REG - Moneysupermarket.com - Interim Results
21/07/2022 07:00
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RNS Number : 2124T Moneysupermarket.com Group PLC 21 July 2022
21 July 2022
Moneysupermarket.com Group PLC interim results for the six months ended 30
June 2022
Good trading performance and momentum in strategic delivery
6 months ended 30 June 2022 2021 Growth %
Group revenue £193.2m £162.3m 19
Adjusted EBITDA * £56.6m £51.3m 10
Profit after tax £33.7m £28.0m 20
Adjusted basic EPS * 7.0p 6.1p 14
Basic EPS 6.1p 5.2p 18
Operating cashflow £45.9m £35.1m 31
Net (debt)/cash* (£69.1m) £7.6m n.m.
Interim dividend 3.1p 3.1p -
• Further progress on strategic delivery:
- core data transformation complete, transitioning to a tech-led savings
platform
- new MoneySuperMarket marketing campaign resonating well
- integration of 2021 acquisitions (CYTI, Ice Travel Group, Quidco) on
track
• Revenue grew 19% (2% excluding Quidco) with strong performance in
Money and travel channels, partially offset by closure of energy switching
market
• Car and home insurance markets yet to reach steady state after the
introduction of the FCA General Insurance Pricing regulations in January, with
initial evidence of lower market switching volumes
• Gross margin down c.2%pts driven by expected mix effects,
particularly the Quidco acquisition
• Adjusted EBITDA up 10%, ahead of expectations and driven by good
trading performance
• Strong cash conversion, with £45.9m of operating cashflow during the
period. Net debt of £69.1m reflects Quidco acquisition debt
• Interim dividend maintained at 3.1p, reflecting our confidence in
growth prospects and continued good cash generation
Peter Duffy, CEO of Moneysupermarket Group, commented:
"As the cost-of-living crisis bites, we're doing all we can to help the
British consumer. We've performed well with strong profit growth despite some
mixed end markets. At the same time we're making strategic progress towards
becoming a flexible tech-led savings platform, with all our core data now in
Google Cloud Platform."
Outlook
Our first half performance was ahead of expectations, with a stronger return
to growth in travel insurance and Travel than expected and exceptional trading
in Q2 in Money, driven by attractive banking products. Trading dynamics for
the rest of the year will be influenced by macro developments in travel and
the ongoing transition to a steady state in the car and home insurance markets
following the introduction of the FCA General Insurance Pricing regulations.
We continue to expect the energy switching market to remain closed this year.
On this basis the Board is confident of delivering adjusted EBITDA around the
upper end of market expectations for the year.
*Notes:
Adjusted EBITDA is operating profit before depreciation, amortisation and
impairment and adjusted for other non-underlying costs as detailed on page 6.
This is 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 as described on page 6, divided by the number of weighted average
shares. A tax rate of 19% (2021:19%) has been applied to calculate adjusted
EPS. Net (debt)/cash is cash and cash equivalents less borrowings and deferred
consideration. It does not include lease liabilities. Following the
acquisition of Quidco in November 2021 we have amended our definition of net
(debt)/cash. Accordingly the prior year comparative has been restated to
include £1.2m of deferred consideration relating to the acquisition of
Decision Tech in 2018. Market expectations of adjusted EBITDA for 2022 from
the analyst consensus on our investor website are in a range of £104.4m to
£109.7m, with an average of £107.1m.
Quarter 2 trading
Revenue for the 3 months ended 30 June 2022 Revenue for the 6 months
ended 30 June 2022
£m Growth % £m Growth %
Insurance 44.7 13 85.8 7
Money 28.3 64 53.0 50
Home Services 9.7 (50) 18.8 (59)
Travel 4.7 684 8.0 698
Cashback 13.4 n.m. 27.6 n.m.
Total* 100.8 31 193.2 19
* Revenue excluding Cashback increased by 14% in the quarter and 2% for the
half year.
Revenue in the quarter, excluding Cashback, grew 14%, driven by strong trading
in Money and travel channels (Travel and travel insurance).
• In Insurance, there were signs that retention in the car and home
market remained high following the introduction of the FCA General Insurance
Pricing regulations. As a result, market switching volumes were lower. These
headwinds were offset by travel insurance which saw revenue a third higher
than 2019 levels in the quarter.
• Money had an exceptional quarter, with double digit growth in all
channels. Banking benefitted from the availability of particularly attractive
products.
• In Home Services the continued closure of the energy switching
market was partially offset by good performance in mobile.
• Travel continued to recover with revenue reaching almost 60% of
pre-pandemic levels in the quarter.
• In Cashback, Quidco's performance was supported by the recovery in
the travel market with offset from less activity in other channels.
Results presentation
A presentation for investors and analysts will be available from 7am at
http://corporate.moneysupermarket.com/Investors/results-centre
(http://corporate.moneysupermarket.com/Investors/results-centre) . A Q&A
session will be held at
9.30am with Peter Duffy (CEO) and Scilla Grimble (CFO). This session can be
accessed via https://edge.media-server.com/mmc/p/dtjvcjxp
(https://edge.media-server.com/mmc/p/dtjvcjxp) .
For further information, contact:
Scilla Grimble, Chief Financial Officer
Scilla.Grimble@moneysupermarket.com / 0203 826 4667
Alvaro Aguilar, Strategy & IR Director
Alvaro.Aguilar@moneysupermarket.com / 0203 846 2760
Ronke Fadipe, IR Manager
Ronke.Fadipe@moneysupermarket.com / 0203 846 2434
William Clutterbuck, Maitland/AMO
wclutterbuck@maitland.co.uk / 07785 292617
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.
