REG - Moneysupermarket.com - Preliminary Results
19/02/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240219:nRSS5102Da&default-theme=true
RNS Number : 5102D Moneysupermarket.com Group PLC 19 February 2024
19 February 2024
Moneysupermarket.com Group PLC preliminary results for the year ended 31
December 2023
Record revenue and continued strong strategic progress
Year ended 31 December 2023 2022 Growth %
Group revenue £432.1m £387.6m 11
EBITDA * £131.9m £115.5m 14
Profit after tax £72.3m £69.3m 4
Adjusted basic EPS ** 16.0p 14.4p 12
Basic EPS 13.5p 12.7p 6
Operating cashflow £102.2m £104.4m (2)
Net debt *** (£19.8m) (£39.0m) (49)
Dividend per share 12.1p 11.7p 3
Strategic highlights
· Helped households save an estimated record £2.7bn
· Data transformation complete, proprietary Dialogue data platform
powering 76% of MSM user enquiries on core product lines
· Common technology platform supporting ability to scale whilst
simplifying our operations
· Expanded offering with membership-based customer propositions:
MSM SuperSaveClub, MSE App and Quidco
· Incremental provider propositions launched and grown: B2B,
Tenancy and "Market Boost" data services
· Ranked first in the Technology sector on the FTSE Women Leaders
Review report; ranked fifth in The Inclusive Top 50 UK Employers list
Financial highlights
· Record revenue at £432m, despite no material revenue from energy
switching
· 11% revenue growth led by exceptional trading in Insurance,
supported by efficient acquisition and retain and grow strategy
· EBITDA up 14%, ahead of revenue growth, to £132m with margins
expanded to 31% demonstrating continued robust cost management
· Adjusted basic EPS up 12%
· Operating cashflow before tax increased 7%, following the
increase in tax rates operating cashflow after taxes are down 2%
· Full-year dividend up 3% to 12.1p, £65 million distribution to
shareholders
Peter Duffy, CEO of Moneysupermarket Group, commented:
"We helped customers save a record £2.7bn in 2023. The more we can help
households save, the more the Group grows. We're proud that in tough times for
consumers, MoneySuperMarket, MoneySavingExpert and Quidco have been able to
make a real difference for so many."
*Notes:
* EBITDA is operating profit before depreciation and amortisation. In both the
current and prior year there were no adjusting items within EBITDA. This is
consistent with how business performance is measured internally.
**Adjusted basic earnings per share is profit before tax adjusted for
amortisation of acquisition related intangible assets as described on page 11,
divided by the number of weighted average shares. A reconciliation of adjusted
basic earnings per share to the interim financial statements is included in
note 4.
***Net debt is cash and cash equivalents of £16.6m (2022: £16.6m) less
borrowings of £34.5m (2022: £44.0m), deferred consideration of £nil (2022:
£9.8m) and loan notes payable to Podium's non-controlling interest of £1.9m
(2022: £1.8m). It does not include lease liabilities. Net debt has been
restated for the year ended 31 December 2022 to include loan notes payable to
Podium's non-controlling interest.
Quarter 4 trading
Revenue for the three months ended 31 December 2023 Revenue for the year
ended 31 December 2023
£m Growth % £m Growth %
Insurance 52.1 27 220.0 28
Money 23.1 4 100.2 (3)
Home Services 10.0 (6) 39.0 (2)
Travel * 2.9 9 20.6 33
Cashback * 16.9 1 59.8 0
Inter-vertical eliminations * (2.3) 254 (7.5) 166
Total 102.7 11 432.1 11
* Growth % reflects changes to the comparative revenue for each vertical for
the 3 months and year ended 31 December 2023 to align with the change in
presentation of inter-vertical eliminations (see note 2)
Revenue in the fourth quarter grew 11%, driven by strong performance in
Insurance.
· In Insurance, revenue were up 27%. Exceptionally high premium
inflation continued, driving high search traffic in the quarter and fuelling
high levels of switching in car and in home. Towards the end of the year, the
ramp-up in car premium inflation started to stabilise.
· Money grew 4% in the quarter with continued growth in banking due
to availability of attractive products. Borrowing also grew compared to Q4
2022 which saw a steep drop in conversion following the October 2022 mini
budget.
· Home Services was down 6% with continued broadband softness in a
competitive market. Mobile also softened in the quarter with less attractive
provider propositions. As expected, there were no material revenue from energy
switching.
· Revenue from Travel were up 9%, with growth in the fourth quarter
slowing in a competitive market. Note that travel insurance is included within
Insurance.
· Cashback revenue was up 1% despite continued headwinds from
online retail. We had a strong performance over the Black Friday weekend with
attractive promotions secured with merchants.
Recent performance and outlook
In the first few weeks of 2024, we have had similar trends to those seen at
the end of Q4 2023 continue. We don't expect any increase in energy switching
revenue in 2024. We expect the comparatives in Insurance will become
tougher, particularly as we move into the second half. However, our trading
performance and momentum in our strategic execution, gives the Board
confidence that Group EBITDA will be within the current market consensus
range.
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 Niall McBride (CFO)
accessed https://edge.media-server.com/mmc/p/ocyxn98w/
(https://edge.media-server.com/mmc/p/ocyxn98w/)
Notes: EBITDA is operating profit before depreciation and amortisation. Market
expectations of EBITDA for 2024 from the analyst consensus on our investor
website are in a range of £133.8m to £146.2m, with an average of £141.1m.
For further information, contact:
Niall McBride, Chief Financial Officer
niall.mcbride@moneysupermarket.com / 0203 826 4688
Emma Darke, Head of Investor Relations emma.darke@moneysupermarket.com
/ 0203 846 2524
William Clutterbuck, H/Advisors Maitland
wclutterbuck@h-advisors.global / 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
The Group generated record revenue and strong profit growth while maintaining
gross margin, as expected. EBITDA and profit before tax grew 14% and 8%
respectively. The strong trading performance has primarily been driven by
Insurance. Car and home insurance premiums have increased significantly
because of the rising cost of claims. The financial performance and value
creation are testament to the delivery of our clear strategy and the
investments made in recent years.
Our performance wasn't just because of a strong insurance market; the results
of our strategy have helped us outperform the market. With the platform built,
we now have the foundations in place to unlock the two sides of our business -
to launch and expanded membership-based customer propositions that are
changing the user experience, alongside adding new services to deepen our
partnerships with providers. During the year we launched our new
MoneySuperMarket SuperSaveClub and expanded our other membership-based
customer propositions, the MoneySavingExpert App, and Quidco.
We are differentiated by our strength in breadth, with a large range of
products for our customers to save on their bills. During the year, we
expanded the services we offer to our providers and partners including
Tenancy, advertising spots for providers to promote their products; our new
"Market Boost" data service for providers; and B2B, where we host switching
services, including for third-party brands.
We also continued to focus on our operational efficiency, closing two regional
offices and delivered efficiency gains from simplifying our technology
estate.
We enjoy leading positions in growing markets which continue to have
significant headroom for further expansion. Our brands are firmly trusted by
our customers.
