Gocompare.com Group plc - H1 trading update

Gocompare.com Group plc

11 July 2017

Post-close trading update

Gocompare.com Group plc ("Gocompare.com" or the "Group") today issues the following post-close trading update in respect of the six-month period ending 30 June 2017.

The Group has made good progress during the year to date, with revenue for the six-month period ending 30 June 2017 of approximately £75.8m, 4% up on H1 2016. Adjusted operating profit1 is expected to be approximately £17.5m, which represents growth of 22% compared to H1 2016, driven primarily by an improvement in marketing margin. Cash generation continues to be strong, with leverage reducing to 1.5x compared to 1.7x at 31 December 2016 and 2.8x at the time of the demerger.

During June, the Group completed an agreement with Haymarket Media Group Ltd to expand its targeted comparison services within their car media franchises. The Group has also made its first strategic investment with a minority stake in Mortgage Gym Limited, a digital mortgage robo-adviser, which plans to launch its new platform in September 2017.

Matthew Crummack, Chief Executive Officer of Gocompare.com, said:

"We have made strong progress in delivering improvements to our core business following organisational and operational transformations early in the year. This created positive momentum in trading performance, which, as anticipated, will accelerate through the year and we are delighted with the 22% increase in adjusted operating profit delivered in H1.

"The new executive team have delivered significant improvements in speed and capacity in the last six months, notably in the Technology and Product functions. I am particularly pleased with the integration and performance of our existing talent, alongside new talent recruited in Newport.

"As well as progressing the core business we have continued to develop our strategy and our investment in Mortgage Gym is an exciting opportunity to work with an innovative business that is well aligned to our mission of helping people everywhere save time and money.

"We are well positioned for the remainder of 2017 and the Board remains confident of the outlook for the full year."

Interim results for the period ended 30 June 2017 will be announced on 1 August 2017.

For further information:

1. Adjusted operating profit represents operating profit, adjusted to exclude the share base payment charge relating to the Foundation Awards that were granted to Executive Directors and some senior managers at the time of the demerger from esure Group plc.

Cautionary statements

The financial information contained in this release is based on unaudited management information. 

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Group or industry results to differ materially from any future events, results, performance or achievements expressed or implied by such forward-looking statements. Persons receiving this announcement should not place undue reliance on any forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Gocompare disclaims any obligation or undertaking to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.