REG - Mony Group PLC - Preliminary Results
17/02/2025 07:00
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RNS Number : 2549X Mony Group PLC 17 February 2025
17 February 2025
MONY Group PLC
Preliminary results for the year ended 31 December 2024
Continued strong strategic and financial progress; SuperSaveClub exceeds 1
million members
Year ended 31 December 2024 2023 Growth %
Group Revenue £439.2m £432.1m 2
Adjusted EBITDA * £141.8m £132.9m 7
Profit After Tax £80.2m £72.3m 11
Adjusted Basic EPS ** 17.1p 16.2p 5
Basic EPS 15.0p 13.5p 11
Operating Cashflow £115.6m £102.2m 13
Net Cash/(Debt) *** £8.4m (£19.8m) n.a
Dividend Per Share 12.5p 12.1p 3
Financial highlights
· Record revenue of £439.2m, up 2%, driven by good performance in
Insurance particularly in the first half, as well as growth in Cashback
· Highest ever Adjusted EBITDA, up 7% to £141.8m, with Adjusted
EBITDA margin expanded by 1%pt to 32% demonstrating continued robust cost
management
· Profit After Tax of £80.2m, up 11%
· Adjusted Basic Earnings Per Share of 17.1p, up 5%
· Operating Cashflow of £115.6m, up 13%
· Return to Net Cash after paying down the term loan for the Quidco
acquisition
Shareholder returns
· The Board has proposed a final dividend per share of 9.2p,
bringing the total dividend for FY24 to 12.5p, up 3%
· Share buyback programme of up to £30 million, reflecting MONY
Group's strong cash generation and robust financial position
Strategic highlights
· Helped households save an estimated record £2.9bn
· Strong momentum across our member-based propositions;
o SuperSaveClub (SSC) has surpassed 1 million members with all major
products live. Members now generate 12% of Group sales
o Advanced CRM and personalisation capabilities leveraging our group tech
and data platform are delivering enhanced engagement and efficiency:
§ Sophisticated programme of renewals reminders, helpful content and
cross-sell emails and app push messages are achieving a 3x uplift in
engagement from SSC members, cashback is now available in SSC
§ Compare+ Home launched in MoneySavingExpert app, and enhanced
personalisation including daily deals and favourite brands are now available
in Quidco
· Continued progress with our provider propositions; B2B, Tenancy
and Market Boost
o 35 B2B partners live, including leading names such as AutoTrader and
Rightmove
o Expansion of Tenancy which is now live in the SSC
o Market boost now available to c.80 providers across Money, Insurance and
Broadband
· AI is transforming our customer operations and content generation
Peter Duffy, CEO of MONY Group, commented:
"We are proud to have helped customers save a record £2.9 billion - the more
customers save, the more the Group grows. We've done this by delivering strong
performance both operationally and financially in 2024 as we continue to
execute on our strategy. This includes encouraging customers to join our
member-based propositions like the SuperSaveClub which, in turn, reduces our
reliance on increasingly expensive pay-per-click (PPC) marketing.
This sustained momentum has enabled us to grow the dividend by 3% this year,
alongside the announcement of a share buyback programme of up to £30 million,
which will deliver enhanced returns to shareholders. This reflects our
confidence in the continued execution of our strategy, and importantly, means
we retain significant capacity to support future growth."
Outlook
Our recent trading performance, coupled with momentum in our strategic
execution gives the Board confidence that we will deliver Adjusted EBITDA for
2025 broadly within our current published consensus.
Despite headwinds in the car insurance switching market, strength in our
breadth provides us with resilience and we continue to see other opportunities
for growth across the business.
We anticipate operating cost inflation (excluding Depreciation and
Amortisation) to be largely mitigated through our ongoing focus on cost
efficiency.
We remain well positioned to continue to deliver sustainable, profitable
growth.
Market expectations for Adjusted EBITDA for 2025 from the analyst consensus on
our investor website is £147.0m with a range of £143.1m to £151.7m
*Notes:
* Adjusted EBITDA is operating profit before depreciation and amortisation and
adjusted for other non-underlying costs as detailed on page 13. This is
consistent with how business performance is measured internally.
**Adjusted Basic Earnings Per Share is profit before tax adjusted for
amortisation of acquisition related intangible assets and other non-underlying
costs as described on page 13. A tax rate of 25.0% (2023: 23.5%) is applied to
calculate adjusted Profit After Tax. This is divided by the number of weighted
average shares. A reconciliation of adjusted basic earnings per share to the
financial statements is included in note 4. Adjusted basic earnings per share
for the year ended 31 December 2023 has been updated from 16.0p to 16.2p to
reflect the reclassification of costs to adjusting items noted above.
***Net cash/(debt) is cash and cash equivalents of £22.4m (2023: £16.6m)
less borrowings of £12.0m (2023: £34.5m) and loan notes payable to Podium's
non-controlling interest of £2.0m (2023: £1.9m). It does not include lease
liabilities.
Quarter 4 trading
Revenue for the Revenue for the
three months ended
year ended
31 December 2024
31 December 2024
£m Growth % £m Growth %
Insurance 53.0 2 235.6 7
Money 22.7 (2) 97.8 (2)
Home Services 10.0 0 36.1 (7)
Travel 2.7 (6) 19.6 (5)
Cashback 16.8 0 60.8 2
Inter-vertical eliminations (2.4) 6 (10.7) 44
Total 102.8 0 439.2 2
Revenue in Q4 was flat with solid Insurance performance offset by softer
trading in Money and Travel.
