SHARES in price comparison website Moneysupermarket tumbled yesterday, despite annual results showing double-digit revenue and profit growth, as investors shied away from the prospect of slower growth and government regulation.
In an otherwise upbeat statement, Moneysupermarket said last year’s success meant it would be harder to replicate in 2015. It forecast that increasing activity in the motor insurance market towards the end of 2014 would mean that it was less likely to see as many consumer switching in the coming months.
The warning comes as the firm announced group revenue rose 10 per cent in the year ending 31 December 2014 to £248m, with pre tax profits up 53 per cent at £66m.
The biggest contribution to the positive results came from the company’s insurance unit, which saw a 56 per cent rise in revenues.
The company’s exposure to utility comparisons could put it at risk since the House of Commons energy and climate change select committee released a report yesterday into alleged malpractice in the price comparison market, with a recommendation of compensation for consumers who may have been misled.
Shares in the company closed 8.98 per cent down yesterday.