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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Moneysupermarket.com Group Plc | LSE:MONY | London | Ordinary Share | GB00B1ZBKY84 | ORD 0.02P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.60 | 1.22% | 216.20 | 216.00 | 216.60 | 218.20 | 213.60 | 213.60 | 1,433,653 | 16:27:33 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Information Retrieval Svcs | 432.1M | 72.7M | 0.1354 | 15.97 | 1.16B |
From Apr 2019 to Apr 2024
TIDMMONY
RNS Number : 8971F
Moneysupermarket.com Group PLC
18 July 2019
18 July 2019
Interim results: Encouraging trading performance as momentum in strategy continues
Hot Features
Premium
6 months ended 30 June 2019 2018* Change %
Group revenue GBP199.4m GBP173.7m 15
----------- ---------- ---------
Adjusted EBITDA* GBP72.9m GBP62.2m 17
----------- ---------- ---------
Operating profit GBP61.4m GBP52.0m 18
----------- ---------- ---------
Profit after tax GBP50.2m GBP42.5m 18
----------- ---------- ---------
Adjusted basic EPS* 9.4p 8.4p 12
----------- ---------- ---------
Basic EPS 9.4p 7.9p 19
----------- ---------- ---------
Operating cashflow GBP51.4m GBP43.0m 20
----------- ---------- ---------
(Net debt)/ Net cash GBP(12.6)m GBP24.4m n.m.
----------- ---------- ---------
Interim dividend for
the period 3.10p 2.95p 5
----------- ---------- ---------
-- Encouraging trading performance, with revenue growth ahead of the market for the six months.
-- Reinvent strategy continues to reaccelerate core growth and unlock new market growth.
-- Revenue grew 15% to GBP199.4m driven by exceptional energy switching, the acquisition of Decision Tech in August 2018 and our ongoing customer experience optimisation.
-- Adjusted EBITDA of GBP72.9m, in line with expectations. This is growth of 15% if 2018 is adjusted for IFRS 16.
-- Strong operating cash generation of GBP51.4m during the period, increasing 20% year on year.
-- Interim dividend increased 5% reflecting our progressive dividend policy.
Mark Lewis, Chief Executive Officer of Moneysupermarket Group, said:
"We grew the business strongly in the first half, already helping households save over GBP1bn this year, particularly after the energy price cap came in and then went up. Millions of people faced rising energy bills and we helped many of them to find a better deal, saving them hundreds of pounds in just a few minutes on our sites.
"Our Reinvent strategy continues to make it easier and quicker to save and is now supported by the new MoneySuperMarket branding, which encourages people to 'Get Money Calm' by using our site to pay less across a broad range of bills."
Outlook
The Board is confident of delivering market expectations for the year.*
* Notes:
As the Group adopted IFRS 16 using the modified retrospective approach, prior year comparative numbers are not restated. Reported year on year EBITDA growth is higher than would be the case if the comparative numbers were IFRS 16 adjusted. Adjusting for IFRS 16, we expect 2018 adjusted EBITDA to have been GBP63.3m and adjusted EBITDA growth in 2019 to have been 15%. An indicative guide to the impact of this is included in the relevant areas of this document.
Adjusted EBITDA is operating profit adjusted for depreciation, amortisation and other non-underlying costs (including impairments and strategy related costs) as detailed on page 4. The adjusted results are consistent with how business performance is measured internally.
Adjusted basic earnings per ordinary share is profit before tax adjusted for amortisation of acquisition related intangible assets and other non-underlying costs described in the financial review. A tax rate of 19% (2018: 19%) has been applied to calculate adjusted profit after tax.
Market expectations of Adjusted EBITDA for the 12 months to 31 December 2019 from the analyst consensus on our investor website are in a range of GBP136.6m to GBP145.4m, with an average of GBP141.9m.
Quarter 2 Trading
Revenue for the Revenue for the
three months to six months to 30
30 June 2019 June 2019
GBPm Growth GBPm Growth
% %*
-------- --------- --------- ---------
Insurance 47.8 4 96.1 3
Money 21.3 (1) 46.5 5
Home Services 14.6 34 34.2 52
-------- --------- --------- ---------
83.7 7 176.8 10
Other revenue 10.9 57 22.6 67
-------- --------- --------- ---------
Total 94.6 11 199.4 15
-------- --------- --------- ---------
* Revenue growth 4% Q2 and 8% H1 excluding Decision Tech.
-- Good momentum in Insurance and trading in life insurance recovered.
-- With fewer strong promotional products, Money switching reduced.