· In Insurance revenue was up 2%, despite premium inflation in car
and home returning to more normal levels, with travel and life performing
particularly well
· Money was down 2% in the quarter due to fewer attractive current
account deals. Borrowing continued to grow, driven by improved credit card
switching volumes
· Home Services growth was flat in the quarter with some
improvement in energy switching helping to offset continued challenges in
broadband and mobile from provider retention strategies
· Revenue from Travel fell 6% in the quarter with performance
slowing in a competitive market. Note that travel insurance is included within
Insurance
· Cashback revenue was flat in the quarter with strong performance
in insurance offsetting softer trading in retail
Results presentation
A presentation for investors and analysts will be available from 7am at
https://www.monygroup.com/investors/results-reports-and-presentations/
(https://www.monygroup.com/investors/results-reports-and-presentations/)
A Q&A session will be held at 9.30am with Peter Duffy (CEO) and Niall
McBride (CFO) accessed via:
https://edge.media-server.com/mmc/p/iet6tie8/
(https://edge.media-server.com/mmc/p/iet6tie8/)
Notes: Adjusted EBITDA is operating profit before depreciation and
amortisation and other non-underlying costs described on page 13.
For further information, contact:
Investors:
Niall McBride, Chief Financial Officer
niall.mcbride@monygroup.com / 0203 826 4688
Jennifer Cooke, Head of Investor Relations
jennifer.cooke@monygroup.com / 0203 846 2034
Media:
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
We generated our highest ever Revenue and Adjusted EBITDA figures with Revenue
of £439.2m, up 2%, and Adjusted EBITDA of £141.8m, up 7%, underpinned by
strong cost control. This performance has furthered our company purpose of
saving households money such that we saved households an estimated £2.9bn in
2024, up from £2.7bn in 2023.
Revenue growth was primarily driven by good performance in Insurance in the
first half, where we continued to see record switching volumes, and in
Cashback, which performed well despite the tough retail environment.
We delivered on our strategy to grow both sides of our marketplace. We
generated momentum across our member-based propositions; MoneySuperMarket
SuperSave Club (SSC), MoneySavingExpert App & Quidco, and are particularly
encouraged by the performance of SSC which now has over 1 million members,
having only launched in September 2023.
Our provider services also performed well. This includes B2B, Market Boost and
Tenancy. In B2B, we added 6 more brands to our platform, bringing us to 35
brands live, including household names like Rightmove, Autotrader and the
National Union of Students.
This great progress would not be possible without our hard-working teams. We
are proud to have been accredited as a Real Living Hours employer, alongside
our Real Living Wage certification; we also held onto our position as #1 for
Women on Boards in the Technology sector in the 2024 FTSE Women Leaders
Review. We continue to stand together with CALM, united against suicide as our
charity partner for a second year, and finally, we remain on track to reach
Operational Net Zero by 2030.
The strength in our breadth continues to provide us with resilience, as
different markets move through their cycles. All of this translates to a
highly effective, resilient and profitable business, with strong operating
cashflow and efficient capital allocation, that is well positioned to deliver
sustained and consistent growth.
As a result, alongside our ordinary dividend, which is up 3% for FY24, we are
pleased to announce a share buyback programme of up to £30 million, which
will deliver enhanced value for our shareholders. This buyback reflects our
ongoing commitment to sustainable shareholder returns, in addition to
investment in organic and acquisitive growth, as a path to creating long-term,
sustainable shareholder value.
Strategic review
Our strategy is centered on growing our two-sided marketplace, focused on both
customers and providers.
On the customer side, we are focused on growing our loyal, engaged members.
Our member-based propositions are transforming our customer base from
transactional users into long-term members who come to us directly, again and
again. This is a win-win. It offers greater value to our customers while
reducing our costs by attracting more customers to us directly.
Our strategy will deliver:
· Increased transaction volumes, growing revenue per user
· Enhanced loyalty by offering compelling reasons for members to
come back to us
· Greater opportunity for cross-sell and renewal
· Lower cost of sales through greater direct traffic
Our member-based models are moving us away from the expensive third-party
media that price comparison businesses have traditionally used to attract
customers, which is especially key in light of the increasingly competitive
pay-per-click (PPC) market. In the second half of 2024 we saw the costs of PPC
escalate by 19% versus the first half.
We are pleased to now have over 1 million members as part of the SuperSaveClub
(SSC). These members are buying more, have a higher average revenue per user
(ARPU) and a lower cost of acquisition in comparison to non-SSC customers.
Our member-based propositions are central in enabling us to grow while
reducing our reliance on this increasingly expensive customer acquisition
method.
The other side of our marketplace aims to give providers even more reason to
use us. We do this by enabling;
· The best consumer experience, with quick and easy customer
journeys
· Unique data insights from our proprietary data, offering
providers a competitive edge over their peers
· Increased conversion, enabling providers to acquire new customers
more cost effectively
· Targeted ways to promote their products with our tailored tenancy
slots
Underpinning this strategy is our leading data and tech. We completed our data
migration this time last year and the re-platforming work is now also largely
complete, moving us onto our common tech platform, supporting our ability to
scale whilst simplifying our operations.
We have been through a significant transformation since 2019, enabling us to
drive growth while improving efficiency. On a like-for-like 1 basis, we have:
· Grown gross margin by 4 percentage points
· Increased revenue per full time employee (FTE) by 40%
· Held operating expenditure (opex) growth to just an 8% increase
across the period - despite inflation being c.25% 2
Loyal, engaged members
Of our three member-based models, we anticipate MoneySuperMarket's SuperSave
Club to have the biggest impact. We launched the club in September 2023 and
built it out rapidly during 2024. It now covers 12 products and has proved
compelling with customers.
As a reminder:
- The club gives a cash reward to customers for every purchase
- We guarantee best price, and;
- We make it easy for customers to save again and again by using their
data to skip lengthy application forms, we offer free credit monitoring
services and we provide specially selected retailer discounts which all drive
further engagement with the app
We now have a growing cohort of customers who have passed their one-year
anniversary and the early data shows the SuperSaveClub is achieving what we
hoped.
· Firstly, 38% more customers are coming directly for the second
purchase vs traditional MSM users
· Secondly, SuperSaveClub members are more engaged, showing a 2x
increase in their propensity to engage with CRM and a 5x increase in the take
up of the MSM App
· Thirdly, SSC members are buying more from us. We have seen a 3x
increase in both renewal purchases and members buying a second product from us
· And finally and despite it being only 15 months old, SSC members
are generating 12% of total Group sales
We are yet to have full visibility on how year-two cohorts will behave, but it
is clear to see that the club is encouraging customer loyalty and retention
whilst reducing our reliance on paid-marketing. In 2025 we will seek to grow
the club further, and as part of this we are trialling a 'first-purchase
reward'.
