Moneysupermarket shares tumble after growth warning

Price comparison website Moneysupermarket on Thursday spooked the City as it warned earnings would be flat this year despite an uptick in the wider market.

The company unveiled a new strategy that plans to make it easier for customers to switch and save on loans, insurance and energy deals, as well as offer more targeted services. However, it said growth will be slower than the 6% to 7% increase forecast for the price comparison market.

Chief executive Mark Lewis said: “Our goal is to offer our customers ways to save that they didn’t know existed and to do so in a way that is as effortless as we can make it.”

The business said that it also expects one-off costs of up to £9 million this year and it will inject a further £5 million to beef up its tech. It posted pre-tax profits of £78.1 million on sales of £329.7 million for the year ending December 31.

Shares fell 74p, or 22.5%, to 254.8p despite raising the dividend 6% to 10.4p and days after the AA, which sells insurance and driving lessons, saw its shares tumble as it said it plans to invest more in technology.