Our price comparison brand, MoneySuperMarket ('MSM'), had over 10 million
active users in 2023. We continued to support our brand by building on the
MoneySuperSeven marketing campaign with the launch of a new and well-received
advert which is focused clearly around "saving money".
MoneySavingExpert ('MSE'), our content-led brand, is greatly trusted and
provides valuable tips and tools to millions of users. We've seen strong
uptake with over 1.1 million downloads of the MSE App and over 9 million
people receive Martin Lewis's weekly tip email. "Bill Buster" helps users of
the MSE App navigate the best ways to save money on their household bills.
Quidco is one of the largest cashback brands in the UK which we acquired in
2021. During the year we migrated Quidco onto our Group CRM platform. We have
started to use AI technology alongside our Group CRM platform to improve the
ability to personalise and target our CRM communications, early results show
an uplift in purchases made. We invested in new TV and radio advertising which
alongside our new CRM capabilities, supported member growth momentum. During
the year we launched Quidco Compare for home, car and pet insurance; we now
have seven compare products powered by the MSM Group technology platform.
Ice Travel Group ('ITG'), combines TravelSupermarket ('TSM') and icelolly.com.
TSM is now using the icelolly.com proprietary bidding technology that allows
providers to bid for more prominent placings on the website. Thanks to this
improved offer and the combined reach of the two brands, ITG enjoyed strong
growth during the year. TravelSupermarket launched TV advertising for the
first time in seven years.
_______________
As well as helping households save money, we aim to make a positive difference
to our people, the wider community, and the environment.
In 2023 we began our partnership with Campaign Against Living Miserably, known
as CALM, a suicide prevention charity. Staff engagement with CALM has been
powerful, with fundraising events culminating in 38 colleagues taking part in
a charity trek in Cambodia on behalf of the charity. We donated over of
£136,000 of our 2-year £150,000 target and due to the level of engagement we
will be extending the partnership and upping the fundraising target into 2025.
MoneySavingExpert continued to donate funds to the MSE Charity, which offers
grants of up to £7,500 to support non-profit organisations, such as a social
enterprise or a registered charity, with specific money education projects.
This year donations totalled £100,000.
For our employees, we ran the 'Big MONY Workshop', giving colleagues 24 hours
to demonstrate living our purpose under the banner "helping YOU save money"
with seminars and focus groups on personal financial wellbeing.
We want our colleagues to not only live our purpose but have confidence in us
as a responsible and fair employer. We were recognised in the 2023 FTSE Women
Leaders Review as #1 for Women on Boards in the Technology sector and
commended for being in the FTSE250 top ten best performers overall for 4 years
in a row. We were also proud to be ranked 5(th) in the Inclusive Top 50 UK
Employers List in 2023.
We remain committed to minimising our environmental impact and have a target
of being Operational Net Zero by 2030 (a 90% reduction in Scope 1 and Scope 2
emissions) and to be a 'Carbon Neutral' business, offsetting 100% of our
carbon emissions. We disclose our environmental impact via the Carbon
Disclosure Project and retained our C score for 2023.
We are delighted to announce that we have received official accreditation from
the Science Based Targets initiative (SBTi) for our ambitious environmental
targets. Following a rigorous evaluation by the SBTi's Target Validation Team,
our targets have been approved. We are committing to reduce absolute scope 1
and 2 GHG emissions 91% by 2030 from 2019; increase annual sourcing of
renewable electricity to 100% by 2030; and, reduce scope 3 emissions by 58.8%
by 2033 from 2019.
The SBTi commended our ambitious 1.5°C-aligned target, currently the most
ambitious designation available through the SBTi process. This recognition
underscores our commitment to addressing climate change and our impact on the
environment.
In 2023, we took a significant step towards global corporate responsibility
and sustainable business practices by becoming a signatory of the United
Nations Global Compact. Embracing the principles of the Compact, we committed
to aligning our operations and strategies with ten universally accepted
principles in the areas of human rights, labour, environment, and
anti-corruption. This decision not only reflects our commitment to upholding
fundamental values but also positions us as a responsible business actively
contributing to the achievement of the Sustainable Development Goals.
Strategic progress
· Efficient acquisition
"Efficient acquisition" improves the effectiveness of how we reach and
convert our customers to optimise our spend.
Our efficient acquisition platforms, for Pay Per Click ('PPC'), Search Engine
Optimisation ('SEO') and Customer Relationship Management ('CRM') are
implemented and in use, attracting customers in a cost-effective way.
Our PPC bidding platform continues to improve the efficiency of our paid
search advertising. Using our advanced data capabilities, we have made better
use of our first party data and machine learning capabilities to optimise the
amount we bid for each individual search term. We can now bid across a broader
range of platforms, reaching a wider audience, and increasing our impressions.
We have used AI to help develop our bidding strategies, increasing our
efficiency. This has resulted in reduced cost per click.
SEO delivers substantial volumes of free search traffic to our sites and
remains a dynamic area. We have updated more content and more pages using our
market leading tool and now use AI to further drive efficiency. We have now
reduced the process for refreshing content on a page by more than 75%, freeing
up our experts to create original content and promote our relevance.
Brand marketing remains an important driver of traffic across the Group. In
September we launched our SuperSaveClub marketing campaign, building on the
original MoneySuperSeven campaign first launched in 2022. This campaign has
resonated better with consumers than any we have done before, supporting in an
uplift in direct to site traffic in the year. We invested in above-the-line
marketing for TravelSupermarket, to put it at the top of people's minds when
they are looking for deals on holidays, car hire, travel insurance, flights
and hotels. We also invested in above-the-line marketing for Quidco which
supported member growth momentum.
MoneySavingExpert continues to offer content and tools to guide and support
consumers to be in control of their finances and enjoys great trust. MSE was
again named the most recommended brand by YouGov.
· Retain and grow
"Retain and grow" encourages customers to come back to us year after year and
cross-buy the wealth of products we offer across the Group.
We want to retain customers and help them switch more of their household
bills which will ultimately increase customer lifetime value. To drive higher
retention, we focus on timely reminders and a simpler experience for returning
users and during the year we launched and expanded membership-based customer
propositions including SuperSaveClub, MSE App and Quidco.
Cross-sell continues to be a significant opportunity. We have a wide range of
products and services and the data transformation we have delivered means we
can more easily help more people save more with us across our range of
products. In 2023, 24% of our MSM active users enquired in more than one of
our core product lines. This is up from 23% the year before. Our improved data
capabilities mean we are now tracking cross enquiry in even more product
lines. On average, active users enquired in 1.3 of our product lines.
Data is critical to deepen our relationship with our customers. We have
combined our centralised data with our proprietary 'Dialogue' platform to
improve speed of enquiry for the user across our products. Dialogue creates
simpler, quicker journeys for the user and creates a better understanding of
the customer through the creation of a shared user profile. 76% of MSM
enquiries on core channels are now completed on Dialogue.
Real-time and centralised data enables our user experience to be more
personalised, target our marketing more effectively and deliver more value for
our providers. With our data consolidated and available instantly, we can
offer better services to both users and providers. Our ability to onboard
products from providers quickly can give users more choices and keener pricing
as well as improve the speed of roll out for our B2B platform to other brands.