Business review
We have made good progress in our journey towards a shared, flexible and
re-deployable tech platform. In the first half we completed the transition of
our core data to Google Cloud Platform. The real time data we now have access
to will allow us to offer more product innovation, to retain customers and
cross sell, as well as making the organisation more efficient. We also
continued to fulfil our purpose by saving households an estimated £0.9bn in
the half.
MoneySuperMarket ('MSM') had 10.8m active users in the 12 months to 30 June
2022. We continued to build on the MoneySuperSeven marketing campaign with the
launch of a new and well-received advert starring Dame Judi Dench.
MoneySavingExpert ('MSE') continued to provide advice to millions of users.
The dedicated hub on the cost-of-living crisis curated relevant guides, news
stories and tips which were particularly sought after. We launched a new MSE
car insurance tool in March, powered by the Group platform. It offers saving
tips and suggestions to users throughout the journey and has seen a good user
response. Last month an early stage MSE app was launched with content and
tools from the site. We will continue to develop and refine the app before
launching it more fully with enhanced, and more personalised features.
Following on from the acquisition in November, Quidco remained a highly
engaging proposition. We are making good progress integrating the business,
while improving its tech, data and marketing leveraging Group capabilities.
Ice Travel Group ('ITG') continued to benefit from the combination of
TravelSupermarket and Icelolly.com. The sharing of expertise and capabilities
across both brands has unlocked revenue and cost synergies.
The Group remains committed to transitioning to net zero by 2030. After
becoming 'Beyond Carbon Neutral' in 2020, offsetting 150% of our carbon
emissions, we continue to make progress on our net zero goal. Through our
partnership with The Prince's Trust, which we have extended for another year,
and local charities, we continue to support our communities with fundraising
programmes. We also maintained our focus on Diversity and Inclusion, with a
wide range of programmes to support colleague wellbeing including gender
equality and mental health awareness.
We are mindful of the cost-of-living pressures, particularly increasing energy
costs, on our colleagues as well as our customers. We will therefore be making
a one-off £2,000 payment in September to colleagues earning £55,000 and
below, to assist with these costs. This equates to almost 50% of our
colleagues.
Strategic progress
• Efficient acquisition
Attracting users in the most cost-effective way means optimising our paid
search ('PPC'), search engine optimisation ('SEO') and brand marketing.
Having migrated to the SA360 bidding platform, we continue to deploy more
sophisticated features. In Money we are using machine learning to target a
wider range of search terms with less manual intervention, this has resulted
in a 41% increase in our PPC share of clicks in the credit card channel.
We plan to rollout this capability elsewhere in the Group.
SEO delivers substantial volumes of free search traffic to our sites. Our
content management system has reduced the time and effort to create and deploy
fresh content. That has allowed us to be more responsive to search trends and
algorithm changes, driving search position improvements in multiple channels.
Above-the-line marketing remains an important driver of traffic to MSM. The
latest advertising campaign featuring Dame Judi Dench launched in May and
builds on the MoneySuperSeven creative - a flexible platform that emphasises
our purpose and breadth - introduced last year. We have seen an encouraging
increase in our share of branded search traffic and independent research shows
the campaign is resonating better with consumers than any other campaign we
have done to date.
• Retain and grow
We want to retain users and help them switch more of their household bills. We
are making further progress on this.
Over the coming months, we will be using our enhanced data capabilities to
improve the user experience with an approach we call 'No Questions Asked' or
NQA. NQA will simplify journeys for returning customers by using data to
shorten question sets thereby reducing the time and effort needed to get to a
quote. It will also give clearer switching prompts to show savings the user
can make in other channels beyond the one they are enquiring in.
To use customer data in renewal and cross-sell journeys we need the customer
to identify themselves. We continue making progress in account creation and
authentication and in the half added further social media sign-in options.
For renewal and cross-sell, we must remind users of switching opportunities in
a compelling way. Here our transition to Braze, a customer engagement
platform, allows more efficient, data-driven marketing campaigns across the
app, web and email. Braze interfaces with our new data infrastructure to
deliver tailored messages to our users based on the progress of their
enquiry.
• Expanding our offer
We are increasingly becoming a flexible tech-led savings platform which means
we can plug in our comparison services across our own brands as well as third
party brands. In March we used this capability to launch car insurance on MSE
- a service which uses the Group aggregation stack but with MSE's unique tone
of voice to guide users through the journey. We are pleased with the positive
feedback from users and we will continue to find more ways to broaden
comparison services using this approach.
The combination of Travelsupermarket and Icelolly.com into Ice Travel Group
continues to bring synergies with both brands benefitting from shared
expertise. Icelolly.com's bidding technology and tenancy advertising model has
recently been deployed into Travelsupermarket and Icelolly.com's product
offering has been expanded to include travel insurance and car hire. The
progress made in the first year of combination has laid the groundwork to
invest more into marketing in the second half as the travel market continues
to recover.
We have made good progress integrating Quidco with the rest of the Group while
improving its underlying tech and data. In the half, Quidco came on to the
Group finance and HR systems and the London Quidco office was closed with the
team moving into the Group's head office. We are leveraging our common tech
platform with the Group now powering pet and travel insurance comparison
journeys on Quidco. This half we have used Group capabilities to improve our
understanding of Quidco users. This gives us confidence to invest more
effectively in user acquisition in the second half and start to evolve the
proposition.
