
Distribution expenses (16.7) (16.7)
Administrative expenses (60.6) (55.7)
------------------------------------------------------- ------- -------
Operating profit 61.4 52.0
Depreciation and amortisation of software 9.8 6.1
Amortisation of acquisition related intangible
assets 1.2 0.5
------------------------------------------------------- ------- -------
EBITDA 72.4 58.6
------------------------------------------------------- ------- -------
Reported EPS 9.4p 7.9p
------------------------------------------------------- ------- -------
*As the Group adopted IFRS 16 - Leases, using the modified
retrospective approach, prior year comparative numbers are
not restated. Reported year on year EBITDA growth is higher
than would be the case if the comparative numbers were IFRS
16 adjusted. Adjusting for IFRS 16, we expect 2018 adjusted
EBITDA to have been GBP63.3m and adjusted EBITDA growth
in 2019 to have been 15%. The guide impact to this is included
in "IFRS 16 - Leases" below.
Reconciliation to Adjusted EBITDA:
EBITDA 72.4 58.6
Strategy related costs:
Strategy review and associated reorganisation
costs 0.5 2.6
Deal fees - 1.0
Adjusted EBITDA 72.9 62.2
------------------------------------------------------- ------- -------
Adjusted earnings per ordinary share:
- basic (p) 9.4 8.4
- diluted (p) 9.4 8.4
------------------------------------------------------- ------- -------
Revenue
for the six months ended 30 June
2019 2018 Growth
GBPm GBPm %
-------------- ----- ----- ------
Insurance 96.1 93.3 3
Money 46.5 44.5 5
Home Services 34.2 22.5 52
-------------- ----- ----- ------
176.8 160.3 10
Other revenue 22.6 13.4 67
-------------- ----- ----- ------
Total 199.4 173.7 15
-------------- ----- ----- ------
During the half Group revenue grew 15%; excluding Decision Tech
revenue grew 8%.
Insurance growth was solid at 3%. Our motor and home businesses
are in good growth, despite the absence of motor premium inflation.
This was partially offset by subdued trading in life insurance in
the first quarter, as competitors spent more on their customer
incentives.
Revenue in our Money business grew 5% with robust performance in
credit, supported by customer experience optimisation and
conversion improvements. The reduction in availability and
attractiveness of promotional products diminished switching as we
progressed through the half.
Revenue in Home Services grew 52%. Following the announcement of
the energy price cap rise in January 2019, we saw exceptional
growth across our energy business, which accounts for most of the
revenue in Home Services. The Group's strengths maximised this
opportunity through a combination of leading offers,
MoneySavingExpert's editorial strength and further optimisation
gains, which resulted in very high levels of switching. Looking
ahead, we anticipate the second half to be challenging in this
vertical due to the expected decrease in the energy price cap and
strong prior year performance.
Decision Tech contributed GBP11.4m to other revenue and we are
pleased with the growth within its home communications business.
The weak travel market has continued to affect customer bookings
for package holidays and car hire, resulting in poor performance in
TravelSupermarket.
Gross profit and distribution expenses
Gross margins fell from 72% to 70%, with broadly half of this
reduction being attributable to the consolidation of Decision Tech
as B2B operates on lower margins than B2C. The remainder of the
margin reduction was largely driven from the ongoing transition of
customers searching for our products on a mobile device. Margin
also suffered slightly from the mix impact from the growth in
energy on MoneySavingExpert (which provides a cashback offer to
customers).
As anticipated, the brand relaunch did not significantly impact
our marketing spend and so distribution expenses are broadly
unchanged year on year.
Administrative Expenses
Administrative costs (excluding amortisation of acquisition
related intangible assets and strategy
related costs) increased by 14% to GBP58.9m (2018: GBP51.5m).
This GBP7.4m increase has largely been driven by the acquisition of
Decision Tech on 1 August 2018, which has added GBP4.1m to the cost
base in the half, mainly in staff and technology costs.
Our technology amortisation costs for the period have increased
from GBP5.6m to GBP7.5m due to several large technology assets
going live in the second half of 2018.