-- Energy switching remained very strong due to the combination of attractive offers, the increase in the price cap and the continued optimisation of our site.
-- Other revenue includes GBP5.2m attributable to Decision Tech for the 3 months and GBP11.4m for the 6 months to 30 June.
Results presentation
There will be a presentation for investors and analysts at Herbert Smith Freehills, Exchange House, Primrose Street, London, EC2A 2EG, at 9.30am this morning. To hear the presentation being streamed live, please visit: http://corporate.moneysupermarket.com to register and listen.
For further information, contact:
Scilla Grimble, Chief Financial Officer Scilla.Grimble@moneysupermarket.com / 0207 379 5151 Jo Britten, Investor Relations Director Jo.Britten@moneysupermarket.com / 07896 469380 William Clutterbuck, Maitland AMO wclutterbuck@maitland.co.uk / 0207 379 5151
Cautionary note regarding forward looking statements
This announcement includes statements that are forward looking in nature. Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by the Listing Rules, Disclosure and Transparency Rules and applicable law, the company undertakes no obligation to update, revise or change any forward-looking statements to reflect events or developments occurring on or after the date such statements are published.
Business review
2019 marks the second year of our Reinvent strategy and the momentum continues in our delivery of the two key strategic pillars: reaccelerating core growth and unlocking new market growth. Growth has accelerated after we chose in 2018 to invest into our product engineering teams, accelerating our optimisation work and successfully integrating Decision Tech into the Group. First half trading performance is encouraging, and we have returned to profit growth. We have also benefitted from some favourable market conditions in the Energy switching market.
Reinvent strategy
The first pillar of the Reinvent strategy focuses on the optimisation of our customer journeys, making the site easier to use, particularly for anyone accessing our services via a mobile phone. The customer experience optimisation rollout is continuing to deliver conversion gains across key verticals and this underpins our revenue growth in the half. Later this year, we will be consolidating our Manchester product engineering teams into one permanent office.
Our customers have noticed the difference, with our Net Promoter Score now at 73. This ease of use, alongside the existing strengths of our brands, technology platform and provider relationships, makes our business stronger.
The second pillar of the Reinvent strategy uses our technology platform to enable us to lead the innovation of price comparison to unlock new market growth:
-- Personalised MoneySuperMarket - during 2019, we are making our services more proactive and personalized, driving customer engagement. We launched our new MoneySuperMarket brand proposition, 'Get Money Calm' in March to enable personalised services. This new brand identity was deployed across every customer touchpoint from our website and apps, to our CRM and advertising. Following the trial of the service within an app environment, customers are also now able to access credit monitoring on the web, alongside traditional price comparison that helps them save across a diverse range of products.
-- Taking price comparison to the user - we are tapping into the opportunity to take our products and services to the sites people are already visiting regularly. Last year, we acquired Decision Tech, which has leading B2B price and product comparison capabilities. On a standalone basis this half, Decision Tech's revenue grew c.30% year on year, driven by growth in home communications. Decision Tech offers MoneySuperMarket's wider comparison services to new audiences through B2B partnerships and has a promising new partnerships pipeline.
-- Mortgage price comparison - millions of customers look to us for help with mortgages every year. In 2019, we have continued to enhance our proposition. We have added further eligibility factors to the remortgage journey to help customers understand their options, and we have started to deepen our broker and lender integrations.
Financial Review
In this second year of Reinvent, we enjoyed encouraging revenue growth across all segments, and we have successfully delivered on our plans. Group revenue increased 15% to GBP199.4m (2018: GBP173.7m) and profit after tax increased 18% to GBP50.2m (2018: GBP42.5m). When reviewing performance, the Board reviews a number of adjusted measures, including adjusted EBITDA which grew 17% to GBP72.9m (2018: GBP62.2m) and adjusted basic EPS which grew 12% to 9.4p (2018: 8.4p). The comparative year in these and the reported figures has not been adjusted for IFRS16.
Extract from the Consolidated Statement of Comprehensive Income
for the six months ended 30 June
2019 2018*
GBPm GBPm
------------------------------------------------------- ------- -------
Revenue 199.4 173.7
Cost of sales (60.7) (49.3)
------------------------------------------------------- ------- -------
Gross profit 138.7 124.4
Distribution expenses (16.7) (16.7)
Administrative expenses (60.6) (55.7)
------------------------------------------------------- ------- -------
Operating profit 61.4 52.0
Depreciation and amortisation of software 9.8 6.1
Amortisation of acquisition related intangible
assets 1.2 0.5
------------------------------------------------------- ------- -------
EBITDA 72.4 58.6
------------------------------------------------------- ------- -------
Reported EPS 9.4p 7.9p
------------------------------------------------------- ------- -------
*As the Group adopted IFRS 16 - Leases, using the modified
retrospective approach, prior year comparative numbers are
not restated. Reported year on year EBITDA growth is higher
than would be the case if the comparative numbers were IFRS
16 adjusted. Adjusting for IFRS 16, we expect 2018 adjusted
EBITDA to have been GBP63.3m and adjusted EBITDA growth
in 2019 to have been 15%. The guide impact to this is included
in "IFRS 16 - Leases" below.