Current metrics indicate that every 1 million increase in SSC members could
translate into a 1 percentage point improvement on gross margin.
In the early part of 2025 we have seen member growth continue in line with
2024 and we see significant headroom for continued momentum on member numbers.
MoneySavingExpert App (MSE App)
Two years since launch, MSE app downloads are up 93% to 1.8m, averaging 460k
monthly active users (MAUs) during the year, a 10% increase on FY23. In
addition, more than 9.3m consumers now receive the weekly MSE tip email, up
from 9.1m at FY23.
We have improved the user experience on the MSE App dramatically in the year,
increasing personalisation, offering tools that help users gain greater
control of their finances, launching an improved and highly differentiated
Credit Club, and finally adding motor and home insurance compare products.
Quidco
Quidco, our cashback offering, is enjoying an improved and increasingly
personalised user experience, which is key to driving revenue per user, repeat
engagement, customer loyalty and enhanced conversion.
Best provider propositions
B2B
Our B2B proposition utilises the MONY Group tech platform to enable switching
services for third-party brands who want to offer a comparison service. This
extends our reach and market share with limited incremental cost.
B2B is now available across Car, Home, Broadband, Mobile and Energy. In FY24,
B2B revenue was up 49% driven, in part, by the scaling of existing
partnerships, as well as through the growth of new partners, adding six during
the year, bringing our total to 35 B2B partners live.
Tenancy
Tenancy is our targeted advertising slots that enable partners to promote
their products to specific cohorts of customers. Tenancy is now available
across all core product lines and, during 2024, we began trailing it in the
SuperSaveClub. Revenue from Tenancy was up 6% in FY24 and we see continuing
opportunity for growth in this area.
Market Boost
Market Boost was launched in 2023 and uses our first party data to help
providers better understand how they perform on our platform. It was initially
available in our Money products and we have rolled it out across 2024 into
Insurance and Broadband with c.80 providers now benefitting from this service.
Leading data and technology
Our extensive data and technology re-platforming is now largely complete, and
will be a key enabler for the roll out of our AI implementation.
AI solutions are now live across our customer operations. It has transformed
the approach our marketing teams take to content generation and we have begun
to deploy it successfully to improve conversion, building out new user
experiences within some of our core journeys.
Our future focus with AI is to build out new consumer propositions, continue
the internal transformation of the business and equip our people to become
leading proponents of the technology.
ESG
As well as helping households save money, we aim to make a positive difference
to our people, the wider community, and the environment. We want our
colleagues to not only live our purpose but have confidence in us as a
responsible and fair employer. To do that we invest in our employees
wellbeing and the communities we are based in, whilst building a broader
social impact inspired by our charitable activities.
We are proud to be accredited as a Real Living Hours employer, which now sits
alongside our Real Living Wage certification and in April 2024 we increased
our Employer pension contributions by 1%. Furthermore, we delighted to hold
our position as #1 for Women on Boards in the Technology sector in the 2024
FTSE Women Leaders Review.
We are committed to minimising our environmental impact, with our goal of
achieving Operational Net Zero by 2030. This target includes a 90% reduction
in Scope 1 and Scope 2 emissions, as well as remaining as a 'Carbon Neutral'
business by offsetting 100% of our carbon emissions. Our environmental impact
is disclosed through the Carbon Disclosure Project, and we maintained our C
score for 2023 (awarded in 2024).
We have established Science Based Targets to guide our efforts. By 2030, we
aim to:
· Reduce absolute Scope 1 and Scope 2 GHG emissions by 91% from 2019
levels
· Source 100% renewable electricity annually
· Reduce Scope 3 emissions by 58.8% by 2033 from 2019 levels
Upon receiving our accreditation, the SBTi commended our ambitious
1.5°C-aligned target, which is currently the highest designation available
through the SBTi process. This recognition highlights our dedication to
addressing climate change and reducing our environmental impact. This year, we
will publish our Climate Transition Plan, detailing our performance against
targets and our future plans.
As a signatory of the United Nations Global Compact, we embrace its principles
and commit to aligning our operations and strategies with ten universally
accepted principles in the areas of human rights, labour, environment, and
anti-corruption.
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
2024 2023
Estimated Group customer savings £2.9bn £2.7bn
Group marketing margin* 58% 58%
MSM 3 and MSE 4 net promoter score (NPS) 72 70
MSM & Quidco active users 13.8m 14.2m
MSM & Quidco revenue per active user £18.54 £17.82
MSM cross-channel enquiry 25% 24%
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 2024 - 31 Dec 2024 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 £183.0m (2023: £181.5m).
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 £2.9bn in 2024. The increase from
2023 was driven by growth in both sales volumes and average savings per sale
across our car, home and travel insurance and cards channels.
NPS rose to 72 demonstrating 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 declined by 0.3m to 13.8m, driven by a decline in
energy enquiries with fewer users looking for deals with the switching market
remaining subdued.
Revenue per active user grew by £0.72p to £18.54 following a mix into car
and home insurance along with higher multi-channel activity as we scaled
SuperSaveClub members.
Marketing margin remained flat at 58% as we actively balanced efficiencies in
direct marketing spend with increased paid search costs.
During the year the MSM cross-channel enquiry rate improved by 1% to 25%,
supported by the growth of SuperSaveClub members.
Financial review
Group revenue increased 2% to £439.2m (2023: £432.1m) with Profit After Tax
increasing 11% to £80.2m (2023: £72.3m). When reviewing performance, the
Board reviews several adjusted measures, including adjusted EBITDA, which
increased 7% to £141.8m (2023: £132.9m), and Adjusted Basic EPS which
increased 5% to 17.1p (2023: 16.2p), as shown in the table below.
Adjusting items include a provision made for VAT and related costs of £3m
(explained on page 13). This is due to ongoing discussions with HMRC regarding
the method we use to recover VAT, a Partial Exemption Special Method (PESM).