• Organisational changes driving efficiency
The operational improvements in the past two years have enabled us to increase
efficiency and maintain a disciplined approach to costs in an inflationary
environment. The transition to a shared, scalable tech platform and the
elimination of unnecessary layers, has reduced duplicative development,
simplified processes and improved integration of new acquisitions. This means
that, excluding the businesses acquired last year, we now operate with around
20% fewer staff (full time equivalent). We have also been able to reduce the
number of development squads dedicated to a single vertical by four and
redeploy them on shared capabilities.
Key performance indicators
The Board reviews key performance indicators (KPIs) to assess the performance
of the business against the GroupÕs strategy. We measure five strategic KPIs:
estimated customer savings, net promoter score, active users, revenue per
active user and marketing margin.
30 June 30 June
2022 2021
Net promoter score 72 71
Active users 10.8m 10.2m
Revenue per active user £15.86 £17.00
Estimated customer savings £0.9bn £0.8bn
Marketing margin 57% 61%
Net promoter score: The 12 monthly rolling
average NPS (1 Jul 2021 - 30 Jun 2022 inclusive) measured by YouGov Brand
Index service Recommend Score weighted by revenue for MoneySuperMarket and
MoneySavingExpert to create a combined NPS.
Active users: The number of
unique accounts running enquiries in our core seven channels for
MoneySuperMarket (car insurance, home insurance, life insurance, travel
insurance, credit cards, loans and energy) in the last 12-month period.
Revenue per active user: The revenue for the core seven
MoneySuperMarket channels divided by the number of active users for the last
12 months.
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. From November 2021 we have added
the cashback earned by Quidco members.
Marketing margin: The inverse relationship
between Group revenue and total marketing spend represented as a percentage.
Total marketing spend includes direct cost of sales plus distribution
expenses.
Trust and satisfaction in our brands remained strong with a slight increase in
NPS to 72.
Active user numbers rose by 0.6m to 10.8m, driven by higher travel insurance
enquiries as the market recovered following the easing of travel restrictions.
Despite the lack of switchable energy tariffs, enquiries in the channel
remained strong and was partially offset by lower car enquiry volumes.
Revenue per active user fell £1.14p to £15.86 reflecting a sharp decline in
energy conversion (which saw high traffic but no switching for most of the
last 12 months) and lower volumes in car and home insurance. This was partly
offset by Money and travel insurance recovery.
Estimated customer savings increased to £0.9bn in the half reflecting the
inclusion of Quidco member cashback, the recovery in travel insurance and
strong Money performance. This was partially offset by declines in energy
switching and car insurance volumes.
The marketing margin decline reflects the movements in gross margin as well as
the increase in brand marketing spend, both of which are described below.
Financial review
Group revenue increased 19% to £193.2m (2021: £162.3), with profit after tax
increasing 20% to £33.7m (2021: £28.0m). When reviewing performance, the
Board reviews several adjusted measures, including adjusted EBITDA which
increased 10% to £56.6m (2021: £51.3m) and adjusted EPS which increased 14%
to 7.0p (2021: 6.1p), as shown in the table below.
Extract from the Consolidated Statement of Comprehensive Income
for the six months ended 30 June
2022 2021 Growth
£m £m %
Revenue 193.2 162.3 19
Cost of sales (62.0) (48.4) 28
Gross profit 131.2 113.9 15
Operating costs (87.4) (75.1) 16
Operating profit 43.8 38.8 13
Amortisation and depreciation 12.8 11.1 16
EBITDA 56.6 49.9 13
Reconciliation to adjusted EBITDA:
EBITDA 56.6 49.9 13
Deal fees and associated costs - 1.4 n.m.
Adjusted EBITDA 56.6 51.3 10
Adjusted earnings per share**:
Ð basic (p) 7.0 6.1 14
Ð diluted (p) 7.0 6.1 14
**A reconciliation to 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
2022 2021 Growth
£m £m %
Insurance 85.8 80.5 7
Money 53.0 35.3 50
Home Services 18.8 45.5 (59)
Travel 8.0 1.0 698
Cashback 27.6 - n.m.
Total 193.2 162.3 19
Revenue grew 19% in the half or 2% excluding Cashback. Performance was driven
by the strong rebound in travel channels and exceptional trading in Money.
Insurance
Insurance revenue increased 7% with growth in travel offset by lower sales in
the other main channels.
Following the introduction of the FCA General Insurance Pricing regulation
changes in January, market switching volumes for car and home insurance have
experienced double-digit declines. Traffic to PCWs has remained robust but
conversion has fallen. Our car and home performance, supported by initiatives
like the launch of MSE car, was slightly ahead of the market, year-on-year
trends in share improving between Q1 and Q2. We expect providers to continue
to evolve their strategic responses to the new regulations.
There was growing demand for travel insurance in the half, supported by the
continued easing of travel restrictions. Travel insurance is now the
second-largest insurance channel by revenue, having significantly surpassed
its 2019 level.
Money
Money delivered a very strong first half with revenue increasing 50%. Despite
only a partial return of the traditional January peak in demand for credit
products, borrowing revenue was above 2019 levels, driven by improved
conversion and attractive products.
Banking performance was exceptional, benefitting from the availability of
attractive savings products not seen since 2019.
Home Services
Home Services revenue fell 59%, driven by the absence of switchable energy
tariffs on our sites amid the continued disruption in the energy market.
