Interim Results 2007
Moneysupermarket.com Group PLC
19 September 2007
Moneysupermarket.com Group PLC
Financial information for the 9 days to 30 June 2007 and proforma financial
information for the 6 months to 30 June 2007
19 September 2007
Highlights
Moneysupermarket.com Group PLC ('Moneysupermarket.com'), the UK's leading price
comparison site is pleased to announce its maiden interim results for the six
months to 30 June 2007.
Moneysupermarket.com was formed as a new holding company and it acquired
Moneysupermarket.com Financial Group Limited and its subsidiaries on 22 June
2007. Accordingly the Group is presenting consolidated results for the period
from 22 June 2007 to 30 June 2007 for the Group. These have been presented
below. Revenues in the nine day period were £4.1m, generating a net loss before
tax of £0.5m.
Moneysupermarket.com is also presenting a proforma Income Statement for the six
months to June 2006 and June 2007 to show what the financial results would have
been had Moneysupermarket.com acquired Moneysupermarket.com Financial Group
Limited on 1 January 2006(1). The directors believe that this will allow users
of the financial information to gain a better understanding of the underlying
performance of the business and is consistent with the presentation made in the
prospectus. The proforma results are presented below.
Proforma Financial Highlights
• Revenues increased by 63% from £48.2m to £78.5m with internet revenues
increasing by 72% from £42.7m to £73.5m
• Continued diversification across the internet business as the Travel and Home
Services verticals continue to expand rapidly
• Gross margins increased from 58% to 66% driven by an increase in direct to
site revenues and a change in sales mix in favour of the internet business
• Adjusted EBITDA(2) increased by 72% from £15.4m to £26.5m
Operational Highlights
• Visitors to the Group's websites increased 58% to 44.7 million
• Transactions on the Group's websites increased 61% to 29 million
• Improved monetisation of internet traffic with increases in RPT and RPV in
each vertical
• Online brand recognition increased from 40% in July 2006 to 74% in July
2007
Simon Nixon, CEO said
'This has been an extremely busy six months for the Group and we have
undergone significant change. We have financed the buy out of one of the
founding shareholders and been admitted to the main market in July 2007. We have
grown the internet business by more than 70% in revenues and underlying adjusted
EBITDA by a similar amount. We have continued to invest in our brand, our
consumer offering and marketing engine. We have built a stronger platform for
future growth.
I am delighted to announce that Rob Rowley will be joining the board with
immediate effect as a non executive director to chair the Audit Committee. Rob
was formerly Finance Director of Reuters and more latterly Deputy Chairman of
Cable and Wireless plc. He brings with him tremendous experience which will add
enormous value to the board'
Notes:
(1) Assuming a debt free acquisition at 1 January 2006, from which date
intangible amortisation commenced, and a share option charge which reflects
the average charge over the vesting period of currently unexercised options.
(2) Adjusted EBITDA is calculated by the directors following certain adjustments
to the historical compensation levels of the Group Directors and Senior
Managers. These adjustments reflect the Group Directors' and Senior Managers'
profit share, discretionary bonus, and employers National Insurance
Contributions from these historical compensation levels. Following the IPO
these elements of compensation no longer apply at these levels to these
individuals each of whom has entered a new service contract. The charge for
share based compensation relating to options issued pre-IPO have also been
added back. The Directors anticipate presenting financial information on a
similar basis until the final results for the year ended 31 December 2008.
Thereafter the need to present proforma Income Statement will not be
required because the relevant comparator period will be consistent with the
current period.
Overview
We are pleased to report a strong set of results for Moneysupermarket.com's
first interims as a public company following listing on 31 July 2007. The
following commentary is based on the proforma results presented on the basis
described above using adjusted EBITDA. Adjustments total £20.3m in the six
months ended 30 June 2007 and £23.8m in the corresponding period. An analysis of
these adjustments is shown below the proforma Income Statement.
