Moneysupermarket pays divi; Q1 revenue tops £107m

Chester-based price comparison website Moneysupermarket Group said on Thursday its revenue rose 2% to £107.3 million in the quarter ended March 31, 2020, and that it will pay its 2019 final dividend of 8.61p per share.

In its outlook, Moneysupermarket said: “It is still too early to determine the full impact of the rapidly changing situation.

“Given the evolving nature of the pandemic and the associated uncertainty and lack of visibility, we are suspending all financial guidance for the financial year 2020.

“In Q1 we initially saw strong demand for travel insurance due to consumer concerns over COVID-19 but both TravelSupermarket and travel insurance have materially weakened since the travel ban.

“Over recent weeks we have seen a slowdown in consumer demand and lower product availability in our Money business.

“Notably the outlook for loans and mortgages and some of our promotional Money channels has reduced.

“To date, Insurance and Home Services trading remain relatively resilient …”

On its balance sheet and dividend, Moneysupermarket said: “We have access to a £100m committed revolving credit facility, which matures in September 2021, with the ability to apply for a one or two year extension to this facility. 

“As at 31 March 2020, we had net cash of c.£30m. 

“Given this strong balance sheet and robust liquidity position, the board has determined that, despite the challenging macro conditions, the proposed 2019 final dividend amount of 8.61p per share will not jeopardise our ability to continue to invest into the business and support ongoing operations, including our customers and colleagues. 

“The board therefore proposes to pay the final dividend of 8.61p per share declared with the group’s preliminary results and will keep dividend policy for the rest of the year under review.”

Moneysupermarket Group CEO Mark Lewis said: “Having fully moved to remote working to support the health and safety of the team, we remain as committed as ever to help our customers through this crisis.

“As household incomes come under pressure, we continue to offer a broad range of deals for people looking to save.

“The MoneySavingExpert team continues to publish the most authoritative guides to help people navigate the impact of Coronavirus on their finances. 

“This situation is continuing to develop but we in turn will continue to do all we can to help our customers at this difficult time.”