For comparability and consistency, adjusting items for the year ended 31
December 2023 have been updated to include £1m of provisions that were
recognised within EBITDA but were not presented as adjusting items because
they were not material.
Last year's Adjusted Basic EPS has also been updated accordingly. More
information on the nature of these costs is included in the Adjusting items
section below.
Extract from the Consolidated Statement of Comprehensive Income
for the year ended 31 December
2024 2023 Growth
£m £m %
Revenue 439.2 432.1 2
Cost of sales (148.6) (139.7) 6
Gross profit 290.6 292.4 (1)
Operating costs (177.3) (195.1) (9)
Operating profit 113.3 97.3 16
Amortisation and depreciation 25.5 34.6 (26)
EBITDA 138.8 131.9 5
Reconciliation to Adjusted EBITDA:
EBITDA 138.8 131.9 5
Irrecoverable VAT provision and related costs 3.0 1.0 200
Adjusted EBITDA** 141.8 132.9 7
Adjusted earnings per share*:
- basic (p) 17.1 16.2 5
- diluted (p) 17.0 16.2 5
* A reconciliation to adjusted EPS is included within note 5.
** As explained above the table the comparative adjusted EBITDA has been
updated to reflect irrecoverable VAT and associated costs of £1.0m as
adjusting items.
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 Basic 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 year ended 31 December
2024 2023 Growth
£m £m %
Insurance 235.6 220.0 7
Money 97.8 100.2 (2)
Home Services 36.1 39.0 (7)
Travel 19.6 20.6 (5)
Cashback 60.8 59.8 2
Inter-vertical eliminations (10.7) (7.5) 44
Total 439.2 432.1 2
Revenue grew 2% to £439.2m. Trading was led by strong Insurance performance
offset by more challenging trading conditions in other verticals.
Insurance
Revenue in Insurance grew 7% to £235.6m. Growth was underpinned by strong
switching in car and home insurance, particularly in H1.
Premium price inflation continued to normalise during the year, exiting the
year at +2% in car and +16% in Home. Despite the easing levels of premium
inflation, we continued to see record switching volumes for car and home
insurance. This is supported by a greater number of products available to
consumers in the market, and as a result of sustained high absolute pricing
for policies. For context, the average car insurance quote is now 48% higher
than it was before the implementation of General Insurance Pricing Regulation
in 2021.
Other insurance products performed well, including travel insurance, which saw
an uplift in performance during H2, after a trend towards a lower tier of
coverage seen in H1 eased, and life insurance which also saw strong growth
during Q4.
Money
Revenue in Money was £97.8m, down 2% on 2023 due mainly to fewer attractive
current account products in the period. Within our banking product lines, we
saw providers begin to focus on profitability and as a result there were fewer
attractive current account products available.
Borrowing saw growth in the year, driven by increased demand in credit cards.
Despite sustained higher interest rates continuing to impact affordability and
conversion for loans and mortgages, we saw an improving profile of performance
during H2.
We also made good strategic progress, improving the experience for customers
on our sites. As an example, consumers can now easily see what credit limits
and APRs they are eligible for as part of their user journey, rather than
simply being shown an average estimate.
Home Services
Home Services revenue was £36.1m, down 7%, as a result of continued softer
trading in broadband and mobile.
Traffic levels in broadband and mobiles remained reasonably robust but
conversion was impacted by continued actions from providers on customer
retention and acquisition.
Energy switching levels and revenue remained immaterial in the year in line
with previous guidance but we did see year-over-year growth, albeit comparing
to subdued performance in 2023.
Travel
Revenue in Travel fell 5% to £19.6m with conditions becoming increasingly
competitive through the year after a very strong Q1.
Package holiday performance remained solid throughout the year but the market
became increasingly competitive, resulting in higher marketing costs across
the sector. For the majority of the year, we took action to adjust our
marketing spend and manage margins which impacted growth. In the second half
we began trialling a change in our marketing mix out of PPC and into social
with initial good results.
Car hire was a headwind with reduced daily rates in the industry impacting use
of comparison sites.
We have now completed the migration of our marketing tech stack, enabling
expansion into new products to drive growth. As an example, in late 2024, we
launched a new cruise offering.
Cashback
Revenue in Cashback grew 2% to £60.8m with the insurance vertical, powered by
MSM B2B capability performing well in heightened switching markets. During the
year we deepened our relationship with key strategic partners in the travel
area, working collaboratively to launch new campaigns which delivered strong
results. This helped to offset softer trading in retail which continued to be
impacted by weaker consumer confidence and difficult economic conditions.
Cashback saw good strategic progress in the year, with us increasing the
levels of personalisation to our customers and deepening the customer
proposition with the launch of new features, notably Quidco stories.
Gross profit
Gross profit was down 1% to £290.6m, while gross margin decreased to 66.2%
(2023: 67.7%). The margin was impacted in the second half by increased PPC
costs caused by particularly competitive markets through the year, as well as
the growth of B2B which has structurally lower margins.
Operating costs
for the year ended 31 December
2024 2023 Growth
£m £m %
Distribution expenses 34.4 41.8 (18)
Administrative expenses 142.9 153.3 (7)
Operating costs 177.3 195.1 (9)
Within administration expenses
Amortisation of technology related intangible assets 10.3 9.3 11
Amortisation of acquisition related intangible assets 10.8 21.1 (49)
Depreciation 4.4 4.2 3
Amortisation and depreciation 25.5 34.6 (26)
Operating costs reduced by 9% year on year, in part due to lower distribution
expenses and people cost efficiency gains, and in part due to the decrease in
amortisation of acquired intangible assets.
Distribution expenses were down 18%, primarily due to lower production costs
from TV advertising materials created in late 2023, which were designed to be
efficiently adapted throughout the year, preventing the need to create
entirely new materials.
Administrative expenses decreased by 7%. This included a reduction in
amortisation of acquired intangible assets following the prior year
reassessment of their useful economic life, which brought forward phasing of
amortisation costs from future periods.