Revenues grew by 63% to £78.5m and adjusted EBITDA by 72% to £26.5m. Revenue
growth has been achieved by a combination of growth in visitors, improvement in
conversion rates and increased revenue per transaction. The internet business
generated £73.5m of revenues representing 94% of turnover in the six months to
June 2007 compared to £42.7m in the corresponding period which represented 89%
of turnover.
Group gross margins increased over the period from 58% to 66% from a change in
sales away from the intermediary business to higher margin internet business
together with a significant increase in the proportion of internet revenues that
are derived from direct to site traffic for which there are no directly
associated expense recorded in cost of sales. The improvement in mix has been
driven by increased brand awareness supported by continued investment in TV
advertising which commenced in March 2006, and a focus on Search Engine
Optimisation (SEO) which has maintained and improved the Group's rankings in the
free listings in the major search engines for key search terms.
The Group has continued to invest for growth over the period. The adjusted cost
base before the amortisation of intangible assets has doubled from £13.2m to
£26.4m. The majority of the increase is attributable to an increase in
Distribution expenses which consist primarily of TV advertising, marketing and
PR expenses. These have grown significantly from £2.7m in the first half of 2006
to £9.9m in 2007. TV advertising did not commence until March 2006 and the 2007
results therefore include a full six months activity compared to four months in
2006. However there was generally a step increase in activity over the first
half of 2007. The success of this has been demonstrated by a significant
improvement in online brand recognition up from 40% in July 2006 to 74% in July
2007 as measured by a You Gov survey regularly commissioned for the Group.
Adjusted staff costs have increased by £3.5m to £10.2m. Headcount increased from
413 to 576 from June 2006 to June 2007 over the period primarily in IT and
operations. The Group is committed to continued investment in its people and
consumer offering. The majority of its IT and operations headcount, 270 as at
June 2007 are working on developments to its existing channels, and on new
channels or opportunities.
Other costs including irrecoverable VAT increased by £2.5m as the business grew
accentuated by a change in mix towards sales which were exempt from VAT.
Adjusted EBITDA margins improved from 31.9% in the six months to June 2006 to
33.8% in the six months to June 2007.
Group revenues are presented and discussed below by vertical and business unit.
30 June 2007 30 June 2006
£000 % £000 %
Money 38,315 49% 23,969 50%
Insure 25,322 32% 14,519 30%
Travel 7,517 10% 3,507 7%
Home Services 2,325 3% 285 1%
Other 47 0% 384 1%
------------- ------------- ------------- -------------
Total internet 73,526 94% 42,664 89%
Intermediary 4,949 6% 5,495 11%
------------- ------------- ------------- -------------
Total 78,475 100% 48,159 100%
============= ============= ============= =============
Internet Business
The Group transacted across 25 different channels as at the end of June 2007 and
across four different verticals being Money, Insurance, Travel and Home
Services.
Money
The money vertical currently offers the consumer the ability to search for and
compare personal finance products including business finance, credit cards,
current accounts, mortgages, personal loans and savings accounts. It also
includes elements of the Group's lead business (PAA) and advisory business
(MCAT) together with advertising revenues that derive revenues from money
products.
The KPIs for the money vertical are shown below
Money 30 June 2007 30 June 2006 Change
Visitors (000) 13,959 11,603
Transactions (000) 6,102 5,561
Revenue (£000) - click based revenue 28,947 17,409 66%
Revenue (£000) - other 9,368 6,560 43%
Revenue (£000) - total 38,315 23,969 60%
RPV £2.74 £2.07
RPT £4.74 £3.13
Revenues in the money vertical have grown in total by 60% from £24.0m to £38.3m
and transaction revenue by 66% from £17.4m to £28.9m. Growth has been driven by
a switch away from unsecured lending products to secured lending products which
generate higher revenues. For the Group this has significantly improved the
revenue per transaction and revenue per visitor which have increased by 51% and
32% respectively.