Wholesale energy prices remain significantly higher year-on-year and although
the price cap rose in April, it is yet to reach a level needed to create
meaningful customer savings. Future savings levels could also be impacted by
the temporary market stabilisation charges Ofgem has announced.
Home comms revenue was broadly flat for the half with good growth in mobile
offset by weakness in broadband following the loss of a large B2B contract in
July 2021.
Travel
Travel had its best half since the start of the pandemic as demand for
holidays increased as travel restrictions eased, with performance reaching
c.50% of 2019 levels in the half.
Cashback
Quidco benefitted from the recovery in the travel market but that was offset
by less activity in other channels.
Gross profit
Gross margin fell c.2%pts from 70.1% to 67.9% year-on-year. Excluding the
impact of Quidco, which has structurally lower margins, Group gross margin
would have been about 5%pts higher. Margin benefitted c.2%pts from the July
2021 loss of a large but low margin B2B contract.
Improvements in borrowing conversion and the mix into higher margin banking
products led to a c.1%pt margin uplift. The continuation of this benefit is
subject to the availability of attractive banking products.
Market dynamics which reduced insurance gross margin year-on-year (recovery of
travel insurance and the FCA General Insurance Pricing regulation impacts on
car and home insurance) were largely offset by the mix out of lower margin
energy due to the closure of the switching market.
We continued to see a shift of traffic to mobile devices, with 63.1% (2021:
59.8%) of MSM visits coming from a mobile device, while tablet share again
declined. Overall, there was little impact on margin from changes in device
mix.
Operating costs
for the six months ended 30 June
2022 2021 Growth
£m £m %
Distribution expenses 21.5 14.6 47
Administrative expenses 65.9 60.5 9
Operating costs 87.4 75.1 16
Within administration expenses
Amortisation of technology related intangible assets 5.1 7.4 (31)
Amortisation of acquisition related intangible assets 5.2 1.5 257
Depreciation 2.5 2.2 13
Distribution expenses increased year-on-year, as planned, to support MSMÕs
MoneySuperSeven advertising campaign. The progress made in the first year of
ITG has laid the groundwork to invest more into marketing as the travel market
recovers. The improved understanding of Quidco users and how they drive value
means we can invest more effectively in marketing. As a result we expect that
Group distribution expenses are likely to increase to c.£36m in 2022 from
£30m in 2021.
In the half, administrative expenses increased by £5m, driven primarily by
the consolidation of Icelolly.com and Quidco, as guided. Efficiency gains from
simplifying the organisation and improving our data and tech estate helped
offset wider inflationary pressures.
Adjusting items*
for the six months ended 30 June
2022 2021 Growth
£m £m %
Amortisation of acquisition related intangible assets 5.2 1.5 257
Deal fees and associated costs - 1.4 n.m.
Adjusting items included in administrative expenses 5.2 2.9 80
Change in fair value of financial instrument - 0.7 n.m.
Total adjusting items 5.2 3.6 44
* Amortisation of acquisition related intangible assets and the change in fair
value of financial instruments are not included in EBITDA and therefore are
only adjusting items in the adjusted EPS calculation. Deal fees and associated
costs are adjusting items in both the adjusted EBITDA and adjusted EPS
calculations.
The acquisitions of MSE in 2012 and Decision Tech in 2018 gave rise to
intangible assets (excluding goodwill) of £12.9m and £8.7m respectively. In
2021, the acquisitions of CYTI and Quidco and the combination of
TravelSupermarket and Icelolly.com gave rise to intangible assets (excluding
goodwill) of £3.4m, £44.3m and £3.2m, respectively. These are being
amortised over a period of 3-10 years and as a result, the charge for
amortisation of acquisition related intangibles increased to £5.2m (2021:
£1.5m). We expect the amortisation charge for 2022 for acquisition related
intangible assets to be around £10m.
Dividends
The Board has recommended an interim dividend of 3.1p pence per share (2021:
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 2 September 2022 to shareholders on the
register on 29 July 2022.
Tax
The effective tax rate of 20.0% (2021: 24.4%) is above the UK standard rate of
19.0% (2021: 19.0%). This is primarily due to the impact of expenses not
deductible for tax. Last year the effective tax rate was higher due to a
charge arising from the revaluation of deferred tax liabilities in respect of
an increase in the standard rate of corporation tax to 25%, coming into effect
on 1 April 2023.
Earnings per share
Basic reported earnings per share for the six months ended 30 June 2022 was
6.1p (2021: 5.2p). The increase from last year is driven by the increase in
EBITDA as well as the reduction in the effective tax rate.
Adjusted earnings per ordinary share is based on profit before tax before the
adjusting items detailed above. A tax rate of 19.0% (2021: 19.0%) is applied
to calculate adjusted profit after tax. Adjusted basic earnings per ordinary
share increased by 14% to 7.0p per share (2021: 6.1p).
Cashflow and balance sheet
The Group generated operating cash flows of £45.9m (30 June 2021: £35.1m)
and finished the period with a net debt position of £69.1m (30 June 2021:
£7.6m net cash). Net debt includes £84.0m (30 June 2021: £nil) of
borrowings and £13.6m (30 June 2021: £1.2m) of deferred consideration both
of which have increased following the acquisition of Quidco in November 2021.
The working capital outflow of £2.9m comprises an increase in receivables of
£13.6m driven by higher revenue compared to the final quarter of 2021,
partially offset by an increase in payables of £10.7m, primarily due to the
timing of supplier payments as well as an increase in trade related spend
categories.