Excluding depreciation, amortisation and adjusting items, underlying
administrative expenses decreased by 3%. This follows continued development of
our platform strategy which enabled further automation and helped unlock
targeted cost savings to offset inflation. The group delivered efficiency
gains on people costs of 4% and further savings on other administration costs.
Included within operating costs are £3.0m of provisions relating to
irrecoverable VAT and related legal and professional fees which have been
presented as adjusting items.
Adjusting items
for the year ended 31 December
2024 2023* Growth
£m £m %
Amortisation of acquisition related intangible assets 10.8 21.1 (49)
Irrecoverable VAT provision and related costs* 3.0 1.0 200
Adjusting items included in operating profit** 13.8 22.1 (38)
* For comparability and consistency purposes, adjusting items for the year
ended 31 December 2023 have been updated to include £1.0m of irrecoverable
VAT and related costs. This amount was recognised within EBITDA last year but
was not presented as an adjusting item because it was not material.
** Amortisation of acquisition related intangible assets is not included in
EBITDA and therefore is only an adjusting item in the adjusted EPS
calculation. Irrecoverable VAT and related costs are adjusting items in both
the adjusted EBITDA and adjusted EPS calculations.
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 was higher last year following a
reduction in the amortisation period of the brands and member relationships
assets from ten to five years. This was to reflect 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.
The Group is in discussions with HMRC regarding its partial exemption special
method (PESM) which it uses to recover VAT on expenditure. Provisions for
irrecoverable VAT and related legal and professional fees incurred during the
year have been presented as adjusting items in order to enable like-for-like
comparison of the Group's financial performance between reporting periods.
Since 2016 we have been in discussions with HMRC in respect of an update to
the PESM which was originally agreed in 2012. During the current year, HMRC
concluded that it no longer agreed with the principles of the PESM that it
approved in 2012 and it subsequently issued a Special Method Override Notice.
Consequently, at the year end the Group no longer had an agreed basis for
operation of a PESM with HMRC. We disagree with HMRC's position and we are
progressing multiple paths to remediation with positive engagement from HMRC.
The Group is expecting an assessment from HMRC in the quarter ending 30 June
2025 following the completion of the 2024-5 tax year and in accordance with
accounting standards the Group is obliged to recognise a provision in respect
of this. Although we do not view this assessment as appropriate and we are
aiming to reach a resolution promptly, this process is expected to continue
throughout 2025. While discussions with HMRC are ongoing, the amounts
recognised remain estimates of uncertain timing and amount. Until the outcome
of this matter is determined and while the amounts recognised remain
uncertain, we are presenting the charges as adjusting items.
Dividends
The Board has recommended a final dividend of 9.2p per share (2023: 8.9p),
making the proposed full year dividend 12.5p per share (2023: 12.1p).
The final dividend will be paid on 16 May 2025 to shareholders on the register
on 11 April 2025, subject to approval by shareholders at the Annual General
Meeting to be held on 8 May 2025.
Tax
The effective tax rate of 26.2% (2023: 21.5%) is higher (2023: lower) than the
UK standard rate of 25.0% (2023: 25.0%) primarily due to timing differences in
our estimation of share-based payments which have increased the tax charge.
The lower rate last year was due to the change in tax rate in April 2023,
which resulted in a blended rate for the year of 23.5%. The effective tax rate
was lower than this blended rate due to an adjustment in respect of a prior
period which reduced the tax charge.
Earnings Per Share
Basic reported Earnings Per Share increased by 11% to 15.0p (2023: 13.5p).
Growth was higher than the growth in Adjusted EBITDA primarily due to the
lower amortisation of acquired intangibles partially offset by the higher tax
charge compared to last year.
Adjusted Earnings Per Share is based on Profit Before Tax after adding back
the Adjusting items detailed above. A tax rate of 25.0% (2023: 23.5%) is
applied to calculate adjusted Profit After Tax. Adjusted Basic Earnings Per
Share increased by 5% to 17.1p per share (2023: 16.2p), which is lower than
the growth in Adjusted EBITDA due to the increase in the rate of corporation
tax.
Adjusted Earnings Per Share for last year has been updated to reflect the
reclassification of irrecoverable VAT provisions and related costs to
adjusting items.
Cashflow and Balance Sheet
Operating Cashflows increased to £115.6m (2023: £102.2m) driven by the
growth in Adjusted EBITDA as well as the timing of working capital movements
compared to last year.
The Group returned to a net cash position at year end of £8.4m (2023: £19.8m
Net Debt). Net Cash/(Debt) is cash and cash equivalents of £22.4m (2023:
£16.6m) less borrowings of £12.0m (2023: £34.5m) and loan notes payable to
Podium's non-controlling interest of £2.0m (2023: £1.9m).
Cash outflows on investing activities of £13.8m include £14.1m of cash
capital expenditure partially offset by £0.3m of bank interest received.
Capital expenditure
Capital expenditure was £14.1m (2023: £11.0m), including technology
investment of £13.3m (2023: £10.5m).
The Amortisation charge for technology assets has increased slightly from
£9.3m to £10.3m as a result of the higher spend this year.
Capital allocation
MONY Group has an established and disciplined capital allocation policy,
focused on the creation of long-term sustainable shareholder value, through
organic and inorganic growth and shareholder returns.
In 2024, we increased our operational cash generation by 13% to £115.6m,
turned net cash positive after repaying the Quidco term loan and increased our
cash conversion 5 to 91%.
Our robust balance sheet and strong cash generation underpins the Board's
decision to recommend a final dividend of 9.2p per share, representing a total
dividend of 12.5p per share, an increase of 3% in 2024, in line with our
progressive policy.
The strength of our balance sheet and cash flow conversion also now gives us
the flexibility to commence enhanced distributions to shareholders and today
we are announcing a share buyback programme of up to £30m which will be
funded by our expected cash generation in 2025.
This buyback reflects our ongoing commitment to sustainable shareholder
returns, in addition to investment in organic and acquisitive growth, as a
path to creating long-term, sustainable shareholder value.
