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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Moneysupermarket.com says financial switching is slow, home services strong

"With substantially fewer financial services products on offer from providers, our Money business is significantly suppressed"

Moneysupermarket.com Group PLC (LON:MONY) said its insurance and home services divisions were beginning to return to normal but bank and credit card switching was very slow.

At the end of May, the price comparison website operator said its net debt stood at of £0.8mln, after paying a £46mln final dividend for last year.

Insurance is recovering, with levels of motor searches down 22% year on year in April and improving in May, though house insurance searches are being held back by the slow housing market and travel insurance is lifeless.

Amid rock bottom interest rates searches for credit cards and loans were down 37% year on year in April, while the proportion of consumers eligible for loan products on the website site fell from above 85% to below 65%.

As for savings, the early consumer move to secure better rates has shifted amid a “very significant reduction in the attractiveness and availability of products”.

In the Home Services arm, energy switching has been “strong” as consumers can still make large savings when switching and broadband growth has been “robust” as it becomes more important to consumers amid the lockdown.

"The lockdown restrictions have had a significant impact across our marketplace," said chief executive Mark Lewis.

"As the lockdown eases, we've seen motor insurance start to recover. But with substantially fewer financial services products on offer from providers, our Money business is significantly suppressed."

He said an upcoming development will be to launch the energy auto-switching service on MoneySavingExpert.

The shares were down 7% to 322.6p on Thursday morning.

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