The adoption of IFRS 16 has impacted administrative expenses as
anticipated and this is explained further below.
Amortisation of acquisition related intangible assets
The acquisition of the trade and certain assets of
MoneySavingExpert.com and a sole trader business from Martin Lewis
(together MSE) on 21 September 2012 by the Group gave rise to
GBP12.9m of intangible assets (excluding goodwill). These are being
amortised over a period of 3-10 years with a charge of GBP0.5m
included within the first half of 2019 (2018: GBP0.5m).
The acquisition of Decision Tech on 1 August 2018 gave rise to
GBP8.7m of intangible assets, which are being amortised over a
period of 3 - 10 years. The charge incurred in 2019 is GBP0.7m
(2018: GBPnil).
Strategy related costs
In this second year of Reinvent, the Group has incurred strategy
related transitional costs in the period of GBP0.5m relating to the
North West relocation (2018: GBP3.6m relating to the reorganisation
to support our new strategy and fees on the acquisition of Decision
Tech). Full year strategy related costs are expected to be up to
GBP2m.
Investment in technology
Capital investment is normalising as we rebalance from capital
expenditure to operating costs following the conclusion of our
re-platforming. Our technology capital expenditure in the half was
GBP6.6m, with software amortisation costs of GBP7.6m. For the full
year, we expect technology capital investment of GBP11m and the
technology amortisation charge to be in the region of GBP16m.
IFRS 16 - Leases
The adoption of IFRS 16 has impacted the Consolidated Statement
of Comprehensive Income as expected in 2019, reducing operating
lease expenditure by GBP1.3m and instead, reflecting these rental
costs through depreciation charges of GBP1.3m and finance costs of
GBP0.6m. On the balance sheet, adoption of IFRS 16 has meant the
recognition of lease assets and liabilities respectively totalling
GBP31.8m and GBP34.1m in respect of the Group's property leases. As
the Group adopted IFRS 16 using the modified retrospective
approach, the prior year has not been restated.
Alternative performance measures
The Group uses a number of alternative (non-Generally Accepted
Accounting Practice ("non-GAAP")) financial measures which are not
defined within IFRS. The Board reviews Adjusted EBITDA alongside
GAAP measures and adjusted basic EPS when reviewing performance of
the Group. This results from moving out of the phase of significant
capital investment in our technology platform towards focusing on
developing and optimising our product and technology. Therefore,
capital investment and amortisation is less meaningful and so it is
appropriate to focus on an adjusted EBITDA measure alongside
adjusted basic EPS. Executive management bonus targets also include
reference to adjusted EBITDA and similarly, long term incentive
schemes are measured in relation to adjusted basic EPS.
As such, these measures are important and should be considered
alongside the IFRS measures. The adjustments are separately
disclosed and are usually items that are non-underlying to trading
activities and which are significant in size. For example,
amortisation of acquisition intangibles is a non-cash item which
fluctuates significantly in line with acquisition activity and the
impairments of assets and other costs arising from the strategic
review are considered to be non-underlying and significant in size.
Alternative performance measures used within these statements are
accompanied with a reference to the relevant GAAP measure and the
adjustments made.
Key performance indicators
The Board reviews key performance indicators (KPIs) to assess
the performance of the business against the Group's strategy. We
measure five key strategic KPIs: estimated customer savings,
customer net promoter score, active users, revenue per active user
and marketing margin.
30 June 2019 30 June 2018
Estimated customer savings GBP1.0bn GBP1.1bn
Net promoter score 73 72
Active users 13.0m 12.9m
Revenue per active user GBP16.30 GBP15.40
Marketing margin 61% 62%
--------------------------- ------------ ------------
Estimated customer savings: This is calculated by multiplying
sales volume against the average saving per product for core
channels, the balance of the calculation is a company
estimation.
Net promoter score: The twelve month rolling average (1 Jul 18 -
30 Jun 19 inclusive) measured by YouGov Brand Index service
Recommend Score weighted by revenue for each of our brands
(excluding Decision Tech's consumer brands) to create a Group-wide
NPS.