The Group records transactions at the point that the consumer leaves the Group's
websites to a contracted provider's website. The recorded conversion rate fell
over the period from 48% to 44% as a number of the secured loan applications are
now hosted on the Group's website. A commercial relationship that requires that
the Group hosts an application generates less recorded transactions than one
which is based on a click through although typically commands a higher RPT than
a click through arrangement.
Other revenues have also grown strongly in the period particularly advertising
revenues and we launched a new leads bidding scheme in quarter 4 2006 which we
believe has the potential to drive significant growth in the future.
Insurance
The Insurance vertical currently offers the ability for the consumer to search
and compare insurance quotations for breakdown, dental, home, life, medical,
mortgage payment protection, motor, payment protection, pet and travel
insurance. It also includes elements of the Groups lead business (PAA) and
advisory business (MCAT) together with advertising revenues that derive revenues
from insurance products.
The KPIs are shown below(3)
Insurance 30 June 2007 30 June 2006 Change
Visitors (000) 10,029 6,894
Transactions (000) 6,730 4,185
Revenue (£000) - click based revenue 21,959 12,881 70%
Revenue (£000) - other 3,363 1,638 105%
Revenue (£000) - total 25,322 14,519 74%
RPV £2.52 £2.11
RPT £3.26 £3.08
Revenues in the Insurance vertical have grown by 74% from £14.5m to £25.3m and
transaction revenue by 70% from £12.9m to £22.0m. Revenue per transaction
increased marginally by 5% and pricing has generally held firm in the insurance
channels across the period. Non click revenues increased by 105% over the period
driven by advertising and the launch of the leads bidding scheme referred to
above which has enabled the Group to retail insurance leads through its on line
auction platform.
Notes:
(3) As noted in the prospectus the Group's visitor numbers during the period
between June 2006 and May 2007 were understated due to certain visitors not
being assigned a unique global user ID. The issue was resolved in May 2007
and has not impacted visitor numbers in the Insurance vertical after May
2007. The Group has not been able to quantify the exact extent of the
understatement.
Travel
The travel vertical currently offers the consumer the ability to search for and
compare airport parking, car hire, flights, hotels, and package holidays.
The KPIs for the travel vertical are shown below
Travel 30 June 2007 30 June 2006 Change
Visitors (000) 17,773 9,203
Transactions (000) 15,291 7,876
Revenue (£000) - click based revenue 6,537 3,199 104%
Revenue (£000) - other 980 308 218%
Revenue (£000) - total 7,517 3,507 114%
RPV £0.42 £0.38
RPT £0.43 £0.41
Revenues in the travel vertical have grown by 114% from £3.5m to £7.5m and
transaction revenue by 104% from £3.2m to £6.5m. Growth has been driven by
increasing visitor numbers which have grown 93% over the period and improved
conversion rates. There has also been some impact in sales mix, where hotels and
car hire account for a greater proportion of revenues in the first half of 2007
than they did in 2006, whilst flights have correspondingly declined as a
proportion of revenues. Hotels and Car Hire are higher commission products and
this combined with improved conversion rates have improved the RPV by 11% over
the period.
Home Services
The Home Services vertical was launched in 2006. It offers consumers the
opportunity to search for and compare products for broadband, mobile telephone,
shopping and utilities.
The KPIs are shown below.(4)
Home Services 30 June 2007 30 June 2006 Change
Visitors (000) 2,901 609
Transactions (000) 894 420
Revenue (£000) - click based revenue 2,250 285 690%
Revenue (£000) - other 75 -
Revenue (£000) - total 2,325 285 716%
RPV £0.80 £0.47
RPT £2.52 £0.68
Revenues in the Home Services vertical have grown by £2m to £2.3m in the six
months ended June 2007. Revenues in H1 were substantially generated on a per
click basis from a white label utilities offering. Late in 2006 the Group
developed its own product offering and introduced a number of channels in
addition to utilities, a number of which the Group is remunerated on a per
application basis with the Group hosting the application. This tends to drive
down conversion rates and increase the revenue per transaction.
