RNS Number : 5819Y
Moneysupermarket.com Group PLC
08 July 2008
Moneysupermarket.com Group PLC - Trading update
In its trading update relating to the six month period to 30th June 2008, Moneysupermarket.com Group PLC ('Group' or 'moneysupermarket.com') confirmed that its financial results for the first six months of the year were likely to be in line with the Board's expectations. The Board today confirms this.
The Group previously highlighted in its statement that trading in the loans market was extremely challenging. First Plus, the market's largest provider of secured loans, has today indicated that it intends to cease accepting new business with effect from 9th August 2008.
The Group will take steps to mitigate the impact of First Plus' decision by sourcing additional capacity elsewhere, by reviewing costs and by reviewing loans advertising spend. However the direct impact on 2008 revenues is expected to be approximately £7m and, depending on mitigating actions, a reduction of up to £5m in EBITDA.
Simon Nixon, chief executive of moneysupermarket.com commented: 'In our pre-close update we warned that trading in the loans and mortgages sector was 'extremely challenging'. This is evidenced today by the withdrawal of Barclays' main secured loan brand, First Plus, from the market. Over the coming days we will work to mitigate the impact of this on our business. Trading across the rest of our business remains in line with our expectations.'
Paul Doughty, chief financial officer 01244 665732
Ian Williams, director of communications 07515 329671
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