Consolidated statement of comprehensive income
for the year ended 31 December
Note 2024 2023
£m £m
Revenue 2 439.2 432.1
Cost of sales (148.6) (139.7)
Gross profit 290.6 292.4
Distribution expenses (34.4) (41.8)
Administrative expenses (142.9) (153.3)
Operating profit 113.3 97.3
Net finance expense 3 (4.6) (5.2)
Profit before taxation 108.7 92.1
Taxation 4 (28.5) (19.8)
Profit for the year 80.2 72.3
Other comprehensive income 1.4 (0.1)
Total comprehensive income for the year 81.6 72.2
Profit/(Loss) attributable to:
Owners of the Company 80.6 72.7
Non-controlling interest 11 (0.4) (0.4)
Profit for the year 80.2 72.3
Total comprehensive income attributable to:
Owners of the Company 82.0 72.6
Non-controlling interest 11 (0.4) (0.4)
Total comprehensive income for the year 81.6 72.2
Earnings per share:
Basic earnings per ordinary share (pence) 5 15.0 13.5
Diluted earnings per ordinary share (pence) 5 14.9 13.5
Consolidated statement of financial position
as at 31 December
Note 2024 2023
£m £m
Assets
Non-current assets
Property, plant and equipment 28.3 32.1
Intangible assets and goodwill 7 252.5 260.3
Other investments 6.8 5.4
Total non-current assets 287.6 297.8
Current assets
Trade and other receivables 82.6 79.3
Prepayments 9.2 10.1
Current tax assets 0.5 1.3
Cash and cash equivalents 22.4 16.6
Total current assets 114.7 107.3
Total assets 402.3 405.1
Liabilities
Non-current liabilities
Other payables 22.2 25.4
Provisions 8 5.5 -
Deferred tax liabilities 13.1 15.8
Total non-current liabilities 40.8 41.2
Current liabilities
Trade and other payables 104.6 103.3
Borrowings 9 12.0 34.5
Total current liabilities 116.6 137.8
Total liabilities 157.4 179.0
Equity
Share capital 0.1 0.1
Share premium 205.6 205.5
Reserve for own shares (1.7) (2.4)
Retained earnings (29.3) (46.3)
Other reserves 65.0 63.6
Equity attributable to the owners of the Company 239.7 220.5
Non-controlling interest 11 5.2 5.6
Total equity 244.9 226.1
Total equity and liabilities 402.3 405.1
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 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
At 1 January 2024 0.1 205.5 (2.4) (46.3) 63.6 220.5 5.6 226.1
Profit for the year - - - 80.6 - 80.6 (0.4) 80.2
Other comprehensive income - - - - 1.4 1.4 - 1.4
Total comprehensive income for the year - - - 80.6 1.4 82.0 (0.4) 81.6
New shares issued - 0.1 - - - 0.1 - 0.1
Purchase of shares by employee trusts - - (0.4) - - (0.4) - (0.4)
Exercise of LTIP awards - - 1.1 (1.1) - - - -
Equity dividends - - - (65.5) - (65.5) - (65.5)
Share-based payments - - - 3.0 - 3.0 - 3.0
At 31 December 2024 0.1 205.6 (1.7) (29.3) 65.0 239.7 5.2 244.9
Consolidated statement of cash flows
for the year ended 31 December
2024 2023
£m £m
Operating activities
Profit for the year 80.2 72.3
Adjustments to reconcile Group profit to net cash flow from operating
activities:
Amortisation of intangible assets 21.1 30.4
Depreciation of property, plant and equipment 4.4 4.2
Net finance expense 4.6 5.2
Equity settled share-based payment transactions 3.0 3.0
Taxation expense 28.5 19.8
Changes in trade and other receivables (2.4) (17.6)
Changes in trade and other payables 4.0 13.5
Changes in provisions 2.6 -
Taxation paid (30.4) (28.6)
Net cash flow from operating activities 115.6 102.2
Investing activities
Interest received 0.3 0.1
Acquisition of property, plant and equipment (0.8) (0.5)
Acquisition of intangible assets (13.3) (10.5)
Acquisition of subsidiaries, net of cash acquired - (10.0)
Net cash used in investing activities (13.8) (20.9)
Financing activities
Dividends paid (65.5) (63.4)
Proceeds from share issue 0.1 0.1
Purchase of shares by employee trusts (0.4) (0.5)
Proceeds from borrowings 63.0 53.5
Repayment of borrowings (85.5) (63.0)
Interest paid (4.8) (5.1)
Repayment of lease liabilities (2.9) (2.9)
Net cash used in financing activities (96.0) (81.3)
Net decrease in cash and cash equivalents 5.8 0.0
Cash and cash equivalents at 1 January 16.6 16.6
Cash and cash equivalents at 31 December 22.4 16.6
Notes
1. Basis of preparation
On 20 May 2024, the Company changed its name from Moneysupermarket.com Group
PLC to MONY Group PLC.
MONY 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 2023.
The financial statements have been prepared on the same basis as those for the
year ended 31 December 2023.
Going concern
The Directors have prepared the financial statements on a going concern basis
for the following reasons.
As at 31 December 2024, the Group's external debt comprised a revolving credit
facility ('RCF'), (of which £12.0m of the £125m available was drawn down).
During the year, the RCF term was extended from three to four years, which
means that the current RCF is due for renewal in June 2028. Since the year
end, £9m has been repaid and no further amounts have been drawn down. The
operations of the business have been impacted by macroeconomic uncertainty
including dampened consumer confidence and continued high interest rates, as
well as restrictions on the energy switching market. However, the Group
remains profitable, cash generative and compliant with the covenants of its
borrowings.
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 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 increases, consumer confidence,
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. Inter-vertical revenue and
inter-vertical cost of sales are presented within the verticals in order to
give a more accurate view of performance and are deducted in a separate
"inter-vertical eliminations" column to arrive at the consolidated total
values. 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, 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 services provided in each segment.
Segment Type of sales transaction Services provided
Insurance, Money, Home Services & Travel Price comparison services Users visit one of our sites or apps and generate quotations from product
providers or view personal finance information with links to product
providers' sites. Users then click away from our site to complete a
transaction on one of those providers' sites. Revenue is generated from
providers by transferring users to their sites.
