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Moneysupermarket boss bows out with bumper profit

Mark Lewis said on Wednesday he will step down to pursue a change in career.

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File picture of money (Dominic Lipinski/PA)

File picture of money (Dominic Lipinski/PA)

File picture of money (Dominic Lipinski/PA)

Investors smiled on Moneysupermarket as boss Mark Lewis presented what is likely to be his last set of annual results for the company.

In 2019 the business scraped together a 9% rise in revenue to £388.4 million.

Profit before tax rose 8.5% to £116 million.

Shares rose by as much as almost 11% as investors were buoyed by Moneysupermarket’s performance.

It marks a strong note for Mr Lewis, who is set to leave the business as soon as a replacement chief executive can be found.

The three-year boss announced on Wednesday that he was looking for a career change.

The board is now looking for his replacement.

“It’s good to report the group returned to profit growth and once again helped UK households save over £2bn on their bills,” he said.

“Innovation will continue in 2020 as MoneySavingExpert, the most trusted brand for finding energy deals, launches a new energy autoswitching service.”

It marks an entrance into an expanding market.

Autoswitching has become a busy place to be as companies jostle for access to customers who want their energy deals to be automatically changed to whatever is cheapest.

It is an addition to the company’s home services segment, which includes energy switching.

Posting 39% growth over the year, to £68.6 million in revenue, home services is Moneysupermarket’s fastest growing segment.

Comparison sites had worried that Ofgem’s new cap on default energy bills, which came into effect last January, would reduce the likelihood of households changing their energy supplier.

These fears did not materialise and switching hit a new record last year.

However, Moneysupermarket’s money business unit under-performed, with revenue down 2% to £86 million, as banks were offering fewer good deals on the site.

Insurance, it’s biggest segment with £188.4 million revenue, grew by 3% “despite the volatility in our natural search rankings” in the second half of the year the business said.

PA Media