Reconciliation to Adjusted EBITDA:
EBITDA 72.4 58.6
Strategy related costs:
Strategy review and associated reorganisation
costs 0.5 2.6
Deal fees - 1.0
Adjusted EBITDA 72.9 62.2
------------------------------------------------------- ------- -------
Adjusted earnings per ordinary share:
- basic (p) 9.4 8.4
- diluted (p) 9.4 8.4
------------------------------------------------------- ------- -------
Revenue
for the six months ended 30 June
2019 2018 Growth
GBPm GBPm %
-------------- ----- ----- ------
Insurance 96.1 93.3 3
Money 46.5 44.5 5
Home Services 34.2 22.5 52
-------------- ----- ----- ------
176.8 160.3 10
Other revenue 22.6 13.4 67
-------------- ----- ----- ------
Total 199.4 173.7 15
-------------- ----- ----- ------
During the half Group revenue grew 15%; excluding Decision Tech revenue grew 8%.
Insurance growth was solid at 3%. Our motor and home businesses are in good growth, despite the absence of motor premium inflation. This was partially offset by subdued trading in life insurance in the first quarter, as competitors spent more on their customer incentives.
Revenue in our Money business grew 5% with robust performance in credit, supported by customer experience optimisation and conversion improvements. The reduction in availability and attractiveness of promotional products diminished switching as we progressed through the half.
Revenue in Home Services grew 52%. Following the announcement of the energy price cap rise in January 2019, we saw exceptional growth across our energy business, which accounts for most of the revenue in Home Services. The Group's strengths maximised this opportunity through a combination of leading offers, MoneySavingExpert's editorial strength and further optimisation gains, which resulted in very high levels of switching. Looking ahead, we anticipate the second half to be challenging in this vertical due to the expected decrease in the energy price cap and strong prior year performance.
Decision Tech contributed GBP11.4m to other revenue and we are pleased with the growth within its home communications business. The weak travel market has continued to affect customer bookings for package holidays and car hire, resulting in poor performance in TravelSupermarket.
Gross profit and distribution expenses
Gross margins fell from 72% to 70%, with broadly half of this reduction being attributable to the consolidation of Decision Tech as B2B operates on lower margins than B2C. The remainder of the margin reduction was largely driven from the ongoing transition of customers searching for our products on a mobile device. Margin also suffered slightly from the mix impact from the growth in energy on MoneySavingExpert (which provides a cashback offer to customers).
As anticipated, the brand relaunch did not significantly impact our marketing spend and so distribution expenses are broadly unchanged year on year.
Administrative Expenses
Administrative costs (excluding amortisation of acquisition related intangible assets and strategy
related costs) increased by 14% to GBP58.9m (2018: GBP51.5m). This GBP7.4m increase has largely been driven by the acquisition of Decision Tech on 1 August 2018, which has added GBP4.1m to the cost base in the half, mainly in staff and technology costs.
Our technology amortisation costs for the period have increased from GBP5.6m to GBP7.5m due to several large technology assets going live in the second half of 2018.
The adoption of IFRS 16 has impacted administrative expenses as anticipated and this is explained further below.
Amortisation of acquisition related intangible assets
The acquisition of the trade and certain assets of MoneySavingExpert.com and a sole trader business from Martin Lewis (together MSE) on 21 September 2012 by the Group gave rise to GBP12.9m of intangible assets (excluding goodwill). These are being amortised over a period of 3-10 years with a charge of GBP0.5m included within the first half of 2019 (2018: GBP0.5m).
The acquisition of Decision Tech on 1 August 2018 gave rise to GBP8.7m of intangible assets, which are being amortised over a period of 3 - 10 years. The charge incurred in 2019 is GBP0.7m (2018: GBPnil).
Strategy related costs
In this second year of Reinvent, the Group has incurred strategy related transitional costs in the period of GBP0.5m relating to the North West relocation (2018: GBP3.6m relating to the reorganisation to support our new strategy and fees on the acquisition of Decision Tech). Full year strategy related costs are expected to be up to GBP2m.