We will continue to expand the product lines that use the shared profile
through Dialogue in 2024 and with the aim to improve conversion and
cross-sell.
This year we migrated Quidco onto our Group CRM platform allowing us to
deliver personalised and targeted messages to users across our app, web and
via email. Through the use of AI and machine learning, we can now dynamically
target customers based on their individual interactions with our platform
allowing us to communicate with our users in a highly personalised manner. We
have also introduced the sophisticated use of AI and automation which has
streamlined our ability to set up campaigns more efficiently. Improvements
in our CRM tool and effective targeting have resulted in an uplift in
purchases made.
· Expanding our offer
Our transformed tech and data platform allows us to extend the services we
offer our providers including the speed we can roll out our B2B proposition.
The mortgage proposition remains an attractive opportunity for the Group.
Having gained control of our mortgages joint venture partner Podium in
December 2022, we have continued to develop and digitalise the mortgage
comparison services we provide to our customers. During the year we agreed a
partnership with Rightmove to support the digitalisation of their new mortgage
offering.
· What's next?
We are focusing on developing and growing our membership-based customer
propositions to drive customer loyalty and continue to build on our 'retain
and grow' strategy. We are expanding the services we offer to our providers
and partners to grow the strength and breadth of our offering. Both strategies
set out to ultimately help households across the country save more money with
us.
· "Membership-based customer propositions"
SuperSaveClub
The SuperSaveClub is aligned to our mission of helping households save money,
and rewards customers every time they save money on their household bills, all
with the confidence that our price promise provides.
When customers buy an eligible product through MoneySuperMarket they can join
SuperSaveClub and get access to 12 months of unlimited free days out at
thousands of leading attractions nationwide available through the
MoneySuperMarket app. Then, as a member of the SuperSaveClub, every time
they purchase an eligible product, they earn a reward: £15 cash for every
car, home insurance or broadband purchase, £10 for purchasing pet insurance,
and £5 for signing up to Credit Monitor, purchasing an annual travel policy
or a mobile phone deal. Rewards are available via a member's
MoneySuperMarket account and can be withdrawn at any time, as a pre-paid
MasterCard, or vouchers at leading retailers. The SuperSaveClub is set up to
encourage users to come directly to us and incentivises cross-buy and re-buy
rates through rewards and ease of use.
Following the initial trial in May, we formally launched the SuperSaveClub in
September and added further products to give members even more opportunities
to do more and save more with us. We now have nearly 200,000 members. Early
results since launch show that SuperSaveClub members have a stronger
engagement, are more likely to come to us directly, and buy more products with
us than non-members.
MoneySavingExpert App
During the year we have also expanded our MoneySavingExpert App which has
gained traction and now has over 1.1 million downloads and over 420,000
monthly active users. We have launched a host of new features to enhance the
user experience including:
· MSE Chat GPT, allowing users to interrogate MoneySavingExpert
content via AI technology.
· "Bill Buster", our tool to help keep track of users bills and
service providers including alerts when costs change or a deal ends and then
showing users how to save and get onto the best value products.
By linking MSE's helpful and trusted content with a suite of more personalised
tools, we support users to gain greater control of their finances and
potentially save more money. We will continue to expand the range of tools
available to help users keep informed and save more money.
Quidco
Quidco enjoys frequent engagement with our members with thousands of merchants
offering attractive offers and rewards. We now power seven Quidco Compare
products on the Group tech stack, with car, home and pet insurance launched in
'23.
We moved Quidco onto the Group marketing platform in the middle of 2023 and
returned to TV advertising supporting membership growth momentum.
· "Best provider propositions"
Tenancy
Tenancy is advertising whereby providers promote their brands or products in
designated spots on our sites clearly listed as 'sponsored'. Tenancy is now
live in all our key verticals following an initial trial to expand this
offering beyond home services with pet insurance in 2022. Revenue from tenancy
is up by double digit percentage.
Market Boost
During the year we launched our 'Market Boost' proposition on loans,
comprising insights to enable partners to grow their business while helping
households save money. Market Boost includes aggregated customer and market
data insights which can help providers use data to offer our users even better
deals.
B2B
Our B2B proposition allows us to utilise our Group platform to provide
switching services, including to third-party brands, extending our reach and
market share. We launched a B2B car insurance journey in early 2023 and have
already won seven new car insurance partners including Car Gurus and Caura.
During the year we agreed a partnership with Rightmove to support their
broadband comparison services through their tenant portal and heping to
identify broadband speeds and offers on their wider property listings. Revenue
from B2B is up more than two thirds on last year.
Key performance indicators
The Board reviews key performance indicators (KPIs) to assess the performance
of the business against the Group's strategy. We measure six key strategic
KPIs: estimated customer savings, marketing margin, net promoter score, active
users, revenue per active user, and cross-channel enquiry.
31 December 31 December
2023 2022
Estimated Group customer savings £2.7bn £1.8bn
Group marketing margin* 58% 57%
MSM and MSE net promoter score 70 72
MSM & Quidco active users** 14.2m 13.0m
MSM & Quidco revenue per active user £17.82 £16.24
MSM cross-channel enquiry 24% 23%
Estimated Group customer savings: This is calculated by multiplying sales
volume by the market average price per product
based on external data compared to the cheapest deal in the results table for
core
channels. Savings for non-core channels are estimated by applying the savings
for
core channels proportionally to non-core revenue. The cashback earned by
Quidco
members is included in this KPI.
Group marketing margin: The inverse
relationship between Group revenue and total marketing spend represented as a
percentage. Total marketing spend is the direct cost of sales plus
distribution expenses.
MSM & MSE net promoter score: The 12 monthly rolling
average NPS (1 Jan 2023 - 31 Dec 2023 inclusive) measured
by YouGov Brand Index service Recommend Score weighted by revenue for MSM and
MSE to create a combined NPS.
MSM & Quidco active users: The number of
unique MSM accounts running enquiries on MSM (car insurance, home insurance,
life insurance, travel insurance, pet insurance, van insurance, credit cards,
loans and energy channels) in the last 12-month period, plus the number of
unique Quidco members making a purchase in the last 12-month period.
MSM & Quidco revenue per active user: The revenue for MSM channels (car
insurance, home insurance, life insurance, travel insurance, pet insurance,
van insurance, credit cards, loans and energy channels) plus Quidco revenue
net of member commission divided by the number of MSM and Quidco active users
for the last 12 months.
MSM cross-channel enquiry: The proportion of MSM active
users that enquire in more than one channel (car insurance, home insurance,
life insurance, travel insurance, pet insurance, van insurance, credit cards,
loans and energy) within a 12-month period.
*Marketing spend for the year is £181.5m (2022: £165.2m).
**We have extended our definition of active users to reflect the development
of the business by including Quidco and 3 additional MSM channels where
enquiry data is available. Comparatives for active users and revenue per
active user in the above table have been restated to reflect this change.
KPI definitions reflect the parts of the Group most relevant for assessing its
performance and where data is available: NPS includes our two biggest consumer
brands. Active users is most relevant for MSM and Quidco where user accounts
are identified as a key part of the transactional journey. Cross-channel
enquiry relates only to MSM as this metric is aligned to our aim of offering
more products to users as part of our retain and grow strategy.