Notes:
(4) The KPIs in respect of 2006 have been presented to strip out the effect of
the new car channel which was discontinued in the second half of 2006
Other
Other includes discontinued revenue lines notably new cars.
Intermediary Business
Intermediary revenues declined from £5.5m to £4.9m over the period. In June 2006
the Group disposed of its 50% shareholding in HLP partnership a network
business. This contributed £0.8m of revenues in 2006 and nil profit. Trading in
the underlying business remains stable.
Restructuring
As noted above on 22 June 2007 Moneysupermarket.com Group PLC a company
controlled by Simon Nixon purchased the entire share capital of
Moneysupermarket.com Financial Group Limited by way of a share for share
exchange and a cash payment of £162m to one of the founder shareholders. This
transaction will have a number of impacts on the accounts of the Group both in
the current period and subsequent periods. At 30 June 2007 the transactions to
acquire the founder shareholders shares and create the new statutory structure
had been completed and are reflected within these accounts. The Group incurred
total transaction costs relating to the acquisition of Duncan Cameron's shares,
the raising and draw down of the required financing and the IPO of approximately
£16m.
The acquisition was funded by an all senior debt facility of £150m. The company
incurred costs of approximately £3.5m directly associated with the raising and
draw down of the loan facility. The debt was repaid from the proceeds of the IPO
on 31 July 2007. The costs incurred will therefore be expensed over the period
from 22 June 2007 to 31 July 2007. This has resulted in an additional finance
charge in the period of £0.8m in the accounts with the balance to be charged in
the second half of the year. The proforma Income Statements have been prepared
on a debt free basis and consequently there have been no costs recognised in
respect of the debt raised in them.
The acquisition gave rise to £127.2m of goodwill and the recognition of £207.2m
of intangibles. Individual intangibles will be amortised over their useful lives
(which are in the range of 3-10 years) with a charge of £25.2m per annum in the
first 3 years in the full year accounts. A charge of £0.6m has been included in
the accounts covering the period from 22 June 2007 to 30 June 2007. A full six
months charge of £12.6m is included in the proforma Income Statement. An
impairment review will be performed on goodwill on at least an annual basis to
assess its carrying value.
Costs incurred wholly in preparation for the IPO have been included within other
debtors as at 30 June 2007. These will be written off to share premium in the
second half of the current year.
Cash Balance
As at 31 July 2007 the Group had net cash balance of £45.6m. At the end of July
approximately £6m of costs relating to the restructuring had not yet been paid.
Dividend
The board will not be declaring an interim dividend as previously disclosed in
the prospectus. It anticipates declaring a final dividend in February 2008 in
respect of the year ended 31 December 2007 of two thirds of the annual targeted
payout ratio representing one third of adjusted net income.
Outlook
Trading in Q3 has started very strongly supported by the poor summer weather
which the board believe has increased internet activity generally and helped
drive revenues. To date the business has not seen any impact of the weakening in
the credit markets. The money vertical continues to trade strongly with revenues
significantly ahead of the same period last year although forward visibility
remains unchanged. The Group has accelerated its TV advertising in the third
quarter focussing on both Travel and Insurance although it currently anticipates
that this will significantly reduce in Q4 particularly in the run up to the
Christmas period.
Analysts Presentation
There will be a presentation for investors and analysts at Credit Suisse, Level
32, Tower 42, 25 Old Broad Street, London, EC2N 1HQ at 9.30am this morning.