The Group has a revolving credit facility ('RCF') of £90m which is available
until October 2024 and an amortising term loan in relation to the Quidco
acquisition. The RCF has an accordion option to apply for up to £100m of
additional funds during the term. As at 30 June 2022, there was £45.0m (30
June 2021: £nil) outstanding on the term loan and the Group had drawn £39.0m
(30 June 2021: nil) on the RCF.
Capital expenditure
Capital expenditure was £5.9m (2021: £3.6m) of which technology spend was
£5.8m (2021: £3.5m). For the year, we expect technology capex to be in the
region of £10m.
We expect the technology amortisation charge for the year to be in the region
of £12m, 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
Scilla Grimble Chief Financial Officer
Caroline Britton Senior Independent Non-Executive Director
Supriya Uchil Independent Non-Executive Director
Sarah Warby Independent Non-Executive Director
Lesley Jones Independent Non-Executive Director
Consolidated statement of comprehensive income
for the six months ended 30 June 2022 and 30 June 2021
Note 2022 2021
£m £m
Revenue 2 193.2 162.3
Cost of sales (62.0) (48.4)
Gross profit 131.2 113.9
Distribution expenses (21.5) (14.6)
Administrative expenses (65.9) (60.5)
Operating profit 43.8 38.8
Profit on disposal of property, plant and equipment - 0.1
Net finance costs 3 (1.7) (0.8)
Share of post-tax loss of equity accounted investees (0.0) (0.4)
Change in fair value of financial instruments - (0.7)
Profit before taxation 42.1 37.0
Taxation 4 (8.4) (9.0)
Profit for the period 33.7 28.0
Other comprehensive income 0.6 0.7
Total comprehensive income for the period 34.3 28.7
Profit attributable to:
Owners of the Company 33.0 28.0
Non-controlling interest 12 0.7 -
Profit for the period 33.7 28.0
Total comprehensive income attributable to:
Owners of the company 33.6 28.7
Non-controlling interest 12 0.7 -
Total comprehensive income for the period 34.3 28.7
Earnings per share:
Basic earnings per ordinary share (pence) 5 6.1 5.2
Diluted earnings per ordinary share (pence) 5 6.1 5.2
Consolidated statement of financial position
as at 30 June 2022, 31 December 2021 and 30 June 2021
Note 30 June 31 December 30 June
2022 2021 2021
£m £m £m
Assets
Non-current assets
Property, plant and equipment 37.3 39.8 41.0
Intangible assets and goodwill 7 283.9 288.4 171.5
Equity accounted investments 0.1 0.0 0.1
Other investments 8 8.1 7.5 6.7
Total non-current assets 329.4 335.7 219.3
Current assets
Trade and other receivables 13 79.3 65.3 44.2
Prepayments 8.9 9.3 11.5
Cash and cash equivalents 28.5 12.5 8.8
Total current assets 116.7 87.1 64.5
Total assets 446.1 422.8 283.8
Liabilities
Non-current liabilities
Borrowings 9 35.0 40.0 -
Other payables 37.1 38.3 29.8
Deferred tax liabilities 24.4 25.3 12.8
Total non-current liabilities 96.5 103.6 42.6
Current liabilities
Borrowings 9 49.0 17.5 -
Trade and other payables 13 103.2 93.9 50.5
Current tax liabilities 0.6 0.2 (1.0)
Total current liabilities 152.8 111.6 49.5
Total liabilities 249.3 215.2 92.1
Equity
Share capital 0.1 0.1 0.1
Share premium 205.4 205.4 205.3
Reserve for own shares (2.4) (2.6) (2.2)
Retained earnings (77.0) (64.7) (75.6)
Other reserves 65.7 65.1 64.1
Equity attributable to the owners of the Company 191.8 203.3 191.7
Non-controlling interest 12 5.0 4.3 -
Total equity 196.8 207.6 191.7
Total equity and liabilities 446.1 422.8 283.8
Consolidated statement of changes in equity
for the period ended 30 June 2022, 31 December 2021 and 30 June 2021
Reserve for own shares Equity attributable to the owners of the Company Non-controlling interest Total Equity
Share Share premium Retained earnings Other reserves
capital
£m £m £m £m £m £m £m £m
At 1 January 2021 0.1 205.0 (2.8) (57.2) 63.4 208.5 - 208.5
Profit for the period - - - 28.0 - 28.0 - 28.0
Other comprehensive income - - - - 0.7 0.7 - 0.7
Total comprehensive income - - - 28.0 0.7 28.7 - 28.7
Exercise of LTIP awards - - 0.6 (0.6) - - - -
New shares issued 0.0 0.3 - - - 0.3 - 0.3
Equity dividends - - - (46.2) - (46.2) - (46.2)
Share-based payments - - - 0.4 - 0.4 - 0.4
At 30 June 2021 0.1 205.3 (2.2) (75.6) 64.1 191.7 - 191.7
At 1 July 2021 0.1 205.3 (2.2) (75.6) 64.1 191.7 - 191.7
Profit/(loss) for the period - - - 24.8 - 24.8 (0.6) 24.2
Other comprehensive income - - - - 0.7 0.7 - 0.7
Total comprehensive income - - - 24.8 0.7 25.5 (0.6) 24.9
Acquisition of subsidiary with non-controlling interest - - - - 2.0 2.0 4.9 6.9
Purchase of shares by employee trusts - - (0.4) - - (0.4) - (0.4)
Exercise of LTIP awards - - - - - - - -
New shares issued 0.0 0.1 - - - 0.1 - 0.1
Equity dividends - - - (16.6) - (16.6) - (16.6)
Share-based payments - - - 1.0 - 1.0 - 1.0
Realisation of fair value gains - - - 1.7 (1.7) - - -
At 31 December 2021 0.1 205.4 (2.6) (64.7) 65.1 203.3 4.3 207.6
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
Consolidated statement of cash flows
for the six months ended 30 June 2022 and 30 June 2021
2022 2021
£m £m
Operating activities
Profit for the period 33.7 28.0
Adjustments to reconcile Group profit to net cash flow from operating
activities:
Amortisation of intangible assets 10.3 8.9