We estimate that the Group saved customers £2.7bn in 2023. The increase from
2022 was driven by growth in car insurance switching volumes and savings per
sale for car insurance customers.
NPS fell slightly to 70 but still demonstrates that trust and satisfaction in
both brands remains high. MSE scored extremely well and MSM finished the year
ahead of other price comparison sites.
MSM and Quidco active users rose by 1.2m to 14.2m, driven by strong
performance in car insurance, partly offset by a decline in energy enquiries
as the switching market remained subdued.
Revenue per active user grew by £1.58p to £17.82p with fewer energy
enquiries (which had negligible conversion because of a lack of switchable
tariffs) and mix into other higher average revenue per user channels.
Marketing margin increased by 1%pt to 58% reflecting improvements in our
efficient acquisition strategy, as we optimise our PPC, SEO, CRM and brand
marketing.
During the year MSM cross-channel enquiry rate improved by 1% to 24% with more
users enquiring in additional channels in combination with car insurance.
Financial review
Group revenue increased 11% to £432.1m (2022: £387.6m) with profit after tax
increasing 4% to £72.3m (2022: £69.3m). When reviewing performance, the
Board reviews several adjusted measures, including EBITDA, which increased 14%
to £131.9m (2022: £115.5m), and adjusted basic EPS which increased 12% to
16.0p (2022: 14.4p), as shown in the table below.
Extract from the Consolidated Statement of Comprehensive Income
for the year ended 31 December
2023 2022 Growth
£m £m %
Revenue 432.1 387.6 11
Cost of sales (139.7) (125.1) 12
Gross profit 292.4 262.5 11
Operating costs (195.1) (173.5) 12
Operating profit 97.3 89.0 9
Amortisation and depreciation 34.6 26.5 31
EBITDA* 131.9 115.5 14
Adjusted earnings per share**:
- basic (p) 16.0 14.4 12
- diluted (p) 16.0 14.3 12
* In the current and prior year there were no adjusting items within EBITDA.
** A reconciliation to adjusted EPS is included within note 4.
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 EBITDA and adjusted basic EPS alongside GAAP measures when reviewing
the performance of the Group. Executive management bonus targets include an
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 year ended 31 December
2023 2022 Growth
£m £m %
Insurance 220.0 172.0 28
Money 100.2 103.3 (3)
Home Services 39.0 39.8 (2)
Travel * 20.6 15.5 33
Cashback * 59.8 59.8 0
Inter-vertical eliminations * (7.5) (2.8) 166
Total 432.1 387.6 11
* The comparative revenue for the year ended 31 December 2022 has been
restated to align with the change in presentation of inter-vertical
eliminations. The inter-vertical eliminations revenue line reflects
transactions where revenue in Cashback and Travel has also been recorded as
cost of sales in other verticals.
Revenue grew 11% to £432.1m. Strong trading was led by Insurance and
supported by our efficient acquisition and retain and grow strategy.
Insurance
Revenue in Insurance grew 28% to £220.0m, with growth in all core products.
Growth was underpinned by strong switching in car insurance and home
insurance, and we won market share in both products.
Car and home premium prices paid increased substantially as providers passed
on rising costs of claims. Premium prices paid in car insurance were up 35% to
end of November, which showed signs of stabilising at the end of the year.
Home premium inflation accelerated in the year, up 34% in the same period. The
combination of high levels of premium price inflation and the cost-of-living
squeeze resulted in high levels of search traffic with consumers seeking a
better deal.
Since the introduction of the FCA's General Insurance Pricing Practices (GIPP)
regulation, insurers have innovated and we have launched a record 96 new
brands and products on our site since the introduction of GIPP at the start of
2022, as we help consumers navigate a broader range of choice and complexity.
Our efficient acquisition strategy has supported improved levels of conversion
alongside our increasingly differentiated customer propositions including our
price promise and journey optimisation alongside growth of our B2B offering.
Following a strong year of growth for travel insurance in 2022, momentum
continued into the first half of 2023 and stabilised in the second half with a
move away from "silver" tier policies as consumers more frequently chose
either a more basic "bronze" level of cover or enhanced "gold" coverage.
Money
Revenue in Money was £100.2m, down 3% on 2022 which was an exceptionally
strong year. Money was still up 33% compared to 2021.
Interest rates affected Money in borrowing making loans and mortgages more
expensive, and in banking, where savings and deposit products offered more
attractive interest rates.
In borrowing, although search traffic remained strong throughout the year,
conversion has remained lower than levels seen in 2022 which reflects the
higher costs of lending with the Bank of England holding base rates at 5.25%
at the end of the year, a 15 year high, following a run of 14 consecutive
increases.
Within our banking product lines, current accounts performed strongly as
customers looked to lock in high savings rates and promotional switching
incentives. 2023 was our best ever year for current account switching, with
attractive deals available across a range of providers.
Home Services
Home Services revenue was £39.0m, down 2%, as a result of softer broadband
switching in a competitive market.
Revenue from mobile switching was up double digits, driven by strong offers
and new handset launches.
Visitor levels to our site for broadband switching were steady, but conversion
dropped, reflecting the subdued and competitive market.
The energy switching market remained subdued through the year. 1(st) July was
the first time that Ofgem's Energy Price Cap ('EPC') had fallen below the
government's Energy Price Guarantee ('EPG') since its inception in October
2022. However, the gap between the EPC and EPG remained slim throughout the
second half of the year. MSM hosted a small number of limited size switching
deals which were immaterial.
Travel
We delivered strong growth in Travel with revenue up 33%, with particularly
strong growth in the first half. There was continued strong demand for package
holidays.
During the year, we invested in a new TV advert for TravelSupermarket, the
first in seven years. We also invested in upgrading the tech platform.
Cashback
Revenue in Cashback was flat at £59.8m despite continuing headwinds in online
retail, with rising costs of living impacting discretionary spending. We
delivered strong growth in Insurance products on Quidco following the launch
of Quidco Compare on the MSM Group tech platform. Car, home and pet insurance
were launched on the MSM Group tech platform in 2023.
During the year we made continued progress, investing in our efficient
acquisition tools by finalising the migration onto the Group CRM platform and
in a new TV and radio advertising campaign which supported member growth
momentum.
Gross profit
Gross profit was up 11% to £292.4m, while gross margin was maintained at
67.7% (2022: 67.7%). The margin reflects the strong performance in
Insurance, particularly in car insurance, as well as PPC efficiency, and was
offset by increased marketing spend in Cashback and Travel.
Operating costs
for the year ended 31 December
2023 2022 Growth
£m £m %
Distribution expenses 41.8 40.1 4
Administrative expenses 153.3 133.4 15
Operating costs 195.1 173.5 12
Within administration expenses
Amortisation of technology related intangible assets 9.3 10.4 (11)
Amortisation of acquisition related intangible assets 21.1 11.3 87
Depreciation 4.2 4.8 (12)
Amortisation and depreciation 34.6 26.5 31
Distribution expenses increased by 4% with a decision to support new TV and
radio advertisements for Quidco and TravelSupermarket on top of planned
continued investment in MSM's MoneySuperSeven campaign including the launch of
the SuperSaveClub.