For Further Information
Moneysupermarket.com Group PLC
Simon Nixon Chief Executive Officer 020 7353 4200
Paul Doughty Chief Financial Officer 020 7353 4200
Alexander Cowen-Wright Public Relations Manager 07802 455893
Tulchan Communications
David Trenchard 020 7353 4200
Celia Gordon-Shute 020 7353 4200
Unaudited Proforma Income Statement
for the 6 month period ended 30 June 2007
Note 2007 2006
£000 £000
Continuing operations
Revenue 78,475 48,159
-------- --------
Internet 73,526 42,664
Intermediary 4,949 5,495
-------- --------
Cost of sales (26,348) (20,208)
-------- --------
Gross profit 52,127 27,951
Other operating income - 193
Distribution expenses (9,853) (2,743)
-------- --------
Administrative expenses - excluding directors' and
senior managers' profit share and discretionary
bonuses, and share based compensation (29,105) (23,105)
Administrative expenses - directors' and senior
managers' profit share and discretionary bonuses (4,881) (8,581)
Administrative expenses - share based compensation (2,113) (2,113)
-------- --------
Administrative expenses (36,099) (33,799)
-------- --------
Operating profit 6,175 (8,398)
Financial income 582 255
Financial expense - (2)
-------- --------
Net finance costs 582 253
-------- --------
Profit before tax 6,757 (8,145)
======== ========
Adjusted EBITDA
Operating profit above 6,175 (8,398)
Directors' and senior managers' profit share and
discretionary bonuses 4,881 8,581
Share based compensation 2,113 2,113
Amortisation of intangibles 12,600 12,600
Depreciation 743 475
-------- --------
Adjusted EBITDA 26,512 15,371
======== ========
Notes
Basis of Preparation
The proforma results show the trading results of Moneysupermarket.com
Group PLC for the 6 months ended 30 June 2006 and 30 June 2007 adjusted for
the following assumptions;
• The acquisition of Moneysupermarket.com Financial Group Limited by
Moneysupermarket.com Group PLC occurred debt free on 1 January 2006.
• The charge included within the proforma for the share options is the
average expected charge over the vesting period of options to be
exercised following the IPO.
The board regards an adjusted EBITDA figure as being the most meaningful
profit measure for this period. The following adjustments have been made
to the proforma results
• The acquisition of Moneysupermarket.com Financial Group Limited by
Moneysupermarket.com Group PLC gave rise to £207.2m of intangibles. These
are to be written off over a period of 3-10 years with a charge of £25.2m
per annum to be recorded in each of the first three years. This has been
shown within administrative expenses as a charge of £12.6m in 2006 and
2007 proforma Income Statements.
• Following the IPO, Directors and Senior Management compensation was revised
and the individuals entered into new service agreements to reflect the new
compensation levels. Directors and certain senior management profit share,
discretionary bonus and employers National Insurance Contributions have
been added back to reflect the fact that following admission on 31 July
2007 these elements of compensation no longer apply to these individuals.
Each of them has entered into a new service contract.
• Share option charges relating to Directors, senior management and other
members of staff have been added back to calculate adjusted EBITDA. Prior
to the acquisition of Moneysupermarket.com Financial Group Limited it
issued options on terms that will not be offered moving forward. It does
however anticipate awarding shares under the terms of the Group's Long Term
Incentive Plan (LTIP) in the future to key staff on substantially
different terms. As at 30 June 2007 no awards under the LTIP had been made
and hence there is no charge included in the Proforma results in either
2006 or 2007.