Investment in technology
Capital investment is normalising as we rebalance from capital expenditure to operating costs following the conclusion of our re-platforming. Our technology capital expenditure in the half was GBP6.6m, with software amortisation costs of GBP7.6m. For the full year, we expect technology capital investment of GBP11m and the technology amortisation charge to be in the region of GBP16m.
IFRS 16 - Leases
The adoption of IFRS 16 has impacted the Consolidated Statement of Comprehensive Income as expected in 2019, reducing operating lease expenditure by GBP1.3m and instead, reflecting these rental costs through depreciation charges of GBP1.3m and finance costs of GBP0.6m. On the balance sheet, adoption of IFRS 16 has meant the recognition of lease assets and liabilities respectively totalling GBP31.8m and GBP34.1m in respect of the Group's property leases. As the Group adopted IFRS 16 using the modified retrospective approach, the prior year has not been restated.
Alternative performance measures
The Group uses a number of alternative (non-Generally Accepted Accounting Practice ("non-GAAP")) financial measures which are not defined within IFRS. The Board reviews Adjusted EBITDA alongside GAAP measures and adjusted basic EPS when reviewing performance of the Group. This results from moving out of the phase of significant capital investment in our technology platform towards focusing on developing and optimising our product and technology. Therefore, capital investment and amortisation is less meaningful and so it is appropriate to focus on an adjusted EBITDA measure alongside adjusted basic EPS. Executive management bonus targets also include reference to adjusted EBITDA and similarly, long term incentive schemes are measured in relation to adjusted basic EPS.
As such, these measures are important and should be considered alongside the IFRS measures. The adjustments are separately disclosed and are usually items that are non-underlying to trading activities and which are significant in size. For example, amortisation of acquisition intangibles is a non-cash item which fluctuates significantly in line with acquisition activity and the impairments of assets and other costs arising from the strategic review are considered to be non-underlying and significant in size. Alternative performance measures used within these statements are accompanied with a reference to the relevant GAAP measure and the adjustments made.
Key performance indicators
The Board reviews key performance indicators (KPIs) to assess the performance of the business against the Group's strategy. We measure five key strategic KPIs: estimated customer savings, customer net promoter score, active users, revenue per active user and marketing margin.
30 June 2019 30 June 2018
Estimated customer savings GBP1.0bn GBP1.1bn
Net promoter score 73 72
Active users 13.0m 12.9m
Revenue per active user GBP16.30 GBP15.40
Marketing margin 61% 62%
--------------------------- ------------ ------------
Estimated customer savings: This is calculated by multiplying sales volume against the average saving per product for core channels, the balance of the calculation is a company estimation.
Net promoter score: The twelve month rolling average (1 Jul 18 - 30 Jun 19 inclusive) measured by YouGov Brand Index service Recommend Score weighted by revenue for each of our brands (excluding Decision Tech's consumer brands) to create a Group-wide NPS.
Active users: The number of unique accounts running enquiries in our core seven channels (motor insurance, home insurance, life insurance, travel insurance, credit cards, loans and energy) in the prior 12 month period.
Revenue per active user: This is the revenue for the core seven MoneySuperMarket channels divided by the number of active users.
Marketing margin: The inverse relationship between revenue and total marketing spend represented as a percentage.
During the first half of 2019, our customers saved GBP1bn. The decrease on the previous year is attributable to falling motor premiums. Whilst there has been an increase in the number of customers saving from switching their policy, the falling premiums mean that the average saving per customer is lower than it was in 2018.
Trust and satisfaction in our brands is strong and we are pleased with the increase over the last 12 months in our NPS measure.
Active users is a measurement of customers who have made an enquiry in the last 12 months on the MoneySuperMarket website for the core channels: car insurance, home insurance, life insurance, travel insurance, credit cards, loans and energy. This revenue represents over 60% of Group revenue and we expect to increase this as more channels transition into the enterprise data warehouse. In December 2018, we reported 13 million active users and for the period to June 2018 this was broadly unchanged.
Our work on customer experience optimisation drove an improvement in conversion and the average revenue per active user. This has underpinned our revenue growth. In December 2018, we reported revenue per active user of GBP15.90 and this has increased to GBP16.30 as of 30 June 2019.
Marketing costs have been well controlled in the half and so marketing margin fell by 1% to 61%, compared with a 2 percentage point fall in gross margin.