Administrative expenses increased by 15%. This included a £9.8m uplift in
amortisation of acquired intangibles following a reassessment of their useful
economic lives. This is a change to the phasing of amortisation costs and in
effect brings forward charges from future periods. Excluding depreciation and
amortisation, underlying administrative expenses increased by 11%.
Setting aside the £1.7m increase in distribution expenses reflecting the
investment in our brands, operating expenses before non-cash items
(depreciation, amortisation and share based payments) increased by 8%.
Included within the increase in administrative expenses was the full year
effect of the consolidation of Podium, which we acquired in December 2022. On
a like-for-like basis (adjusting for Podium and excluding non-cash items), the
increase in operating costs is 6%. This reflects underlying cost management,
including closing regional offices, and delivery of efficiency gains from
simplifying the technology estate.
Adjusting items*
for the year ended 31 December
2023 2022 Growth
£m £m %
Amortisation of acquisition related intangible assets 21.1 11.3 87
Adjusting items included in operating profit 21.1 11.3 87
* Amortisation of acquisition related intangible assets is not included in
EBITDA and therefore is only an adjusting item in the adjusted EPS
calculation.
Amortisation of acquisition related intangible assets relates to technology,
brands and member relationships arising on the acquisitions of Decision Tech,
CYTI, Quidco and Podium, as well as the combination of TravelSupermarket and
icelolly.com, in prior years.
The charge has increased this year following a reduction in the amortisation
period of the brands and member relationships assets from ten to five years.
This reflects a change in the period of economic benefit that is expected to
be generated by these assets, which becomes more diluted as they are
integrated into the Group. As this is a change in accounting estimate, the
catch up of amortisation has been recognised in the current year without the
requirement for any prior period restatement.
Dividends
The Board has recommended a final dividend of 8.9p pence per share (2022:
8.6p), making the proposed full year dividend 12.1p pence per share (2022:
11.7p). Our capital allocation policy remains unchanged. First we prioritise
organic growth, followed by the ordinary dividend, after which we consider
M&A and then enhanced distribution to shareholders.
The final dividend will be paid on 10 May 2024 to shareholders on the register
on 2 April 2024, subject to approval by shareholders at the Annual General
Meeting to be held on 2 May 2024.
Tax
The effective tax rate of 21.5% (2022: 18.7%) is below the UK standard rate of
25.0% (2022: 19.0%). This is primarily due to the change in tax rate in April
2023, which has resulted in a blended rate for the year of 23.5%. The
effective tax rate is lower than this blended rate due to an adjustment in
respect of the prior period which has reduced the tax charge.
Earnings per share
Basic reported earnings per share increased by 6% to 13.5p (2022: 12.7p).
Growth was not as high as the growth in EBITDA primarily due to the additional
£9.8m amortisation charge from acquired intangibles and higher finance costs.
Adjusted basic earnings per share increased by 12% to 16.0p per share (2022:
14.4p), which is driven by the EBITDA growth.
Adjusted earnings per share is based on profit before tax after adding back
the adjusting items detailed above. A tax rate of 23.5% (2022: 19.0%) is
applied to calculate adjusted profit after tax. The tax rate this year
reflects the change in standard rate from 19.0% to 25.0% in April 2023.
Adjusted basic earnings per share increased by 12% to 16.0p per share (2022:
14.4p), which is driven by the EBITDA growth.
Cashflow and balance sheet
Operating cashflows decreased to £102.2m (2022: £104.4m) due to an increase
in tax payments arising from an increase in the rate of corporation tax and
part of the Group transitioning to quarterly instalment payments. Operating
cashflows before tax payments increased from £122.4m to £130.8m. The working
capital outflow of £4.1m was mainly driven by higher receivables, partially
offset by an increase in payables, both of which reflect the uplift in trade
year on year.
The Group's net debt position at year end was £19.8m (2022: £39.0m
restated). Net debt is cash and cash equivalents of £16.6m (2022: £16.6m)
less borrowings of £34.5m (2022: £44.0m), loan notes payable to Podium's
non-controlling interest of £1.9m (2022: £1.8m) and £nil (2022: £9.8m)
deferred consideration from the Quidco acquisition which was settled during
the year. Net debt to EBITDA fell to 0.2x from 0.3x in 2022.
Cash outflows on investing activities of £20.9m include £11.0m of cash
capital expenditure and £10.0m (including interest) of deferred consideration
(including interest) in respect of Quidco.
Capital expenditure
Capital expenditure was £11.0m (2022: £11.4m), including technology
investment of £10.5m (2022: £10.6m). In 2024, technology capex is expected
to continue to be modest at between £11m and £13m as we continue to invest
in work to support delivery of strategic initiatives.
The amortisation charge for technology assets has decreased slightly from
£10.4m to £9.3m due to older assets becoming fully written down during the
year.
Consolidated statement of comprehensive income
for the year ended 31 December
Note 2023 2022
£m £m
Revenue 2 432.1 387.6
Cost of sales (139.7) (125.1)
Gross profit 292.4 262.5
Distribution expenses (41.8) (40.1)
Administrative expenses (153.3) (133.4)
Operating profit 97.3 89.0
Net finance expense 3 (5.2) (3.5)
Share of post-tax loss of equity accounted investees - (0.3)
Profit before taxation 92.1 85.2
Taxation 4 (19.8) (15.9)
Profit for the year 72.3 69.3
Other comprehensive income (0.1) (2.0)
Total comprehensive income for the year 72.2 67.3
Profit/(Loss) attributable to:
Owners of the Company 72.7 68.3
Non-controlling interest 11 (0.4) 1.0
Profit for the year 72.3 69.3
Total comprehensive income attributable to:
Owners of the Company 72.6 66.3
Non-controlling interest 11 (0.4) 1.0
Total comprehensive income for the year 72.2 67.3
Earnings per share:
Basic earnings per ordinary share (pence) 5 13.5 12.7
Diluted earnings per ordinary share (pence) 5 13.5 12.7
Consolidated statement of financial position
as at 31 December
Note 2023 2022
£m £m
Assets
Non-current assets
Property, plant and equipment 32.1 35.4
Intangible assets and goodwill 7 260.3 279.9
Other investments 5.4 5.5
Total non-current assets 297.8 320.8
Current assets
Trade and other receivables 79.3 63.5
Prepayments 10.1 8.3
Current tax assets 1.3 -
Cash and cash equivalents 16.6 16.6
Total current assets 107.3 88.4
Total assets 405.1 409.2
Liabilities
Non-current liabilities
Other payables 25.4 27.7
Borrowings 8 - 30.0
Deferred tax liabilities 15.8 22.5
Total non-current liabilities 41.2 80.2
Current liabilities
Trade and other payables 103.3 99.5
Borrowings 8 34.5 14.0
Current tax liabilities - 0.8
Total current liabilities 137.8 114.3
Total liabilities 179.0 194.5
Equity
Share capital 0.1 0.1
Share premium 205.5 205.4
Reserve for own shares (2.4) (2.4)
Retained earnings (46.3) (58.1)
Other reserves 63.6 63.7
Equity attributable to the owners of the Company 220.5 208.7
Non-controlling interest 5.6 6.0
Total equity 226.1 214.7
Total equity and liabilities 405.1 409.2
Consolidated statement of changes in equity
for the year ended 31 December
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 2022 0.1 205.4 (2.6) (64.7) 65.1 203.3 4.3 207.6