Income statement
for the 9 days ended 30 June 2007
Note 2007 2007
£000 £000
Turnover 2 4,111
Cost of sales (1,341)
--------
Gross profit 2,770
Distribution expenses (545)
Administrative expenses - excluding directors and senior (1,470)
managers profit share and discretionary bonuses and
share based compensation
Administrative expenses - directors and senior (24)
managers profit share and discretionary bonuses
Administrative expenses - share based compensation (158)
Administrative expenses (1,652)
--------
Operating profit 573
Financial income 35
Financial expense (1,069)
--------
Net finance costs (1,034)
--------
Loss on ordinary activities before taxation (461)
Tax on loss on ordinary activities 90
--------
Loss for the period (371)
========
Consolidated Balance Sheet
at 30 June 2007
Note 2007 2007
£000 £000
Non-current assets
Property, Plant and Equipment 7,233
Intangible assets 4 206,583
Goodwill 127,172
Deferred tax assets 133
--------
341,121
Current assets
Trade and other receivables 21,977
Prepayments 2,733
Cash and cash equivalents 19,130
--------
43,840
--------
Net assets 384,961
========
Non-current liabilities
Deferred tax liabilities 62,000
--------
62,000
Current liabilities
Loans and borrowings 150,000
Trade and other payables 32,216
--------
182,216
--------
Total liabilities 244,216
Equity
Called up share capital 97
Other reserves 140,861
Profit and loss account (213)
--------
140,745
--------
384,961
=========
Cash Flow Statement
for the 9 days ended 30 June 2007
Note 2007 2007
£000 £000
Cash flows from operating activities
Loss for the period (371)
Adjustments for:
Amortisation of intangible assets 630
Net finance costs 1,034
Equity settled share-based payment transactions 158
Income tax (90)
--------
Operating profit before changes in working capital 1,361
Changes in trade and other receivables 316
Changes in prepayments (1,331)
Changes in trade and other payables (1,096)
--------
(750)
Interest paid -
Income tax paid -
--------
Net cash used in operating activities (750)
Cash flows from investing activities
Interest received 35
Acquisition of subsidiary, net of cash acquired (164,450)
Cash acquired with subsidiary 14,295
--------
Net cash used in investing activities (150,120)
--------
(150,870)
Cash flows from financing activities
Net new borrowings 150,000
Loan from a related party 20,000
--------
Net cash from financing activities 170,000
--------
Net increase in cash and cash equivalents 19,130
--------
Cash and cash equivalents at 30 June 2007 19,130
========
Notes
(forming part of the financial information set out above)
1 Accounting policies
Basis of preparation
This interim financial information has been prepared using the following
accounting principle accounting policies:
Revenue Recognition:
The Group generates fees from internet lead generation through a variety of
contractual arrangements. The Group receives revenue from customers either
(i) for the sale of the lead itself or (ii) if and when the customer themselves
makes an onward sale as a result of the lead. The Group's policy is to recognise
revenue and associated costs for leads (i) in the period that the lead was
generated and transferred to the Group's customer, and (ii), recognise
commissions in the period that the transaction completes for the Group's
customer. Commissions are recognised within the Intermediary business on
completed transactions in the period that a transaction completes. Revenue is
recognised net of value added tax.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of
property, plant and equipment.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of property, plant and
equipment. Land is not depreciated. Assets under construction are not
depreciated until brought into use. The estimated useful lives are as follows:
Buildings - 50 years
Plant and equipment (including IT equipment) - 3 years
Fixtures and fittings - 5 years
Office equipment - 5 years
Research and development
Expenditure on research activities, undertaken with the prospect of gaining
technical knowledge and understanding, is charged to the income statement when
incurred. Development expenditure is recognised as an asset if, and only if, it
is probable that the expected future economic benefits that are attributable to
the asset will flow to the entity and the cost of the asset can be reliably
measured. If either of these is not met, development expenditure is charged to
the income statement when incurred
Intangible assets
During the period the Group's parent undertaking, Moneysupermarket.com Group PLC
acquired the entire issued share capital of Moneysupermarket.com Financial Group
Limited. As a consequence of this acquisition and the requirements of IFRS 3,
the Group has recognised intangible assets including brands, customer
relationships, customer contracts and technology which have been recognised on
the basis that they are separable, arise from contractual or other legal rights,
and can be measured reliably. Future economic benefits are expected to flow from
the assets, which are carried at fair value, and are to be amortised to the
income statement over an estimated useful economic life of between 3 and 10
years. These additional intangible assets are subject to impairment testing.