Cash
The Group continued to enjoy robust cash generation, generating GBP51.4m of operating cash in the half. During the period we distributed GBP83.4m (2018: GBP40.7m) to our shareholders by way of dividend, with the increase on the prior year reflecting the payment of the GBP40.0m special dividend announced in February. As at 30 June 2019, the Group had net debt of GBP(12.6)m (2018: net cash of GBP24.4m).
Dividends
The Board has announced an interim dividend of 3.10p, an increase of 5% on the prior year reflecting our progressive dividend policy. The ex-dividend date is 1 August 2019, with a payment date of 13 September 2019. Shareholders have the opportunity to elect to reinvest their cash dividend and purchase existing shares in the Company through a Dividend Reinvestment Plan.
Tax
The effective tax rate of 16.9% (2018: 19.0%) includes a GBP1.1m favourable prior year adjustment in respect of 2018. The underlying effective tax rate of 18.8% is in line with the UK statutory rate of 19.0% (2018: 19.0%) and the Group expects the underlying effective rate of tax to continue to approximate to the standard UK corporation tax rate.
Earnings per ordinary share
Basic statutory earnings per ordinary share for the six months to 30 June 2019 were 9.4p (2018: 8.4p). Adjusted basic earnings per ordinary share increased from 8.4p to 9.4p per share through the increase in profit. The adjusted earnings per ordinary share is based on profit before tax after adjusting for the amortisation of acquisition related intangible assets, other non-underlying costs (including impairments and strategy related costs) and profit on disposal of associates and investments. The tax rate of 19.0% (2018: 19.0%) has been applied to calculate adjusted profit after tax.
Responsibility statement of the directors in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
-- The interim management report includes a fair review of the information required by:
o DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
o DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
Name Function Robin Freestone Chair Mark Lewis Chief Executive Officer Scilla Grimble Chief Financial Officer Sally James Senior Independent Non-Executive Director Andrew Fisher Independent Non-Executive Director Genevieve Shore Independent Non-Executive Director Sarah Warby Independent Non-Executive Director
17 July 2019
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2019 and 30 June 2018
30 June 30 June
Note 2019 2018
GBPm GBPm
Revenue 3 199.4 173.7
Cost of sales (60.7) (49.3)
-------- --------
Gross profit 138.7 124.4
Distribution expenses (16.7) (16.7)
Administrative expenses (60.6) (55.7)
-------- --------
Operating profit 61.4 52.0
Finance income 0.1 0.1
Finance costs (1.0) (0.4)
-------- --------
Net finance costs (0.9) (0.3)
Share of loss of joint venture (0.1) -
Profit before tax 60.4 51.7
Taxation 4 (10.2) (9.2)
-------- --------
Profit for the period 50.2 42.5
Other comprehensive income 2.0 -
-------- --------
Total comprehensive income for the
period 52.2 42.5
======== ========
Earnings per share:
Basic earnings per ordinary share
(pence) 5 9.4 7.9
Diluted earnings per ordinary share
(pence) 5 7.9
9.3
Consolidated Statement of Financial Position
as at 30 June 2019, 31 December 2018 and 30 June 2018
30 June 31 December 30 June
Note 2019 2018 2018
GBPm GBPm GBPm
Assets
Non-current assets
Property, plant and equipment 45.8 13.8 14.0
Intangible assets 7 181.4 183.7 145.3
Investments 5.9 1.7 0.7
-------- ------------ --------
Total non-current assets 233.1 199.2 160.0
-------- ------------ --------
Current assets
Trade and other receivables 53.8 43.1 48.9
Prepayments 8.0 6.5 6.6
Cash and cash equivalents 12.4 44.8 24.4
Total current assets 74.2 94.4 79.9
Total assets 307.3 293.6 239.9
======== ============ ========
Liabilities
Non-current liabilities
Other payables 33.4 4.7 -
Deferred tax liabilities 10.3 10.1 8.8
-------- ------------ --------
Total non-current liabilities 43.7 14.8 8.8
-------- ------------ --------
Current liabilities
Trade and other payables 60.7 54.9 52.9
Current tax liabilities 8.1 8.4 7.4
Borrowings 25.0 15.0 -
Total current liabilities 93.8 78.3 60.3
-------- ------------ --------
Total liabilities 137.5 93.1 69.1
-------- ------------ --------
Equity
Share capital 0.1 0.1 0.1
Share premium 204.3 204.0 203.3