Depreciation of property, plant and equipment 2.5 2.2
Profit on disposal of property, plant and equipment - (0.1)
Share of post-tax loss of equity accounted investees 0.0 0.3
Change in fair value of financial instruments - 0.7
Net finance costs 1.7 0.8
Equity settled share-based payment transactions 1.1 0.4
Taxation expense 8.4 9.0
Changes in trade and other receivables (13.6) (1.8)
Changes in trade and other payables 10.7 (4.6)
Taxation paid (8.9) (8.7)
Net cash flow from operating activities 45.9 35.1
Investing activities
Acquisition of property, plant and equipment (0.4) (0.4)
Acquisition of intangible assets (5.5) (3.5)
Acquisition of subsidiaries, net of cash acquired (1.0) (0.5)
Acquisition of investments (0.1) (0.4)
Proceeds from disposal of property, plant and equipment - 0.5
Proceeds from disposal of investments - 2.1
Net cash used in investing activities (7.0) (2.2)
Financing activities
Dividends paid (46.2) (46.2)
Proceeds from share issue - 0.4
Proceeds from borrowings 44.0 10.0
Repayment of borrowings (17.5) (10.0)
Interest paid (1.8) (0.8)
Repayment of lease liabilities (1.4) (1.1)
Net cash used in financing activities (22.9) (47.7)
Net increase/(decrease) in cash and cash equivalents 16.0 (14.8)
Cash and cash equivalents at 1 January 12.5 23.6
Cash and cash equivalents at 30 June 28.5 8.8
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 2021.
The financial statements have been prepared on the same basis as those for the
year ended 31 December 2021.
In light of new information obtained since the acquisition of Maple Syrup
Media Limited ('Quidco') about facts and circumstances that existed at the
date of acquisition, and in accordance with IFRS 3 - Business Combinations, an
adjustment to the previously reported balance sheet at 31 December 2021 has
been included in these financial statements. Further information on this is
included in note 13.
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 companyÕs published consolidated financial statements for the year ended
31 December 2021.
These condensed consolidated interim financial statements were approved by the
board of directors on 20 July 2022.
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 2022, the GroupÕs external debt comprised an amortising loan
repayable over the period to October 2024 (with a balance outstanding of
£45m) and a revolving credit facility ('RCF'), (of which £39m of the £90m
available was drawn down). The operations of the business have been impacted
by the travel restrictions associated with Covid-19 and the current conditions
affecting 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 cashflow forecasts for the Group, including its
cash position, for a period of at least 12 months from the date of approval of
this condensed set of consolidated interim financial statements. The Directors
have also considered the effect of Covid-19, potential cost of living trading
headwinds and the current energy market conditions upon the GroupÕs business,
financial position, and liquidity in severe, but plausible, downside
scenarios. The scenarios modelled take into account the potential impacts of
Covid-19 (specifically on Travel and Money recovery), downside trading impacts
from cost-of-living increases and the current energy market conditions and
include 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.
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, share of loss of equity accounted investments, 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.
Travel is revenue and directly attributable expenses from TravelSupermarket
prior to 1 September 2021 and then the combined Ice Travel Group thereafter.
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, our website or a telephone call.
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 Insurance Money Home Services Travel Cashback Shared costs Total
£m £m £m £m £m £m £m
Period ended 30 June 2022
Revenue 85.8 53.0 18.8 8.0 27.6 - 193.2
Directly attributable expenses (37.2) (16.1) (7.5) (4.8) (22.2) (48.8) (136.6)
Adj. EBITDA contribution 48.6 36.9 11.3 3.2 5.4 (48.8) 56.6
Adj. EBITDA contribution margin* 57% 70% 60% 40% 19% - 29%
Depreciation and amortisation (12.8)
Net finance costs (1.7)
Share of post-tax loss of equity accounted investees (0.0)
Profit before tax 42.1
Taxation (8.4)
Profit for the period 33.7
Segment Insurance Money Home Services Travel Cashback Shared costs Total
£m £m £m £m £m £m £m
Period ended 30 June 2021
Revenue 80.5 35.3 45.5 1.0 - - 162.3
Directly attributable expenses (33.2) (11.9) (24.2) (2.1) - (39.6) (111.0)
Adj. EBITDA contribution 47.3 23.4 21.3 (1.1) - (39.6) 51.3
Adj. EBITDA contribution margin* 59% 66% 47% (110%) - - 32%
Depreciation and amortisation (11.1)
Deal fees and associated costs (1.4)
Profit on disposal of property, plant and equipment 0.1
Net finance costs (0.8)
Share of post-tax loss of equity accounted investees (0.4)
Change in fair value of financial instruments (0.7)
Profit before tax 37.0
Taxation (9.0)
Profit for the period 28.0
*Adjusted EBITDA contribution margin is calculated by dividing adjusted EBITDA
contribution by revenue.
