Price comparison site Moneysupermarket.com (MONY) gains 7.3% to 290.4p on a positive first half trading update which allays some fears over competition and a post-Brexit hit to the business.
Revenue is expected to be up 10% to £157.6 million and after a tough spell in the insurance space this area has now returned to modest growth of 2%. Full-year numbers are expected to be in line with expectations.
Revenue from home services (essentially energy providers) is up 43% year-on-year thanks to a number of exclusive energy offers. The consumer finance MoneySavingExpert site sees revenues up 32% to £19.3 million.
Chief executive Peter Plumb strikes a positive tone on the impact of the EU referendum. 'As UK families prepare for life after the Brexit vote, with potentially rising energy prices, rising insurance prices and lower interest rates, our trusted brands and services will be there to make sure household bills are as low and easy to switch as possible.’
Though given heightened fears of a UK recession it is worth noting revenue declined 24% in 2009 during the previous big downturn.
Canaccord Genuity shares Plumb’s optimism. It reiterates its ‘buy’ recommendation and 325p price target and says: ‘We see very limited Brexit risk, given a core product that is designed to save consumers money.
'And certainly there has been no impact on the supply of credit products, while the potential for rising Energy/Insurance prices would be positive for switching activity.’