Reserve for own shares (3.1) (2.6) (2.3)
Retained earnings (90.2) (59.7) (89.0)
Other reserves 58.7 58.7 58.7
-------- ------------ --------
Total equity 169.8 200.5 170.8
Total equity and liabilities 307.3 293.6 239.9
======== ============ ========
Consolidated Statement of Changes in Equity
for the period ended 30 June 2019, 31 December 2018 and 30 June 2018
Issued Share Other Retained Reserve Total
share premium reserves earnings for own
capital shares
GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2018 0.1 203.3 58.7 (88.5) (3.6) 170.1
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 42.5 - 42.5
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period - - - 42.5 - 42.5
Purchase of shares by
employee trusts - - - - (0.5) (0.5)
Exercise of LTIP awards - - - (1.7) 1.7 -
Distribution in relation
to LTIP - - - (0.2) - (0.2)
Equity dividends paid - - - (40.7) - (40.7)
Share-based payments - - - (0.3) - (0.3)
--------- --------- ---------- ---------- --------- -------
At 30 June 2018 0.1 203.3 58.7 (89.0) (2.3) 170.8
--------- --------- ---------- ---------- --------- -------
At 1 July 2018 0.1 203.3 58.7 (89.0) (2.3) 170.8
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 44.0 - 44.0
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period 44.0 44.0
Purchase of shares by
employee trusts - - - - (0.3) 0.1
Exercise of LTIP awards - - - (0.1) 0.1 -
New shares issued - 0.7 - - - 0.3
Distribution in relation
to LTIP - - - 0.1 - 0.1
Equity dividends paid - - - (15.8) - (15.8)
Share-based payments - - - 1.1 - 1.1
At 31 December 2018 0.1 204.0 58.7 (59.7) (2.6) 200.5
--------- --------- ---------- ---------- --------- -------
At 1 January 2019 0.1 204.0 58.7 (59.7) (2.6) 200.5
--------- --------- ---------- ---------- --------- -------
Profit for the period - - - 50.2 - 50.2
Other comprehensive income - - - 2.0 - 2.0
--------- --------- ---------- ---------- --------- -------
Total income and expense
for the period - - - 52.2 - 52.2
Purchase of shares by
employee trusts - - - - (0.5) (0.5)
New shares issued - 0.3 - - - 0.3
Equity dividends paid - - - (83.4) - (83.4)
Share-based payments - - - 0.7 - 0.7
At 30 June 2019 0.1 204.3 58.7 (90.2) (3.1) 169.8
--------- --------- ---------- ---------- --------- -------
Consolidated Statement of Cash Flows
for the six months ended 30 June 2019 and 30 June 2018
6 months 6 months
to to
30 June 30 June
2019 2018
Operating activities GBPm GBPm
Profit for the period 50.2 42.5
Adjustments to reconcile Group profit
to net cash flow from operating
activities:
Depreciation of property, plant
and equipment 2.2 0.5
Amortisation of intangible assets 8.8 6.1
Share of loss of joint venture 0.1 -
Net finance costs 0.9 0.3
Equity settled share-based payment
transactions 0.7 (0.3)
Tax charge 10.2 9.2
Changes in trade and other receivables (12.2) (12.9)
Changes in trade and other payables 1.0 6.2
Tax paid (10.5) (8.6)
Net cash flow from operating activities 51.4 43.0
-------- --------
Investing activities
Interest received 0.1 0.2
Acquisition of investments (2.3) (0.3)
Acquisition of property, plant and
equipment (1.5) (5.8)
Acquisition of intangible assets (6.3) (6.4)
Net cash used in investing activities (10.0) (12.3)
-------- --------
Financing activities
Dividends paid (83.4) (40.7)
Proceeds from issue of shares 0.3 -
Distribution in relation to Long
Term Incentive Plan - (0.2)
Share purchases by employee trusts (0.5) (0.5)
Proceeds from borrowings 40.0 20.0
Repayment of borrowings (30.0) (20.0)
Interest paid (0.2) -
Net cash used in financing activities (73.8) (41.4)
Net decrease in cash and cash equivalents (32.4) (10.7)
Cash and cash equivalents at 1 January 44.8 35.1
Cash and cash equivalents at 30
June 12.4 24.4
-------- --------
Notes
1 Basis of preparation
Moneysupermarket.com Group plc (the Company) is a public limited company registered and domiciled in England and Wales and listed on the London Stock Exchange.
The Financial Statements are prepared on the historical cost basis. Comparative figures presented in the Financial Statements represent the six months ending 30 June 2018.
The Group has adopted IFRS 16 using the modified retrospective approach, the prior year has not been restated. With the exception of IFRS 16, the Financial Statements have been prepared on the same basis as those for the year ended 31 December 2018.