Insurance adjusted EBITDA contribution margin decreased from 59% to 57%
year-on-year. Mixing into travel insurance, a lower margin channel, has
primarily driven the decrease.
Money continues to perform well, ending the half higher than pre-pandemic
levels. Margin benefitted from a return of strong product offerings
particularly in banking.
Home Services revenue was significantly down year-on-year due to the loss of
energy switching. The mix out of energy switching on MSE, where users receive
cashback, benefitted EBITDA contribution margin for the vertical. Margin also
benefitted from the loss of the large but low margin B2B contract at the end
of H1 2021.
Travel trading rebounded driven by the market recovery enabling the vertical
to return to a positive contribution margin in H1 2022.
Margin for Cashback is significantly lower than other verticals as a large
proportion of commission is paid out to members as cashback, however was
stronger in the first half due to seasonality and phasing of marketing
spend.
Shared costs increased due to media and production costs as we continued to
support the new MSM brand campaign in H1 2022.
3. Net finance costs
2022 2021
£m £m
Finance income
Interest received on bank deposits 0.0 0.0
Finance costs
Interest payable on revolving credit facility (0.5) (0.2)
Interest payable on bank loan (0.6) -
Interest payable on leases (0.5) (0.6)
Unwind of discount on deferred consideration (0.0) (0.0)
(1.7) (0.8)
4. Taxation
The Group's consolidated effective tax rate for the six months ended 30 June
2022 was 20.0% (six months ended 30 June 2021: 24.4%). This is higher than the
standard rate of corporation tax of 19% (six months ended 30 June 2021: 19%)
primarily due to the impact of expenses not deductible for tax. Last year the
effective tax rate was higher due to a charge arising from the revaluation of
deferred tax liabilities in respect of an increase in the standard rate of
corporation tax to 25%, coming into effect on 1 April 2023.
2022 2021
£m £m
Current tax
Current tax on income for year 9.4 7.6
9.4 7.6
Deferred tax
Origination and reversal of temporary differences (1.0) (0.3)
Adjustment due to changes in tax rate - 1.6
Adjustment in relation to prior period - 0.1
(1.0) 1.4
Taxation for the period 8.4 9.0
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
CompanyÕs 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.
Earnings per share
Basic and diluted earnings per share have been calculated on the following
basis:
2022 2021
£m £m
Profit after taxation attributable to the owners of the Company 33.0 28.0
Basic weighted average ordinary shares in issue (millions) 536.4 536.4
Dilutive effect of share-based instruments (millions) 0.7 0.3
Diluted weighted average ordinary shares in issue (millions) 537.1 536.7
Basic earnings per ordinary share (pence) 6.1 5.2
Diluted earnings per ordinary share (pence) 6.1 5.2
Adjusted basic and diluted earnings per share have been calculated as follows:
2022 2021
£m £m
Profit before tax 42.1 37.0
Adjusted for profit before tax attributable to non-controlling interest (0.9) -
Profit before tax attributable to the owners of the Company 41.2 37.0
Amortisation of acquisition related intangible assets 5.2 1.5
Amortisation of acquisition related intangible assets attributable to (0.2) -
non-controlling interest
Deal fees and associated costs - 1.4
Change in fair value of financial instruments - 0.7
46.2 40.6
Estimated taxation at 19% (2021: 19%) (8.8) (7.7)
Profit for adjusted EPS purposes 37.4 32.9
Basic adjusted earnings per share (pence) 7.0 6.1
Diluted adjusted earnings per share (pence) 7.0 6.1
6. Dividends
2022 2021
£m £m
Equity dividends on ordinary shares:
Final dividend for 2021: 8.61 pence per share 46.2 46.2
(2020: 8.61 pence per share)
Proposed for approval (not recognised as a liability as at 30 June):
Interim dividend for 2022: 3.10 pence per share (2021: 3.10 pence per share) 16.6 16.6
7. Intangible assets
Market related Customer relationships Technology related Goodwill Total
£m £m £m £m £m
Cost
At 1 January 2021 155.3 - 101.5 212.6 469.4
Additions - - 6.8 2.8 9.6
Disposals - - (2.7) - (2.7)
At 30 June 2021 155.3 - 105.6 215.4 476.3
Amortisation
At 1 January 2021 148.5 - 75.8 74.3 298.6
Charge for the period 0.9 - 8.0 - 8.9
Eliminated on disposal - - (2.7) - (2.7)
At 30 June 2021 149.4 - 81.8 74.3 304.8
Carrying value
At 1 January 2021 6.8 - 25.7 138.3 170.8
At 30 June 2021 5.9 - 24.5 141.1 171.5
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
Goodwill is allocated to each vertical, or cash generating unit ('CGU'), as
follows:
30 June 31 December 2021 30 June
2022 2021
£m £m £m
Insurance 46.5 46.5 45.7
Money 33.2 33.2 33.2
Home Services 54.8 54.8 54.8
Travel 11.5 11.5 7.4
Cashback 68.3 68.8 -
214.3 214.8 141.1
The Group had significant balances relating to goodwill as at 30 June 2022 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 Ð Impairment of Assets, the Group has considered
whether there have been any indicators of impairment during the six months
ended 30 June 2022, which would require an impairment review to be performed.
