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Moneysupermarket.com (MONY)

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Wednesday 19 September, 2007

Moneysupermarket.com

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