Active users: The number of unique accounts running enquiries in
our core seven channels (motor insurance, home insurance, life
insurance, travel insurance, credit cards, loans and energy) in the
prior 12 month period.
Revenue per active user: This is the revenue for the core seven
MoneySuperMarket channels divided by the number of active
users.
Marketing margin: The inverse relationship between revenue and
total marketing spend represented as a percentage.
During the first half of 2019, our customers saved GBP1bn. The
decrease on the previous year is attributable to falling motor
premiums. Whilst there has been an increase in the number of
customers saving from switching their policy, the falling premiums
mean that the average saving per customer is lower than it was in
2018.
Trust and satisfaction in our brands is strong and we are
pleased with the increase over the last 12 months in our NPS
measure.
Active users is a measurement of customers who have made an
enquiry in the last 12 months on the MoneySuperMarket website for
the core channels: car insurance, home insurance, life insurance,
travel insurance, credit cards, loans and energy. This revenue
represents over 60% of Group revenue and we expect to increase this
as more channels transition into the enterprise data warehouse. In
December 2018, we reported 13 million active users and for the
period to June 2018 this was broadly unchanged.
Our work on customer experience optimisation drove an
improvement in conversion and the average revenue per active user.
This has underpinned our revenue growth. In December 2018, we
reported revenue per active user of GBP15.90 and this has increased
to GBP16.30 as of 30 June 2019.
Marketing costs have been well controlled in the half and so
marketing margin fell by 1% to 61%, compared with a 2 percentage
point fall in gross margin.
Cash
The Group continued to enjoy robust cash generation, generating
GBP51.4m of operating cash in the half. During the period we
distributed GBP83.4m (2018: GBP40.7m) to our shareholders by way of
dividend, with the increase on the prior year reflecting the
payment of the GBP40.0m special dividend announced in February. As
at 30 June 2019, the Group had net debt of GBP(12.6)m (2018: net
cash of GBP24.4m).
Dividends
The Board has announced an interim dividend of 3.10p, an
increase of 5% on the prior year reflecting our progressive
dividend policy. The ex-dividend date is 1 August 2019, with a
payment date of 13 September 2019. Shareholders have the
opportunity to elect to reinvest their cash dividend and purchase
existing shares in the Company through a Dividend Reinvestment
Plan.
Tax
The effective tax rate of 16.9% (2018: 19.0%) includes a GBP1.1m
favourable prior year adjustment in respect of 2018. The underlying
effective tax rate of 18.8% is in line with the UK statutory rate
of 19.0% (2018: 19.0%) and the Group expects the underlying
effective rate of tax to continue to approximate to the standard UK
corporation tax rate.
Earnings per ordinary share
Basic statutory earnings per ordinary share for the six months
to 30 June 2019 were 9.4p (2018: 8.4p). Adjusted basic earnings per
ordinary share increased from 8.4p to 9.4p per share through the
increase in profit. The adjusted earnings per ordinary share is
based on profit before tax after adjusting for the amortisation of
acquisition related intangible assets, other non-underlying costs
(including impairments and strategy related costs) and profit on
disposal of associates and investments. The tax rate of 19.0%
(2018: 19.0%) has been applied to calculate adjusted profit after
tax.