Statement of compliance
The condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 'Interim Financial Reporting' as adopted by the European Union (EU). As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed consolidated set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2018 with the exception of IFRS 16, as further described and explained below. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2018.
The principal risks and uncertainties for the remaining six months of the year remain unchanged from those disclosed in the financial statements for the year ended 31 December 2018.
The half year financial information is presented in Sterling and all values are rounded to the nearest million pounds (GBPm) except where otherwise indicated.
Going concern
After making enquires, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the condensed consolidated financial statements.
2 Accounting estimates and judgement
The preparation of half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2018.
3 Segmental information
2019 2018
GBPm GBPm
Segment revenue
Insure 96.1 93.3
Money 46.5 44.5
Home Services 34.2 22.5
------ ------
176.8 160.3
Other revenue 22.6 13.4
-------- --------
Total 199.4 173.7
Operating expenses (138.0) (121.7)
-------- --------
Operating profit 61.4 52.0
Net finance costs (0.9) (0.3)
Share of loss of joint venture (0.1) -
-------- --------
Profit before tax 60.4 51.7
Taxation (10.2) (9.2)
-------- --------
Profit for the year 50.2 42.5
======== ========
In applying IFRS 8 - Operating Segments, the Group discloses three reportable segments.
4 Taxation
The effective tax rate of 16.9% (2018: 19.0%) includes a GBP1.1m favourable prior year adjustment in respect of 2018. The underlying effective tax rate of 18.8% is in line with the UK statutory rate of 19.0% (2018: 19.0%) and the Group expects the underlying effective rate of tax to continue to approximate to the standard UK corporation tax rate.
5 Earnings per share
Basic and diluted earnings per share have been calculated as follows.
2019 2018
Profit after taxation attributable to ordinary
shareholders (GBPm) 50.2 42.5
------- -------
Basic weighted average ordinary shares
in issue (millions) 536.3 536.0
Dilutive effect of share based instruments
(millions) 0.8 1.0
------- -------
Diluted weighted average ordinary shares
in issue (millions) 537.1 537.0
------- -------
Basic earnings per ordinary share (pence) 9.4 7.9
======= =======
Diluted earnings per ordinary share (pence) 9.3 7.9
======= =======
Adjusted basic and diluted earnings per share have been
calculated as follows:-
GBPm GBPm
Profit before tax 60.4 51.7
Amortisation of acquisition related intangible
assets 1.2 0.5
Strategy related one-off costs 0.5 3.6
Profit on disposal of associate and investment - -
------- -------
62.1 55.9
Estimated taxation at 19.00% (2018: 19.00%) (11.8) (10.6)
------- -------
Profit for Adjusted EPS purposes 50.3 45.3
======= =======
Basic Adjusted Earnings per share (pence) 9.4 8.4
======= =======
Diluted Adjusted Earnings per share (pence) 9.4 8.4
======= =======
6 Dividends
2019 2018
GBPm GBPm
Equity dividends on ordinary shares:
Final dividend for 2018: 8.10 pence per
share
(2017: 7.60 pence per share) 43.4 40.7
Special dividend for 2018: 7.46 pence 40.0 -
per share
(2017: Nil)
======= =======
83.4 40.7
======= =======
Proposed for approval (not recognised
as a liability as at 30 June):
Interim dividend for 2019: 3.10 pence
per share
(2018: 2.95 pence per share) 16.6 15.8
======= =======
7 Intangible fixed assets
Market Customer Customer Technology Goodwill Total
related relationships lists related
GBPm GBPm GBPm GBPm GBPm GBPm
Cost
At 1 January 2018 148.7 69.3 2.3 83.0 181.9 485.2
Additions - - - 6.8 - 6.8
-------- -------------- ----------- ---------- -------- -----
At 30 June 2018 148.7 69.3 2.3 89.8 181.9 492.0
======== ============== =========== ========== ======== =====
Amortisation
At 1 January 2018 143.8 69.3 2.3 50.9 74.3 340.6
Charged in period 0.5 - - 5.6 - 6.1
-------- -------------- ----------- ---------- -------- -----
At 30 June 2018 144.3 69.3 2.3 56.5 74.3 346.7
======== ============== =========== ========== ======== =====
Net book value
At 1 January 2018 4.9 - - 32.1 107.6 144.6
At 30 June 2018 4.4 - - 33.3 107.6 145.3
======== ============== =========== ========== ======== =====
Cost
At 1 January 2019 155.3 69.3 2.3 98.1 212.6 537.6
Additions - - - 6.3 - 6.3
-------- -------------- ----------- ---------- -------- -----
At 30 June 2019 155.3 69.3 2.3 104.4 212.6 543.9
======== ============== =========== ========== ======== =====
Amortisation
At 1 January 2019 145.1 69.3 2.3 62.9 74.3 353.9
Charged in period 0.8 - - 7.9 - 8.7
-------- -------------- ----------- ---------- -------- -----
At 30 June 2019 145.9 69.3 2.3 70.7 74.3 362.5
======== ============== =========== ========== ======== =====
Net book value
At 1 January 2019 10.2 - - 35.2 138.3 183.7
At 30 June 2019 9.4 - - 33.7 138.3 181.4
======== ============== =========== ========== ======== =====
8 Share-based payments
On 28 March 2019, conditional awards were granted over 1,482,924 shares to a number of employees under the Long Term Incentive Plan scheme.