Cashback Cashback services Quidco members visit our site or app and click away to a merchant's site to
complete a transaction. Revenue is generated from merchants by transferring
members to their sites. Members are rewarded with cashback incentives which
are recognised in cost of sales.
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 2024
Revenue 235.6 97.8 36.1 19.6 60.8 - (10.7) 439.2
Directly attributable expenses (101.8) (32.0) (11.1) (15.7) (52.4) (95.1) 10.7 (297.4)
Adjusted EBITDA* contribution 133.8 65.8 25.0 3.9 8.4 (95.1) - 141.8
Adjusted EBITDA contribution margin** 57% 67% 69% 20% 14% - - 32%
Irrecoverable VAT and related costs (3.0)
Depreciation and amortisation (25.5)
Net finance expense (4.6)
Profit before tax 108.7
Taxation (28.5)
Profit for the year 80.2
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 (92.6) (33.6) (12.5) (15.2) (52.1) (100.7) 7.5 (299.2)
Adjusted EBITDA* contribution 127.4 66.6 26.5 5.4 7.7 (100.7) - 132.9
Adjusted EBITDA contribution margin** 58% 66% 68% 26% 13% - - 31%
Irrecoverable VAT and related costs (1.0)
Depreciation and amortisation (34.6)
Net finance expense (5.2)
Profit before tax 92.1
Taxation (19.8)
Profit for the year 72.3
* For comparability and consistency, adjusting items for the year ended 31
December 2023 have been updated to include £1m of costs that were recognised
within EBITDA but were not presented as adjusting items because they were not
material. Adjusted basic EPS has also been updated accordingly.
** Adjusted EBITDA contribution margin is calculated by dividing adjusted
EBITDA contribution by revenue.
Insurance EBITDA contribution margin decreased from 58% to 57%, driven by
increased contribution from lower margin B2B and an increase in PPC costs.
Money saw an increase in EBITDA contribution margin from 66% to 67%, due to
operating costs normalising after a one-off migration cost in FY23. Underlying
margin moved back slightly due to mix out of higher margin current account
products with less attractive deals available.
Home Services EBITDA contribution margin improved from 68% to 69%, through
cost efficiency.
Travel EBITDA contribution margin declined from 26% to 20% with increasing
cost of customer acquisition in a highly competitive market.
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 increased from 13% to 14% reflecting strong cost control
as we continue to invest in marketing to acquire and engage members.
Shared costs decreased by 6% primarily due to distribution expense
efficiencies following the success of TV advertising materials created in 2023
which resulted in lower TV production costs in the year.
3. Net finance expense
2024 2023
£m £m
Finance income
Bank deposits 0.3 0.1
0.3 0.1
Finance expense
Revolving credit facility (2.7) (1.8)
Bank loan (1.2) (2.3)
Leases (0.9) (1.0)
Amounts payable to non-controlling interest (0.1) (0.1)
Deferred consideration - (0.1)
(4.9) (5.3)
Net finance expense (4.6) (5.2)
4. Taxation
The effective tax rate of 26.2% (2023: 21.5%) is higher (2023: less) than the
UK standard rate of 25.0% (2023: 25.0%) primarily due to timing differences in
our estimation of share-based payments which have increased the tax charge.
The lower rate last year was due to the change in tax rate in April 2023,
which resulted in a blended rate for the year of 23.5%. The effective tax rate
was lower than this blended rate due to an adjustment in respect of a prior
period which reduced the tax charge.
2024 2023
£m £m
Current tax
Current tax on income for the year 30.8 27.5
Adjustment in relation to prior period 0.4 (1.0)
31.2 26.5
Deferred tax
Origination and reversal of temporary differences (2.5) (6.3)
Adjustment due to changes in corporation tax rate - (0.3)
Adjustment in relation to prior period (0.2) (0.1)
(2.7) (6.7)
Taxation 28.5 19.8
5. 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:
2024 2023
£m £m
Profit after taxation attributable to the owners of the Company 80.6 72.7
Basic weighted average ordinary shares in issue (millions) 536.8 536.4
Dilutive effect of share based instruments (millions) 3.1 2.7
Diluted weighted average ordinary shares in issue (millions) 539.9 539.1
Basic earnings per ordinary share (pence) 15.0 13.5
Diluted earnings per ordinary share (pence) 14.9 13.5
Adjusted basic and diluted earnings per share have been calculated as follows:
2024 2023
£m £m
Profit before tax 108.7 92.1
Adjusted for loss before tax attributable to non-controlling interest 0.4 0.2
Profit before tax attributable to the owners of the Company 109.1 92.3
Amortisation of acquisition related intangible assets 10.8 21.1
Amortisation of acquisition related intangible assets attributable to (0.8) (0.9)
non-controlling interest (see note 11)
Irrecoverable VAT provisions and related costs** 3.0 1.0
122.1 113.5
Estimated taxation at 25.0% (2023: 23.5%*) (30.5) (26.4)
Profit for adjusted EPS purposes 91.6 87.1
Adjusted basic earnings per share (pence)** 17.1 16.2
Adjusted diluted earnings per share (pence)** 17.0 16.2
* In the prior year, estimated taxation at 23.5% is derived from the standard
rate of corporation tax increasing from 19% to 25% in April 2023.
** Adjusted earnings per share for last year has been updated to reflect the
reclassification of irrecoverable VAT and related costs to adjusting items.