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- The interim management report includes a fair review of the information required by:
o 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
o 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 entity 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
Mark Lewis Chief Executive Officer
Scilla Grimble Chief Financial Officer
Sally James Senior Independent Non-Executive Director
Andrew Fisher Independent Non-Executive Director
Genevieve Shore Independent Non-Executive Director
Sarah Warby Independent Non-Executive Director
17 July 2019
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2019 and 30 June 2018
30 June 30 June
Note 2019 2018
GBPm GBPm
Revenue 3 199.4 173.7
Cost of sales (60.7) (49.3)
-------- --------
Gross profit 138.7 124.4
Distribution expenses (16.7) (16.7)
Administrative expenses (60.6) (55.7)
-------- --------
Operating profit 61.4 52.0
Finance income 0.1 0.1
Finance costs (1.0) (0.4)
-------- --------
Net finance costs (0.9) (0.3)
Share of loss of joint venture (0.1) -
Profit before tax 60.4 51.7
Taxation 4 (10.2) (9.2)
-------- --------
Profit for the period 50.2 42.5
Other comprehensive income 2.0 -
-------- --------
Total comprehensive income for the
period 52.2 42.5
======== ========
Earnings per share:
Basic earnings per ordinary share
(pence) 5 9.4 7.9
Diluted earnings per ordinary share
(pence) 5 7.9
9.3
Consolidated Statement of Financial Position
as at 30 June 2019, 31 December 2018 and 30 June 2018
30 June 31 December 30 June
Note 2019 2018 2018
GBPm GBPm GBPm
Assets
Non-current assets
Property, plant and equipment 45.8 13.8 14.0
Intangible assets 7 181.4 183.7 145.3
Investments 5.9 1.7 0.7
-------- ------------ --------
Total non-current assets 233.1 199.2 160.0
-------- ------------ --------
Current assets
Trade and other receivables 53.8 43.1 48.9
Prepayments 8.0 6.5 6.6
Cash and cash equivalents 12.4 44.8 24.4
Total current assets 74.2 94.4 79.9
Total assets 307.3 293.6 239.9
======== ============ ========
Liabilities
Non-current liabilities
Other payables 33.4 4.7 -
Deferred tax liabilities 10.3 10.1 8.8
-------- ------------ --------
Total non-current liabilities 43.7 14.8 8.8
-------- ------------ --------
Current liabilities
Trade and other payables 60.7 54.9 52.9
Current tax liabilities 8.1 8.4 7.4
Borrowings 25.0 15.0 -
Total current liabilities 93.8 78.3 60.3
-------- ------------ --------
Total liabilities 137.5 93.1 69.1
-------- ------------ --------
Equity
Share capital 0.1 0.1 0.1
Share premium 204.3 204.0 203.3
Reserve for own shares (3.1) (2.6) (2.3)
Retained earnings (90.2) (59.7) (89.0)
Other reserves 58.7 58.7 58.7
-------- ------------ --------
Total equity 169.8 200.5 170.8
Total equity and liabilities 307.3 293.6 239.9
======== ============ ========
Consolidated Statement of Changes in Equity
for the period ended 30 June 2019, 31 December 2018 and 30 June
2018
Issued Share Other Retained Reserve Total
share premium reserves earnings for own
capital shares
GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2018 0.1 203.3 58.7 (88.5) (3.6) 170.1
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 42.5 - 42.5
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period - - - 42.5 - 42.5
Purchase of shares by
employee trusts - - - - (0.5) (0.5)
Exercise of LTIP awards - - - (1.7) 1.7 -
Distribution in relation
to LTIP - - - (0.2) - (0.2)
Equity dividends paid - - - (40.7) - (40.7)
Share-based payments - - - (0.3) - (0.3)
--------- --------- ---------- ---------- --------- -------
At 30 June 2018 0.1 203.3 58.7 (89.0) (2.3) 170.8
--------- --------- ---------- ---------- --------- -------
At 1 July 2018 0.1 203.3 58.7 (89.0) (2.3) 170.8
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 44.0 - 44.0
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period 44.0 44.0
Purchase of shares by
employee trusts - - - - (0.3) 0.1
Exercise of LTIP awards - - - (0.1) 0.1 -
New shares issued - 0.7 - - - 0.3
Distribution in relation
to LTIP - - - 0.1 - 0.1
Equity dividends paid - - - (15.8) - (15.8)
Share-based payments - - - 1.1 - 1.1
At 31 December 2018 0.1 204.0 58.7 (59.7) (2.6) 200.5
--------- --------- ---------- ---------- --------- -------
At 1 January 2019 0.1 204.0 58.7 (59.7) (2.6) 200.5
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 50.2 - 50.2