The share option charge in the Statement of Comprehensive Income can be attributed to the following types of option:
2019 2018
GBPm GBPm
Long Term Incentive Plan (LTIP) and
Restricted Share Award (RSA) 0.5 (0.4)
Sharesave scheme 0.2 0.1
----- ------
0.7 (0.3)
===== ======
The following table indicates the changes in the number of share options during the period. Number of awards in the table represents the number awarded.
LTIP/RSA
At 1 January 2018 3,473,603
Options issued during the period 1,882,181
Options exercised during the period (613,906)
Options forfeited during the period (362,479)
At 30 June 2018 4,379,399
==========
At 1 July 2018 4,379,399
Options issued during the period 186,670
Options exercised during the period (225,371)
Options forfeited during the period (646,750)
----------
At 31 December 2018 3,693,948
==========
At 1 January 2019 3,693,948
Options issued during the period 1,647,524
Options exercised during the period -
Options forfeited during the period (139,158)
----------
At 30 June 2019 5,202,314
==========
9 IFRS 16 - Leases
The adoption of IFRS 16 has impacted the Consolidated Statement of Comprehensive Income as expected in 2019, reducing operating lease expenditure by GBP1.3m and instead reflecting these rental costs through depreciation charges of GBP1.3m and finance costs of GBP0.6m. On the balance sheet, adoption of IFRS 16 has meant the recognition of right of use lease assets and lease liabilities respectively totalling GBP31.8m and GBP34.1m in respect of the Group's property leases. As the Group adopted IFRS 16 using the modified retrospective approach, the prior year has not been restated.
10 Related party transactions
The Company is the ultimate parent entity of the Group. Intercompany transactions with wholly owned subsidiaries have been excluded from this note, as per the exemption offered in IAS 24.
During the period, other than the items referred to below there were no transactions, and at the period end there were no outstanding balances, relating to key management personnel and entities over which they have control or significant influence, other than the Long Term Incentive Plan awards noted in the table above.
On 30 April 2019, the 2016 Long Term Incentive Plan lapsed in full as the performance criteria were not met. On 14 February 2019, 164,600 conditional awards were granted in relation to an Executive share option scheme. On 28 March 2019, under the 2019 Long Term Incentive Plan, conditional awards were granted over 1,482,924 shares.
11 Commitments and contingencies
Along with most companies of our size, the Group is a defendant in a small number of disputes incidental to its operations and from time to time is under regulatory scrutiny.
As a leading website operator, the Group occasionally experiences operational issues due to errors in operating procedures or technology which result in incorrect or incomplete product or customer data being transferred to or from providers. These issues can in some instances lead to customer detriment, dispute and potentially cash outflows. During the current year there have been no material issues reported and those relating to earlier years have been substantially resolved. The Group has a Professional Indemnity Insurance Policy in order to mitigate liabilities arising out of events such as this.
In aggregate, the commitments and contingencies outlined above are not expected to have a material adverse effect on the Group.
12 Post balance sheet events
There are no significant post balance sheet events.
INDEPENDENT REVIEW REPORT TO MONEYSUPERMARKET.COM GROUP PLC
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2019 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2019 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in the notes, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Stuart Crisp
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
17 July 2019
Appendix
Statutory Information
The financial information set out above does not constitute the Company's statutory accounts for the six months ended 30 June 2019 or 30 June 2018 but is derived from those accounts. Statutory accounts for 2018 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The Annual General Meeting took place on 9 May 2019. The interim dividend will be payable on 13 September 2019 to shareholders on the register at the close of business 2 August 2019.
Presentation of figures
Certain figures contained in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly with the total figure given.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR QDLFFKDFLBBE
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