Profit for the year - - - 68.3 - 68.3 1.0 69.3
Other comprehensive income - - - (0.6) (1.4) (2.0) - (2.0)
Total comprehensive income for the year - - - 67.7 (1.4) 66.3 1.0 67.3
Acquisition of subsidiary with non-controlling interest - - - - - - 0.7 0.7
Purchase of shares by employee trusts - - (0.3) - - (0.3) - (0.3)
Exercise of LTIP awards - - 0.5 (0.5) - - - -
Equity dividends - - - (62.8) - (62.8) - (62.8)
Share-based payments - - - 2.2 - 2.2 - 2.2
At 31 December 2022 0.1 205.4 (2.4) (58.1) 63.7 208.7 6.0 214.7
At 1 January 2023 0.1 205.4 (2.4) (58.1) 63.7 208.7 6.0 214.7
Profit for the year - - - 72.7 - 72.7 (0.4) 72.3
Other comprehensive income - - - - (0.1) (0.1) - (0.1)
Total comprehensive income for the year - - - 72.7 (0.1) 72.6 (0.4) 72.2
New shares issued - 0.1 - - - 0.1 - 0.1
Purchase of shares by employee trusts - - (0.5) - - (0.5) - (0.5)
Exercise of LTIP awards - - 0.5 (0.5) - - - -
Equity dividends - - - (63.4) - (63.4) - (63.4)
Share-based payments - - - 3.0 - 3.0 - 3.0
At 31 December 2023 0.1 205.5 (2.4) (46.3) 63.6 220.5 5.6 226.1
Consolidated statement of cash flows
for the year ended 31 December
2023 2022
£m £m
Operating activities
Profit for the year 72.3 69.3
Adjustments to reconcile Group profit to net cash flow from operating
activities:
Amortisation of intangible assets 30.4 21.7
Depreciation of property, plant and equipment 4.2 4.8
Share of post-tax loss of equity accounted investees - 0.3
Net finance expense 5.2 3.5
Equity settled share-based payment transactions 3.0 2.2
Taxation expense 19.8 15.9
Changes in trade and other receivables (17.6) 3.0
Changes in trade and other payables 13.5 1.7
Taxation paid (28.6) (18.0)
Net cash flow from operating activities 102.2 104.4
Investing activities
Interest received 0.1 0.0
Acquisition of property, plant and equipment (0.5) (0.8)
Acquisition of intangible assets (10.5) (10.6)
Acquisition of subsidiaries, net of cash acquired (10.0) (5.3)
Acquisition of investments - (0.2)
Net cash used in investing activities (20.9) (16.9)
Financing activities
Dividends paid (63.4) (62.8)
Proceeds from share issue 0.1 -
Purchase of shares by employee trusts (0.5) (0.3)
Proceeds from borrowings 53.5 62.0
Repayment of borrowings (63.0) (75.5)
Interest paid (5.1) (3.7)
Repayment of lease liabilities (2.9) (3.1)
Net cash used in financing activities (81.3) (83.4)
Net decrease in cash and cash equivalents 0.0 4.1
Cash and cash equivalents at 1 January 16.6 12.5
Cash and cash equivalents at 31 December 16.6 16.6
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 year
ended 31 December 2022.
The financial statements have been prepared on the same basis as those for the
year ended 31 December 2022.
Going concern
The Directors have prepared the financial statements on a going concern basis
for the following reasons.
As at 31 December 2023, the Group's external debt comprised an amortising loan
(with a balance outstanding of £30m, repayable by October 2024) and a
revolving credit facility ('RCF'), (of which £4.5m of the £125m available
was drawn down). In June 2023, the RCF was increased from £90m to £125m and
its term was extended from three to four years, with the option of a further
year. This means that the current RCF is due for renewal in June 2027 unless
it is extended to June 2028. Since the year end the balance of £4.5m has been
fully repaid and no further amounts have been drawn down. The operations of
the business have been impacted by macroeconomic uncertainty caused by high
inflation and rising interest rates, as well as the continued impact of high
wholesale prices on the energy switching market. However, the Group remains
profitable, cash generative and compliant with the covenants of the bank loan
and RCF.
The Directors have prepared cash flow forecasts for the Group, including its
cash position, for a period of at least 12 months from the date of approval of
the financial statements. The Directors note the Group's net current liability
position and have also considered the effect of potential cost-of-living
trading headwinds and recession and competition such as new entrants upon the
Group's business, financial position, and liquidity in severe, but plausible,
downside scenarios. The scenarios modelled take into account the potential
downside trading impacts from recession, sustained cost-of-living increases,
competitive pressures and any one-off cash impacts on top of a base scenario
derived from the Group's latest forecasts. The severe, but plausible, downside
scenarios modelled, under a detailed exercise at a channel level, included
minimal recovery of energy over the period of the cash flow forecasts and in
the most severe scenarios reflected some of the possible cost mitigations
that could be taken. The impact these scenarios have on the financial
resources, including the extent of utilisation of the available debt
arrangements and impact on covenant calculations has been modelled. The
possible mitigating circumstances and actions in the event of such scenarios
occurring that were considered by the Directors included cost mitigations such
as a reduction in the ordinary dividend payment, a reduction in operating
expenses or the slowdown of capital expenditure. A reverse stress test has
also been performed, which assumes the maximum available drawdown of
borrowings, whilst maintaining covenant compliance.
The scenarios modelled and the reverse stress test showed that the Group and
the Parent Company will be able to operate at adequate levels of liquidity for
at least the next 12 months from the date of signing the financial statements.
The Directors, therefore, consider that the Group and Parent Company have
adequate resources to continue in operational existence for at least 12 months
from the date of approval of the financial statements and have prepared them
on a going concern basis.
Consideration of Climate Change
In preparing the financial statements, the Directors have considered the
impact of climate change and there has been no material impact identified in
the reporting period on the financial reporting judgements and estimates. The
Directors considered the risks with respect to going concern and viability, as
well as the cashflow forecasts used in the impairment assessment, and noted no
material risks. Whilst there is no material financial impact to the Group
expected from climate change within the reporting and forecast period of the
Group, the Directors will assess these risks regularly against the judgements
and estimates used in preparation of the financial statements.
2. Segmental information
Below we report a measure of profitability at segment level that reflects the
way performance is assessed internally. During the year, we changed the way in
which we do this by including inter-vertical revenue and inter-vertical cost
of sales within the verticals in order to give a more accurate view of
performance. These amounts are now deducted in a separate "inter-vertical
eliminations" column to arrive at the consolidated total values. The
comparative segmental information for the year ended 31 December 2022 has been
restated in the same way.
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 expense, 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.
The following summary describes the products and services in each segment.
Segment Products and services
Insurance Customer completes transaction for insurance policy on any of the following:
provider website, our website or a telephone call.
Money Customer completes transaction for money products such as credit cards, loans
and mortgages on provider website.