Other comprehensive income - - - 2.0 - 2.0
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period - - - 52.2 - 52.2
Purchase of shares by
employee trusts - - - - (0.5) (0.5)
New shares issued - 0.3 - - - 0.3
Equity dividends paid - - - (83.4) - (83.4)
Share-based payments - - - 0.7 - 0.7
At 30 June 2019 0.1 204.3 58.7 (90.2) (3.1) 169.8
--------- --------- ---------- ---------- --------- -------
Consolidated Statement of Cash Flows
for the six months ended 30 June 2019 and 30 June 2018
6 months 6 months
to to
30 June 30 June
2019 2018
Operating activities GBPm GBPm
Profit for the period 50.2 42.5
Adjustments to reconcile Group profit
to net cash flow from operating
activities:
Depreciation of property, plant
and equipment 2.2 0.5
Amortisation of intangible assets 8.8 6.1
Share of loss of joint venture 0.1 -
Net finance costs 0.9 0.3
Equity settled share-based payment
transactions 0.7 (0.3)
Tax charge 10.2 9.2
Changes in trade and other receivables (12.2) (12.9)
Changes in trade and other payables 1.0 6.2
Tax paid (10.5) (8.6)
Net cash flow from operating activities 51.4 43.0
-------- --------
Investing activities
Interest received 0.1 0.2
Acquisition of investments (2.3) (0.3)
Acquisition of property, plant and
equipment (1.5) (5.8)
Acquisition of intangible assets (6.3) (6.4)
Net cash used in investing activities (10.0) (12.3)
-------- --------
Financing activities
Dividends paid (83.4) (40.7)
Proceeds from issue of shares 0.3 -
Distribution in relation to Long
Term Incentive Plan - (0.2)
Share purchases by employee trusts (0.5) (0.5)
Proceeds from borrowings 40.0 20.0
Repayment of borrowings (30.0) (20.0)
Interest paid (0.2) -
Net cash used in financing activities (73.8) (41.4)
Net decrease in cash and cash equivalents (32.4) (10.7)
Cash and cash equivalents at 1 January 44.8 35.1
Cash and cash equivalents at 30
June 12.4 24.4
-------- --------
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 ending 30 June 2018.
The Group has adopted IFRS 16 using the modified retrospective
approach, the prior year has not been restated. With the exception
of IFRS 16, the Financial Statements have been prepared on the same
basis as those for the year ended 31 December 2018.
Statement of compliance
The condensed consolidated financial statements have been
prepared in accordance with International Financial Reporting
Standard (IFRS) IAS 34 'Interim Financial Reporting' as adopted by
the European Union (EU). As required by the Disclosure and
Transparency Rules of the Financial Services Authority, the
condensed consolidated set of financial statements has been
prepared applying the accounting policies and presentation that
were applied in the preparation of the Group's published
consolidated financial statements for the year ended 31 December
2018 with the exception of IFRS 16, as further described and
explained below. They do not include all of the information
required for full annual financial statements, and should be read
in conjunction with the consolidated financial statements of the
Group for the year ended 31 December 2018.
The principal risks and uncertainties for the remaining six
months of the year remain unchanged from those disclosed in the
financial statements for the year ended 31 December 2018.
The half year financial information is presented in Sterling and
all values are rounded to the nearest million pounds (GBPm) except
where otherwise indicated.
Going concern
After making enquires, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly they continue to adopt the going concern basis in
preparing the condensed consolidated financial statements.
2 Accounting estimates and judgement
The preparation of half year financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements as at and for the year ended 31 December
2018.
3 Segmental information
2019 2018
GBPm GBPm
Segment revenue
Insure 96.1 93.3
Money 46.5 44.5
Home Services 34.2 22.5
------ ------
176.8 160.3
Other revenue 22.6 13.4
-------- --------
Total 199.4 173.7
Operating expenses (138.0) (121.7)
-------- --------
Operating profit 61.4 52.0
Net finance costs (0.9) (0.3)
Share of loss of joint venture (0.1) -
-------- --------
Profit before tax 60.4 51.7
Taxation (10.2) (9.2)
-------- --------
Profit for the year 50.2 42.5
======== ========
In applying IFRS 8 - Operating Segments, the Group discloses
three reportable segments.