6. Dividends
2024 2023
£m £m
Equity dividends on ordinary shares:
Final dividend for 2023: 8.9 pence per share 47.8 46.2
(2022: 8.6 pence per share)
Interim dividend for 2024: 3.3 pence per share 17.7 17.2
(2023: 3.2 pence per share)
Equity dividends 65.5 63.4
Proposed for approval (not recognised as a liability as at 31 December):
Final dividend for 2024: 9.2 pence per share 49.4 47.8
(2023: 8.9 pence per share)
7. Intangible assets
Market related Customer relationships Technology related Goodwill Total
£m £m £m £m £m
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
Cost
At 1 January 2024 169.6 21.2 121.3 288.6 600.7
Additions - - 13.3 - 13.3
Disposals - - (36.1) - (36.1)
At 31 December 2024 169.6 21.2 98.5 288.6 577.9
Amortisation
At 1 January 2024 161.5 9.2 95.4 74.3 340.4
Charge for the year 2.9 4.2 14.0 - 21.1
Eliminated on disposal - - (36.1) - (36.1)
At 31 December 2024 164.4 13.4 73.3 74.3 325.4
Carrying value
At 1 January 2024 8.1 12.0 25.9 214.3 260.3
At 31 December 2024 5.2 7.8 25.2 214.3 252.5
Disposals
Disposals in the current year include assets with a combined gross book value
of £36.1m (2023: £26.6m) and carrying value of £nil (2023: £nil) that were
no longer in use and were therefore retired. There was no impact on profit or
loss arising from this.
Goodwill
At 31 December 2024, 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 December 2024, incorporating cost of sales,
marketing and a click-based allocation of overhead costs.
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 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.
8. Provisions
Leasehold dilapidations Irrecoverable VAT Total
£m £m £m
At 1 January 2023, 31 December 2023 and 1 January 2024 - - -
Reclassifications 1.9 1.0 2.9
Amounts charged to the income statement - 2.6 2.6
At 31 December 2024 1.9 3.6 5.5
Leasehold dilapidations relate to the estimated cost of restoring leased
properties to their pre-lease condition at the end of the lease term. On
initial recognition, estimated dilapidation costs are included in the cost of
the right-of-use asset within property, plant and equipment and are
subsequently depreciated over the lease term. There has been no change in the
carrying value of dilapidations provisions during the year. At 31 December
2023, dilapidations liabilities of £1.9m were presented within trade and
other payables. During the year they have been reclassified as provisions;
however as the carrying value is not material no prior period restatement has
been recognised.
The Group recovers input tax on expenditure using a partial exemption special
method ("PESM"). Since 2016 we have been in discussions with HMRC in respect
of an update to the PESM which was originally agreed in 2012. During the
current year, HMRC concluded that it no longer agreed with the principles of
the PESM that it approved in 2012 and it subsequently issued a Special Method
Override Notice. Consequently, at the year end the Group no longer had an
agreed basis for operation of a PESM with HMRC. We disagree with HMRC's
position and we are progressing multiple paths to remediation with positive
engagement from them. The Group is expecting an assessment from HMRC in the
quarter ending 30 June 2025 following the completion of the 2024-5 tax year
and in accordance with accounting standards the Group is obliged to recognise
a provision in respect of this. Although we do not view this assessment as
appropriate and we are aiming to reach a resolution promptly, this process is
expected to continue throughout 2025. While discussions with HMRC are ongoing,
the amounts recognised remain estimates of uncertain timing and amount. Until
the outcome of this matter is determined and while the amounts recognised
remain uncertain, we are presenting the charges as adjusting items.
Last year the Group incurred charges of £1.0m relating to the potential
estimated retrospective impact of this matter. This amount was recognised
within accruals last year but has been reclassified to provisions this year.
The prior year balance sheet has not been restated as it is not material.
9. Borrowings
2024 2023
£m £m
Current
Revolving credit facility 12.0 4.5
Loan - 30.0
12.0 34.5
The Group expects the amount outstanding on the revolving credit facility at
the balance sheet date to be settled in its normal operating cycle.
During the year, the Group repaid the final two instalments of its bank loan.
10. Commitments and contingencies
At 31 December 2024, the Group was committed to incur capital expenditure of
£0.7m (2023: £1.0m).
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.
11. Non-controlling interest
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 2024 Podium Solutions Ice Travel Total
Limited Group
Non-controlling interest 48% 33%
£m £m £m
Non-current assets* 1.1 13.7 14.8
Current assets 1.4 7.6 9.0
Non-current liabilities (2.1) (2.8) (4.9)
Current liabilities (2.3) - (2.3)
Net assets (1.9) 18.5 16.6
Net assets attributable to non-controlling interest (0.9) 6.1 5.2
Revenue 0.7 18.6 19.3
(Loss)/Profit (1.4) 0.9 (0.5)
Other comprehensive income - - -
Total comprehensive income (1.4) 0.9 (0.5)
(Loss)/Profit attributable to the non-controlling interest (0.7) 0.3 (0.4)
Other comprehensive income attributable to non-controlling interest - - -
Total comprehensive income attributable to non-controlling interest (0.7) 0.3 (0.4)
Cash flows from operating activities (0.4) 3.4 3.0
Cash flows from investing activities - (0.9) (0.9)
Cash flows from financing activities 0.4 (5.5) (5.1)
Net decrease in cash and cash equivalents - (3.0) (3.0)
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
* Non-current assets for Ice Travel Group include £7.4m (2023: £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 £1.8m (2023:
£2.2m). Included in the loss attributable to non-controlling interest and
total comprehensive income attributable to non-controlling interest is £0.8m
(2023: £0.9m) 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 2024 or 31 December 2023 but
is derived from those accounts. Statutory accounts for 2023 have been
delivered to the registrar of companies, and those for 2024 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 2024 will be
posted to shareholders in March 2025. The results for the year ended 31
December 2024 were approved by the Board of Directors on 14 February 2025 and
are audited. The Annual General Meeting will take place on 8 May 2025. The
final dividend will be payable on 16 May 2025 to shareholders on the register
at the close of business on 11 April 2025.
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.
1 Excluding the following acquisitions made since 2019: Maple Syrup Media
Ltd (Quidco), IceLolly Marketing Limited and Podium Solutions Limited.
2 Per Consumer Price Index (CPI) inflation data taken from the Office for
National Statistics (ONS) 2019 vs. Dec-24.
3 MoneySuperMarket (MSM)
4 MoneySavingExpert (MSE)
5 Calculated as Operating Cash Flow over Adjusted Operating Profit.
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