The acquisition of Moneysupermarket.com Financial Group Limited by
Moneysupermarket.com Group PLC was completed by a series of separate
transactions. The shares in Moneysupermarket.com Financial Group Limited
acquired by Moneysupermarket.com Group PLC from Simon Nixon have been accounted
for at book value as a share for share exchange between parties under common
control. The remaining shares acquired by Moneysupermarket.com Group PLC were
not acquired in transactions between parties under common control and have been
recorded at fair value with the excess of the fair value of the consideration
paid for these shares in Moneysupermarket.com Financial Group Limited over the
fair value of its separable assets accounted for as goodwill. Goodwill is not
amortised and its carrying value is subject to annual impairment test.
Employee benefits
Share-based payment transactions
The share option programme allows certain Group employees to acquire shares of
the ultimate parent company; these awards are granted by the ultimate parent.
The fair value of options granted is recognised as an employee expense with a
corresponding increase in equity. The fair value is measured at grant date and
spread over the period during which the employees become unconditionally
entitled to the options. The fair value of the options granted is measured using
an option valuation model, taking into account the terms and conditions upon
which the options were granted. The amount recognised as an expense is adjusted
to reflect the actual number of share options that vest except where forfeiture
is due only to share prices not achieving the threshold for vesting.
Short term benefits
Short term employee benefit obligations are measured on an undiscounted basis
and are recognised in the income statement as the related service is provided.
A provision is recognised for the amount expected to be paid under short term
cash bonus or profit sharing plans if the Group has a present legal or
constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
Net financing costs
Net financing costs comprise interest payable and interest receivable, and are
recognised in the income statement as they accrue, using the effective interest
method.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The following temporary differences are not provided for:
the initial recognition of goodwill; the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit other than in a
business combination, and differences relating to investments in subsidiaries to
the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.
2 Segmental analysis
2007
Turnover
£000
By activity
Internet 3,862
Intermediary 249
--------
4,111
========
3 Earnings per share
Basic and diluted loss per share has been calculated on the
following basis.
2007
£000
Loss after taxation (for basic and diluted earnings (371)
per share)
--------
Basic weighted average ordinary shares in issue (millions) 485.3
Dilutive effect of share based instruments (millions) 13.6
Diluted weighted average ordinary shares in issue (millions) 498.9
--------
Basic loss per ordinary share (pence) (0.08)
========
Diluted loss per ordinary share (pence) (0.08)
========
4 Intangible fixed assets
Marketing Customer Customer Technology Total
related relationship list related
£000 £000 £000 £000 £000
Cost
Additions 132,100 68,500 713 5,900 207,213
Disposals - - - - -
-------- -------- -------- -------- --------
At end of period 132,100 68,500 713 5,900 207,213
======== ======== ======== ======== ========
Amortisation
Charged in period 330 245 6 49 630
-------- -------- -------- -------- --------
At end of period 330 245 6 49 630
======== ======== ======== ======== ========
Net book value
At 30 June 2007 131,770 68,255 707 5,851 206,583
======== ======== ======== ======== ========
5 Reconciliation of movements on reserves
Share Other Retained Total
capital reserves earnings
£000 £000 £000 £000
Share capital issued and paid up 97 - - 97
Arising on acquisition of subsidiary - 140,861 - 140,861
Profit and loss accounts - - (371) (371)
Share based payment expense - - 158 158
-------- -------- -------- --------
At 30 June 2007 97 140,861 (213) 140,745
======== ======== ======== ========
6 Post balance sheet events
On 31st July 2007, Moneysupermarket.com Group PLC completed its IPO and was
admitted to the main list of the London Stock Exchange.
Net proceeds from the flotation after deducting the cost of the acquisition,
costs relating to the raising of finance and the IPO totalled approximately
£164m and was used to repay in full the £150m loan.
This information is provided by RNS
The company news service from the London Stock Exchange
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