4 Taxation
The effective tax rate of 16.9% (2018: 19.0%) includes a GBP1.1m
favourable prior year adjustment in respect of 2018. The underlying
effective tax rate of 18.8% is in line with the UK statutory rate
of 19.0% (2018: 19.0%) and the Group expects the underlying
effective rate of tax to continue to approximate to the standard UK
corporation tax rate.
5 Earnings per share
Basic and diluted earnings per share have been calculated as
follows.
2019 2018
Profit after taxation attributable to ordinary
shareholders (GBPm) 50.2 42.5
------- -------
Basic weighted average ordinary shares
in issue (millions) 536.3 536.0
Dilutive effect of share based instruments
(millions) 0.8 1.0
------- -------
Diluted weighted average ordinary shares
in issue (millions) 537.1 537.0
------- -------
Basic earnings per ordinary share (pence) 9.4 7.9
======= =======
Diluted earnings per ordinary share (pence) 9.3 7.9
======= =======
Adjusted basic and diluted earnings per share have been
calculated as follows:-
GBPm GBPm
Profit before tax 60.4 51.7
Amortisation of acquisition related intangible
assets 1.2 0.5
Strategy related one-off costs 0.5 3.6
Profit on disposal of associate and investment - -
------- -------
62.1 55.9
Estimated taxation at 19.00% (2018: 19.00%) (11.8) (10.6)
------- -------
Profit for Adjusted EPS purposes 50.3 45.3
======= =======
Basic Adjusted Earnings per share (pence) 9.4 8.4
======= =======
Diluted Adjusted Earnings per share (pence) 9.4 8.4
======= =======
6 Dividends
2019 2018
GBPm GBPm
Equity dividends on ordinary shares:
Final dividend for 2018: 8.10 pence per
share
(2017: 7.60 pence per share) 43.4 40.7
Special dividend for 2018: 7.46 pence 40.0 -
per share
(2017: Nil)
======= =======
83.4 40.7
======= =======
Proposed for approval (not recognised
as a liability as at 30 June):
Interim dividend for 2019: 3.10 pence
per share
(2018: 2.95 pence per share) 16.6 15.8
======= =======
7 Intangible fixed assets
Market Customer Customer Technology Goodwill Total
related relationships lists related
GBPm GBPm GBPm GBPm GBPm GBPm
Cost
At 1 January 2018 148.7 69.3 2.3 83.0 181.9 485.2
Additions - - - 6.8 - 6.8
-------- -------------- ----------- ---------- -------- -----
At 30 June 2018 148.7 69.3 2.3 89.8 181.9 492.0
======== ============== =========== ========== ======== =====
Amortisation
At 1 January 2018 143.8 69.3 2.3 50.9 74.3 340.6
Charged in period 0.5 - - 5.6 - 6.1
-------- -------------- ----------- ---------- -------- -----
At 30 June 2018 144.3 69.3 2.3 56.5 74.3 346.7
======== ============== =========== ========== ======== =====
Net book value
At 1 January 2018 4.9 - - 32.1 107.6 144.6
At 30 June 2018 4.4 - - 33.3 107.6 145.3
======== ============== =========== ========== ======== =====
Cost
At 1 January 2019 155.3 69.3 2.3 98.1 212.6 537.6
Additions - - - 6.3 - 6.3
-------- -------------- ----------- ---------- -------- -----
At 30 June 2019 155.3 69.3 2.3 104.4 212.6 543.9
======== ============== =========== ========== ======== =====
Amortisation
At 1 January 2019 145.1 69.3 2.3 62.9 74.3 353.9
Charged in period 0.8 - - 7.9 - 8.7
-------- -------------- ----------- ---------- -------- -----
At 30 June 2019 145.9 69.3 2.3 70.7 74.3 362.5
======== ============== =========== ========== ======== =====
Net book value
At 1 January 2019 10.2 - - 35.2 138.3 183.7
At 30 June 2019 9.4 - - 33.7 138.3 181.4
======== ============== =========== ========== ======== =====
8 Share-based payments
On 28 March 2019, conditional awards were granted over 1,482,924
shares to a number of employees under the Long Term Incentive Plan
scheme.