Home Services Customer completes transaction for home services products such as energy and
broadband on provider website.
Travel Customer completes transaction for travel products on provider website or our
website.
Cashback Customer completes transaction for retail, telecommunications, services and
travel products with a cashback incentive on merchant website. Customer
receives confirmed cashback incentive on our site.
Segment Insurance Money Home Travel Cashback Shared costs Total
Services
£m £m
£m £m £m £m
£m
Inter-vertical eliminations
£m
Year ended 31 December 2023
Revenue 220.0 100.2 39.0 20.6 59.8 - (7.5) 432.1
Directly attributable expenses (93.5) (33.7) (12.5) (15.2) (52.1) (100.7) 7.5 (300.2)
EBITDA contribution 126.5 66.5 26.5 5.4 7.7 (100.7) - 131.9
EBITDA contribution margin* 58% 66% 68% 26% 13% - - 31%
Depreciation and amortisation (34.6)
Net finance expense (5.2)
Share of post-tax loss of equity accounted investees -
Profit before tax 92.1
Taxation (19.8)
Profit for the year 72.3
Segment Insurance Money Home Travel Cashback Shared costs Total
Services
£m £m
£m £m £m £m
£m
Inter-vertical eliminations
£m
Year ended 31 December 2022
Revenue ** 172.0 103.3 39.8 15.5 59.8 - (2.8) 387.6
Directly attributable expenses (74.2) (31.0) (14.6) (10.0) (50.3) (94.8) 2.8 (272.1)
EBITDA contribution 97.8 72.3 25.2 5.5 9.5 (94.8) - 115.5
EBITDA contribution margin* 57% 70% 63% 35% 16% - - 30%
Depreciation and amortisation (26.5)
Net finance expense (3.5)
Share of post-tax loss of equity accounted investees (0.3)
Profit before tax 85.2
Taxation (15.9)
Profit for the year 69.3
* EBITDA contribution margin is calculated by dividing EBITDA contribution by
revenue.
** The comparative revenue for the year ended 31 December 2022 has been
restated to align with the change in presentation of inter-vertical
eliminations. The inter-vertical eliminations revenue line reflects
transactions where revenue in Cashback and Travel has also been recorded as
cost of sales in other verticals.
Insurance EBITDA contribution margin increased from 57% to 58%, mixing into
higher margin product lines, with growth in irrecoverable VAT offset with
effective cost control.
Money saw a reduction in EBITDA contribution margin from 70% to 66%, primarily
reflecting the Podium acquisition at the end of last year.
Home Services EBITDA contribution margin improved from 63% to 68%, with
redistribution of some operating costs away from the energy product line.
Travel EBITDA contribution margin declined from 35% to 26% with reduced
marketing spend in the prior year.
Margin for Cashback is significantly lower than other verticals as a large
proportion of commission is paid out to members as cashback. EBITDA
contribution margin decreased from 16% to 13% reflecting higher levels of
marketing spend to accelerate member growth, following the completion of
product upgrades and enhancements to our onboarding process.
Shared costs increased by 6% with tech and marketing efficiencies partly
offsetting wider inflationary pressures.
Net finance expense
2023 2022
£m £m
Finance income
Loan notes - 0.3
Bank deposits 0.1 0.0
0.1 0.3
Finance expense
Revolving credit facility (1.8) (1.2)
Bank loan (2.3) (1.4)
Leases (1.0) (1.1)
Deferred consideration (0.1) (0.1)
Amounts payable to non-controlling interest (0.1) -
(5.3) (3.8)
Net finance expense (5.2) (3.5)
3. Taxation
The effective tax rate of 21.5% (2022: 18.7%) is below the UK standard rate of
25.0% (2022: 19.0%). This is primarily due to the change in tax rate in April
2023, which has resulted in a blended rate for the year of 23.5%. The
effective tax rate is lower than this blended rate due to an adjustment in
respect of the prior period which has reduced the tax charge. In 2022, the
corporation tax consolidated effective tax rate of 18.7% was in line with the
standard rate of 19%.
2023 2022
£m £m
Current tax
Current tax on income for the year 27.5 18.3
Adjustment in relation to prior period (1.0) 0.4
26.5 18.7
Deferred tax
Origination and reversal of temporary differences (6.3) (1.9)
Adjustment due to changes in corporation tax rate (0.3) (0.2)
Adjustment in relation to prior period (0.1) (0.7)
(6.7) (2.8)
Taxation 19.8 15.9
4. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss for the
year attributable to ordinary equity holders of the Company, by the weighted
average number of ordinary shares outstanding during the year. The Company's
own shares held by employee trusts are excluded when calculating the weighted
average number of ordinary shares outstanding.
Diluted earnings per share
Diluted earnings per share is calculated by dividing the profit or loss for
the year attributable to ordinary equity holders of the Company, by the
weighted average number of ordinary shares outstanding during the year 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:
2023 2022
£m £m
Profit after taxation attributable to the owners of the Company 72.7 68.3
Basic weighted average ordinary shares in issue (millions) 536.4 536.5
Dilutive effect of share based instruments (millions) 2.7 2.4
Diluted weighted average ordinary shares in issue (millions) 539.1 538.9
Basic earnings per ordinary share (pence) 13.5 12.7
Diluted earnings per ordinary share (pence) 13.5 12.7
Adjusted basic and diluted earnings per share have been calculated as follows:
2023 2022
£m £m
Profit before tax 92.1 85.2
Adjusted for loss/(profit) before tax attributable to non-controlling interest 0.2 (1.2)
Profit before tax attributable to the owners of the Company 92.3 84.0
Amortisation of acquisition related intangible assets 21.1 11.3
Amortisation of acquisition related intangible assets attributable to (0.9) (0.2)
non-controlling interest (see note 10)
112.5 95.1
Estimated taxation at 23.5%* (2022: 19%) (26.4) (18.1)
Profit for adjusted EPS purposes 86.1 77.0
Adjusted basic earnings per share (pence) 16.0 14.4
Adjusted diluted earnings per share (pence) 16.0 14.3
* Estimated taxation at 23.5% is derived from the standard rate of corporation
tax increasing from 19% to 25% in April 2023
5. Dividends
2023 2022
£m £m
Equity dividends on ordinary shares:
Final dividend for 2022: 8.6 pence per share 46.2 46.2
(2021: 8.6 pence per share)
Interim dividend for 2023: 3.2 pence per share 17.2 16.6
(2022: 3.1 pence per share)
Equity dividends 63.4 62.8
Proposed for approval (not recognised as a liability as at 31 December):
Final dividend for 2023: 8.9 pence per share 47.8 46.2
(2022: 8.6 pence per share)
6. Intangible assets
Market related Customer relationships Technology related Goodwill Total
£m £m £m £m £m
Cost
At 1 January 2022 169.6 21.2 123.4 289.1 603.3
Additions - - 13.2 - 13.2
Transfers - - 0.5 (0.5) -
At 31 December 2022 169.6 21.2 137.1 288.6 616.5
Amortisation
At 1 January 2022 150.5 0.4 89.7 74.3 314.9
Charge for the year 2.8 2.1 16.8 - 21.7
At 31 December 2022 153.3 2.5 106.5 74.3 336.6
Carrying value
At 1 January 2022 19.1 20.8 33.7 214.8 288.4
At 31 December 2022 16.3 18.7 30.6 214.3 279.9
Cost
At 1 January 2023 169.6 21.2 137.1 288.6 616.5
Additions - - 10.8 - 10.8
Disposals - - (26.6) - (26.6)
At 31 December 2023 169.6 21.2 121.3 288.6 600.7
Amortisation
At 1 January 2023 153.3 2.5 106.5 74.3 336.6
Charge for the year 8.2 6.7 15.5 - 30.4
Eliminated on disposal - - (26.6) - (26.6)
At 31 December 2023 161.5 9.2 95.4 74.3 340.4
Carrying value
At 1 January 2023 16.3 18.7 30.6 214.3 279.9
At 31 December 2023 8.1 12.0 25.9 214.3 260.3
Disposals
Disposals in the current year include intangible assets with an original cost
of £26.6m and a carrying value of £nil that are no longer in use were
retired. There was no impact on profit or loss arising from this. There were
no disposals in the comparative year.