The travel restrictions associated with Covid-19 and the current conditions
affecting the energy switching market were deemed to be indicators of a
potential impairment of the Travel and Home Services goodwill balances
respectively. Impairment testing was therefore performed, which calculated
that the recoverable amount of the assets allocated to the Home Services and
Travel CGU exceeds their carrying value by in excess of 100%. No reasonably
possible change to a key assumption would therefore result in an impairment.
No indicators of impairment were identified in respect of the Group's other
CGUs.
8. Other investments
1 January Additions/ Fair value uplift 30 June
2021 (disposals) 2021
£m £m £m £m
Truelayer Limited 1.4 (2.1) 0.7 -
Flagstone Investment Management Limited 3.6 - - 3.6
By Miles Limited 2.6 - - 2.6
Plum Fintech Limited 0.5 - - 0.5
8.1 (2.1) 0.7 6.7
1 January Additions/ Fair value uplift 30 June
2022 (disposals) 2022
£m £m £m £m
Flagstone Investment Management Limited 3.6 - 0.6 4.2
By Miles Limited 2.6 - - 2.6
Plum Fintech Limited 1.3 - - 1.3
7.5 - 0.6 8.1
Investments are measured at fair value, using the latest unquoted share price
implied by recent transactions in shares of the investments. Updates are made
as required considering market conditions as at 30 June 2022. This valuation
method falls under level 3 as defined by IFRS 13 Fair Value Measurements.
Sensitivity analysis
For the fair value of investments, a 5% movement in share price would have an
effect of £0.4m (2021: £0.3m) on the total value.
9. Borrowings
30 June 31 December 2021 30 June
2022 2021
£m £m £m
Non-current
Loan 35.0 40.0 -
Current
Revolving credit facility 39.0 7.5 -
Loan 10.0 10.0 -
49.0 17.5 -
10. Related party transactions
Peter Duffy, Robin Freestone, Scilla Grimble, James Bilefield and Sally James
in total received dividends from the Group totalling £27,560 (2021: Robin
Freestone, Scilla Grimble, James Bilefield and Sally James in total received
£22,344).
11. Commitments and contingencies
At 30 June 2022, the Group was not committed to incur capital expenditure
(2021: £0.8m).
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.
12. Non-controlling interest
The only non-controlling interest within the Group relates to the 33%
non-controlling interest in Ice Travel Group Limited and its two wholly owned
subsidiaries Travelsupermarket Limited and Icelolly Marketing Limited. The
following table summarises ITG's financial performance and position at the
period end before any intra-group eliminations.
Ice Travel Travel- Icelolly Marketing Limited Total
Group supermarket
Limited Limited
Non-controlling interest 33% 33% 33% 33%
£m £m £m £m
Non-current assets* - 7.5 7.0 14.5
Current assets 1.5 4.4 1.6 7.5
Non-current liabilities - - (0.3) (0.3)
Current liabilities (3.4) (1.6) (1.6) (6.6)
Net (liabilities)/assets (1.9) 10.3 6.7 15.1
Net (liabilities)/assets attributable to non-controlling interest (0.6) 3.4 2.2 5.0
Revenue - 5.9 2.1 8.0
(Loss)/profit (0.9) 3.0 0.1 2.2
Total comprehensive income (0.9) 3.0 0.1 2.2
(Loss)/profit attributable to the non-controlling interest (0.3) 1.0 0.0 0.7
Total comprehensive income attributable to non-controlling interest (0.3) 1.0 0.0 0.7
Cash flows from operating activities (0.8) 2.8 (0.1) 1.9
Cash flows from investing activities - - (0.1) (0.1)
Cash flows from financing activities 0.8 (0.9) - (0.1)
Net increase in cash and cash equivalents (0.0) 1.9 (0.2) 1.7
* Non-current assets for Travelsupermarket Limited include £7.4m of goodwill
that was recognised on the GroupÕs balance sheet prior to the acquisition of
ITG.
13. Update on accounting for acquisition of subsidiary
On 1 November 2021, the Group acquired 100% of the share capital and voting
rights of Maple Syrup Media Limited (trading as Quidco) for total
consideration payable of £104.6m. On acquisition a new Cashback vertical was
created for this business.
Due to the proximity of the acquisition date to the year end and in accordance
with IFRS 3 - Business Combinations, a disclosure was included in the Group's
2021 Annual Report indicating that if new information obtained within one year
of the date of acquisition about facts and circumstances that existed at the
date of acquisition identifies adjustments to the amounts recognised, or any
additional provisions that existed at the date of acquisition, then the
accounting for the acquisition will be revised. Since the year end we have
identified new information about facts and circumstances that existed at the
date of acquisition which has resulted in an increase in both accrued income
(within trade and other receivables) and other payables (within trade and
other payables) of £3.8m. There is no impact on total identifiable net assets
acquired and therefore no impact on previously reported goodwill. The
comparative balance sheet as at 31 December 2021 has been restated in this
condensed set of consolidated interim financial statements accordingly.
Appendix
Statutory Information
The financial information set out above does not constitute the Company's
statutory accounts for the six months ended 30 June 2022 or 30 June 2021 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 5 May 2022. The interim dividend will
be paid on 2 September 2022 to shareholders on the register at the close of
business on 29 July 2022.
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 the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2022 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 2022 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.
DirectorsÕ 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 groupÕs 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.
Suvro Dutta
for and on behalf of KPMG LLP
Chartered Accountants
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21 July 2022
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