The share option charge in the Statement of Comprehensive Income
can be attributed to the following types of option:
2019 2018
GBPm GBPm
Long Term Incentive Plan (LTIP) and
Restricted Share Award (RSA) 0.5 (0.4)
Sharesave scheme 0.2 0.1
----- ------
0.7 (0.3)
===== ======
The following table indicates the changes in the number of share
options during the period. Number of awards in the table represents
the number awarded.
LTIP/RSA
At 1 January 2018 3,473,603
Options issued during the period 1,882,181
Options exercised during the period (613,906)
Options forfeited during the period (362,479)
At 30 June 2018 4,379,399
==========
At 1 July 2018 4,379,399
Options issued during the period 186,670
Options exercised during the period (225,371)
Options forfeited during the period (646,750)
----------
At 31 December 2018 3,693,948
==========
At 1 January 2019 3,693,948
Options issued during the period 1,647,524
Options exercised during the period -
Options forfeited during the period (139,158)
----------
At 30 June 2019 5,202,314
==========
9 IFRS 16 - Leases
The adoption of IFRS 16 has impacted the Consolidated Statement
of Comprehensive Income as expected in 2019, reducing operating
lease expenditure by GBP1.3m and instead reflecting these rental
costs through depreciation charges of GBP1.3m and finance costs of
GBP0.6m. On the balance sheet, adoption of IFRS 16 has meant the
recognition of right of use lease assets and lease liabilities
respectively totalling GBP31.8m and GBP34.1m in respect of the
Group's property leases. As the Group adopted IFRS 16 using the
modified retrospective approach, the prior year has not been
restated.
10 Related party transactions
The Company is the ultimate parent entity of the Group.
Intercompany transactions with wholly owned subsidiaries have been
excluded from this note, as per the exemption offered in IAS
24.
During the period, other than the items referred to below there
were no transactions, and at the period end there were no
outstanding balances, relating to key management personnel and
entities over which they have control or significant influence,
other than the Long Term Incentive Plan awards noted in the table
above.
On 30 April 2019, the 2016 Long Term Incentive Plan lapsed in
full as the performance criteria were not met. On 14 February 2019,
164,600 conditional awards were granted in relation to an Executive
share option scheme. On 28 March 2019, under the 2019 Long Term
Incentive Plan, conditional awards were granted over 1,482,924
shares.
11 Commitments and contingencies
Along 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 due to errors in operating
procedures or technology which result in incorrect or incomplete
product or customer data being transferred to or from providers.
These issues can in some instances lead to customer detriment,
dispute and potentially cash outflows. During the current year
there have been no material issues reported and those relating to
earlier years have been substantially resolved. The Group has a
Professional Indemnity Insurance Policy in order to mitigate
liabilities arising out of events such as this.
In aggregate, the commitments and contingencies outlined above
are not expected to have a material adverse effect on the
Group.
12 Post balance sheet events
There are no significant post balance sheet events.
INDEPENDENT REVIEW REPORT TO MONEYSUPERMARKET.COM GROUP PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2019 which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Financial Position, the Consolidated Statement of Changes in
Equity, the 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 2019 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU and
the Disclosure Guidance and Transparency Rules ("the DTR") of the
UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board 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.
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.
As disclosed in the notes, the annual financial statements of
the group are prepared in accordance with International Financial
Reporting Standards as adopted by the EU. 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 by the EU.
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.
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.
Stuart Crisp
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
17 July 2019
Appendix
Statutory Information
The financial information set out above does not constitute the
Company's statutory accounts for the six months ended 30 June 2019
or 30 June 2018 but is derived from those accounts. Statutory
accounts for 2018 will be delivered in due course. 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 9 May 2019. The interim
dividend will be payable on 13 September 2019 to shareholders on
the register at the close of business 2 August 2019.
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.
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.
END
IR QDLFFKDFLBBE
(END) Dow Jones Newswires
July 18, 2019 02:00 ET (06:00 GMT)
Moneysupermarket.com (LSE:MONY)
Historical Stock Chart
From Apr 2024 to May 2024
Moneysupermarket.com (LSE:MONY)
Historical Stock Chart
From May 2023 to May 2024