Goodwill
At 31 December 2023, the Group had significant balances relating to goodwill
as a result of acquisitions of businesses in the current and 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.
The Group is required to allocate goodwill between its cash generating units
('CGUs') that represent the lowest level at which goodwill is monitored for
internal management purposes. These CGUs are Insurance, Money, Home Services,
Travel and Cashback, all of which have been tested for impairment.
For all CGUs the present value of expected future cash flows has been
calculated using management's best estimate, which is based on the Group's
long-term plan, approved in January 2024, incorporating cost of sales,
advertising and an allocation of overhead costs. The forecast assumes
continued growth in each CGU; with many change programmes delivered in 2022
and 2023 we continue to expect to see the benefits in future years with market
growth in a number of product lines.
In accordance with IAS 36 - Impairment of Assets, the Group is required to
test goodwill for impairment annually by comparing the recoverable amount to
the carrying value of the total assets allocated to each CGU. The recoverable
amount is the higher of the CGU's value in use and its fair value less costs
of disposal.
Our assessment concluded that there is headroom across all CGUs and the
Directors have therefore concluded that no impairment of goodwill is required.
After considering sensitivities, there is no reasonably possible change in key
assumptions that could lead to the recoverable amount of any CGU falling below
its carrying amount.
7. Borrowings
2023 2022
£m £m
Non-current
Loan - 30.0
Current
Revolving credit facility 4.5 4.0
Loan 30.0 10.0
34.5 14.0
8. Related party transactions
Peter Duffy, Robin Freestone and Rakesh Sharma in total received dividends
from the Group totalling £31,697 (2022: Peter Duffy, Robin Freestone,
Scilla Grimble, James Bilefield and Sally James in total received
£41,649).
9. Commitments and contingencies
At 31 December 2023, the Group was committed to incur capital expenditure of
£1.0m (2022: £0.3m).
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 potentially 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.
10. Non-controlling interest
In December 2022, the Group acquired control of Podium Solutions Limited which
had previously been accounted for as a joint venture. Podium Solutions Limited
is now consolidated as a subsidiary undertaking and a non-controlling interest
is recognised within equity.
The Group also recognises a non-controlling interest in respect of Ice Travel
Group Limited and its two wholly owned subsidiaries Travelsupermarket Limited
and Icelolly Marketing Limited (together "Ice Travel Group").
The following table summarises the financial performance and position of these
companies at the year end before any intra-group eliminations.
At December 2023 Podium Solutions Ice Travel Total
Limited Group
Non-controlling interest 48% 33%
£m £m £m
Non-current assets* 2.2 14.2 16.4
Current assets 0.8 11.2 12.0
Non-current liabilities (1.9) (6.6) (8.5)
Current liabilities (1.6) (1.2) (2.8)
Net assets (0.5) 17.6 17.1
Net assets attributable to non-controlling interest (0.2) 5.8 5.6
Revenue 0.1 19.5 19.6
(Loss)/Profit (2.0) 1.7 (0.3)
Other comprehensive income - - -
Total comprehensive income (2.0) 1.7 (0.3)
(Loss)/Profit attributable to the non-controlling interest (1.0) 0.6 (0.4)
Other comprehensive income attributable to non-controlling interest - - -
Total comprehensive income attributable to non-controlling interest (1.0) 0.6 (0.4)
Cash flows from operating activities 0.1 3.4 3.5
Cash flows from investing activities (0.0) (0.9) (0.9)
Net increase in cash and cash equivalents 0.1 2.5 2.6
At December 2022 Podium Solutions Ice Travel Total
Limited Group
Non-controlling interest 48% 33%
£m £m £m
Non-current assets* 3.2 14.5 17.7
Current assets 0.3 8.3 8.6
Non-current liabilities (1.8) (4.9) (6.7)
Current liabilities (0.1) (2.0) (2.1)
Net assets 1.6 15.9 17.5
Net assets attributable to non-controlling interest 0.7 5.3 6.0
Revenue - 14.6 14.6
Profit - 3.1 3.1
Other comprehensive income - - -
Total comprehensive income - 3.1 3.1
Profit attributable to the non-controlling interest - 1.0 1.0
Other comprehensive income attributable to non-controlling interest - - -
Total comprehensive income attributable to non-controlling interest - 1.0 1.0
Cash flows from operating activities - 4.5 4.5
Cash flows from investing activities - (0.4) (0.4)
Net increase in cash and cash equivalents - 4.1 4.1
* Non-current assets for Ice Travel Group include £7.4m (2022: £7.4m) of
goodwill in respect of Travelsupermarket Limited that was recognised on the
Group's balance sheet prior to the acquisition of Ice Travel Group.
Loss and total comprehensive income for the year in respect of Podium
Solutions Limited and Ice Travel Group include amortisation of intangibles
relating to the acquisition of these companies by the Group of £2.2m (2022:
£0.6m). Included in the loss (2022: profit) attributable to non-controlling
interest and total comprehensive income attributable to non-controlling
interest is £0.9m (2022: £0.2m) of amortisation of acquired intangibles.
Appendix
Statutory Information
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2023 or 31 December 2022 but
is derived from those accounts. Statutory accounts for 2022 have been
delivered to the registrar of companies, and those for 2023 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 report and accounts for the year ended 31 December 2023 will be
posted to shareholders in March 2024. The results for the year ended 31
December 2023 were approved by the Board of Directors on 16 February 2024 and
are audited. The Annual General Meeting will take place on 2 May 2024. The
final dividend will be payable on 10 May 2024 to shareholders on the register
at the close of business on 2 April 2024.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR EAXAKFAALEFARecent news on Moneysupermarket.Com
See all newsREG - Moneysupermarket.com - Total Voting Rights
AnnouncementREG - Moneysupermarket.com - Director/PDMR Shareholding
AnnouncementREG - Moneysupermarket.com - Q1 2024 Update
AnnouncementREG - Moneysupermarket.com - Director/PDMR Shareholding
AnnouncementREG - Moneysupermarket.com - Director/PDMR Shareholding
Announcement