Comparison website Moneysupermarket.com (MONY) has committed to pay its final dividend for 2019, bucking a growing trend among companies who are cancelling or suspending payouts to preserve cash.
Moneysupermarket declared an 8.61p per share payout alongside its full year results on 20 February but the dividend policy will remain under review for this year.
The news will come as only a modest lift to shareholders after Moneysupermarket pulled 2020 guidance as the coronavirus put a severe dent in business in recent weeks.
2020 GUIDANCE PULLED
The company said that it is still too early to determine the full impact of Covid-19, but given the evolving nature of the pandemic and the associated uncertainty and lack of visibility, it is suspending all financial guidance for the financial year 2020.
In a trading update today Moneysupermarket confirmed that it saw revenues increase 2% in the first quarter of 2020, fuelled by trading within insurance.
The insurance arm reported 8% revenue growth, from £48.3m in the first three months of 2019 to £51.9m for the same period this year.
In its money arm, during the first part of the quarter credit and banking returned to growth, however, during March trading dynamics deteriorated.
The travel unit has also weakened significantly since mid-February thanks to the global clampdown on movement due to national lockdowns.
ACCESS TO FUNDING
Importantly, Moneysupermarket confirmed that it has access to a £100m committed revolving credit facility, which matures in September 2021. This will provide immediate financial security for the business and its staff. It can also apply for a one or two year extension to this facility.
As at 31 March 2020, Moneysupermarket.com had net cash of roughly £30m, the company said.
‘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,’ it said.
