Moneysupermarket.com posts £51m loss
by David Masters
Story link: Moneysupermarket.com posts £51m loss
Moneysupermarket.com has become the latest credit crunch victim, posting a large loss for full year 2008.
The price comparison site recorded a £51.01 million pre-tax loss for the 12 months to 31 December 2008.
This is compared to a pre-tax profit of £7.55 million in the six months and nine days to 31 December 2007.
Net loss in 2008 was £59.11 million, compared to a £9.42 million profit in the six months during 2007.
The loss came despite increased revenues, and was due to a £70 million goodwill impairment charge.
Revenues have since dropped with the emerging recession, and plans to ‘reconfigure the business’ were announced at the same time as the results, with Peter Plumb appointed as chief executive officer, replacing Simon Nixon, who moves to executive deputy chairman.
Both appointments are effective immediately.
Gerald Corbett, chairman, commented on the results: “We are now in the grip of a full scale recession and it is the task of the new management team to get us through it whilst preserving our brand and market position.”
Peter Plumb added: “Because of the recession, we are currently trading at levels well below last year.
“My first task is to reconfigure the business for this lower level of revenue.
“The immediate task is to get leaner and more efficient, continue to generate cash and ensure the business is well positioned for when the recovery eventually comes.”